Finding it hard to cope with all this debt stress

Angiepange

Hi all,

Am new to this but wanted to say this site has been a lifeline, have learnt so much and it really helps to know we (hubby & me) are not alone in struggling with debt. Brief history, debts accumulated over the years, was coping ok till OH made redundant at xmas, he found new job eventually which he loves but wages alot lot less. I got ill and had to give up my job. Thankfully better now but finances a real mess. Have spoken to CCCS but was advised to try & increase income and send token letters to creditors. I am looking for job but not much out there at mo. Just started to get letters from all creditors and 6 calls a day from Egg! as have not been able to pay last months payments. Spoke to CAB today, they are too fully booked up for an appt but will be sending out booklet to read. We cant make this months mortgage payment as OH has to work a month in arrears so only getting 1 wks pay this month. Dreading telling bank that.
Basically think we may have to go down bankruptcy route, debts around £40000 all unsecured and house in negative equity with £158000 owing on mortgage. Have read alot on here about voluntary repossession and wondered if anyone thinks its better to do that than stay in home and wait to be evicted? Would like to rent but not sure how easy that is with poor credit history and pet dog! Also if vol repossessed would you ever be able to get a mortgage further down the line? My dream is to re train for new career, involves a year access course and 3 at uni 4 a degree but fees would be funded by NHS. Just want to make something of my life and provide family with a decent income in future. Sorry to have gone on, got so much to share but probably bored you all! Sorry!
Any advice gratefully received.

stintond

Hi Angiepange , welcome to the board , you will get good but not perfect all the time , advice on here. Its good that you are seeking professional advice , this forum is good for asking general questions about bankruptcy if you decide that is the best way forward.
What we did when we were in a similar situation was , firstly stop paying the creditors , tell them you are thinking of bankruptcy , and they might accept full and final settlements on these accounts of considerably less than what is owed.Keep sending them a negative balance on your incomings and outgoings , by threatening bankruptcy , you could reduce the debt.
Anyway we moved into rented before we went bankrupt in order to pass the credit check.
Whether you stay in the house will depend on how much negative equity you have and how long you think it will be before your house is worth as much as the mortgage owing on it.
I rang some mortgage brokers up and they said that as an discharged bankrupt you will need 25% deposit , but they expect the situation to improve as the banks start lending again.
I see there is a service called "choose to refuse" from BT where you can block certain numbers from ringing you .

Angiepange

Hi stintond

Thanks for the reply and helpful advice, we are not with BT so not sure if virgin media offer a similar service re blocking calls. We approached a company called Debt Advice Network last month for help, they dont charge anything as are a charity, but apart from initially visiting us and taking all our details and telling us they would write to our creditors on our behalf we are getting no feedback from them. Contact from them has been really sparse, they said letters would be sent off but thas was 2 wks ago and still havent heard from them, hence speaking to other debt help agencies now. Has anyone else had any experience of using them?

Hubby is an ex serviceman so i rang the Royal British Legion yesterday, the woman i spoke to was so nice and understanding i broke down in tears! They are assigning us to a caseworker who will hopefully be able to advise us a bit more on what to do. Ive read on here about people just handing their keys back to bank and moving into rented but i dont know if its better to do that or be repossessed through the courts. Think house is about £30k neg equity. Cant see us maintaining the mortgage esp when fixed rate ends and obviously will be in no position then to shop around!!

It has really helped knowing advice is out there so thanks again

So_Sad_Angel

Good Morning.

It is also worth trying National Debtline 0808 808 4000 they are a debt charity & you will need to keep dialling as they are very busy but will offer immediate advice/direction.

As you`ve tried CCCS & CAB it may be worth looking at the debt section on the following to gain further background info.

http://www.ned-cab.org.uk/debtselfhelp/index.asp

Good luck

Angiex

Angiepange

Hi

Thanks for that, will give National Debtline a ring tomorrow, just want to get as much advice as i can. Thanks for the link too lots to read on there, i think once we reach a decision of what action to take im hoping it will get easier. We just feel in limbo, not knowing what to do for the best.

