!st step to getting it under control...

Blownitbigtime

Hi everyone

I spent a few hours yesterday going through this forum and coming to terms with what I think I need to do. So, here's step 1 of my bid to get my life back on track.

I've got a mountain of debt. My mortgage is in arrears. I have no job at present (it's been three years after getting out a business by the skin of my teeth and trying to find full-time employment without success) but I have recently been working on setting up a new business that I really think has great prospects, but now I can't afford to do anything about it. My wife and I have just decided to split up. She's been so brilliant but can't take the worry any more and I don't blame her. One of my priorities is to protect her from any fallout from my situation as far as possible as she just doesn't deserve any more heartache. We don't have any children so at least I can't screw them up aswell.

I haven't been able to sleep properly for months but no-one really knows what's going on as I somehow shut my problems away and just get on with life as much as possible. I guess that's what is called sticking your head in the sand.

So, there you have it. I've got about £120 to my name, no income at all (I think I have to sign on this week for the first time ever. I'm dreading it.) debt collectors hassling me (I was paying regualrly but my savings are now gone so I can't stave them off any more), we don't know what's going to happen with our home but I'm essentiially going to have to find sometwhere ese to live, and I need to do something about it all. Oh and the tax man probably wants to have a go too.

Apologies for the potted history. I probably sound sorry for myself. I probalby am I guess (you don't imagine finding yourself in this position, do you?), but this nonsense has got to stop and this is the first step.

Hoping for your help. I have lots of questions. Need a cup of tea now.

Ineedaname

Hi there, unfortunately if you have any joint debts then your wife will be impacted if you go BR as the debts will fall to her to pay off.

How much is the mortgage, is there any equity? What is the total of your unsecured debts and are there any joint debts (including the mortgage)?

Well done for taking the first step.

Blownitbigtime

Ineedaname wrote: »

Hi there, unfortunately if you have any joint debts then your wife will be impacted if you go BR as the debts will fall to her to pay off.

How much is the mortgage, is there any equity? What is the total of your unsecured debts and are there any joint debts (including the mortgage)?

Well done for taking the first step.

Hi

I don't think there is much equity in the house (I think we might be in negative equity) as there's been quite a drop in asking prices. I'm hoping to get a valuation later this week. We discussed selling up but if the equity doesn't allow it, I guess we have to hand the keys back. I'm concerned the mortgage company will go after my wife for any shortfall though.

What are people's experience with finding accommodation and an understanding landlord after bankruptcy? There's also the issue about needing a deposit...

I think the mortgage is the only joint debt. No car loans or HP but we each had a couple of credit cards that we've been trying to deal with.

Thanks for replying!

Ineedaname

Unfortunately your ex would be liable for any shortfall on the mortgage if you let the house go in negative equity and you're BR.

If you need to rent during BR then it's best to sort that out before you go BR, there's quite a few recent threads on the subject. If you're going to walk away from the house then you stop paying the mortgage to save up deposit, agency fees and first month's rental.

dancingfairy

I think you both should get some advice re the debts- try National Debtline, CCCS or you local CAB so you can chat through the options.
Shelter should be able to help with housing issues.
df

Blownitbigtime

OK so if we do have to walk away fom the house and the mortgage co go after my wife, could that force her into BR aswell? She has a good job and I fear this is highly likely to jeopardise her position if anyone in her company finds out.

What is likely to be the process/strategy of the mortgage co in a walkaway/negative equity situation? How much of my wife's income can they claim off her and will they have to take her to court to recover the shortfall?

As regards pensions, as I understand it I would effectively forfeit mine if I went BR? In previous employment I contracted out of SERPS, so does that I mean I would have zero pension when I get to retirement age?

Thanks for your help so far...

Blownitbigtime

Just for info I've finally managed to get hold of the local CAB and they are sending me the income and expenditure statements etc. There's a two week or so delay in reviewing cases but they've told me to keep telling any creditors that I'm working with the CAB and to back off. Is that effective?!

Ineedaname

That should certainly help with some of them, others might just keep pushing but you can ignore them while the CAB helps you sort things out.