Newbie considering BR

jellygirl_2

Hi All - this forum is very helpful.
I wondered if I could perhaps get some advice - I am single with no kids, mortgage 81k secured loan 20k - house only worth prob 80k - unsecured ccs + OD 11k - cant afford to pay all this an live each month anymore - nothing in arrears yet but will be after this month. Am seriously considering letting it all go, and starting from scratch as this has been coming for years. Am feeling very stressed and brain is overloading a bit - wondered about how to plan the BR - 1)how soon to move into rented 2)whether to open another back account yet to have my wages paid in so that there will be enough in for rent payments until BR?
Its the planning and timing of what order to do things in that Im finding difficult - so many scenarios running through my head.
I called Nationalk Debtline for the first time yesterday - they didnt give me any specific advise to go BR but I dont qualify for IVA so think thats the best way really. Has anyone called their dedicated insolvency line? Also, what specific details does the OR or court require with regard to what professional advice one would take before filing?
Any help at all would be much appreciated:)

So_Sad_Angel

Hi Jellygirl

Hope you are ok Hun, I hope that typing out your situation helps...sometimes just sharing your thoughts with others can help clear your head.

Perhaps speak to CCCS & CAB to see whether there are other options....such as debt management plan that may help reduce outgoings & also have you contacted your lender about payment holidays ...to give you some breathing space. If you decide BR then you will then have cash to save for rented & bond etc

I moved into rented at the beginning of all this as my OH went BR so I could not afford the mtge & SL on my own with all the rest of my debts. After 7 mths the house is still not repo yet. I am struggling through a DMP but I fear this is rapidly failing...however it has given me chance to assess my situation & fully appreciate the implications.

In answer to your questions

1. look at rentals & compare the outgoings.If your lender gives you a few months pmt holiday then all the better.

2. If your salary goes into the account with the overdraft then I would certainly get another account & switch salary...Your bank may reduce your overdraft on your payday....I`ve seen this done where lender feels the account is under `pressure`.

Hope that helps,

Angexx

So_Sad_Angel

jellygirl wrote: »

. Am feeling very stressed and brain is overloading a bit

Its a Sunday thing ...its the worst day for brooding on things!!

jellygirl_2

So_Sad_Angel wrote: »

Its a Sunday thing ...its the worst day for brooding on things!!

Hee, i guess so, however, i was the same yesterday:0)

thanks for the great advice - renting would be cheaper for me as I have nearly £800 going out on mortgage and sec loan each month - at the mo I have just over £200 min payments on ccs so thats a grand - i bring home £1400, so with utilities, petrol, food, insurance etc etc I aint got enough to live on - i carried debt out of a relationship that ended about 5 yrs ago - then just me to pay mortgage and everything else instead of 2. Made some bad financial decisions though along the way too.
Will give cccs a call - thanks again

PasturesNew

jellygirl wrote: »

Hee, i guess so, however, i was the same yesterday:0)

thanks for the great advice - renting would be cheaper for me as I have nearly £800 going out on mortgage and sec loan each month - at the mo I have just over £200 min payments on ccs so thats a grand - i bring home £1400, so with utilities, petrol, food, insurance etc etc I aint got enough to live on - i carried debt out of a relationship that ended about 5 yrs ago - then just me to pay mortgage and everything else instead of 2. Made some bad financial decisions though along the way too.
Will give cccs a call - thanks again

If you have £1400 coming in - and are spending £800 on your mortgage and debts, that'd leave you with £600/month to live on, which is a lot.

It is worthwhile I'd have thought finding ways to clear the debts rather than chucking the towel in.

jellygirl_2

PasturesNew wrote: »

If you have £1400 coming in - and are spending £800 on your mortgage and debts, that'd leave you with £600/month to live on, which is a lot.

It is worthwhile I'd have thought finding ways to clear the debts rather than chucking the towel in.

Thanks - those debts that are £800 are the mortgage and a secured loan - I still have about £215 on unsecured ccs on top of that so thats just over £1000 Im paying out just on debts - Im gonna speak to CCCS tommorrow night - I just need to sort out the unsecured debts really i think - i could cope fairly well if I didnt have the ccs and OD (unsecured debts total 11).
I think you are probably right. Thanks very much for taking the time to comment;)

fiveyearplan

Are the unsecured debts made up of credit cards? If so is there anyway you can offer full and final settlement for any of them? I would start at the 10% mark.

It is also worth phoning the other debt charities as SSA suggested to see what they have to say.

dalip

Hi and welcome to the forum.

The more opinions/advice you get the better informed you will be. BC is a life changing decision and one that has to be right for you.It is also something thats needs a lot of thought and consideration before you finally decide it is your only option.

You have had good advice from SSA & FYP so just keep asking questions and get as knowlegable as poss on all your options. Good luck Dx

jellygirl_2

fiveyearplan wrote: »

Are the unsecured debts made up of credit cards? If so is there anyway you can offer full and final settlement for any of them? I would start at the 10% mark.

It is also worth phoning the other debt charities as SSA suggested to see what they have to say.

thanks - i have just spoken with CCCS after filling in their online Debt Remedy - they reckoned that I have an overspend of £7 on my monthly budget - that doesnt include the unsecured debts and they said i have no money to pay them each month. I havent been advised to do anything really but try to budget a little better which is possible nbut not by much. Still I cant pay the ccs at all and will be in arrears for the next payments in January. I dont really know what to do as I cant pay these debts back and cant budget anything reasonable to pay them with. CCCS recommended that I get a new bank account and get my salary paid into it and transfer my priority payments over. Im really worried that I will have to go BR as i cant see any other way now. Dont know what to do.

So_Sad_Angel

Try Nat Debtline again also....spend this time getting very knowledgeable about what is best for you. CAB are brill but very busy....but worth a call for an appointment if you can.

Usually CCCS will have given a further appointment..they do a more in depth review & then send out in writing their recommendation.

It is quite normal to `not know what to do`...but speak to as many people as you can....have you done CCCS debt remedy online??...that gives an immediate response.

Angex

fiveyearplan

Hi Jellygirl. So, you have £11,000 unsecured debt. Would you like to stay in your house? If so you would need to continue paying the mortgage and secured loan. I wonder why neither of the debt charities mentioned BR to you? Did you list your unsecured debt because you look insolvent from what you've said above? Didn't they offer any advice?


Also, do you have any idea how much you'd have to pay for rented property in your area?