We need some advice please...

tyler499

hi can anyone offer us some advice please as really dont know what to do! Have seen the CAB today who has basically told us we have three options

we are in mortgage arrears our lender took us to court and allowed us to pay the arrears on top of our usual payment at teh rate of 50 per month. 760 mortgage plus 50 for arrears

we both work fulltime but stupidly brought a house in 2007 - a tiny house, on an interest only mort with northern rock. we both work full time. basically we have lots of old debts mainly from when my husb had a breakdown whilst in the army. these have followed us for years and he still suffers from depression etc etc

1. should he go BR? is so will we lose our home
2. should he go BR and hand the keys back and then we rent - which will be hard trying to find someone to take us with our credit hst
3. mortgage rescue scheme - and BR is it possible to do both though
4. we have a good joint income but over half of this is made up of overtime on his part but looking at the figures etc they would wonder how we have gotten into this mess. So do we, we have no credit cards or overdrafts - but we have loads of ccjs; catalogue debts; car loan from 1997 the list is endless.

He wants a fresh start which we both agree would be a wonderful relief but we have our daughter who is 9 to consider in all of this. Sorry this is so long and reading it back it doesnt sound so bad but it is - we have bailiff letters from old council tax debts; just in a real mess and do not know where to start.

Thanks for reading and any advice will be greatly greatly appreciated by us both.

curly04

Hi

Sorry i can't help you, but welcome to the board and good luck

Curly

Worcsman

Hi I cant advise but can tell you that we went bankrupt and have not regretted it one bit. We arent yet discharged but there is a light at the end of the tunnel. I think you will certainly lose your house. We were willing to do that so that wasnt a problem for us, we moved into rented before going bankrupt so for us the landlord situation wasnt a problem, although we did tell him upfront of our plans. He was very understanding and has turned out to be a great landlord. Good luck with what you decide to do, do your research, it aint that bad really honest.

debtinfo

Hi tyler, it is difficult to give answers without info to base it on, about the house we would need to know how much it was worth and what charges are secured on it (mortgages, secured loans etc)

tyler499

Hi thanks so much for your replies. The house was 150k. northern rock gave us a mortgage for 130k plus an unsecured loan for 20k. we have one charge against the property made by welcome foundation and this is for £1,700 The mortgage repayment is £760 plus £50 arrears and the unsecured payment is £200 so our mortgage was £960 a month.
Thanks again.

gardenerswife

Hi,
Just to say welcome - and you have taken the first step by getting advice.
We went bankrupt nearly a year ago - so soon will be discharged - its been a rough ride but better than years of struggling - as we had had previously.
If one loan is unsecured then that will go into the bankruptcy - if thats th route you decide to take. And people do manage to keep their houses - if they want to - some see it as anew start and havent had problems with renting - despite the bad credit history - just need to be honest about it.
Ask lots of questions on here and people will help- its fabulous.

But would be good if you put up your statement of affairs so peole can advise better.
Hope that helps

sk1irt

Hi Tyler499

How much is your house worth now? You may have paid 150K but if there is little or no equity in it now then the Official Receiver will probably not look at taking it from you. The 20k unsecured will go into the BR, i had a 23K unsecured loan and that just disappeared over night. My house wasnt worth as much as what we owed so we have managed to keep it, however they do have 3 years to sell your property if prices rise sufficiently enough to create equity. I went bankrupt 14 months ago (discharged May 09) so just keeping our fingers crossed that house prices dont rise too much.
They will look at anything that you own with any value, like your car or expensive jewellry,antiques etc and if they are worth something then they will go towards paying your creditors. They will obviously look at your salary and outgoings to see what you can pay each month. My wages were that bad (still are) that I didnt pay anything towards my bankruptcy, they did a nil tax code option which is where they change your tax code so you get in effect your gross pay each month and you then pay them what you would have paid in tax.
We now pay the mortgage and normal bills, my hubby has a credit card but we use that for food and petrol and pay it off every month so we dont pay any interest.
It was the best and only solution to my debt issues, but it really depends on you.
Let us know what you decide:)
SK1IRT