Help needed (again!)

Debt_Free_Chick

DeepintheRed wrote: »

I'm seriously considering B/R is my only option. However, don't you have to have some sort of excess income over expenditure to be able to go B/R?

nnnooooooo .... not at all. Excess income over expenditure would suggest that you have money to pay off your creditors (debts). If you did, you would simply offer every one of them a pro-rata payment.

Quite the reverse - BR suggests that you are insolvent. That your debts exceed your assets (which they do) and that you do not have excess income to repay your debts.

You will lose your house - but at the moment you are paying £1,533 a month (mortgage + secured loan repayments) simply to rent it! You're not buying it as you have no equity in it - indeed, it's contributing £15k to your debt.

You may have to sell your car - but you're going to anyway. If the OR agrees it's essential for you to have a car, you may be given money from the sale of the current one to buy a replacement.

Without your debt, you would have surplus income of nearly £500. If you could rent for £1,000 you would then have surplus income of £1,000 a month

The OR might require you to pay some of that surplus towards your debts - but leave that for now. Just don't start spending that surplus income, in your head - but do allow it to give you comfort that you will be better off than you are now.

And before you decide on BR do, do, do .... contact one of the Debt advisory services listed on this site and on this site only and have a look at the threads on the separate BR board.

Share your thoughts and concerns with us here and we'll all chip in.

Rootin' for you! Good luck

sugarpants_2

Hi hun

Good luck