BR Help??

EnslavedByDebts

I am new to this website and am basically looking at my options.

I have a lot of debt which consists of credit cards, store cards, loans, overdrafts, HP and mortgage.

I am currently in a debt management plan which my parents pay which is £115.00 per month as i can't afford to pay it. My only issues is that the company takes £50 of this money and only £5.00 per month gets paid to each creditor. This means i will never get out of the debt if i go on paying that amount as the debt is thousands.

My only concern which i need to get cleared up is this:

My house is mortgaged in joint names (myself and my hubby). The house mortgage is £172,454 owed and the value is approx £150,000 now due to climate.

If i go bankrupt what will happen to the house and my hubby's credit report. We also have a joint overdraft which would go into the BR of £3180. Will he get bad credit rating also?

Hope someone can help. Thank you in advance.

philnicandamy

EnslavedByDebts wrote: »

I am new to this website and am basically looking at my options.

I have a lot of debt which consists of credit cards, store cards, loans, overdrafts, HP and mortgage.

I am currently in a debt management plan which my parents pay which is £115.00 per month as i can't afford to pay it. My only issues is that the company takes £50 of this money and only £5.00 per month gets paid to each creditor. This means i will never get out of the debt if i go on paying that amount as the debt is thousands.

My only concern which i need to get cleared up is this:

My house is mortgaged in joint names (myself and my hubby). The house mortgage is £172,454 owed and the value is approx £150,000 now due to climate.

If i go bankrupt what will happen to the house and my hubby's credit report if its only you going BR then his credit file should be ok as long as you have no financial associations on your credit files. We also have a joint overdraft which would go into the BR of £3180 sorry to say if its only you going bankrupt then the OD wont be allowed to go into the BR if its a joint account...the debt of OD will fall to your hubby. Will he get bad credit rating also?

Hope someone can help. Thank you in advance.

Just a few thoughts

EnslavedByDebts

Hi, thanks for your reply.

What do you mean by financial associations? My name does come up on his credit file as does his on mine.

Is it better then for us both to file for bankruptcy and just start from scratch?

Surely if i go bankrupt and the house gets taken then this will effect his credit report?

philnicandamy

EnslavedByDebts wrote: »

Hi, thanks for your reply.

What do you mean by financial associations? My name does come up on his credit file as does his on mine.

Is it better then for us both to file for bankruptcy and just start from scratch? Thats for you to decide really...nobody can tell you although bankruptcy isnt as easy as a fresh start there are many more implications you need to look into

Surely if i go bankrupt and the house gets taken then this will effect his credit report? if the house is in joint names it will affect his files yes

Financial associations are anything that links you BOTH together...joint OD etc etc my OH had a credit card that was wrongly linked as showing me as well & she had a struggle to find ANY credit because of it....all sorted now though thankfully...is the house in joint names? any equity?

Have you spoken to any of the debt helplines?

peachyprice

As long as you have the mortgage together you will have a financial sssosciation, so it will have some effect on his credit file, but not as bad as if he were to go BR too.

If just you, or even both of you, go BR you won't lose the house because it's in negative equity.

Does your OH have other debts he can't manage? As Phil says, he will be liable for the whole of the OD if you go BR.

rugbymum

EnslavedByDebts wrote: »

I am currently in a debt management plan which my parents pay which is £115.00 per month as i can't afford to pay it. My only issues is that the company takes £50 of this money and only £5.00 per month gets paid to each creditor. This means i will never get out of the debt if i go on paying that amount as the debt is thousands.

IMHO the first thing to do would to be to get rid of this fee paying debt managing company and contact one of the charities as a matter of urgency.
CAB
CCCS
PayPlan
CAP
their contact details are all in the sticky at the top of the page.

EnslavedByDebts

Both of our wages go into our banks and then all money goes form his account to my account to pay out all the bills. He has an upcoming tax bill which is about £4500 which is from a tax due years ago. He has two other credit cards which we currently have now money on one which has a limit of £3700 and another which is £1100 which we use monthly to live and then pay off.

He has no other debt other than the mortgage and the unsecured loan on the house which was part of our mortgage due to 100% mortgage with Northern Rock.

So if the house is in negative equity we will keep the house even if we go bankrupt? The mortgage is the same as rental in our area so it would mean we wouldn't need to move if that s the case.

Does that mean the house would have to be repossessed if we couldn't afford it?

What happens to car on HP can we keep that?

EnslavedByDebts

One other thing, my parents are currently paying money to us to keep the priority bills being paid as our wages are lower due to both of us losing our jobs last july and having to take lower paid jobs in october last year

peachyprice

If you can afford the mortgage you can keep the house, if you can't and you stop paying it will be repossessed.

If the car is HP you may be able to keep it, the OR won't take it because it doesn't belong to you until you have finished paying for it, but there is sometimes a bankruptcy clause in the HP agreement that says if you go BR they will take the car back.

EnslavedByDebts

Does this mean that the BR would never effect the house or is there a period of time that they will take the house if it comes into equity?

EnslavedByDebts

Hi can anyone tell me what the reasonable allowances are for things on a SOA or would it be easier for me to post my SOA up and then see if i'm okay?

I have spoken with my hubby and we have decided after months of discussing it that this is my only option so i contacted the court today to be told just turn up around 9am to file petition. Is this the norm as some people on here have appointments for it?