I'm Sinking...

Happyamper

Soon I am going to be unable to service our debts. I am wondering if BR is the best route?
Assets: 4 Rental Properties, current values are still positive equity, but only just. Main family home is Mortgaged with same mortgage company (was not intentional, happened due to take over when GMAC sold order book).
Here’s the situation,
Total Personal loans (Myself and wife):
Loan 1: 19,000
Loan 2: 24,000
Credit Cards: 15,000
Other small loans: 1,000
Total Debt: 59k
Buy to let properties: 2 properties are let, one is about to be let and the other was extensively damaged and will require 15k to put right. Total equity if sold in today’s climate may just cover the total mortgages on them, at worst if sold all 4 right now, the 3 undamaged would/might neutralise total portfolio debt.
Main family home mortgage company was bought out by the rental properties mortgage company, so I presume that a default on one property will see the mortgage co treat our own main home as part of the “portfolio” when the chasing begins.
No outstanding payments and perfect credit history, but outgoings are huge due to loss of job and other circumstances over last 12-24 months.
So, what do you think? There is approx 40k equity in main family home. The buy to lets have sufficent equity to cover existing mortgages if sold tomorrow, maybe...
After this months payments I will have no money in the bank and obviously will be unable to pay any of the existing Personal loans and service my own mortgage and one of the BTL mortgages.
I am running approx 3K short every month and time is up... other half is extremely depressed..
Selling main family home quickly enough is not an option as there are simply no buyers at any price...
Should I open a Co-op B/account, get ready to keep enough for the bankruptcy (£1000 for both of us),
Do I get ready to go bankrupt or do I stand and fight the baliffs? We need one more year to get the children through their last year of high school and I know for sure an extra loan is just not feasible (nor am I interested) in my circumstances
Suggestions and advice welcome
many thanks

IF

Hi Happyamper and Welcome, First thing make a list of all your creditors, debts and assets.
Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another.

Please don’t do anything rash take your time and weigh up your options and read everything you can x


Please click on Blue links below.


For ‘essential’ info this is Fermi’s sticky at top of the forum:-


http://forums.moneysavingexpert.com/showthread.html?t=1056083


These are the most used Debt charities:-

http://www.citizensadvice.org.uk/index/getadvice.htm

http://www.nationaldebtline.co.uk/

http://www.cccs.co.uk/


More Debt charities also on Fermi’s link:-

http://forums.moneysavingexpert.com/showthread.html?t=1056083


And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes
If...x

Happyamper

Many thanks for the quick response and links, will speak to one of the debt charities tomorrow : )

IF

If you are going down the BR route and don't live in Brighton, I would open a coop cashminder now and have your DD's etc sorted out. Sorry about how you are all feeling and we really can't advise what you should do. But anytime your down do come on here for support lol x