Deep in debt and need some "GOOD" advice

Arnold's_mrs

From the top we had our own business at the beginning of this year, unfortunatly it went bump in june. It has left us with around £20,000 worth of debt, baliffs knocking the door and repossesion hearing on the 5th of January. In september i got in touch with a company that does a debt managment plans and started that at this time no legal proceedings were being taken. They are taking any available cash i have off me at the moment and i still can't afford my mortgage, i am currently with an adverse credit provider and i have tried every thing to keep my home. I have tried spreading the mortgage over a longer period of time, (they wont let me), i tried one of these companies that buy the house off you and rent it back, (not enough equity in the house) they want me to sell it to them for 50% of what it's worth and it wouldn't cover the mortgage. I've tried paying money off the outstanding amount and they want £900 per month which i'm lucky if i earn that a month. I have 3 boy's my eldest is 7 i have looked at a rented house today but it's nasty, i can't afford to spend the amounts they are asking on most private rent. The council will only re-house me from a hostle and i have to tell them i'm single to stand a chance. I am considering bankrupcy, but the debt managment company say i am tied in a contract with them, and are telling me to let them re-posess and pay them to manage the short fall, (i'm guessing so they can have the money) or go for an IVA with there sister company, and still let them re-posess the house. I don't know how any of this works all i know is that i need a roof over my childerens heads, i am trying to be practical but with all of the different advice i'm getting i feel really confused as to what to do next. The debt managment company know i'm trying to get back to work so we have 2 in-comes in the house so we are not dependant on craigs salary, and they are saying that i wont get a job with bankrupsy hanging over me, and that at the end of the period i could still have to pay all of the money back. I think they are trying to scare me and it's working, i thought they were supposed to be helping and if they had done there job when i first started it wouldn't have got this far. Where do i go from here and is bankrupsy best for me? All i want is good, honest, sound opinions from people who know what i am going through in plain english with out the scare mongering thank you!!!

Annie_Fanny

Welcome to MSE!

Who is providing your debt management plan? They sound dreadful! The best thing to do is call either CCCS or Payplan asap to arrange an appointment.

https://www.cccs.co.uk
https://www.payplan.com

It would be really helpful if you could post a 'Statement of Affairs' (SOA) up here as well so we can help you make some cutbacks. Have a look at the following link for advice on how to post an SOA:
http://forums.moneysavingexpert.com/showthread.html?t=107280

Good luck - I know it is tough for you at the moment but things will get better.

Annie
Xx

krisskross

Have no ideas on how to deal with this but rest assured someone will soon be along who does.

My heart goes out to you though, and I sincerely hope you get the advice you need.

Arnold's_mrs

To be honest i don't spend that mu

System

Mrs Arnold

I cant offer you any advice except just to say that you are amongst friends and there is a wealth of experience and advice here so please be paitent. There is always another option. I will do some looking for you.

Lenny

Annie_Fanny

Arnold's_mrs wrote:

To be honest i don't spend that mu

Do you work to a budget? Are you sure there is nothing you can cut back on?

Arnold's_mrs

try again my 3 year old was pressing buttons!!!!
I don't spend that much, I have a pay as you go mobile and i'm cheeky and make people call me back lolololol i put about £20 on it a month and craig has a company mobile so it's FREE, gas £30 per month and electric £40 per month a lot i know but it includes arrears, Council tax £82 per month and thats band A cheap as it gets i'm affraid in Walsall, (i'd swear at them but i'm not aloud lol) Mortgage £670 per month on an £82,000 mortgage i know it's taking the p*"s but cant re mortgage stuck!!! I spend about £70 per week on shopping for food for 5 of us which isn't bad i'm told this includes clothes most of the time i LOVE asda!!! and personally i hate shopping but it's cheaper if i go. I have Sky basic package we dont have a roof arial so it's a must if we wanna watch t.v. (without a licence ooopppps) My debts are with credit companies and the mortgage arears and insurance company's and stuff from the business not the every day things, i'm a smart shopper and i have used the 3 golden rules of shopping since i baught martins book 12 months ago, just ahven't managed to pull the other stuff into line. Debt managment is with Bains & Ernst

System

I know you will be putting your SOA together as we speak. As a starter, try and identify what debt is secured on your property, and the debt that is unsecured such as credit cards and HP. Remember that you have priority debts such as mortgage, council tax and any debt secured on your priority and you MUST pay these first. Maybe once you have posted your SOA, you can rearrange your payments to suit paying your priority debts first then you could negotiate your other debts via a debt management company. This may stand you in good stead for your reposession hearing. Is this hearing at a court?

bugbabe

i feel for you as am in the same boat i had to close my buisness 4 weeks ago am in loads of debt the citzens advise have been fantastic help was you a sole trader ,

System

You need to lose Bainst and Ernst - but one step at a time. CCCS and Payplan dont charge for their services and they have better relationships with creditors because what you pay is what you can afford.

System

bugbabe wrote:

i feel for you as am in the same boat i had to close my buisness 4 weeks ago am in loads of debt the citzens advise have been fantastic help was you a sole trader ,

Bugababe - unless you havent already, start your own thread with all the details mentioned here. This will allow people to advise you.