Getting Desperate

Rubie-blu · 29 July 2008 at 11:07PM

Hello, I'm new and looking for advice.....

I am in debt, all unsecured owing money to credit cards. I'm not yet in arrears but struggling bigtime - using cards for living expenses/mortgage payments and paying from one to another. I've been to debt management advice and it seems bankruptcy is best option. I have a 16 year old, who will go to college in september, and my mum lives with me - she's elderly, blind, virtually housebound. If it was just me, i'd give up house but really worried about uprooting family (i think boy could cope, but not sure about ma!)

Does anyone know:
if I go bankrupt, how much notice will I have to get out of my house and how difficult will it be for me to find rented accommodation with a bad credit name?

(I asked Housing Association if they'd buy house off me so I could rent it backfrom them, but they said they don't do it.)

Hope this doesn't seem feable, i know people in a lot worse situations than me....

SouthernSoftie · 29 July 2008 at 11:14PM

Hi Rubie-blu....

Firstly, which debt management advice did you get, ie was it a fee paying company or one of the free advice routes like CAB, CCCS, Payplan or National Debtline?

As your debts are unsecured are they that bad as that is very drastic to end up losing the house. Have you exhausted all other ways? Esp as you have your Mum with you like that.

mizmir · 29 July 2008 at 11:24PM

Hi Rubie-Blu

Post up your SOA (see here for help with that) and see what advice you get here before you consider bankruptcy in your situation - credit card companies can be horrible to deal with but they have no right to your house.

Your situation may seem impossible but it is amazing what the good folks of DFW can do with an SOA!

Rubie-blu · 30 July 2008 at 7:08AM

Thank you for all you replies - I've been looking in wrong place on website i think, not great with IT skills.

I think they might be fee paying but said i wouldn't pay any extra on top of what i owe. I have just received a self help pack from Nat Debt Line and going to CAB (can't get through to them just yet).

The problem I have is that even if I pay the token £1 to each creditor for some breathing space, my mortgage nearly wipes out my salary anyway - so once I give in and lose access to credit, i'm worried how we'll eat!

Debt is about £43k. My priority expenditure leaves me with a short fall of about £200 a month and my credit card min payments are roughly £850 a month.

If I do a debt management plan, sell house (which'll cost about £13500 by time redemption/solicitors/estate agents fees paid and HiP!) could have £20k left which will have to pay to creditors and still owe £23k which could take 12 years to pay off. I know its my fault im in this situ, but I can't get my head around selling house to still owe money. So losing house through bankruptcy and owing nothing at end seems to make more sense - or is that fraud? Is it selfish?

What's an SOA?

Thanks again for all your replies

Rubie-blu · 30 July 2008 at 7:09AM

Thank you for all you replies - I've been looking in wrong place on website i think, not great with IT skills.

I think they might be fee paying but said i wouldn't pay any extra on top of what i owe. I have just received a self help pack from Nat Debt Line and going to CAB (can't get through to them just yet).

The problem I have is that even if I pay the token £1 to each creditor for some breathing space, my mortgage nearly wipes out my salary anyway - so once I give in and lose access to credit, i'm worried how we'll eat!

Debt is about £43k. My priority expenditure leaves me with a short fall of about £200 a month and my credit card min payments are roughly £850 a month.

If I do a debt management plan, sell house (which'll cost about £13500 by time redemption/solicitors/estate agents fees paid and HiP!) could have £20k left which will have to pay to creditors and still owe £23k which could take 12 years to pay off. I know its my fault im in this situ, but I can't get my head around selling house to still owe money. So losing house through bankruptcy and owing nothing at end seems to make more sense - or is that fraud? Is it selfish?

What's an SOA?

Thanks again for all your replies

sammy115 · 30 July 2008 at 7:21AM

Hi Ruby

You could do with posting a SOA on here so we can see whats going on. Are you claiming all the benefits you should be for your ma!

You will be surprised what can happen once you post a SOA, a fresh pair of eyes and all that....

Sorry an SOA is a statement of Affairs. You need to put down all your money coming in and all your money coming out. If you click on the blue writing on the post further up this thread it will take you to a page that will help you write down what you need to tell us. If you need any help just holler. Lots of patient people on here.

mizmir · 30 July 2008 at 7:22AM

SOA is a Statement of Affairs - outlines all your income, expenditure and debt in enough detail for people to be able to suggest savings etc. You may have pared everything to the bone but it is possible that new eyes might spot places you could save. The other thing is whether you can up your income at all? We have a challenge here where people are making an extra 5-10 a day or even more - and there is an "Up your income" board with lots of ideas. Both worth a look. Good luck.

NW-ANGEL · 30 July 2008 at 7:57AM

you will probably feel quite vulnerable sticking up your SOA lots of people do -but people on here are fantastic :T

there should be link somewhere for the SOA thingy template - can anyone post it please - mine is just downloaded to my lappy so havent the link

quite new myself but keep ya chin up

- as many say on here - things can be sorted an peolple are more than willing to help and there are some fab ideas:A

kel
x

SouthernSoftie · 30 July 2008 at 8:44AM

Here's the link.....
http://www.makesenseofcards.com/soacalc.html

Fill it in as acurately and as honestly as possible, scroll down and you'll find a button to format it for posting on here.
Add anything else like how many people are living on that income, etc.

You might also want to do one of these yourself to help you see where the money is going....
http://www.spendingdiary.com/

This site is brilliant, esp this section. You'll find ways to save, ways to up your income and the best way to juggle your finances etc.

My debts are at over £50k but I'm not worrying since I joined here, I've seen people sort out worse. Plus all the money saving/making can get addictive.... which means once you are in the habit, hopefully when all your debts are gone, and they will be one day, you'll be even better off as you'll know how to handle money better.

Waspeze · 30 July 2008 at 9:05AM

Just a thought but have you tried asking your mortgage company if you can go interest only for a few months to free up some of your income?

fatbelly · 30 July 2008 at 10:33AM

Waspeze wrote: »

Just a thought but have you tried asking your mortgage company if you can go interest only for a few months to free up some of your income?

Or if you can take a payment holiday - always worth asking!

Don't rush into bankruptcy. It might work but sometimes it's a 'sledgehammer to crack a nut' solution

Getting Desperate

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