in a bit of a mess - please help

SuzySu

Hi

I'm new to posting on this board, but do pop in from time to time to see how you cope with being BR. A little about our situation:

My partner and I have been trying to sell our house since Feb. Offer made and accepted in April and we were due to exchange in the next couple of weeks, but (to cut a long story short) the buyers are now pulling out of the sale.

SO......we are left with a huge mortgage (plus arrears which the lovely mortgage co are adding onto our payments for the next 6 months so we can catch up) plus a large secured loan and loads of CC debts.

We really can't afford this payment (of nearly £3000) on top of everything else. I have taken some advice from National Debtline who said our choices appeared to being either (a) self managed repayment plan or (b) bankruptcy.

I have read on here that it is possible to go BR, but still keep your house. If we had ours valued now, it would probably be in negative equity. Please can someone confirm whether this would be possible. If so, what exactly would happen to all our other debts (around £12,500)?

Thanks...

SuzySu

Sorry, just realised I have gatecrashed OP's thread when I thought I'd started my own.

Will try to get it moved.....

Sorry again.

fermi

Put into a new thread for you.

tigerfeet2006

Hi Suzy and welcome to the board.

If you were to go BR and wanted to keep the house the secured loan and arrears on the mortgage would not go into the bankruptcy, only your unsecured debt.

If your repayments for the mortgage, arrears and SL are significantly more than a rented property then the OR will most likely request that the house be sold and you move into rented.

SuzySu

Thanks Tigerfeet. Doesn't really seem any point in hanging onto the house then.

Could I just stop paying the mortgage (which would save us about £2000 a month), save for a rental deposit, rent privately and have the house repossessed. We could then ask for the shortfall to be included in our BR?

Anyone done this on here? This is a horrible situation to be in and I really don't know what to do for the best.

tigerfeet2006

Yes that it a perfectly ok thing to do sev-eral have on here.

Will find a link for you.
This is Scarlett's Diary, she is a very insprational lady
http://forums.moneysavingexpert.com/showthread.html?t=596237&highlight=scarlett+diary

SuzySu

Thanks so so much Tigerfeet - you have been so helpful. (Wish I could push the 'thanks' button more than once sometimes).