I need advice please.

So_Sad_Angel

There are a lot of senarios possible & each situation is unique.

If you can afford the property, have very little or no equity or negative equity (ie you owe more than the asset is worth) then that can stand outside bankruptcy. It will however mean that you are still responsible for that debt & any debt secured to that property.

The main thing here is affordability. You don`t want to put yourself in a position of a further BR later down the road.

Hope that made sense

Angiex

Call on of the debt charities.

So_Sad_Angel

Also if the property is joint without equity & only one party is BR then the Official Receiver will offer BI (Beneficial Interest ) to the non BR party. This is usually bought at nominal £1 plus charges (around £221) as no equity exists there is no `value` for the non BR to buy out.This is why in BR neg equity can work in your favour & allow you to keep the home.

The OR will also assess that the mortage is not vastly more expensive than comparable rentals in the area. As I say its affordability here. In this senario it is unlikely that the OR would suggest a sale where there is a joint non BR party involved.

Sorry if thats too much info.

Dibs88

Isitpossible wrote: »

Dibbs 88
I am sorry to hear that you had been to see the CAB, it is worrying to say the least, isn't it?
Without prying, could you tell roughly what happend after you stopped your repayments to the c/c companies?
Does your mortgage lender 'get wind' of what is going on?
Did your bank come after you?
I am sorry to ask these questions (I have a thousand more if you are interested!! ) but I still aren't 100% what way to turn.
Regards
Isitpossible.

Soory for the delay in reply but in answer to your questions:

1/ Dont be sorry I have seen CAB, infact you should be happy as Im facing up to my problems, and I suggest for anyone who has problems go seek advise.

2/ Regarding not paying, within 1 week of missing my first payment, I got my first letter, I felt I should pay it straight away, but had to tell myself not to pay it, I had more priority debts to dela with, and besides, being made redundant did not help matters at all. What I did though was notify all the creditors of my situation, and sent a copy of my SOA. But I would not answer the phone, only corresponding in writing. Virgin did try and pass the buck to another company Aegis, but did not work as was unemployed, got the postcard to say coming round but nothing happened. And most of the letters they issue to you are standard templates.

3/ My mortgage lender was notifyed straight away of the problems I was facing, and I must say they have been great, from paying over £1200 a month, they allowed me to make token payments of £100.

4/ My bank LLoyds TSB have not come after me as such, but was very clever in taking money out of my acount to pay for the CC, so changed banks to stop them doing this, they did however contact my parents as they bank with Lloyds to confirm if I was still in the country and get my details. Thankfully I had spoken to them of my situation, by only giving them the facts they need to know, so wasnt to helpfull with the bank.

Like you say your not 100% which way to turn, well you have made a start in being on this forum and seeking advice from CAB. CAB and the other advice centres are they to help you, and help you get out of the wood into the clearing, but you have to choose the best route for you. We looked at the alternatives i detail, and BR was the best option, it would be over quicker and not hang around me till I die, my debt at the moment is £39,500, next Tues I will be BR, I know the mistakes I have done, where I went wrong and will NEVER get into it again. 5 months ago I was a mess, 5 months later I am a different person who can actually now smile.

Isitpossible_2

Dibbs & So Sad,
Thanks for all your advice.
I will be having a meeting with the wife & the in-laws tomorrow to see which way to go.
I'll try & post then.
Again, thank you very much both of you.
Isitpossible.

Isitpossible_2

Hi
Just to update my situation my accounts still read about the same as when I first wrote in March 2009.
My wife & I have
£250K mortgage (house value £250k)
£60k credit cards
£60k family loan (no pressure on repaying it)
£22k overdraft facility.

I have been in touch with Northern Rock about reducing our payments or apply for the Homeowner Mortgage Support scheme but we do not meet their crieteria as we have £20/month surplus after conducting the budget plan with them.
My business bank manager wanted to give me a loan which would increase my outgoings by £100/month.
My personal bank overdraft was dropped from £7.5k to £5k overnight ( I feel as one door opens another one shuts).
Could you please advise me (in laymen terms) which way to turn ?
I know it is a hard question but I am fed up being in this limbo which has gone on for the last 2 years.

mysterio_2

You need to speak to one of the free debt helplines soon as you can

they'll advise you best on what to do next
details here

http://forums.moneysavingexpert.com/showthread.html?t=1056083