Hello & Need some help

Smiling_Girl_2

Hi

I've got lots or problems and lots of questions!

This might be a bit of a ramble as my heads all over the place right now but I hope you can bear with me.

Right here goes. My husband and I owe about 90lk on cards, 10k to family and own a house each. Our outgoings each month are somewhere in the region of £5,500 including credit card payments. We currently have no income, although Mr Smiling Girl is out looking right now.

One house is in my name (our family home) the other is in my husband's name (a renovation project that is on the market. The reason we've got into more mess than we would have been is that the surveyor downvalued the property by a about 60k. Assuming we get the price he valued it at we would be able to knock 40k off our debts minus the outgoings we pay on it each month until it is sold)

We have credit cards in each of our names and one or two where we are name card holders on each others accounts. We have a joint bank account.

We have a business and associated accounts.

At the moment we have access to a £3000 overdraft on our main account. This should last us until the first week of November. At that point we are in trouble.

Should we go bankrupt? If we do can one of us go bankrupt and not the other? Would a joint bank account affect this? Would being named card holders affect this? Could we loose both houses?

Should we contact everyone and tell them that we are struggling? Will they get nasty and freeze our accounts or anything? Are some companies better than others at being nice?!

If my husband were to go bankrupt could he sell the business to me? Would I then be able to employ him afterwards? He works in I.T.

I've got lots more questions but I've got my little one trying to attack the computer so I'm going to post this before it gets deleted.

Thanks in advance for any help and if this is in the wrong place please let me know
SG

Magentasue

This is so the right place! I think your best bet would be to contact one of the organisations on the blue banner at the top of this page. If you click on them, you can check out the websites, some have a self help pack that you can dowload to get started.

You need to work out a budget so that you can see what you can afford to do - but first you need expert advice on what your options are. I have no experience of bankruptcy but I've read many times here that it is not as awful as it sounds.

I think you have to be up front with people you owe money to - they may well freeze accounts but that may be in your interest if it stops you running up even more debt.

Do seek help - sooner is always better than later. Good luck!

southernscouser

Hi Smiling Girl. Welcome to MSE. :hello:

A couple of things that are confusing! You say your husband is unemployed and you have no income but you also say you own a business! Is this not making any money?

Also you say you have an overdraft that will last you until the first week in November. Do you mean December?

To help you as best we can we need as much information as possible. Have a look at the thread below then post back here.

http://forums.moneysavingexpert.com/showthread.html?t=107280

I would also say give either the CCCS a ring or Payplan today. They are debt management charities so you don't have to pay them anything for their services. They are amazingly well thought of on these boards. Details are in the thread above.

SS

Smiling_Girl_2

thanks both.

Husband owns a company but is an i.t. contractor. He hasn't earnt anything recently as he has been doing up the second house.

Yes I mean December!

Will get phoning people. Husband has phoned national debt line twice but they haven't called back

Will have a look at that thread this pm. My two little ones just don't seem interested in all this debt stuff!

SG

Robert_Sterling_3

For the sake of the little ones you will need to keep smiling girl.

Robert_Sterling_3

"The reason we've got into more mess than we would have been is that the surveyor downvalued the property by a about 60k. Assuming we get the price he valued it at we would be able to knock 40k off our debts minus the outgoings we pay on it each month until it is sold."


What was the original valuation on the house?
What did you actually Pay for the house?
When did you take possession of the house?
When did the surveyor give a second valuation?
Was the renovation finished at that time?
What explanation did he offer for the fall in value?
Did you pay a fee for each valuation?
What is the price at which the property is currently for sale?
How long has it been for sale?

Xbigman

Of the 90k you have of debts how much has been caused by the renovation?

Your husband needs to start earning again, now. If he does what income can he expect?

There are lots of questions about your circumstances that need answering but I don't see bankruptcy as an option right now. It might be worth considering *if* the family home is solely in your name and the renovation and debts are solely in his. Even then, if he owns the business and it has assetts that would go.
Regards



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