going bankrupt

jack_danny

Hi there, my wife and i are thinking of going bunkrupt. We are both self employed and finding it hard to find work due to economic climate. We are at moment 1 month behind with mortgage and have debts totalling about £7000 that we are being constantly hounded for. To make matters worse our mortgage fixed rate runs out so our mortgage will go up to £850 instead of £580. There is about £20,000 equity if we could sell. Any advise would be appreciated. Jackdanny.

skylight

£7k debts -£20k equity = +£13k (less sales fees)
Therefore you are not insolvent and will not be allowed to go BR.

Were those figures correct? No typos???

jack_danny

Out of the £20K I have a personal loan of £7000 that is behind with a payment so i am waiting for the bank to demand full payment. We also have a secured loan of £5000 on house which is up to date. I am probably being generous when i say £20k as houses around our area are not selling. I think it is only a matter of time before the bank repossess us leaving us liable for any shortfall.

skylight

Right. So what is your total debt then? Your first post states £7k, but thats therefore not right? Can you let us know how much is secured in total and how much is unsecured in total.

The bank is not going to repossess because you are one month behind with the mortgage - not at this stage, but if future payments are not kept up and this missed one paid off over a few months, then they will look at that.

jack_danny

Out of 20k i have a loan of 7k which is now in arrears and a 5k secured loan which is at mo up to date. Houses round our area are not selling so i think it will only be a matter of time before we get repossessed as we cannot pay the mortgage. If we get repossessed surely we are still liable for any shortfall.

Jacks_xxx

Hello lovely,

You're not in a position to go bankrupt I'm afraid - based on what you've told us so far. Of course your house valuation could be wrong...


You could call CCCS National Debt Line or the CAB for some advice:

http://www.cccs.co.uk/contact/contact.aspx


http://www.nationaldebtline.co.uk/england_wales/contact_us.php

http://www.citizensadvice.org.uk/index/getadvice.htm#searchbox

Or try CCCS's debt remedy online tool which will give yiu a good idea of what they're likey to suggest: (It also helps you to get all the relevant info together which you'll need whatever you decide to do.)

https://www.cccs.co.uk/debtremedy/(S(ep00jeetrya43j45plknsj45))/start.aspx?hp=104

Love Jacks xxx