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madmacman
| 30-11-2008 12:27 AM |
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Joined: 29 Nov 2008 Posts: 3 | I did not intend this to be a long post...but it has ended up being one!! I used to have a good income, £80k pa, and combined with my wifes it totalled over £100k and we lived a good life - and had a lot of credit as a result. My wife some years ago had some some CCJ's against her so she was unable to get credit - having the credit in my name was not an issue. However my wife was re-diagnosed with cancer and last year I had to stop working to look after her as her condition was terminal; she sadly passed away earlier this year. Less than two months later my mother also passed away. I have my own company and operate as an IT contractor. The money that was built up to pay the tax was subsequently used to pay me whilst I did not work. After after these deaths I was grief stricken, the despair at the loss of my soul mate was at times insurmountable, and found it difficult to work for a while. The IT contract market subsequently disintegrated (as a part of the current economic crisis) and I am unable to find any work even though I am now over a lot of my grief and ready to work. My debts are approx. £160k and breakdown as follows... £30k Inland Revenue - Corporation Tax £50k Inland Revenue - Personal Tax £75k Unsecured debt - credit cards and loans £15k Overdrafts with bank - 50/50 with business and personal accounts I haven't paid the IR anything and I am in an ever increasing spiral with the unsecured debt - one credit card has now served me with court papers asking for their debt in full - £5.7k. I am trying to pay everyone a small amount each month but it isn't working out. My apartment has a mortgage on it for £178k although its current value is approx £155k so I have no equity to fall back on. I have tried to keep up on my mortgage payments but I am now one month in arrears. I did have a car but there was a fire in my apartment blocks car park and my car was written off - the insurance paid out £10k and the outstanding loan was £15k. As a result of the fire there is a huge amount of smoke damage to all the stuff in the apartment - I do have insurance but they are arguing with me about what stuff is worth and whether they will pay up, especially my late wifes possessions!! I cannot believe all my misfortune!! I went to the CAB last June and they put me in touch with PayPlan - thats all fine and dandy and the PayPlan DMP would work fine if I was in regular work and had a regular income, but I don't, my work, when there is some, is very short term. The CAB had suggested bankruptcy but I decided not to persue that option at the time. As a result of everything that has happened the only option open to me is bankruptcy. I have read all the official documents an the ones on this site about what happens after bankruptcy but, my question is, what really happens? I have already accepted that I will loose my home and I have a couple of alternative options as a lodger with some friends so I have somewhere to live until I can pick myself up again. So here are my questions: What happens if I get work again? From what I have read I know I should be able to get a very basic bank account but will my income be targeted by the IR and other creditors? Can I open a very basic building society savings account rather than a bank account? What about Tuxedo cards (the pre pay credit cards)? If I become discharged after a 12 months can people still come after me for money like the IR? Is there a limit to the amount of money I can earn when I become discharged? And what about inheritance after discharge? Can this still be taken from someone? (not that I want my father is going to pass away) Thanks for taking the time to read this - I really appreciate it and I hope some of my questions can be answered. MadMacMan |
| conwyman | 30-11-2008 02:02 AM |
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Joined: 05 Dec 2007 Posts: 21 My Profile | HI I am really sorry that you have has so much bad luck I am no expert on this matter and i am sure someone will give you advice Good luck what ever you do |
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| DW George | 30-11-2008 03:23 PM |
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Joined: 01 May 2007 Posts: 195 My Profile | Hi Madmacman and welcome to the forum. I am really sorry to read about your wife and mother - it must be hard to deal with such loses so close together. Losing both people has had such an impact on your life it is understandable that your priorities have changed and your tax and debt worries were obviously put to the back of your mind. I have left a message with a friend on mine, who is a tax expert, who will be able to tell me the options available to you about your tax problem. With respect you your other debts, bankruptcy effects people in various ways. Some think that it is the end of the road, but your recent loss may put bankruptcy into perspective it deserves, a vehicle to rid yourself of the stress. Another friend of mine has been through bankruptcy and thought it a breeze, and now has a new business and enjoying life. Now I am not saying that bankruptcy is a breeze but it is not as hard as some people make out. Once you have been discharged that's it, you can start afresh. So you can earn as much as you can. The OR will not be looking for your inheritance, if you father, who i hope has a lot of years in him still, shrugs off his mortal coil. There are several basic accounts you can take out when you under bankruptcy proceedings although I am not sure about building societies but i'll find out. In terms of the IR I think that you can't have their debts written off in a bankruptcy but as i said I get back to you on this one. If anyone knows for sure please post. MadMacMan you have come through a very dark time. I am not going to say things will get better because losing people close to you is very hard, and you get by finding coping strategies. However, both your IR and personal debts need to be addressed and I can guarantee you one thing, you will feel better dealing with them and not ignoring them. Life is too precious to waste on small things like debt. All the best and hope to speak to you later. George |
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madmacman
| 01-12-2008 12:09 AM |