Thanks again x

philnicandamy

Angiepange wrote: »

Hi

Thanks for that, will give National Debtline a ring tomorrow, just want to get as much advice as i can. Thanks for the link too lots to read on there, i think once we reach a decision of what action to take im hoping it will get easier. We just feel in limbo, not knowing what to do for the best.

Thanks again x

Its a difficult time....we've all been through where you are now angie...its a hell of a lot to take in & sometimes you feel like your on a rollercoaster up down up down! have a read of the bits people suggested & contact national debtline (they are busy & it can take a while to get through..BUT keep trying) anything else in the meantime just ask & we'll help all the way

Phil

About_Time_3

I really wouldn't mention to them you are thinking of BR, just tell them you are speaking to the debt charities and you'll be in touch.

philnicandamy

I agree...usually IF you tell a creditor your thinking about bankruptcy the calls & letters increase....

pinksnapdragon82

Hi Angie,

This place is great, has been a lifeline for me too
I had loads of problems and phone calls from Egg, I wrote letters to say only contact by letter but they didn't seem to take any notice. I logged onto the egg website and changed my numbers in the end, they wont let you delete them or just put 123465 etc but i swopped a few numbers about and no more calls - hurrah (though some poor person is probably getting millions of calls insted).
Also ended up changing our number with BT, said we were getting nusance calls and they changed it for free, now only family know our number - that takes alot of pressure off.
Now they all comunicate by letter
take care x

Angiepange

Hi,
Thanks all for support, just received CAB advice pack so gonna work thru that and get letters sent off, got Egg on caller display so now just not answering to them! Good idea about changing contact nos with them, will give it a try thanks.
Wont mention BR at moment will just send them financial details as have no surplus income at all to pay them. More worried about mortgage than anything. When spoke to them last month they suggested a smaller payment for 3 months then spreading arrears over following 6 months. Cant even do that this month as said earlier 1 weeks wages + benefits to get us thru till end of July. Gut feeling is to give up the house but need to find out implications of this, a big step to take as have been homeowners for 15 years no experience of renting.

Still if we hadnt borrowed so much against the house i guess we wouldnt be in such a mess, only ourselves to blame. God why did they make credit so easy to get!!:mad:

DotNetter

Hi there

I'm in a very similar position - almost.

The wife and I owe £132K secured and £60k unsecured.

I've spent the last 2 days reading up about IVA's and BR and I think I'm right in saying that if you have negative equity in your property AND you don't expect that to change over a 3 year period then you shouldn't loose your home as your secured debt isn't included in the bankruptcy.

Effectively, you will have to continue meeting payments on your secured debt but any unsecured will be written off and your home is only at risk if you have equity in it.

If you have negative equity AFTER 2yrs 3months into the bankruptcy you can request to have the interest in your home returned to you - this isn't numerical interest; I mean interest as in the house will be legally yours again.

You can buy back what is called the 'beneficial interest' (value of house minus secured loans = 'beneficial interest' (basically equity from what I can tell).

If the beneficial interest is negative then you can buy it back for £1 (yes, i did say £1!) plus £211 legal costs.

If the beneficial interest is not negative then within the 3yr period you can be made to release that equity to pay up your creditors...but...I seem to recall reading that they are only entitled to 75% of the beneficial interest although I may be thinking about an IVA now...i've read SOOOO much it gets confusing

Hopefully someone will be along shortly to confirm or correct what I've said

I hope this helps though and just do as much reading as you can...I did and I feel a lot more in control now. I've already arranged for estate agents to value my house just so I know for sure where I stand...if I'm really lucky and there is enough equity then I could even sell up and go and rent privately without an IVA or going BR...yes I'd be off the property ladder BUT I would be debt free with no adverse credit history.

Cheers,


Wayne