Does my brother hand his flat back and make himself bankrupt?

ilovegreyhounds

Hi

Really hoping I can get some advice to pass on to my kid bro. He's not the most proactive person in the world, hence me trying to help out and nudge him along.

Long story short, he's got himself (well, him and his ex partner) into a financial nightmare. He bought a flat at the peak of property prices, got a 110% mortgage, took advantage of all the loan and credit card offers they threw at him and now, after losing a reasonably well paid job, he can't afford to pay for any of it.

His debt stands at £20k in credit cards and unsecured loans. He did have an agreement through Gregory Penton to pay £100 a month off these debts. However, he lost his job and stopped making the payments. The threatening letters have started coming again. He's quite laid back as he thinks it will all go away if he gets another job and starts making the £100 payments again.

He also has a flat that he has tried to sell but with no luck. He is £6000 in arrears and also had an agreement to pay less but that has also fallen through. He hasn't handed the keys back yet but they are expecting him to and the only reason he hasn't is because I've told him to hang fire and get some proper advice before he does anything. I'm sure I'm right in thinking they'll just sell it for whatever they can get and chase him for the difference? Again, he thinks he'll just pay it back at a small rate per month. Should you hand the keys back or should they force his hand and take the flat back. I really don't know anything about the merits of either choice?

I don't think he has a hope in hell of paying all this debt back and I think (although I don't really know) that he should make himself bankrupt. However, I don't really know if this is the best course of action or if there are in reality any choices to make or even how to go about it.

Trouble is, he wants to go to Canada and possibly start over with his new beau and I'm thinking (but again, I don't know), surely there would be consequences if he was a bankrupt?

He says he's going to make an appointment with the CAB but I've heard the quality of their advice depends on who you are talking to at the time so that may not help him out a great deal.

I know this is a lot of info but I'm hoping someone will read it and say, right, you need to do A then B then C and definitely not to D....if you know what I mean? I just don't know where to start advising him.

:beer: cheers in advance for any help!

HappyChappy84

Welfare Rights would be a better place to go than CAB.

Penelope_Penguin

ilovegreyhounds wrote: »

He bought a flat at the peak of property prices, got a 110% mortgage, took advantage of all the loan and credit card offers they threw at him and now, after losing a reasonably well paid job, he can't afford to pay for any of it.

His debt stands at £20k in credit cards and unsecured loans.

Trouble is, he wants to go to Canada and possibly start over with his new beau and I'm thinking (but again, I don't know), surely there would be consequences if he was a bankrupt?

Looks like he's insolvent, so BR might be an option for him, but not easy to advise without more info.

Having said that, his debts won;t go away without his taking action, and if you stop paying to an arrangement without letting the creditor know, they're often not so amenable to you having a second arrangement.

No idea about him going to Canada, but if he wanted to settle there permanently, I'd not bank on him being able to run away from his debts.

HappyChappy84 wrote: »

Welfare Rights would be a better place to go than CAB.

Why do you say that?

ilovegreyhounds

HappyChappy84 wrote: »

Welfare Rights would be a better place to go than CAB.

Thanks for the info but who or what is Welfare Right's?

Does anyone have any idea as to who I should make him talk to before handing the keys back to the BS?

tigerfeet2006

Main recommended sources of help:

• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

Get him to ring the Cnadian High Commision in London and ask about BR in the UK and moving to there.

Macdonald House
1 Grosvenor Square,
London
W1K 4AB
020 7258 6600

But do make sure he takes advice from one or more of the charities.

ilovegreyhounds

Thank you Tigerfeet, I will pass this info onto him and prod him until he get's on with it and rings someone. He's moving back home at the end of the week and staying with us for a couple of weeks so I can go on.... and on.... and on..... at him until he talks to someone about it and get's an action plan sorted.

It's not straight forward is it?!

tigerfeet2006

Unfortunatly you can lead a horse to water but you can't make him drink.

Make him get all his financial info. together ie:CC's, loans, mortgage. Then ring someone like National Debtline and go through it with them.

Any queries that come up just ask on here and someone will most likely know.

Have a read of the Bankruptcy Help sticky as well.
https://forums.moneysavingexpert.com/discussion/1056083

geoffky

HappyChappy84 wrote: »

Welfare Rights would be a better place to go than CAB.

Not the best advice that has been given out on here..Anyone new,,ignore this,