Is Bankrupcy our savior?

RAS

Doomboy wrote: »

how long would we have if they repossess?

Mortgage would be 9-12 months.

The "advantage" of going BK and then allowing repossession is that once the house is repossessed and remaining shortfall from the secured loan becomes unsecured (if you take the right advice) and can be included in your bankruptcy.

If you think you can rent a similar property for less than the mortgage and secured loan payments, you may want to think about it.

But BR is not a piece of cake.

Doomboy

Thanks Ras....So its possible (worst comes to the worst) to stay in the house without paying the mortgage and secured loan for that timescale(maybe save money for rent)? what would first plus do?...has anybody done this and is it in your opinions a possibility?
I realise that BR aint an easy get out....it TERRIFIES me and I would not even consider it if I didnt have to.

GettingHopeful

The mortgage and secured loan are outside of bankruptcy but once repossessed, as Peachy says, and it turns out there is a shortfall, then they become part of the bankruptcy as an unsecured loan. Even my OR has confirmed this to me, and he said that they would contact him with the details eventually.

There is a place on the BR forms where you can give the full details.

Yes, do save money for rent, and think of your nearest and dearest. In your position, I would be looking for somewhere to live and start anew as soon as you can - leave the house and the mortgage and loan people to repossess in due course, or even go for vol repo. Leaving your home and finding a new one is going to be the hardest part. Advise on here is to find private landlords and go for a large upfront deposit.

BR will be much less terrifying than you think, it was for me. Your change in circumstances are what have caused the major problems you have. ORs know that. Please get yourself and your family somewhere safe and affordable and start a new fresh life, and with br debtfree.

Doomboy

Gettinghopeful...thanks...being unemployed and going bankrupt...saving money will be a problem...especially for eventual rent(if I decide to go the repo route)...if I find a job just after going BR would I be able to save money toward rent or would an IPO be put on the salary?...and if I do get an IPO...how am I expected to save for rent....sorry I was never that good at english...hope you guys can understand this

peachyprice

If you get a job after BR and will be able to afford the mortgage and secured loan you can make arrangements to pay back the arrears and keep the house.

We have 2 members who have let their house go and have managed to get it back because their circumstances changed. Which in itself is a good reason to let things take their course rather than going for voluntary repo.

Doomboy

Thanks Peachyprice.

We jointly owe an approx total of £80431 which does not include the mortgage and the secured loan(gulp). There is no way at present we could afford the monthly payments on IVAs for the 2 of us. So unless I win the lottery some time soon, I can only see bankruptcy as an end to our torment.
We are also heavily overdrawn at the bank by approx £1500...I an continually shocked at how much we owe and cannot think how the hell we spent so much...but over ther years it just gradually got bigger and bigger...sorry I am blabbering on....im just trying to get my head round things and try to decide that bankruptcy is what i need to do

peachyprice

All the £80k will go into your BR, regardless of what happens with the house.

You need to open a 'safe' basic bank account with either Co-op or Barclays, you can start using it before BR, just make sure there isn't much in there on BR day. At least if you move your account now you'll get all your wages without it going to o/d charges.

blu_1974

Hi doomboy sorry to hear the situation your in but your not alone me and my partner we are in exactley the same boat as your self other than we probley owe more than your self.We also have a mortgage along with a firstplus secured loan plus heafty unsecured debt as in loans,credit cards.We both work full time and I work every hour in the day to pay my bills and keep us going.My partner has not long had our third child a little gurl who is now 4 months and I also have 2 young boys.My partner has been on maternity for a while now and is also at risk of losing her job which is adding to the strain of things.The whole debt thing and mortgages was starting to affect us in our relationship and causing my partner to worry all the time and this is a knock on effect on to our kids who are stuck in the middle of all our problems.We have now decided after consulting with the CAB to give our house up and hand over the keys next month we have since stopped paying all our debtors plus mortgage and found a nice rented house for the time being,my wife is now going to give work up and become a full time mom what she has always wanted to be and once the house is sold and there is a shortfall we will file for BR and go from there.We are far from proud of what we are having to do and if we could keep the house we would but my family is far more important than bricks and morter.My point being to you is you are doing the right thing in seeking advise and looking at all your options and every body is different but if its starting to affect you as in worrying all the time and affecting your family in anyway its not worth it mate your family and health are far more important than a brick house and i wish you all the luck for the future which every route you decide to go..

tigerfeet2006

Blu you don't have to wait until the house is sold to go BR. Youy can do it as soon as you can afford to and the house and SL will still go into the pot when it is reposessed and sold later.

Mazzatee thanks for posting that site. When we first looked at our house it was going for £250k. When we moved in in May it was down to £225k. It's now down to £175k. It's flippin amazing how fast it is all dropping.

Simpsona

I second what you say Blu,
I've just added a post about worrying bout the kids! We too have a lot of debt (over £110k) and its put a huge strain on our relationship (our middle one is constantly worried that we are gona split up! Really hurts that!) as well as spoiling what should be a stress free happy time of childhood for the kids! I am so gonna teach them well on credit issues tho!!! But here's too a better future and loads more family time! THE most important thing!