IVA no longer an option

[Dee]

Hi

Not been on for a while. The presure of it all got a little too much and what with other family issues and the difficulties in my marriage I just sort of shut it all out.
Since deciding upon an IVA and going through collating all my paperwork my daughter has decided to go away to university. As my income will drop when she leaves further education ie maintenance, child benefit and tax credits but she will still require financial assistance my disposable income will be insufficient to fund an IVA.

After a great deal off soul searching we have decided to file for bankrupcy and sell our home and find a rented property.

My husband is finding this very difficult and even suggested that my daughter doesn't go to uni and find a job but she is an A grade A level student who is very ambitious and I just could never ask her to give up her dreams because I messed up. She works really hard and would be happy to support herself if at all possible but its not so there it is - my home or my daughters education?

I feel that I am making the right decision.

I have some questions:

1) Should I tell my creditors that I am filing for bankruptcy?

2) Should I put my house on the market ASAP before the bankruptcy goes through?

3) Should I make token payments to my creditors in the meantime?

There may be more later.

Thanks for your support over the last few months.

Dee

[debbiw]

Hi Dee, I think that bankrupcy may be a good option for you, at this moment, as your daughter should have the right to follow her dreams. At the end of the day, it must be a hugh sacrifice to have to sell the family home, but always remember that its only bricks and mortar, and your family and happiness is far more important. I wish you every luck in the future, and please keep posting to let us know how things are going x. One of the experts will be along shortly to answer your questions x

[chris.g]

Hiya Dee, as Debbie says, a house is only bricks and mortar, a home is where the family is happy and content.
As for your daughter going to Uni, she needs to be able to live her life and fulfill her dreams. If you don't mind me asking, why do you say she can not supoort herself?
As for the mortgaged house you have, the OR can allow upto 12mths before they request you move out, providing you keep up with mortgage and any secure loans, allowing plenty of time to find somewhere else. We rented pre-bankruptcy and the OR sold us to hand the keys back to the mortgage company. You don't have to sell it, it will be done for you.

[Dee]

The course she has chosen is in Liverpool and we live in Yorkshire. After calculating the cost of living in halls and travel, food etc and offsetting it against a part time income and the loans and grants she is entitled to she is still short by about £200 per month. The irony is she can't get as much as some students because it is income based and while we are in financial difficulty we still have what is considered a relatively good income. We have been down every avenue to find out whether our financial difficulties could enable her to get the maximum grants but to no avail.

[jane.l]

We are in the same situation, my daughter lives at home and travels to uni on the train, its about half an hour away so it works out ok. We are bankrupt. As my daughter is doing a degree course, her Child Benefit has stopped and we have to support her, paying for her food, etc. She gets a grant but it just about covers her train fare for the year and books, there is nothing left after that.

I would definitely chose my daughter’s education over paying creditors back, why should she give up her life just because I made a mess of mine!!! I know I got into debt but there is no way I would let my children be punished because of it.

[Dee]

Thanks to you all for the words of support.
[:)]

[emma_t]

H Dee

I am sure this was a hard decision, but sounds like the right one for you and your family at this stage.
I hope all goes smoothly and your daughter gets on ok in Liverpool. I am sure she will enjoy it as Liverpool is a great city and I love it when I go there to work.

Best wishes
Emma

[Adam Davies]

Hi Dee
If you ARE going to petition for bankruptcy then don't pay your creditors a token payment.Concentrate on securing rented property and put the debts behind you.
You should be commended for putting your daughter first
Regards

[Dee]

Started looking at rented properties today as I had a day off work. Rang one of the companies who advised that as a bankrupt they would require 6 months rent in advance but family would probably help us out and if we stopped paying our current mortgage and secured loan for a couple of months then we should be able to get this together.

I also contacted my local court today and they are sending me the pack.

The most important thing for me is that I have got my husband on board and he even told his family what we are going to do and everyone is in support.

Sounds crazy but I am quite excited about the future and the ability to help my daughter through uni gives me more satisfaction than owning my own home so it doesn't really feel like a sacrifice.

[MelanieGiles]

Dee

You are absolutely doing the right thing, and whilst it is not an easy decision to make, in the future you will be so glad that you did not compromise your daughter's future.

The very best of luck to you with your application, and if you need any assistance with the process there are experts on hand here to assist.

[emma_t]

Well done Dee, once a decision is made and you know what your option is it does make it easier.
Hope all goes well when you go to the court[:)]

[Reviva UK]

Hi Dee and congratulations for finding your solution to debt.

As Andy says if you are going into Br then you don't need to make token payments. You also need to ensure you have everything positioned correctly such as rental deposit, bank accounts ( incase the bank freeze yours - it is worthwhile going Br at the beginning of the month as this allows you time to sort the account before the dirct debits go out)

You also don't need to put the house on the market - unless there is some equity that could minimise the creditors loss.

Just think of it as a military operation and actually have a strategy and planning meeting with hubby. If you thik of everything you would be surprised how little stress there is.

Good luck

[Dee]

Hi

There is £10,000 equity in property (just had it valued) although if mort redeemed before May then there is £4000 penalty which would eat into this. I have actually found the perfect house and plan to view it this weekend, but still not sure how to deal with our house do I just not pay my mort and secured loan to use the money for deposit etc then move and hand the keys to the OR or should and try and sell. I am just worried I will miss out on this ideal property.

I have been totally honest with the letting agent about our situation and he said there was no problem and that I would only require 1 months rent in advance and a bond.

[Reviva UK]

Hi Dee

you might be surprised that in this marketplace the 10,000 potential equity will disapear due to estate agent fees, early redemption costs etc. That is assuming that you get the full asking price.

do you have 2 months rental now ( 1 month deposit and 1 month in advance) . I know the new rental house looks great but you need to be able to pay for rent etc plus bankruptcy fees etc.

[Dee]

Hi Paul

We are lucky in that our family would help us out with the rent and bond and if I didn't pay my mort and sec loan this month I would have enough for the bankruptcy.

I just feel a bit weird having always kept up to mort payments just abandoning the house!

Know what I want to do but just not how to do it!