IVA no longer an option

[go_4_broke]

Hi Dee

Looks pretty good to me with one minor exception and you have set it out in a neat way which makes it easier for others to comment.

In respect of (1) I would certainly agree with Paul. You might think it would shut them up but it is likely to have the opposite effect as they go for a last throw of the dice. 'I'm going bankrupt' is one of the commonest excuses used by debtors and most of the time they don't mean it. It's probably better to say nothing, actions speak louder than words on this one.

Again further to what Paul has said selling the house before you declare is a bonus rather than an essential. I would think once you get it on the market the reality of the position will become apparent pretty quickly. Once the outstanding mortgage (which will be rising all the time) + expenses overtakes the value of the property it's over to the mortgage company and there's no point in waiting any further.

Other than that it's pretty academic when you go subject to what your other (unsecured) creditors are up to and simply wanting to see the back of it.

With the car you may be OK up to £2,000 IF you can justify a genuine need, ie you need it to get to work and there is no viable public transport alternative. However if you buy for around £1,000 and value the car at, say, £750 on the forms, the OR is likely to start losing interest if you have a halfway decent justification. As usual I'm winging it a bit here but I'm sure others will come in !

Best Regards, Simon.

[Dee]

Thanks Paul I understand what you are saying and I am feeling positive the most important thing for me is for us as a family to know where our home is to be. I think it will be ok to hold off the rental until beginning of May because as I understand it there are tenants in the property at the moment so it hasn't been on the market for new tenents for very long. I am also using the same agents for the sale as I am for the rental and they are fully aware of our circumstances so I think it will be easier to handle the transition.

The rental house will save us £450 a month as our combined mort and sec loan payments are £1000 whereas the rental house is £550 and that is a fairly new build with 4 bedrooms and a garage. This means we will be able to fund my daughters education and still be able to make some payments to an IPA.

I always thought when people lost their homes (sorry houses) they had reached the very bottom but I feel elated. I am happy to put all this behind me with the knowledge that I can start all over again even if it is 10 years from now.

Dee

[Dee]

Simon and Paul you are a God send thank you so much

Dee

[Reviva UK]

Hi Dee

The other reason I suggest a TIMELINE is that you have a goal and know exactly when you will be debt free. This will start to reinforce the position of you being in control rather than being controlled.

It is only a small thing but in reality the control will be really important to you and the family as you draw a line under this and move forward in a new home.

[Dee]

Hi all
Just come back from a very snowy visit to Great Yarmouth to visit my Mum.
Went to visit the rental house last Thursday. We really liked it and have decided to apply. The landlord was a bit taken aback by my honesty on our financial situation and although the agent said that it wouldn't be a problem I don't think that he saw it that way. However, he liked us and appreciated our honesty. I said that we would be happy to pay 3 months rent up front to alay his fears so he is going to speak with the agent for more advice.

The house will be on the market next week and I stopped the DD's for the mortgage and Secured loan. I have received the court papers and will start to fill those in and gather all the relevant paperwork over the next few weeks.

I have one question: If the house is valued at £135k and we owe £125K how little could we take for the house for a quick sale to prevent repossession? I don't want the OR to think that we have taken a lower amount therefore depriving the creditors.

While we were away we took my mum up on her offer to babysit and had a few drinks in the local. We had a really good much needed but long overdue talk. We are now completely together on this and took Pauls advice to work out a time line:

For the next 3 years we will be paying into a IPA after this these funds will go into a savings account topped up by money saved by not needing as much childcare and my daughter finishing Uni. Afer 5 years we should have enough to put down a sizable deposit on a new home which we hope will be a 15 year repayment mortgage taking us up to our 60th birthdays. We should be able to comfortably able to afford the repayments made up of the rent and savings over the previous 5 years.

I know this all sounds a little idealistic but its a plan and a hope for the future to work towards.

PS I have an interview for a promotion at work next Thursday. Wish me luck.

Dee

[emma_t]

Glad things are moving on for you Dee, sometimes when you have a solution in your mind it makes it easier to go through the steps.

I am glad you have found a house you like and good luck with that[:)]

All the best of lck with your interview next Thursday, let us know how you go on[:)]

Can't answer your question about house value as I haven't a clue, just wanted to wish you well
Emma x

[MelanieGiles]

I personally would leave the house sale up to the Official Reciever, as you will no doubt be bankrupt by the time the property eventually sells. To cover yourself, if you get a letter recommending the sale from your estate agent at a certain price, this should be sufficient to enable appropriate confirmation to be provided to the Official Receiver in the event that your decision is ever queried.

[Reviva UK]

Well done with the long term timeline - sounds good and something to really aim for.

You may now want to review the short term timeline for the next 3 - 6 -9 & 12 months and develop a detailed action plan. This way you will know exactly where you are and what the next "bit to do " is.

I am currently helping someone who is extremely anxious and frightened and continually worried. However by doing one task at a time they have been able to slowly regain control because they can actually see success step by step.

The big picture is simply too big, but when viewed one pixel at a time it is manageable


new

[Dee]

Still not sure how the next few months are going to pan out and because a lot of things are out of our control ie whether we are accepted for the rental house, how quickly the house sells etc.

If we are accepted for the house things will become much clearer. They would want us to move in in May. I'm still not certain what to do about our house in terms of the bankruptcy. After looking into house sales in this area I tend to agree with Melanie on this issue and let the OR deal with the sale of the house. Some of the best Estate Agents in the area have only managed to sell one property this year. If it takes months I am going to be in the position where I am dealing with calls from not only my unsecured creditors but also the mortgage lenders and the secured loan lenders until the house sells which could take months.

If we are accepted for the rental home then I think I will approach my family to assist with the bond, upfront rent and bankruptcy fees. We will then file with the bankruptcy paperwork with the local court and let them take it from there.

Dee

[Dee]

Just a quick question: Can I include in my bankruptcy a £1600 elec bill which I am currently paying back via a meter and can I include the overpayment of tax credits which stands at about £7500?

[Dee]

Just a quick question: Can I include in my bankruptcy a £1600 elec bill which I am currently paying back via a meter and can I include the overpayment of tax credits which stands at about £7500?

[go_4_broke]

Hi Dee

The position with the Tax Credits is complicated and depends on whether the debt is from the current year or prior years, among other things. Have you had a formal Notice of Recovery ?

I don't think there is a problem with the elec. bill but you may still have to use a pre-payment meter.

Best Regards, Simon

[Dee]

The CTC debt is from previous years and they just deduct 10% from my current award.

Regarding the Elec does that mean I cant change providers? I am not at all happy with my current provider and have had numerous complaints with them. I only remain a customer due to the large amount of money I owe.

Thanks
Dee

[go_4_broke]

Hi Dee

I think if it was a prior year debt it goes into the Bankruptcy, as long as you are both going bankrupt (assuming a joint debt).

I don't see any reason not to change providers, it might be a good opportunity to try and dump the pre/repayment meter. I'm not sure what notice other companies get of the bankruptcy, but if you can get a standard tarriff in the rental house before you declare BR you can probably stop worrying about it.

Best Regards

[Dee]

Thanks Simon [:)]