what 2 do? bankruptcy

deadinthewater

Hi all.
new 2 this 2day i have been reading this site for a couple of days now and spent a lot of hours reading
basically we r in deep s*** spoke to cab cccs and debt advice people all have said bankruptcy except cccs who advised iva but this doesnt seem viable in the others view
we have 86000 mortgage (equity of about 20000 in house)
43000 unsecured debts
disposable income of 113 after priority debts to repay the 43000
now i understand BR is a last resort and i have been fighting the wolves from the door for 2 years now and am at my lowest point in my life as we have no quality of life:(
we r 48 & 48yrs old and at this rate will b repaying and living like this for the rest of our lives;
the advice from all except cccs is to stop paying all debts incl mortgage and save monies for BR and deposit for rent etc
we r currently 1 month arrears with mortgage and most other debts except 1 which is 4 months arrears
PLEASE HELP
any advice appreciated

confused76

hi there and welcome
it is good that you have taken advice from a variety of sources as their opinions can vary. ultimately the choice is down to you.

have a read of this thread as there is some useful information about homes in bankruptcy.
https://forums.moneysavingexpert.com/discussion/1056083

i didn't have a house so i can't help you with personal experience, but hopefully the thread will help. other people will be along soon too x

debtinfo

hello and welcome

It looks like you have been getting plenty of advice which is a good thing. One thing to rember is that advice is just peoples opinions, at the end of the day it is yo yourself that needs to make the decision and live with the affects afterwards. At the moment keep finding out as much as you can to help you make that decision and feel free to ask as many questions as you like about either option here

debtinfo

confused76 wrote: »

hi there and welcome
it is good that you have taken advice from a variety of sources as their opinions can vary. ultimately the choice is down to you.

have a read of this thread as there is some useful information about homes in bankruptcy.
https://forums.moneysavingexpert.com/discussion/1056083

i didn't have a house so i can't help you with personal experience, but hopefully the thread will help. other people will be along soon too x

snap .....

confused76

debtinfo wrote: »

snap .....

ha ha i was thinking that...at least we said the same thing

deadinthewater

thanx confused
have read lots of advice on this site and feel BR is our only way of getting any sort of life back
the house holds no value to us only bad times so losing it is not an issue and at least the creditors will get some of their money back?

deadinthewater

hi debtinfo thanx for reply
all except cccs have said (off the record) as they say they are not really supposed to recommend,only advise, that BR is really the only viable option due to our age and circumstances and we feel comfortable with this was just wondering about consequences of with holding payments to pay for BR and deposit for private renting which by the way it is a lot cheaper to rent in our area

confused76

ok, if you are going down the br route and aren't planning on trying to hold on to your house, then you should only pay your priority bills and stop paying your creditors. consequences? no doubt you will receive lots of calls and letters trying to get you to pay up, so you need to be strong. stop answering your phone if need be, get an answerphone or put it on silent. you can also write to them and insist all correspondence is now conducted in writing.

how long do you think it will be before you can save your br fees? what timescales are you thinking?

MikeJO

deadinthewater wrote: »

...was just wondering about consequences of with holding payments to pay for BR and deposit for private renting which by the way it is a lot cheaper to rent in our area

I think pretty much everyone does that without consequence (other than a volley of phone calls).

Certainly I did it and was advised to do so by CCCS and the CAB, don't think most could afford the fees any other way.

deadinthewater

thanx confused
hi mikejo thanx for reply
i could pos have the money in about 3-4 weeks for BR if i stopped paying debts both of us are going BR so i know its £1200 £600 each
all this info i got from this site its a godsend and you are all very helpful and friendly to each other so its nice to be able to talk 2 ppl with the same mis-fortune

deadinthewater

by the way the phone calls and letters have already started due to arrears about 15 calls a day and a letter or three a week