Advise please

[Erin]

This is my first post on this forum, Im not sure if I have posted this in the correct place, appologies if not.

Im sorry this may be a bit of a long post. Last year I seperated from my ex. We had a house (which was in my name only, no mortgage company would touch my ex!!) with a secured loan (the secured loan was in both our names). When my ex left it wasnt on good terms and he refused to help with payments on the secured loan while the house was on the market. I started falling behind with my unsecured debts because I was trying to keep up with the payments on the mortgage and the loan. I was having to pay gas, electric etc on my credit cards. Then to make matters worse I was made redundant from my job, I managed to find another job within 2 weeks of losing the one, but took a massive drop in wages (approx 500pound a month) so I fell behind on everything, which resulted in my house being repossessed I was taken to court by both my mortgage provider and the secured loan provider. The house has not as yet been sold, but Im expecting a short fall of approx 37K including the secured loan (a high short fall,due to the current housing crash)

Whilst all this was going on I was falling futher and futher behind with my unsecured debts (approx 7k worth) so I entered in a DMP with Baines and Ernst, I wish now that I had shopped around a little but I was just getting so stressed with all the phone calls and debt collectors that I just wnted it sorted. Every spare penny I have is being paid into this DMP, and Im really struggling to live, I was really poorly last month and couldnt afford my prescription It was so embarrassing having to ask my parents if I could borrow the money for it. After speaking with Indra Weight from VincentBond yesturday and getting advise about IVA's, I have discovered that Im paying an alot and should have been given more allowances, Im currently paying B&E 233pound a month, ill be talking to them about this this week to see if we can lower the payment at all.

Anyway, I have thought long and hard about my options for when I get the official shortfall figure from the sale of the property. I have been so stressed out and upset about this and had no idea what I was going to do. I did feel much calmer and much more positive after speaking with Indra,and had pretty much decided to go with an IVA, however today I have spoken with somebody who said that as I have no assests Bankruptcy would be the best option for me. Now up untill this point, I had been wanting to do anything that avoided me having to declare myself bankrupt, but now Im not sure what would be the best option for me.
Im soon to be moving to Aberdeen to start a new job, I have a place to live lined up, nice and cheap, all bills included in my rent, so an IVA would be affordable, but those living arrangements are not going to be permanent and eventually I would be moving into a place of my own so an IVA at that point may not be affordable, I wold hate to be paying into an IVA for 1/2 years then move and not be able to continue.
Then theres declaring myself bankrupt, if I do it up in Scotland, then I think Im bankrupt for 3 years rather than the 12 months it would be down here, Im also worried at what my new employer would think of me when they are informed of my bankruptcy, I know I shouldnt let this influence my decission but Im worried it could affect my job.

Im so confused guys and have absolutely no idea what to do. Any advise and opinions much appriciated.

Erin

[kallis3]

Hi and welcome,

Sorry to hear that you've not had a good time of it over the past year.

Bankruptcy would be a clean break for you, and you could do it before moving back to Scotland so you should only be bankrupt for 12 months.

As to jobs, then you would need to check how either BR or an IVA would affect whatever position you were going for. Perhaps an anonymous call to the HR department or check your terms of employment.

An IVA is a posibility and you have obviously taken advice from a firm recommended on here.

However, I'd give one or two others a ring - visit www.iva.com for a list of companies and reviews and you will receive free and impartial advice as to all the options open to you and the best way forward for your circumstances.

If you moved to Scotland before doing an IVA, it would actually be a Trust Deed (the Scottish Equivalent). Plasticdaft who posts on here is in one, hopefully he will be on and be able to give you advice on it.

[Adam Davies]

Hi
Bankruptcy will be for twelve months regardless of where you lived. If you have no assets then bankruptcy will be the quickest and most cost affective option for you. Your employer will not be informed, the only communication that they will receive will be from the tax office putting you on a zero tax code for the current financial year, however it will have no menion of bankruptcy
Have another chat with Indra as she will be more than happy to answer your questions and concerns I'm sure
Regards

[poppyfairy]

Hi Erin and Welcome

There are so many brilliant experts on this site that one will be along shortly I have no doubt who can advise professionally on your position.

What I would say is that I was officially made bankrupt today. The actual physical process is extremely smooth. The forms you need to fill in may seem daunting but if you go onto the CAB website they have excellent examples to help you through. Bankcrupcy is not an easy option. It has affected me more mentally than anything else purely because i so wanted to pay my creditors. If you are considering a BR or IVA you do need to get some good advice from an Insolvency Practisioner and it is quite ok to ask the opinion of a few IP's to see what they say and to find one you really connect with. Whatever you decide to do, there is a way through your financial pressures and you have taken the first massive step by addressing the whole picture and wanting to deal with it. Well done You!

Best wishes and keep posting.

Poppyfairy [:)]

[Erin]

Thanks for your replies

I certainly have alot to think about, and Ill certainly be getting futher advise.
The job ill be doing is just a care assistant for adults with learning disabilities, my new employer will be Aberdeen Council, does anybody know if an IVA or BR will affect my job? From what Ive read it shouldnt but I may have missed something, theres so much info out there I feel Im getting swamped by it all!!
Andy thankyou for letter me know that it would be 12 month bankrupt in Scotland, I was advised that it would be 3 years!!
PoppyFairy thanks for your reply, how long did the whole process take you?
Another question, from the info I have received through from Indra, it says that if I had an IVA, I would need to provide original sign loan agreement, I dont have this for the secured loan my ex does (he was the main name on the loan), if I did decide to go with an IVA, would a copy of this agreement be ok?
Also, if I delcare bankruptcy will my bank account be frozen? I have always been under the impression that it would, but have read today that this isnt always the case and some banks will allow for the bank account to remain open but will just remove any over draft/cheque facilty?

