Going Bankrupt

nickoboy

Hi,

I am currently looking at going bankrupt and just wanted to get some impartoial advice / opinions. Worked in finance for years and been made redundant twice in 5 months. Now I am working on a much lower salary i just cant meet my commitments.

I have 2 properties both in negative equity and mortgaged to the tune of 233k. Loan for 9k, credit cards of 5k and general living expenses such as food, fuel and bills.

One property is rented out so monthly incomings are £1835. Outgoings however are 1906 before utilities, food and fuel. So I am in a bad state, I appreciate I wont work in finance again but thats something I accept. I just want to see if anyone else going through this or been through this can advise me as to what my options are. The mortgages have arrears on them as after 6 months unemployed had to take reduced payments and run credit cards up to survive. I will ensure my tenant is given notice to move out as I would not want to see them on the street.

I am really looking to see if it is right for me and if so what am i likely to walk away from court with ie from £1300.
This is not a first choice but after battling for a year things have just got too much.

Many thanks for your help

So_Sad_Angel

Hi nickoboy & welcome.

Its is always difficult to balance once manageable debt with the non manageable situation of redundancy & periods of unemployment.

Have you been on the debt free wanabee board to see if you can get your outgoings down?

Please call one of the free debt charities for advice (see below)...that is always your first call. That will give you an assessment of you particular situation. This will give you options to look forward & you will then be able to make your own informed decision about what is right for you.

Also if you think you may get higher paid employment soon then delay any decision until that avenue is explored.

• Consumer Credit Counselling Service: Full debt help service. Link: CCCS Tel: 0800 138 1111 Opening times: M-F 8am-8pm
• National Debtline: Full debt help service. Link: National Debtline Tel: 0808 808 4000 Opening times: M-F 9am-9pm, Sa 9.30am-1pm
• Citizens Advice Bureau: Full debt and consumer advice service. Link: Citizens Advice or visit your local CAB centre (find nearest) Opening times: different for each bureau

I wish you luck & make sure you seek advice.....then any questions please feel free to post here or on DFW.

Angiexx

nickoboy

Thankyou I shall contact the cccs at lunchtime.

I have looked into it and an iva is not an option, selling the properties is not an option due to the shortfall, I would have 35k+ still to pay.

Companies keep offering debt management plans that do not provide enough relief to live still or to warrant the 9 yr payments and the credit file hammering.

Will see what the cccs have to say.

Many thanks

nickoboy

Looks like it is best to speak to someone sooner rather than later as due to CCCS current work load it will be after the 15th of Sept before I can speak to an advisor!

philnicandamy

Have you tried speaking to national debtline? they sometimes can have a quieter workload meaning you may get an appt sooner

MicheH

When I phoned national debtline line (it was about 3 months ago) they spoke to me there and then. Maybe worth trying them

nickoboy

they were really good had to hold for sometime but got to speak to someone there and then. They agreed there is an issue so looks like bankruptcy is going to happen.

The only way to prevent it would be to have the house taken back by Northern Rock but due to negative equity i would still be hit with 30k worth of shortfall!
Not really sure what would happen with that one!

Thanks for posts