Bankruptcy!
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Category: General Chat
Forum Name: General Chat
Forum Description: For mums, dads, parents-to-be, grandparents, friends -- you name it! And you name the topic you want to chat about!
URL: https://www.ohbaby.co.nz/forum/forum_posts.asp?TID=41066
Printed Date: 29 April 2024 at 3:49pm
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Topic: Bankruptcy!
Posted By: MissAngel
Subject: Bankruptcy!
Date Posted: 26 November 2011 at 8:27am
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So a little while ago I posted looking for people in the same situation as us with our damaged CHCH house.
Further to the story, the bank HAVE stopped paying rent insurance as of the 26th of October and will NOT pay out anymore because it's over the $11,000 cap. Now, when I spoke to the very helpful girl on the phone at the insurance place yesterday, she told us to 'not worry about it' and wait to see what EQC are going to do. Well in that time that we'll be waiting (EQC told me expect them to call late jan next year), we will most likely have had to declare bankruptcy. Because of that house being such a drain on us ($2240 a month that we DONT have) We're probably just going to walk away from it all. What I want to know, is have you done this before? I need to know what the bank will take. What can I get out now before we start doing things? Will this effect ME personally (apart from a fresh start) because my name isnt on anything - everything is under my husbands name. Will they take the car even tho I have small children that I need to get from a to b? (I know I cant change it to my name because they check these things and would take it anyway). We are going to get legal advice, but I thought I'd put the feelers out there and see what you lot know! ------------- Alex, Thomas and Lily http://lilypie.com" rel="nofollow"> 
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Replies:
Posted By: Lucky apple
Date Posted: 26 November 2011 at 9:38am
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I have no idea, but think its a really good thing to totally undstand before doing. Perhaps call citizens advice bureau to ask them?
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Posted By: MissAngel
Date Posted: 26 November 2011 at 9:48am
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Yea, we just have to wait til monday for that :) ------------- Alex, Thomas and Lily http://lilypie.com" rel="nofollow">
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Posted By: MrsMc
Date Posted: 26 November 2011 at 9:58am
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i have no advice sorry but just want to say im so sorry you are in this position! I really feel for you
Hopefully something can get sorted and you can get a fresh start |
Posted By: snugglebug
Date Posted: 26 November 2011 at 12:17pm
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I know someone who went bankrupt and it does have massive effects, more than they let on. He was unaware of how it would and does continue to impact on his life.
Basically, they will take what they can take. If your name isn't on anything, they can't take anything that belongs to you. So if you don't want to lose your car, get the ownership in your name, because they will take it otherwise. I don't think they consider circumstances, they will just take what they can take. Check out the insolvency website. What you need to be aware of it once your husband goes bankrupt, it's with him for a long long time. He will have trouble getting jobs/houses, will have no way of getting any loans or finance for a very long time (it takes 3 years to be discharged, but 7 years for your credit record to be wiped and in that time people are very unlikely to give him a loan, so he will not be able to get a mortgage, or any kind of help at all). Can you live without access to any credit at all? My advice is if there is any way you can avoid this, please do because it's not really a fresh start, it has its own consequences. Unless your credit is good and you have a job (I dont know your circumstances), you won't be able to get credit to offset the fact that he can't, so that will cause a lot of stress if you evewr find yourself needing it. It's a fresh start away from this problem, but not a fresh start. They may also still make you pay some of it back depending on how they assess your situation. I would strongly advise not to if there's anything else you can do, as I have seen someone go through this and even though it happened 5 years ago it's still impacting them now and they just want to move on. I would look into all other options, loan from other people, mortgage holiday, whatever you have to do, before you do this. See it as a last resort. Feel free to PM me and I can talk in a less vague way just wana respect the person's privacy that Im talking about ------------- Me 28, DH 29 DS born 20 Nov 2010 (4 years old) #2 due October 7 http://lilypie.com" rel="nofollow"> 
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Posted By: UpsyDaisy
Date Posted: 26 November 2011 at 12:50pm
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Sorry cannot help specifically. But wigglyjiggly is right it does have very serious ongoing implications. It would seem unfair for you to have this negatively effect your finacial future due to the earthquake. This post doesn't really say what you have discussed with bank looking into other options eg morgage holidays - no repayments for a set time but the interest is added to the sum of the loan not ideal but far better than bankrupcy. I would have thought the bank would do all they can to stop a default as they actually lose out $$ that way too. Please please get some legal advice paid and through citizens advice. Your local MP's office can often help you by acting somewhat as an advocate making sure you have access to the right service eg budget advisory and making sure those people follow up in a timely way, wonder if they could get EQC to move a bit sooner too. |
Posted By: MissAngel
Date Posted: 26 November 2011 at 2:38pm
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We've had mortgage holidays, they wont give us anymore. It seems that a LOT of people are in the same situation that we are. Hubby has a really good job and an awesome boss who he's discussed this with - his job is secure.
