Cant put it off any longer! Help

Standuptotheman

Hi,

I had a business that unfortunately I had to close in the depths of the credit crunch in November 2008. I was a fool and kept the business open much longer than I should by financing the business on credit which was still readily available to me at the time. With hindsight I should have shut my business as soon as I saw the queues outside Northern Rock and saved myself alot of heartache. Inevitably, it turned out to be a bad decision and has left me with crippling debts. I have managed (just about) to service these debts for two years now by paying the minimum interest payments but the lenders, ever helpful, have started to increase the interest rates and unfortunately my income is reducing too. I am self employed so income varies a little from month to month. The monthly payments are no longer affordable and I have no real assets left to reduce these debts. The cccs have recommended bankruptcy but I was hoping to be able to go down the IVA route. My outstanding unsecured debts total £90,000 in my name and one unsecured loan of £30,000 in joint names between me and my partner. My monthly payments are approx £1700pm just for my own loans. She has no credit problems at all. I also have to pay maintenance payments to my ex wife under a court order until the end of full time tertiary education. He is currently at university. My partner and I also have a jointly owned house that is rented out. It is in negative equity. We currently rent our residential property. I am not behind on any payments on anything but I think this is the last time I can say that.

Does anyone have any advice/tips inparticular what happens to joint loans/mortgages and waht happens to court order maintenance payments in event of bankruptcy?

Tixy

Hi and welcome

You probably need to post this on the bankruptcy forum to get the best advice - http://forums.moneysavingexpert.com/forumdisplay.php?f=136 and there are some sticky threads at the top of the forum that might help.

I do not know about the maintenance but expect someone on there will.
With regards to joint unsecured loans the other debtor (the one not going bankrupt) would become liable for the full loan.
With a jointly owned property in negative equity the other person is often able to buy out your interest in the property for a nominal sum and then they would own the full property and be responsible for payment of the mortgage. I'm not sure if this still applies as you don't live in that property but someone on the bankruptcy forum will I'm sure.

Standuptotheman

Thanks Tixy. Will post on the other forum as u suggest.