Bankruptcy HELP!

MLouise_2 · 21 March 2018 at 10:27PM

It’s a very long story but....I bought a house when I was very young..had back advice from a broker & ended up with an awful NRAM Mortgage.Due to numerous situations the house was repossessed 5 years ago..the negative equity was on our credit files then disappeared almost 2 years ago so we ‘moved’ on.Then we received the dreaded debt letter in December.We owe £56k...on top of the affordable £10k debt we now have!I feel like our only option with this amount is Bankruptcy!Can someone that has recently been through it help me?How strict is the OR?What will they look at?Bank statements?Proof of bills?Will I lose my car (approx £2k value) Will I lose my mobile phone contract?Ny head is spinner bag with it all!!

MLouise_2 · 21 March 2018 at 10:29PM

Sorry for my typos!!!!!

silvercar · 22 March 2018 at 9:40AM

Two options, neither of which involve bankruptcy.

1. Duck and dive for another year. Lenders have agreed to a code where they only chase negative equity for 6 years from the repossession. If you ignore them they may go away. It is no coincidence that they have re appeared in your radar now. They hope you acknowledge the debt before the clock stops!

2. If you can't avoid NRAM totally, then it is likely they will come to an agreement with you to accept a small percentage of the debt in full and final settlement. I'm thinking 10-25% of the amount owed. You could also agree a monthly payment with them.

MLouise_2 · 22 March 2018 at 9:45AM

Thank you for your reply.
I have been advised that they have 12 years to chase this debt as it!!!8217;s from a mortgage?
I did think about a monthly payment plan but knowing NRAM they will sell the debt on & I fear I!!!8217;m just gonna be hounded for the rest of my life for this debt!
I know it!!!8217;s money that I borrowed...very stupidly after BD advice!

TheGardener · 22 March 2018 at 5:51PM

Hi and welcome: 1st step - take deep breath
2nd - get onto the Stepchange.org online debt remedy or call National Debtline.
3rd read everything on the sticky posts at the top of this forum

No you wont lose your phone contract if your payments are up to date but if BR, you will probably find it hard to be able to switch to another supplier easily for a couple of years so make sure you are happy with your provider.
Car - possible, but if someone else owns the car (can prove bill of sale purchase when you got it) and lets you have the use of it that would be ok? You are allowed a car worth around £1000
OR will indeed look at your bank statements and income and outgoings but you need to do a lot of research to work out the best route for you. Planning is a key ingredient in making the process as smooth as possible for you.

debt_doctor · 22 March 2018 at 9:47PM

silvercar wrote: »

1. Duck and dive for another year. Lenders have agreed to a code where they only chase negative equity for 6 years from the repossession. If you ignore them they may go away. It is no coincidence that they have re appeared in your radar now. They hope you acknowledge the debt before the clock stops!

Hi,
Unfortunately the CML concession (What Silvercar refers to) does not work in the same way or to the same rules as statute barred debt. In the CML concession, they have 6 years to make contact with you about the debt at an address they can prove you lived at when their letter was sent. It doesn't matter whether you respond or not - the CML concession guidelines have been fulfilled and the statute barred time limit for land based debt is 12 years, as you stated. They can chase you for the money.

However, as has been said in Silvercar's 2nd point, they are open to negotiation, and one of the weapons you have is - accept an affordable offer or I will have to declare bankruptcy.

Bankruptcy will indeed get rid off the debt.

DD

Bankruptcy HELP!

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