Handing back the keys and starting over?

GirlyGirl_2

Despite everything I've read here, in my opinion I think you should go bankrupt and start again.
You can keep the car as long as it's not worth more than £5k and a fresh start would allow you ta actually have a life, you could spend 5 years penny pinching, switching electricity suppliers do you really need the headache when you've got a child to think of.
Some friends of our did it and it was the best decision, saved their marriage.

Jacks_xxx

It may well be that bankruptcy is the best option in the end but without more info about the situation I don't feel able to state that the OP should take such a drastic step without taking proper advice, and thoroughly researching the options.

Bankruptcy isn't a quick fix easy option, and the consequences can be far reaching. It's best to know what you're letting yourself in for before you sign up.

Having said that I know many happy bankrupts who are glad they did it:D - but as I said I don't think we have enough info about the OPs circumstances to say that *he* should do it.

For example: Where are they and the baby going to live? If they hand the keys back the council is under no obligation to house them, and they might have trouble finding a private landlord to take them either.

Also where I live private rents cost a lot more than they're currently paying on their mortgage...

Like I said honey, In my opinion we just don't have enough info to recommend a particular final solution just yet.

Love Jacks xxx

deedee_3

You need to get in touch with one of the debt charities. As said CCCS are very busy at the moment so if you can't get an appointment with them for a while then give National Debtline a ring, you may have to sit on the redial button.

Also pop over to the bankruptcy board and have a chat with them, they are friendly bunch and will answer your questions. But you must seek professional help as your first priority because if you do go bankrupt the judge will ask if you have sought it and can delay your petition until you do.

Link to the bankruptcy board

http://forums.moneysavingexpert.com/forumdisplay.html?f=136

Links to debt charities (with thanks to Fermi)


Main recommended sources of help:

• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

silvercar

If you do go down this road, you need to do things in the right order:

Find a new place to rent before you hand the keys in and before you go bankrupt.

I've posted on other threads about the difference between repossession and bankruptcy.

Do take professional advice and visit the bankruptcy board on here for advice and support.

GDB2222

Can I just add two points:

First, one of my clients went bankrupt a few years ago. Prior to bankruptcy, he looked a wreck. He was being pushed from pillar to post, trying to find a bit of money to satisfy first one creditor then the next. He was like a boxer on the ropes, ducking and diving desperately. I saw him just after bankruptcy, and he was a changed man.

Second, there are firms around that offer debt advice. Whilst the initial advice is free, they make money out of the deal (of course!). Usually, they organise an IVA (see http://www.insolvency.gov.uk/bankruptcy/alternativestobankruptcy.htm), part of which will involve them getting a fee that the debtor pays for, but which may involve some reduction in the loans. That could work for the OP, but it's not really free advice.

logie28

Would it be possible for you to extend your mortgage??

Maybe increase it to a 35 year mortgage , if your young enough?
possibly change your deal to one which allows you to take breaks??

My mortgage lets me take breaks for up to six months, might give you time to get back on your feet.

Good luck to you and your family, what ever you choose , things can only get better,

Jacks_xxx

:wave: Hey sweetie,

I've just added my points to yours.

GDB2222 wrote: »

Can I just add two points:

First, one of my clients went bankrupt a few years ago. Prior to bankruptcy, he looked a wreck. He was being pushed from pillar to post, trying to find a bit of money to satisfy first one creditor then the next. He was like a boxer on the ropes, ducking and diving desperately. I saw him just after bankruptcy, and he was a changed man.

I'm in no way opposed to bankruptcy in the right set of circumstances, but it's not a quick fix or an easy option.

If you'd seen me prior to sorting out our debt management plan you'd have said that I was in a terrible state but once I'd looked at all the info and I knew how best to proceed I felt much happier and more in control so you'd probably have said I was a changed woman too.

I don't think you can credit any particular solution with making people happy. It's feeling on top of the situation and having a plan of action that makes people feel better- rather than feeling scared and helpless because things are so out of their control.

Second, there are firms around that offer debt advice. Whilst the initial advice is free, they make money out of the deal (of course!). Usually, they organise an IVA (see http://www.insolvency.gov.uk/bankruptcy/alternativestobankruptcy.htm), part of which will involve them getting a fee that the debtor pays for, but which may involve some reduction in the loans. That could work for the OP, but it's not really free advice.

It's my understanding that an IVA is only the best course of action for a tiny minority of people and obviously the free one with CCCS would be better thann going with any fee paying company.

This is one of the options the OP can discuss with the CCCS of course - and for now here's some free advice from Martin on the subject:

http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

Love Jacks xxx

summermummy

Jacks - your post is so helpful - thank you for that. The only thing I would add is that I think bankruptcy is only an option as a very final resort. There are companies out there who will buy your house from you and release you from the debt - however you will have to pay them a rent for the house. Could your husband work from home for a couple of hours while the baby is sleeping, there are a number of work at home opportunities if he does a search on google or in the local papers.

sdooley

(a) speak to Northern Rock, even on their rates you should get a cheaper deal if you extend the mortgage term / go interest only. If you got it down to £650/month could you rent anywhere cheaper than this? Unlikely, unless you got social housing.

(b) Tax credits well worth looking into - also is your tax code right with work

(c) Make a priority of paying the mortgage and reduce payments on your unsecured borrowing to 'what you can afford'. Will wreck your credit rating but nothing compared to bankruptcy. Also bankruptcy limits your career choices.

donna1975

northern_worrier wrote: »

We've tried looking for either of us in the evenings and weekends, I've even looked at night work, just doesn't seem to be anything that we can find. Plus if she got a job I would have to drive her, costing us more in petrol

Ideally we would find her a job in the local area, but it is there is only 2 shops, none of which are hiring. However if I could get another job we should just be breaking even a month, hopefully. We should then be able to struggle on for a few years, maybe,

could she not do something like childminding that way she still stays at home with the baby, it will take soem time to get registered etc but if you can struggle on til then