Tag Archives: bankrupt

Sometimes doing the right thing may not be the right thing

Today was an odd day, odd that someone asked me a direct question that nobody has asked me before.  Although I have asked myself the question many many times.  What is the question?  well it is this:

“why didn’t you go bankrupt and start again?”

well, let me explain.  I wanted to pay back the tax debt, and I mean the whole lot, the whole 100K.  A ridiculous as it sounds, it was pride.  I wanted to do the right thing despite not a lot of the tax debt being my own fault (see other posts), and I was confident I could do it.  I didn’t count on how difficult the HMRC would be, or the amount of additional fines.

Anyway, that has been discussed many times.  The point is though, why didn’t I go bankrupt, it wipes all your debt and you have a clean sheet.  But, it comes with a lot of disadvantages too.  I was earning really good money so I went for the repayment option, and it has gone reasonably well, until now of course.

Only now do I regret the decision, not completely, but enough to wonder why I didn’t follow the logical exercise.  The thing is that thousands of people go bust, or become insolvent.  I didn’t want to be a statistic, but ironically I have become one in that I am now one of the millions in debt.

Interestingly, I have seen a few articles in the newspapers recently whereby people who earn 100K a year can’t survive.  People scoff, but I can totally relate to that.  In effect, the more you earn when self employed, the more tax you pay so you are always behind.  So my plan for continual payment plans was flawed from the outset.

It depends on what type of person you are, whether you can hold your hands up and say “that’s it, I’ve had enough, take it all” and begin the clean slate.  Or, like me, you constantly find ways to pay things back or maintain your game face.  In effect, your pride stops you looking like a failure.

But, I’m not a failure yet.  Yet, being the key word here.  I definetly believe in what comes around, goes around.  I figure I have actively paid back an enormous amount of money and have done everything possible to achieve that, so I must be due a break soon?

We shall see, was the decision the right one or not?  Only time will tell, but the time is running out.

If I fail anyway, I hope I maintain my pride.

cartoon highlights inner concerns

I have watched, and laughed at, The Simpsons for years.  Today though was different, the episode saw the family get evicted from the home for non payment of bills.  It’s odd isn’t it though, how one thing can instantly release your inner concerns.

From reading my blog you will know it is my worst fear, to lose the family home.  Even watching the cartoon reactions was enough to make me wonder about it again.   I wonder how many other people, in similar debt positions, have watched programs on television and instantly realised they might be next.

Looking at other programs, the listings are bleak.  Such programs as “Can’t Pay, We’ll Take It Away” and various repossession related screenings.   I wonder what message these are meant to portray, are they meant as a warning?  I watched one on catch-up it did seem to give you a shameful picture of make sure you pay or we will get you!  There is no empathy on there, just a couple of fellas with clipboards writing up your belongings whilst the poor family stand there.

This qualifies as reality tv I guess, but is the reality that bleak?

Nobody wants to lose their things, and the fact people do shouldn’t be plagiarised just for other people’s entertainment.   It’s a shame that since the introduction of Big Brother, nothing is sacred now.  Anything can be filmed, and played to an audience nowadays.

I aim to avoid this scenario at all costs.

house has gained in value…….dammit

When I first found out about the affair and my ex left, my house was the same price I bought it for.  Result…no equity to split with her.  However, she then took so very long to sign papers and finalise the divorce the house market has recovered.  Recovered so much in fact my house has a value of £195,800.  My mortgage is roughly £165,000 meaning an equity of thirty grand.

The excitable amongst you will now raise a beer and say “yay, you have cleared your debt”.

Not so my friends, and here is why.  Firstly, my ex still hasn’t asked for her half of the equity so £15k would be hers.  The reason this never happened is because the children still live in the family home 4 nights a week and was informed if she took the money I would be bankrupt and thus homeless.  She doesn’t need the money either right now on account of being looked after financially it seems!

Secondly, to get equity from a property you need to remortgage.  This is a no no as my credit history is now appalling.  Oddly when I took out the mortgage 8 years ago my credit score was superb, so good in fact if I applied for anything credit related the people would bow as they said yes!  I joke of course, but it was good.

So, I am actually worse off.  If my ex did her own research she would realise there is more money in the home than she realised.   Luckily she is pre-occupied but for home long?

But what if I declared bankrupcy?  yes I would lose my home but the equity would completely clear the debt and I could start again.  That is a very very attractive option and one I would welcome had I not had children.  This is their home, I made sure I kept hold of it after sound  advice from a child psychologist and the children themselves wanted to “stay in our family home”.

I suppose this isn’t totally bad news, at least if I do have to go down that route of putting my hands up, extending my middle finger to the Inland Revenue and going bankrupt, I know the debts will be paid off.  But I am still fighting to avoid that as you know

What I would like, from the government, is some sort of law where if two people have a joint mortgage and the relationship goes sour, that the mortgage should not be affected when the other person is taking off the house ownership.  I mean, why does the mortgage company care how many people live in the home if the mortgage is being paid?  In my case I paid every single payment yet they won’t give me the mortgage in my name.  Makes no sense at all.

Couples are the creditors favourite, but try to get the same approval as a singleton?  No go I am afraid.

Time to shred that new valuation!