Advice after today

homersimpson316

Hi, today i had my house reposessed.

Like a fool i had not been opening letters for the past few months, i did not attend court but luckily i got a phone call to say a locksmith was changing my locks, i was able to get home quick enough to collect enough things to tide me over, i was told i would be able to collect the rest of my flats contents at a later date with a representative from the reposession department.

Today i have had to finally admit my debt to my family and friends which has run upto over 50k in arrears, loans, cc, etc

I know i should of admitted my problem earlier and spoke to various people so i didnt loose my house in this fashion but thats all too late now, now is the time i "HAVE" to start dealing with the problems, i cant bury my head in the sand and pretend the problem wasnt there.

Any advice would be welcome, here are a few questions, ( I am off to cab tomoorow but still any advice would be welcome)

Is it still too late to reclaim back my property, my dad has said he would pay the arrears off for me, i could then sell my propery so it doesnt have as big a shortfall.

Is bankruptcy my best option?

If i go bankrupt while still living at parents house would they take the rest of my wages away meaning i wouldnt be able to rent till my debt is paid off?

I have seen a few people talk about being discharged after a year, does this mean the debt is wiped and you no longer owe money?

Thanks for reading and i really would appreciate any help

jenni75

Hello there,

Sadly I don't know how it goes with property, but if you went down the br route then yes it lasts one year. A IPA can be put in place, a percentage of your disposable income over £99 per month. But if you left your parents to privately rent your disposable income would be less so you would be able to complete a new income and expenditure form at that point.
I cant be of much help but just wanted to say I wish you all the best with moving forward and sorting this out. I am sure someone will be able to give you the numbers of places you can get proper advice regarding your situation.

All the best
Jenni

skylight

First off, I always suggest National Debtline. They have a huge array of PDF booklets that you can read for advice. I would then suggest the likes of the CAB - glad you are going!.


Personally - DO NOT let your Dad pay off the mortgage arrears. Its a waste of money. If BR is the best thing for you, then a shortfall - no matter what the size - will go into your BR. Why waste money in trying to reduce that. Now the place has been repossessed - its up to the mortgager now if they want to let you have it back anyway. And you will have fees/charges added to that too. (the court costs they paid etc). It will bump it up a lot.

What other debts do you have? What income do you have? What assets do you have left? This would all determine whether BR is the course of action for you.

And yes, you would be discharged after a year. The debt is "wiped" the day you are made bankrupt and you do not owe anything anymore - except for a few debts such as court fines, CSA arrears, some student loans etc.

If you went BR whilst living at your parents, it will not affect them at all - unless they have guarantorred debts or on joint accounts with you. Your OR would take your surplus from your income if you have a surplus (an IPA), but you are still allowed to move into your own place if you want and pay the rent - your IPA is adjustable, so this would then be taken into account.

Its not horrific. You won't go to prison and it really is a huge relief.

homersimpson316

Thank you for your replies, any help makes me feel alot better

homersimpson316

Just got back from CAB, i only saw a normal adviser who was good help but i cant see a Debt Representative for 3 weeks as there is high demand!

A few alternative options are that i could go to a solicitor today and they could negotiate for the arrears to be cleared (By my dads cash) and i could be back in the property, the unsecured debts could be sorted down to a token payment of £1, not sure about the secured debt though. This would be great to have my own place back but i would still be in alot of debt and living on a shoe string which got me into the trouble in first place tbh.

BR seems like the logical solution, i have no assests, only personal items such as a computer, tv, furniture etc, BUT the CAB Advisor says i might get rejected as i am earning money and in work full time. The advisor was unsure though and i have to wait 3 weeks to speak to the Debt Advisor.

I usually take home £290 a week after tax, does anyone know if that is considered enough income to get rejected for BR

philnicandamy

really depends on your debts outgoing etc....you can go bankrupt owing as little as £750

fill in your SOA & post up here for the good peeps to help

http://makesenseofcards.com/soacalc.html

homersimpson316

Ok thank you, i will fill it in when i have access to my property to empty everything, looking like friday afternoon according to estate agents

skylight

You are not going to be refused BR just because you have a job! BR is not a problem of the unemployed....

BR is all about being insolvent. If your debts and outgoings outweigh your income and therefore your ability to pay it back, then you are insolvent.

At least you saw a CAB advisor, but please take his opinion with a pinch of salt - its just an opinion and a wrong one at that - because although he may be great at his job he has not be trained in debt.

peachyprice

Hi Homer,
If you sort out the arrears and move back into your house will you be able to afford the mortgage, the secured loan and everyday living if you didn't have the rest of your debt.

If you can there's nothing stopping you getting your house back (2 members here have done that successfully, one very recently) and going BR for the rest of your unsecured debts.

As skylight said, that really isn't true about not being able to go BR because you are earning, as long as your debts are overwhelming you will be granted BR.

homersimpson316

Thanks for the replies, i would be living on a show string if i kept my house and secured loan but would still have the house i suppose, i could see me easily getting in trouble again so think its best to try clear all my debts which ever way possible. Renting is going to be my only option and will have to hope get a mortgage soon as i can

sir_locksalot

my girlfriend used to have a pub and it all went t*ts up i wont bore you with the details but basically she went bankrupt, it took a couple of meetings and after 6 months she was discharged, she is on 19000 a year in her new job too, sometimes its just best to start over mate