considering br -advice needed please

timetomoveon147

Hi ,


I will try and keep my post as compact and short as possible and get straight to the point.

Just want a fresh start and put it all behind me and br is the quickest way i believe , is making me ill ad with wife being made redundant cant afford to pay anymore.

Ive no problem with credit rating being screwed as long as keep house and all my debt gone.

Main question is would it be a good option based on my circumstances below?

What affect would it potentially have on my partner ?

Below are my debts at the moment ,the only secured debt i have is my mortgage which is in joint names with wife and up to date. Rest is all unsecured.

barlaycard - 8000
barclays cdl loan - 6500
northern rock loan - 7000
nationwide - 1500
natwest overdraft (business with personal guarantee) - 8000

Also have northern rock joint unsecured loan for 21000.

House currently has no equity at present ,so was thinking of going br and making fresh start and wife buying my equity interest in property for 1 pound. This was advised by cccs.

I have spoken to both cccs and business debtline and they have both advised as have no equity and majority of debt in my name and also that no secured loan apart frm mortgage.That br would most viable option as i could still be paying dmp in ten years time and an iva would be 5 years and pay back lot more also obviously and have to stick to payment.



Sorry bit longer than wanted to be , hope to get good advice.So much info on hear and great members ready to help :T

thanks in advance :beer:

dancingfairy

It's certainly a possibility based on what you've said but a couple of things:
1) will it affect any future career you might have/want?
2) I believe the joint unsecured loan will fall to your wife so she will be liable for repaying the 21k loan - can she afford to do this?
3) How much is no equity in the house? The OR has up to 2 years 3 months I think to address the equity situation so who knows what the housing market will do between now and then. Is your mortgage lower than average rents in the area?
4) Whats the nature of the business loan - I'm think bankruptcy might stop you becoming director of a company so not sure whether this will affect the business - is the business still trading and solvent? You may want to get advice from Businessdebtline regarding winding the business up first before any personal bankruptcy.
5) Have you ruled out a dmp? If so why - income too low to repay in a sensible timeframe?
Um that's about it for now. YOu might get a better response if you posted on the bankruptcy board and not the IVA board and I'm sure others will have more help to give.
Best of Luck
df

timetomoveon147

dancingfairy wrote: »

It's certainly a possibility based on what you've said but a couple of things:
1) will it affect any future career you might have/want?
No i wouldnt of thought so , although i know important consideration
2) I believe the joint unsecured loan will fall to your wife so she will be liable for repaying the 21k loan - can she afford to do this?
Yes
3) How much is no equity in the house? The OR has up to 2 years 3 months I think to address the equity situation so who knows what the housing market will do between now and then. Is your mortgage lower than average rents in the area?
My mortgage is lower than average rent yes and is currently negative equity by small amount - happy for wife to buy out my interest for token amount.
4) Whats the nature of the business loan - I'm think bankruptcy might stop you becoming director of a company so not sure whether this will affect the business - is the business still trading and solvent? You may want to get advice from Businessdebtline regarding winding the business up first before any personal bankruptcy.
Business not traded for quite some time - only business debt is loan with personal guarantee , which o believe can be included in bankruptcy?
5) Have you ruled out a dmp? If so why - income too low to repay in a sensible timeframe?
The amount i could pay back via a dmp would mean id still be paying back well over ten year from now at very least. To me i dont quite see point of dmp unless small amount unless im not clued up on them.Im simply sick of the stress ,bankruptcy is quickest way to get rid of the debt and start afresh. Im not saying it easy option but for me i believe is best option as long as im fully aware of any consequences.

As long as doesnt affect my wife in any way , thats most important thing for myself.Im doing this to give us both a fresh start.

timetomoveon147

thank you dancing fairy - youre help is much appreciated btw

My main consideration is my wife and if would affect her , as long worst case scenario there is somehow tiny bit of equity she can buy out my interest.That would be my main concern. Im certainly not an expert on dmp/iva/bankruptcy.If anyone thinks ive missing something or not seeing things clearly im happy to accept advice is why am on here.

many thanks

dancingfairy

I think as long as you have thought it all through and got all the appropriate advice then you have to make the best decision available to you.
You might find it helpful to post on the bankruptcy board thought - rather than the IVA board as people there have been/are going through a similar thing.
I'll post the link in a mo.
Best of Luck
df
Edit: BR part of the forum is here:
http://forums.moneysavingexpert.com/forumdisplay.php?f=136