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Joined: 29 Nov 2008 Posts: 3 | Thanks DW George for your reply and your sympathy. It has been a hard time, very emotionally draining. Even though the debt worries have been at the back of my mind, I have not lost any sleep over this at all. I really appreciate your help with regard to the tax issues, and look forward to reading the possible options open to me. I do not look at bankruptcy as the end of the road. For me it is a new beginning. I need to draw a line under the past and start afresh. A new start in so many, many ways. I realise that the period as a undischarged bankrupt is going to be difficult but I do have the support of some good friends who are willing to help me in kind. It is funny that you mention your friend. A friend of mine has also been through it too. He is only a van driver and earns about £15k pa. He and his wife divorced and she stuffed him for over £50k - there was no way he could afford to pay it off even though he did try, so he opted for bankruptcy after taking advice from the CAB and his was also a breeze - the best thing he could ever have done. I am not expecting mine to be a breeze as my debts/circumstances are different (as everyone's are) but your comments along with others on the forum, as well as my friends experience, have given me a great deal of confidence that this is the right thing to do and that it is not the end of the road. Thanks also for answering my question regarding the inheritance - my mother was very dominant in my parents relationship and I am only just starting to get to know my real father. The past 6 months have been a real education for me - my father spent 4 years in a PoW camp in WWII and has been telling me a lot of what went on that he never talked about when my mother was alive - so I really hope he has some years left in him as I still have so much more to learn from him. My elderly father doesn't have a lot, but, as an only child, I would hate to loose anything of value because of something like bankruptcy. With regards to the IR, it is my understanding too that it cannot be simply written off under bankruptcy although it may be possible to come to an "arrangement" over any outstanding balance - although they may want as much as possible for several years afterwards. I look forward to any clarification you can give to this. If I could rid myself of all the other debt then tackling the IR debt would be a manageable situation. There is also a moral obligation to this debt. Thinking about the IR for a moment - there was a recent case with Kerry Katona (someone vaguely famous) who the IR forced bankruptcy upon due to lack of tax payments. Surely they cannot be expecting any sort of payment in the future if they have resorted to this measure. Just curious. Again I look forward to any information you could provide with regard to building societies. This leads on to another question... Once I have my bankruptcy has been "approved" how do I go about getting a bank/bs account. Do I just waltz into a branch and say "I am a undischarged bankrupt and I would like to open an account". I just cannot imagine anyone saying "yes" to me or anyone else for that matter. Or will one of my current accounts be transferred to some sort of basic status? Surely, especially in the current economic climate, I and others in the same situation, would be considered too high a risk? It cannot be that straight forward? If I don't have any sort of account afterwards I am stuffed. Not totally, but I would be stuffed!! It has been a dark time but I have seen the light at the end of the tunnel (and its not the front of an oncoming train). Life is far too short - as I experienced when my wife passed away in my arms aged 45. She was not only my wife - she was also my best friend, my soul mate. Her loss has been devastating; crushing. As a consequence I have now re-evaluated my life and prioritise things differently. I have personal plans for the future - a complete change of life; a total redefinition of myself for the future. Bankruptcy, as I said before, is going to be a line drawn in the sand - the start of the next phase of my life. You say "Life is too precious to waste on small things like debt." - this is so, so true. This is the gateway to a new beginning. A very positive MadMacMan |
| helpmenow | 01-12-2008 10:01 AM |
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Joined: 15 May 2007 Posts: 38 My Profile | Hi MadMacMan I have been following this thread and I must say, you have brought me to tears. I can't begin to imagine what you are going through, but your positive attitude is shining through and it will help you through your money worries. Although not being in the same situation, I can say that in dealing with my debts, (currently in an IVA) a positive, "don't let the buggers get you down" attitude help me loads. I have a Bank of Scotland basic bank account which was relatively easy to get, although I would suggest going personally to the branch and get your bank account. Google basic bank account and do some research. Hope this helps, you are an inspiration, and I truly hope everything works out for you. HMN ps Your dad's story would make a great book! |
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T76
| 01-12-2008 02:10 PM |
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Joined: 01 Dec 2008 Posts: 1 | Hi MadMacMan, I am sorry for your loss and the curve ball life has thrown at you. I'm not an expert, but my husband and I are currently bankrupt and I can only tell you what we have been advised. I can also honestly tell you it is the best decision we ever made. We owed the tax man in excess of £30,000 and all of this has been included in our bankruptcy, they are unable to contact you or take any proceedings against you whilst you or bankrupt and after you are discharged this debt will also have been discharged (along with all your others). Your OR will access whether or not you have enough funds available to pay into an IPA/IPO. Whenever your circumstances change you must notify the OR who will amend your agreement. Therefore if you get work again, depending on your earnings, the OR may deem that you have enough disposable income left over to pay something each month. Equally if you stop working again, you should notify your OR and they will amend your payments. An IPA/IPO lasts for 3 years after the date it is set up and has no bearing on your date of discharge - unfortunately you will need to inform your OR of any inheritance received within this time, as it will be taken into consideration (the date of inheritance is the date of death and not the date you receive any money). If you are lucky enough to escape an IPA/IPO then you do not have to notify the OR of any money you receive after your date of discharge. The co-op cashminder account seems to be the most popular choice of bank account for bankrupts, as it provides you with a debit card. I hope this is clear and helps a little (I tend to babble, sorry). Good luck T |
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madmacman
| 02-12-2008 09:33 AM |
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Joined: 29 Nov 2008 Posts: 3 | Thanks: helpmenow conwyman dw george T76 For all your comments and input. As I mentioned in my original post there had been a major fire at my apartment block. A section 31 fire order had been put on the building limiting access and preventing people from living in it. At the weekend some scumbags broke into the apartment block and looted a large number of apartments - including mine and quite a few high value items have been taken. I am insured but that is not the point!! I guess its just my year for bad luck. 2009 will be a better year!! I will keep you posted as to what happens. I have a lot going on that I need to sort out at the moment as you can see so I am going to hold off until the end of February and see if my circumstances change. Then I will head to the bankruptcy court if I don't get another job. Thanks again for all your input, and T76 - you did not waffle, it was very useful information. |