We dont have any problems budgetting or anything like that - although our weekly food budget has halved, which is fine as we were spending way too much anyway :P We dont need to get finance for anything and wont. Apparently the monthly payments that we'll be made to pay are under half of what the mortgage payments were anyway, so that's fine. I cant change the car into my name or anyone elses - they'll look at when that was done and will take it anyway - no cash can be exchanged for it - plus if there was cash exchanged, they'd take that. Its a whole big bullsh*t mess and to be honest, if we could have lived by keeping money under the matress instead of the bank, then we would. Damn you earthquakes for screwing us over and damn you bank for not being sympathetic. ------------- Alex, Thomas and Lily http://lilypie.com" rel="nofollow">
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Posted By: UpsyDaisy
Date Posted: 26 November 2011 at 3:20pm
 Thats so hard....I guess you've thought of every option already seems extremely unfair to have to consider insolvency/bankruptcy when EQC may make payment in only a couple of months. I hope some financial/legal advice can help you...good luck
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Posted By: blossombaby
Date Posted: 26 November 2011 at 4:59pm
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Not alot to say but big hugs
is moragee sale an opiton, can someone lend you the money till you talk with eqc? tho i'm certain you have thought about all parts of this? Campbell live? I'm sure he would love to get his hands on this ... and i bet eqc will be around to "talk" the next day? What is happening is just terrible - but like someone said above b/c is so bad at the time but its the impacts in the future? having to declare it for new jobs etc? Is there anyone that can say - 'buy your car' for an amoutn that you can pay to the bank and then put the car in their name and let you drive it? aghh I don't know i would be thinkign so hard what to do .. i would also get rid of anything of sentimental/ vaule to you .. anything like a newish tv send that to mum and dads and put the spare in your house, je cos they will try and to take whatever they can to recop costs. ------------- http://lilypie.com"> 
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Posted By: frangipanigirl
Date Posted: 26 November 2011 at 5:11pm
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i dont have much to add apart from i work for a bank and it is a real pain when you are bankrupt to do anything banky!
The bank will put a warning on your acc so DH wont be able to have a debit card, he will have to come in and get cash out and will only be allowed a certain amount that the bank will stipulate. Also means that DH wont be able to have a credit card or apply for one for 7 years, or do internet banking. Some insurance companies dont allow you to have insurance either which is totally stupid, i only heard this from a friend whose parents are now bankrupt, so my friend has insurance on her parents place for them!! I really really hope you dont have to go through this! thinking of you and sending big hugs!!! ------------- 1st round IVF 7 Eggs, 6 fertilised, 1 transferred with 5 on ice! http://lilypie.com"> 
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Posted By: jazzy
Date Posted: 26 November 2011 at 6:00pm
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Sorry don't know anything about this & I don't know your living situation but take it this is a rental property. If you are living in another house any chance of renting that out & living with family so you can pay the mortgage.
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Posted By: Stoked
Date Posted: 26 November 2011 at 10:30pm
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I didn't want to read and run.
