New Member looking for all advice possible R.E Bankruptcy & Repossession...

Showgirl101

Hi everyone,

I have just discovered and joined this site, I posted this in the Mortgage Forum and was kindly advised to come and have a look here, which has been helpful, but hoping if post here too, someone can offer some more advice...
You really do think you are the only person in the world going through such horrible things, and to find out how many people are having problems makes me so sad but also helps me feel that I am not alone. I am really sorry to hear about all your problems but this seems to be such a wonderful and supportive group and I would love to join, if you'll all have me!? I will try to tell you what's happening just now (I do tend to go on a bit!) to let you guys know and then hopefully someone can offer me some advice as I am a bit confused just now.

We are at the moment about 5 weeks away from repossession, it has been 3 years of trying to juggle mortgage, debt and everything and now everything has hit rock bottom and we simply do not have the money to pay the mortgage (or any other bills!). We have spoken to our mortgage company (Skipton) who have advised us to go for Voluntary Repossession, they are sending forms out from their lawyers, once signed, they will take possession of the property and put it up for sale (giving us 4 weeks to move out). Obviously we would be responsible for any shortfall and all costs etc. However from reading a few posts on this forum I see that many advise not to go for voluntary repossession and signing these forms they send because of all the small print etc, etc. I see that many say a hand written letter signed by myself and my Husband will be enough to have our home repossessed?
Our house has been on the market for two years and we haven't managed to sell it, now the house has dropped in value by about £35-40k since we first put it on the market, meaning the house is now worth less than the mortage we have on it by about £5-10k! I imagine there will definitely be a short fall when the mortgage company sell it! And probably a pretty big one!!

This is not the whole story, we also are in about £20-25k worth of debt from a credit card, bank overdraft, loan company (for a computer course my Husband still hasn't done!) and a sofa. These debts we stopped paying and consulted a debt management compnay who we were paying £80 per month to pay so much to our creditors, but our creditors are still pursuing us (receiving up to 20 threatening calls a day and threatening letters every day) and refusing to accept the payment through the debt management company. We have since been informed by CAB to stop paying the debt management company because we are just lining their pockets for no reason! So we still have all these debts outstanding and we think that bankruptcy is the best way to go. CAB advise us the best thing to do is NOTHING and let our creditors send us bankrupt and our home get repossessed. Sounds easy but we want this all over and done with so we contacted the mortage company as mentioned earlier and told them we simply couldn't afford to pay and stopped the direct debit.
We are fortunate enough to be able to go and live with my Father, who lives very far away (about 6 hours from here) and will mean my Husband leaving his job etc, not that we want to do this but we really are at the end of our tether now and have no other option as we cannot afford private rented accomodation and have no family willing to take us in near by (also on council list but we are near the bottom of the list and not much chance of a council house any time soon).

My main questions are (I am very confused about it all!) ...

Is voluntary repossession the best way to go?

Do we go bankrupt first or after the repossession is complete?

How do you actually go bankrupt yourself (sorry probably a silly question!) - who do we go to or contact?? How long does it take?

Will going bankrupt mean all our debt with other creditors is written off? And what happens with any mortgage shortfall if we are bankrupt?

I know people will think we are just taking the easy way out but we are not, we have been at this for 3 years now and have tried everything to sort it out every other way. I have been signed off unfit to work by my doctor due to severe stress, depression & anxiety and we have had a lot of other personal problems too, mainly my own health, infertility and emotional problems. My wonderful Husband works 70 hours a week during the summer (he is a tourguide and coach driver) business is slower in winter and he has to take whatever work is going - and we just can't do anymore of this banging our heads against a brick wall

Any and all advice more than welcome. Sorry for droning on and on. Thank you in advance

curly04

Hi & Welcome

Big Hug

we've all been there

Our house was repossesed after i went BR - I didn't sign the forms as I didn't get them until after I went BR.

What we did was find a place to rent and then moved out. We just let the abbey reposs the house took 6 months. but if you house is being repo and you can't afford private let the council will help you, there is a new law about this

I know its really difficult but if we can help you we will, i've not found it easy, sleepless nights, crying for no reason etc.

Good luck speak soon
curly

curly04

re BR its self it cost £510.00 each at the county court, one the judge has signed and stamped the forms thats it, but you have to show you've took advice

speak to one of the debt companies like CCCS or someone, there is a sticky on the first page with contact details

good luck

confused76

hi there welcome to the br board! there are many people here in similar situations and we try and help each other along the way

i've no experience of reposession, i didn't have a house when i went br but there are many regulars on the forum who will pop in and share their experiences i'm sure. i have heard others mention not signing the forms, i'm sure someone will confirm exactly what to do.

on a general br point, have a read of the stickies at the top of the br board, they have very useful info in them.

secondly, have you taken advice from one of the debt charities? i spoke to national debt helpline who were very helpful, gave me my options etc. there is also cccs or the cab. also if you go br you will be asked if you have taken advice and you need to know exactly where you stand.

yes, your other debts will be written off in br - except student loans

it is up to you when you go br. are you still paying your other debts credit cards etc? call one of the debt charities and figure out if br is for you. if it is you can start the ball rolling as soon as you are ready.

noone thinks you are taking the easy way out. behind a bankrupt usually is a story of illness/redundancy/death of a loved one/divorce etc etc. mine came about due to illness, i am no longer physically able to work full time and it hit me like a train when i realised i could no longer cope. if you had asked me a year ago if this is where i would be i would have been horrified. Life happens and circumstances change. it's how you deal with it that matters.

keep posting, we're a friendly bunch and would like to help you where we can.

confused76

curly04

curly04 wrote: »

re BR its self it cost £510.00 each at the county court, one the judge has signed and stamped the forms thats it, but you have to show you've took advice

speak to one of the debt companies like CCCS or someone, there is a sticky on the first page with contact details

good luck

I forgot to say if you are on some benifits £150.0 will be waived

good luck

mummytotwo_3

Hi there and welcome,

Me and my hubby are in the same situation, we simply cant afford our house and have stopped paying the mortgage, currently looking for private rented while we get our names on the housing list.

Iv already been to see our local housing options and have a caseworker, so will be going back to see him in the new year.

We have a hearing date of the 25/1 and simply cant wait.

good luck to you x