[poppyfairy]

Hi Erin

I only discussed with Melanie my IP about a BR last Wednesday. I phoned the court Thursday to book an appointment but they have a come on the day service, as a lot of courts do. So I went on the BR government website, printed off the forms - for a br you will need forms 6.27 (a short one - Debtor's Bankrupcy Petition) and form 6.28 a long form Statement of Affairs. Do not be put off by the length of the form - quite a lot of it may not apply to you. You will need to take time to fill it in. I did it in rough first then wrote it up neatly. I cannot recommend strongly enough to use the CAB example. It is so important for YOU to fill the forms in as correctly as possible as the Clerks at the court are so busy and can get quite irritated if people do not fill them in properly. I managed to get mine totally ok. I then attended the court on Tuesday morning when the BR office opened, gave the Clerk my forms (you will need to take three copies) and she checked them. I then had to make an oath that all the information on the forms was true. I then gave her my fees - I paid £360 for the Official Receiver as I am in receipt of income support and therefore did not have to pay the £150 court fees. (Otherwise you will need to pay £150). I then had to return to court today where I was told I would see the judge but he did not see me as he was happy with my petition. I was then handed a copy of my forms stamped by the court together with a letter confirming my BR. When I got home my Official Receiver called and talked to me for a while, and is due to call next Thursday to go through everything that will happen. And that Erin is it. Like I said it was a very smooth process and one which has been changed over the years to make things easier for the debtor so they are not punished further!

Your name will not go into the local newspaper anymore, just in the London Gazette. And a number of BR's are lifted now after 6 months - though will obviously stay on your credit file for 6 years.

I hope this helps and don't hesitate to ask anything else.

Poppyfairy [:)]

[Adam Davies]

Hi
Your account will be frozen but only for a few days, you simply withdraw any cash the day before bankruptcy and pay it back in once the account is unfrozen.
I think that a secured loan agreement will not be needed as the company will write and inform you of the shortfall, if not then as long as you have an account number the IVA company can write to them
Regards

[Erin]

Thankyou both again for you replies. Can you recommend any good IP's I can talk too? Ill talk to Indra again tomorrow, but would be good to look around a bit.

Im so glad I have found this website, im feeling alot more relaxed about things from reading through some of these threads. Its so nice to find a site that explains things in plain English!! When I spoke to somebody at the national debt advise line, I came off more confused than I was when I made the call!

[poppyfairy]

Hi Erin

If you check out this link http://www.iva.com/insolvency_practitioners
it will give you a list of IP's and their ratings. On this website their are a number of experts who can help you also. Melanie Giles, David Mond - Clear Debt, Micael People's and Andy Davie. I went with Melanie Giles (IP) who was fantastic when I was considering an IVA. Melanie and her team were superb they really looked after me. I also received really good advice about BR from them too. All the IP's have great write ups by many on this site, and there are also other IP's who are recommended also.

I am so glad you are feeling happier. Just remember it is one step at a time, one day at a time. Don't rush into anything - take your time to consider fully your options. Make sure if you go the IVA route that you do your Income and Expenditure at a realistic level and you don't leave yourself short - as you will be tied in for 5 years. You are making great steps as you are taking back control of the situation - and that in itself is a massive step forwards and so positive. Well done you!

Let us know how you are getting on.

Poppyfairy [:)]

[Max]

Hello Popy - how are you doing? You seem to have a new lease of life!

[kallis3]

She does, doesn't she?

Good morning to you David, and to J as well. Hope you are all ok.

[Max]

Hello Jan - everyone here is fine thank you - I am really pleased about Poppy. You will be taking over from Melanie on here now she is on holiday - you are going to be busier than ever!

[poppyfairy]

Oh Hi you special two!

I feel really great this morning. I slept last night for the first time in so long without waking from horrendous nightmares, waking feeling like my teeth are in a vice - as I grind my teeth when asleep. I slept. Pretty peacefully. Which is totally fabtastic!

I am so so grateful to you all on here. Really am. That has what has got me through, focused etc. I can't believe that this time last week BR had only just been suggested and here I am a week later and it is done.

Today is the first day of the rest of my life. It has been so long to not have massive stress inside me whether it is about the children, divorce, money etc. But I feel at peace now, quietly ready to move forward. One step at a time.

Massive hugs to you Jan J and David I hope you are all really well.

Poppyfairy [:)]

[shuli_b]

i like your posts too poppy fairy. my kids love looking at the amnimation, although they don't know what i'm writing about on here.

GOOD LUCK ERIN!!

hope things get sorted soon, you've had a tough time so far. many of us get more in debt because we keep using more credit to pay the existing debt, hence more debt.

[Michael Peoples]

Hi Erin. There is another option to consider. You could make token or no payments to creditors until you move to Scotland and ultimately there is very little creditors could do. Once in Scotland you could consider a Protected Trust Deed [PTD] which is the Scottish equivalent of an IVA but only runs for 3 years. At this time you will have a better idea of what you could afford and make your decision then. I am not sure if it would be the best advise to enter a five year IVA now when you will soon have the option of a three year PTD. Certainly speak to an IP but make sure they can operate in Scotland or can refer you to an IP there.