can anyone help?

dickoa

Hey there me and my partner are of very similar ages to yourselfs and we just decided BR is the only option. Its took me personally five years of struggling to try and make repayments i couldnt afford, and would never be able to afford to arrive at this option. But with the advice people on here have given us, you know your not on your own. Hope everything goes well for you.

RichOneday_2

OK, my thoughts now are basically that if we move forward in time, 12months and then 24 months this is just going to look more out of balance, unless there is a likelihood of a big increase in income on the horizon.

There are 2 trends which are going to adversely affect you imo:

a) The house value will continue to fall (obviously an opinion so get different views) and the money markets are expecting the average house price to fall from £174k today to £134k in Q4 2011. Now this may, or may not, turn out to be accurate but it is difficult to see how your 'shortfall' is going to do anything other than increase in the next 2 years.

b) Mortgage rates - The lenders are going through a process of repairing their balance sheets after the sub-prime losses and are doing so by edging mortgage rates higher. Again, only an opinion, but I see more chance of the mortgage payments going a bit higher in the short term than lower.

a) is likely to adversely affect your worth.
b) is likely to adversely affect your income/expenditure situation.

I'm not trying to alarm you so sorry if this looks very negative, but I'm just trying to work out whether its worth you putting yourself through such an almighty struggle. As the prospects on the horizon don't look to be riding to the rescue I think bankruptcy might be the better option to regain your sanity.

At least you can get back in control of your day-to-day budget and by the time you were ready to buy a property again theres every chance they will still be as cheap, or cheaper, than today. So being out of the market for a few years is no big deal and you will still be young!

But view this like X-Factor - you need at least 4 people's opinions and then some more before deciding to do anything.

Just keep asking questions though as you try to work through it. The people on here know pretty much everything between them!

vjw1986

do you have to be in a certain amount of debt before you qualify for bankruptcy? say £15000? would we lose the house if we went bankrupt? im just trying to figure things out in my own head!
by going bankrupt i know they would take assetts but i thought that would justbe things like the car and some belongings, we appear to have nothing in the house of any value this includes the fact that my oven has been broken for almost 2 months and we have no spare cash to get it fixed. there is rising damp and the roof could do with replacing asap. my mother has an additional house which we could rent from her for a nominal sum (although it is quite a journey from my work) as we have a dog and couldnt bear to part with her. itis proving difficult to find a rental that will accept pets.
i know my credit file would be affected for 5 years but how would it look after that? does anyone have this experience? i feel by going down the bankruptcy/repossession route it would allow us to get our lives and relationship back on track without serious implications as we havent applied for any credit/loans etc. in almost 18months since we joined cccs and this hasnt affected us in anyway other than the fact we have to save for the things we want, which we should have done in the first place to avoid the situation we are currently in.
i also forgot to add that our current mortgage deal is fixed for 5 years and is due to end october 2010.

betterlatethannever

vjw1986 wrote: »

do you have to be in a certain amount of debt before you qualify for bankruptcy? say £15000? the minimum amount you can go Br for is £750.would we lose the house if we went bankrupt? do you have any equity in the house?im just trying to figure things out in my own head!
by going bankrupt i know they would take assetts but i thought that would justbe things like the car and some belongings, we appear to have nothing in the house of any value this includes the fact that my oven has been broken for almost 2 months and we have no spare cash to get it fixed. there is rising damp and the roof could do with replacing asap. my mother has an additional house which we could rent from her for a nominal sum (although it is quite a journey from my work) as we have a dog and couldnt bear to part with her. itis proving difficult to find a rental that will accept pets. The Or would only take things of exceptional value and most household items are exempt. Only if you had antiques etc would they be interested. Yes, renting with pets can be hard, maybe you could try putting an ad in the local paper asking for a private rental that would accept pets? If not then your mothers house is a good idea if you can cope with the travel.
i know my credit file would be affected for 5 years but how would it look after that? its 6 years, after that it looks blank and virginal:rolleyes: .does anyone have this experience? i feel by going down the bankruptcy/repossession route it would allow us to get our lives and relationship back on track without serious implications as we havent applied for any credit/loans etc. in almost 18months since we joined cccs and this hasnt affected us in anyway other than the fact we have to save for the things we want, which we should have done in the first place to avoid the situation we are currently in.
i also forgot to add that our current mortgage deal is fixed for 5 years and is due to end october 2010.

Just added a few things in red for you. hope that helps

RichOneday_2

The minimum debt is only £750 to an individual creditor, but if you're petitioning yourself you've obviously got sizeable debt so its not relevant. £15,000 is a figure thats used for CVAs, no relevance to this.

You wouldn't lose your possessions in terms of normal household items, unless a particular item was considerably more valuable than usual.

Your credit file would be affected for 6 years and then clean, although you can credit in the interim - after your discharge it is simply up to the lender whether they extend credit or not.

RichOneday_2

betterlatethannever wrote: »

Just added a few things in red for you. hope that helps

Virginal Credit File.

First time I've heard that phrase but perfect for the situation. I like it.

betterlatethannever

RichOneday wrote: »

Virginal Credit File.

First time I've heard that phrase but perfect for the situation. I like it.

Yep, its the first time i've been 'virginal' for a while:o