On DMP - cant pay WONGA back

Squirrel29

My friend has just managed to find rented after declaring herself bankrupt and losing her house. It was a case of trying several agents and private rent ads in the local paper. She stopped paying her mortgage for 3 months or so to save a decent rental deposit.

ILW

It appears that you are just spending more than you are earning (even without the debt repayments). Is your income likely to increase in the near future?

mel12

I have thought of bankruptcy but then what would happen to the house/mortgage?

If the house is in negative equity you might be able to keep it - under current rules they'd look if its still in negative equity after 2 years 3 months and if so pass it back to you (meanwhile you could still live there). You'd have to keep paying the mortgage and secured loan, but could include the unsecured debts in the bankrupcy and stop paying those.
Might be worth asking the lovely folks on the bankrupcy forum about it.

Another option to look into might be the government mortgage to rent scheme where your house is bought by a housing association and you stay on as a tenant.

Definitely call CCCS though cos there might be other options

gizmo111

losingbigtime wrote: »

No there is nothing in the house, we are in nagative equity. The house is worth £100,000 and we have £90,000 left on the mortgage and a secured loan in favour of First Plus which was £25000 at the time but no idea what it is now as we have had no correspondence from them for years, but the interest was high so its probably more than £25000! The £1500 I quoted was mine and my partners contribution combined, he cant give me any more. I have thought of bankruptcy but then what would happen to the house/mortgage? My sister has just had her house repossessed and she is homeless right now as noone will rent to her because she was on a DMP and her credit rating was shot at. she is currently sleeping on peoples floors with her three children because the only people who will house her is the council but even with her kids there is a 7 month waiting list.

Is there any possibilty of you sister moving in with you and paying rent? I guess it woulkd be cramped but would help both of you for a shorttime to get sorted.