bankruptcy experts??

bigfella_3

Hi me and my wife are in around £26k of debt we own our house but have bad mortgage arrears, we are considering bankruptcy but we arent sure what will happen with the house. We are now both unemployed as the factory we worked in closed down and we have been advised that due to my wifes depression the best thing would be to just get bankruptcy and have a fresh start!

Can any1 give me details on what the process is in what we would lose etc?
How long we would be in the bankruptcy cloud?

Any replys would be most helpfull!!!

fatbelly

Hi bigfella

The key issue here is the house. Are you resigned to losing it?

You have arrears (how many months?) but are you able to meet the contractual payments? Is there a payment protection policy paying these? Has ISMI (income support mortgage interest) kicked in yet?

If you can’t stabilise this, then it is usually better to sell in the market rather than wait to be repossessed. And if you do sell in the market hopefully that will release some capital with which you can make full and final settlement offers to your non-priority creditors.

If you want to give us the vital stats (property value, amount of secured lending, arrears, monthly instalment, what stage are the legal proceedings) we can give clearer guidance.

less2303

Have a look at the following Forum, it's full of people with alot of experience and knowledge on this subject:

Debt Questions Forum