Should we go for repossession and Bankruptcy???

tigerfeet2006

Sassyseph please can you start your own thread so it does not get mixed up with someone elses.

There is some links at the bottom of the Bankruptcy Help sticky for Scottish posters.

Welcome to the board.

occo33

Hi again

Thanks for replys. I think we shall stop paying the mortgage and look for somewhere else to live. When should we apply for bankruptcy? Now or wait until we are in a new property?

Thanks again

fiveyearplan

Its really up to you, some would say to rent before you go BR because of your credit rating but you will find somewhere if you are BR so really what you feel most comfortable with.

fermi

sassyseph wrote: »

we are in a very similar situation although i am now on benifits and my husband is looking for work we have been on a break with our lender and are due to pay this month, we can just about make that all other debts are the problem, we have no equity in the house mortgage and secured loan seen to that but we seem to have got deeper and deeper in trouble, my other debs are now with payplan but if i though i could go bankrupt and keep my home i would is this possible/ can someone tell me, if we had no debts we would be able to pay the mortgage and the secured loan on top is this possible to do we live in scotland i believe that might make a difference, can anyone help please? i think i may have put this in your question sorry new to this

Started a new thread here:

Link: Question from sassyseph on house/debts - (Scotland)

Jubbly1868

Occo33,

Thanks for bringing this up. We are in same situ. Mortgage, negative equity, interest only mgage that can barely afford, debts ive already mentioned but all our friends and family keep telling us to keep hold of the house.

We pay £968 on interest only mgage, fixed rate term that ends Mar 2010 & are really worried we wont be able to keep up with mgage if we keep house. Currently considering BR (with going into renting - rent about £650 so cheaper) or financial company suggesting might be an IVA but we have no surplus income so how would we pay that.

I dont know about you, but Im finding this 'keep the house vs go into renting' as well as 'BR & keep house' or 'BR & lose house' mega confusing... My head is spinning... I just dont understand how we would keep house if we went BR - pres by keeping up mgage repayments. But if we going BR AND going into renting when do we stop paying mgage and/or rent......

Sorry to steal your area Occo - probably should have started my own thread but that even beyond me at the moment, brain like spaghetti!

occo33

Hi Jubbly1868

I can understand about the head spinning, feel like Im going mad! Cant sleep at the moment because I cant switch off from thinking about all the different senarios. I am being advised to try and keep the house as well but cant see the point in it. There are things that need doing on the house and of course cant afford the mortgage let alone the upkeep. Also feel cheated rightly or wrongly that people are getting a much better deal on the price of buying and mortgage deals which makes me feel stupid for choosing to buy when I did. I still cant decide what the best course of action will be for us, so will still keep researching as best I can. If you find out any good advice let me know :rotfl: and I will do the same.

Take care!

Jubbly1868

Hi Occo,

Of course I'll keep you posted and would be grateful if you find out anything that might be helpful. That said, couple of people on forum have been great and very informative & supportive.

We have exactly same deal with house. It is lovely and in nice area (too many kids for my liking) but the garden is a mess and no garage so limited space etc...Not brill lay-out for the dogs so Im not so in love that I want to stay here for 20 yrs etc....

CAB have been very good with us. Have seen them twice and they are arranging for a financial firm they use to ring us today to discuss a possible IVA that would allow us to keep house. I will post you if there is anything interesting that comes out of it. CAB warned us (as I know MSE's IVA info does), that these companies are out to make money out of IVA's!! & we have to do what is right for us at this time.

OH has almost already decided about moving into rented. I know he is fed up with the kids round here and that fact that things need doing to the house, but we lack funds. For 5-6 yrs you are on a strict budget and wont be able to get things done which will only irritate me which leads to OH getting it in the neck!!!
We also live in NI whereas all our family are in England. Im medically retired through illness and I think OH sees it as an easier way of us getting back to england if we decide to up sticks after all, rather than waiting to sell a house when situ so very slow here.

I just wish I understood this bit about with BR you can stay in your house for a while, stop paying the mortgage etc etc.... We have 5 dogs so Ive been trying to find suitable rented accomm. Nightmare!!! Only have 2 possibilities at the mo!. Dont want to lose out on either so Im understandably panicking whereas CAB are quite laid back and telling me to take it a step at a time!

Will keep you posted and good luck and take care Lisa

Jubbly1868

Hi Occo33,

Had long conversation with insolvency specialist over phone. I dont know if your debt is yours alone or what. My OH and I have about £26k of debt but apart from joint overdraft, majority is mine.
What I didnt realise was that we wouldnt be able to have a joint IVA as OH doesnt qualify as his debt (apart from OD) is less than £6k. It seems we would have to find surplus £200 for me to pay monthly IVA & OH would have to keep up all repayments on his creditors.

Advisor suggested waiting a couple of months, make token payments to creditors of £1 or something and see if we manage to get more income somehow!!! The stress of this situ is making me even more ill and OH is starting to suffer so decided to go BR - scary but everyone seems supportive on here. Going to move into rented accom if we can find someone who will allow us with 5 dogs!! Good luck with your decision. Lisa