Help i'm confused

RAS

jay09 wrote: »

Wouldn't walking away from a mortgage to rent look bad to the OR though ie leaving debt to rent another property????? If you rent and your landlord finds out about the BR can they evict you???

It is what the vaste majority of the BKs with repossesion on here do. Unless I have missed something in the last 18 months, none have had any adverse comment from the OR.

And please contact one of these debt charities http://www.moneysavingexpert.com/loans/debt-help-plan#help or the Insolvency help-line.

Can you confirm - secured debt or charges on the property is seventy six thousand pounds?

jay09

peachyprice wrote: »

Perhaps they don't have much experience of bankruptcy

No probably not, you've been a great help with just a few questions. In you opinion would you advise us to walk away from property and start renting as soon as possible?

jay09

RAS wrote: »

It is what the vaste majority of the BKs with repossesion on here do. Unless I have missed something in the last 18 months, none have had any adverse comment from the OR.

And please contact one of these debt charities http://www.moneysavingexpert.com/loans/debt-help-plan#help or the Insolvency help-line.

Can you confirm - secured debt or charges on the property is seventy six thousand pounds?

Yes, sorry seventy six thousand, plus we have credit cards

RAS

Ok

ORs take different views, but if you can rent much cheaper than your mortgage/secured debts, then the OR probably will expect you to move out, as that is £600 per month that could be going to an IPA. That is even more likely if the high cost of secured debt makes the difference between your paying an IPA and not paying it.

You then have two options:

Stop paying the debts, go BK and wait for the repossesion to go through, which might take 9-12 months. You will need the sort of landlord who does not do full credit checks or a good deposit. if you can save enough for 6 months rent, then you will be OK.

Stop paying now, save up the rental and Bk costs and move out before you go BK. It is vital that you keep the rent up to date, so there is no debt on it and the OR may not even inform the landlord, who again may not care as long as the rent is up to date. then wait for the repossesion.

After repossession the secured debt that is not covered by the sale becomes unsecured and can be included in the bankruptcy, as far as i know.

People here have done both.

That's the theory but please talk to one of the debt charities about your specific situation.

jay09

Thanks for your advise RAS/Peachy it has been really helpful. We will be going to see someone in the next couple of days, probably be CAB as i'm no good at telephone conversations:o . At the moment i think the best option is going to be to walk away and rent, we have somewhere already agreed for rent so thats a step forward.
Thanks again

RAS

Glad to help.

Once you have seen CAB and made the decision on what is happening, come back here.

If you decide to go Bk, then people can make sure you SOa is reasonable and advise on the q&As.

jay09

Thanks again
Is CAB the best option, is this the only place to have a person to person conversation rather than a telephone conversation?

RAS

Christian against Poverty have bene great with people one here (And they are not interested in your religon).

peachyprice

If you want face to face advise yes, but make sure you ask for an appointment with the debt specialist, otherwise it's a waste of time as the general advisors aren't necessarily clued up on BR and you'll have to go back to again to see the debt advisor