I'm really sorry, your situation sounds awful. My only experience with bankruptcy is through a friend and yes it created havoc in all aspects of their lives. Her hubby was training to be a project manager but no-one would hire a pm who was bankrupt. It had a severe emotional impact on their relationship as well as financial and unfortunately their relationship did not survive. I second going to the CAB and trying to avoid bankruptcy at all costs. It may seem the sensible way out at the moment but in the long run it could be extremely difficult. Best wishes to you. ------------- http://lilypie.com" rel="nofollow">  http://lilypie.com" rel="nofollow">
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Posted By: IVFGirl1111
Date Posted: 28 November 2011 at 9:00am
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I'm really confused - has it been zoned redzone? ------------- TTC 6 years IVF it is IVF/ICSI round one 10 eggs, 8 mature, 3 fertilised BFN IVF/ICSI #2 = 22 eggs! 20 mature, 15 fertilised, 1 fresh transfer and 2 frosties BFN 2 Frosties still in freezer thank god |
Posted By: Gen2011
Date Posted: 28 November 2011 at 9:21am
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Posted By: Nothing
Date Posted: 28 November 2011 at 5:43pm
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They are allowed to turn up to your house at any time and take any furniture that is over a set value (around $1000 I think). Pretty much its the LAST thing you should ever do, and only if you have absoloutley no chance of it being resolved then I would go down that track. Have you tried calling EQC again and again and again???? Hugs, I hope you can work something out :) ------------- 
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Posted By: luv2dance
Date Posted: 30 November 2011 at 4:15pm
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If you declare bankrupt then that wouldn't that also mean you won't be able to get the govt payout for your house being in the redzone? If you are bankrupt and no one wants to risk renting a home or loaning $$ to you where will you live? ------------- http://lilypie.com"> 
http://lilypie.com"> 
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Posted By: BriAndOlisMum
Date Posted: 01 December 2011 at 8:30pm
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My partner went bankrupt he still owned a car, had a debit card and used internet banking. You cant work for yourself, get any credit, leave the country without their consent. It ddnt really seam to impact us too much tho and he has been discharged for 2 years now and now has the power and phone in his name, they had no issue giving putting them in his name -------------  http://www.myfitnesspal.com/weight-loss-ticker">
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Posted By: MissAngel
Date Posted: 03 December 2011 at 6:40pm
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About the zoning: It's not in the redzone and never recieved a sticker after this all happened. No-one went to visit it until August.
If we dont declare bankruptsy and get everything taken anyway we'll have problems finding somewhere to live. So it's sh*t either way. I spent all day on the phone yesterday trying to get things sorted, but the bank doesnt wanna know anything. it turns out also that BNZ have the smallest rent insurance cap. Lucky us. ------------- Alex, Thomas and Lily http://lilypie.com" rel="nofollow">
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Posted By: IVFGirl1111
Date Posted: 05 December 2011 at 9:37am
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So is it deemed a rebuild?
I was just speaking to my best friend who's a lawyer and she said it just doesn't sound right and there a ways around it - the last thing you want to do is go bankrupt over it. Have you got lawyers advice? ------------- TTC 6 years IVF it is IVF/ICSI round one 10 eggs, 8 mature, 3 fertilised BFN IVF/ICSI #2 = 22 eggs! 20 mature, 15 fertilised, 1 fresh transfer and 2 frosties BFN 2 Frosties still in freezer thank god |
Posted By: MissAngel
Date Posted: 06 December 2011 at 10:19pm
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I have an appointment with a free lawyer tomorrow.
Apparently it's a rebuild, but we still have to wait for fletchers to go in an do their assessment and make a choice. That could be another few months away! God it's annoying me even more now. ------------- Alex, Thomas and Lily http://lilypie.com" rel="nofollow">
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Posted By: RBsMama
Date Posted: 07 December 2011 at 9:01pm
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Have you thought about selling it? There's a company advertising in chch that buy properties in all conditions. Not sure if that is an option. ------------- http://lilypie.com" rel="nofollow">  http://lilypie.com" rel="nofollow"> 
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Posted By: IVFGirl1111
Date Posted: 08 December 2011 at 11:15am
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How did you go at the lawyers? ------------- TTC 6 years IVF it is IVF/ICSI round one 10 eggs, 8 mature, 3 fertilised BFN IVF/ICSI #2 = 22 eggs! 20 mature, 15 fertilised, 1 fresh transfer and 2 frosties BFN 2 Frosties still in freezer thank god |
Posted By: MissAngel
Date Posted: 08 December 2011 at 6:42pm
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Good! She said we should get a paid lawyer to fight for us. Free legal services dont do that.
re the selling - we'd have to get what it owes us in order to be free of all this - I doubt they'd give us what we need but ill look into it. ------------- Alex, Thomas and Lily http://lilypie.com" rel="nofollow">
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Posted By: RBsMama
Date Posted: 13 December 2011 at 9:52am
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How's it going MissAngel? Any luck with this situation? ------------- http://lilypie.com" rel="nofollow"> http://lilypie.com" rel="nofollow">
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