Finally ready to walk away...

Maxnana

Thank you everyone for your replies :A. I am just sifting through them at present to try to get some sort of plan of action together. No doubt I will have more questions when I get that bit done!

I feel quite scared but strangely calmer than I have in recent times - I think probably because I am now facing the inevitable instead of trying to hide from it. However, I'm sure once the ball starts rolling my anxiety levels will shoot up again, so I am so grateful of the time you people take to advise and support people like me.

And anniebaby, I feel so much better knowing we're not the only ones going through this right now - it will be supportive to be able to talk to someone in exactly the same boat at the same time. So thanks for your kind offer that I can pm you, I am sure I will take you up on that, so keep an eye on your inbox

Maizy

Hi Maxnana

You are definitely not alone with this, I can remember only 6 months ago still being unable to make a decision about my house even though it was in negative equity, even though it needed some repairs in the near future. Even though the mortgage had crept up as we were paying arrears.

There comes a time when you have to put yourself and family first and foremost and when straight thinking came into play we realised that the house was NOT our priority despite thinking it was for years thinking we would be failures for not having our name on the deeds to a house we were far from owning?. Ridiculous when you think about it but we put ourselves through another year of burying our heads with this way of thinking.

We stopped paying mortgage/debts and saved like mad to get a rental secured, we now live in a comfy house which we all love without the stress and the old house has been repossessed. Whilst we needed to stay in the old house to save it was vital to get a rental too - so we did nothing but save for fees/house and continued to do so when we moved for the BR fees. We went BR a couple of months after moving.

I would never look back and whilst I felt I was having some kind of crisis going through it all, its a huge relief knowing its all over and we can put this behind us. Its a case of coming to terms with things in your own time which you will do, gradually. No rush but once you know your path, plans can be made and despite it being hard to accept things can get better, they already are 100% for us as we now have a way forward and a way out. Good luck.

out_of_cash

Losing ones home is the highest price you pay with bankruptcy IMHO. My heart goes out to all who have, and have yet to experience that hell.Also really glad to sse that some! have relationships and marriges etc ,that can stand the stress of it all.:T

Teen_the_Drama_Queen

Hi Maxnana

Your situation now sounds very much like where we were about 15 months ago, even down to mortgage with Santander and secured loan with Firstplus (the only diff being we didin't have an IVA in place). We knew we needed to do something, the robbing Peter to pay Paul sounds soooooo familiar (not a great place to be in, I know).

We contacted National Debtline (who were wonderful) to get much needed advice.

We stopped paying the mortgage and secured loan to save up for deposit on rental place to live. Once we settled in, we went BR couple of months later (it's easier to do it this way round as landlords will do credit checks and if you have only just stopped paying mortgage etc. then they don't have time to show up - otherwise you are in a Catch 22 situation).

Went into Santander few weeks later to hand keys back. They then took possession of our former property (changed locks etc. - make sure you take everything you own before this time). They then treat the property as 'abandoned' and can deal with matters straight away, which helps you move your life on in the right direction.

I don't know anything about an IVA (plenty of people on here do though, so ask away )

Lots of people on here are pro CAB (and I am to a certain extent) - I know when we went though, the lady just went through a load of screens on the internet (which in hindsight, we could have easily done anyhow), we didn't come out of our interview any the wiser or any clearer upon what we should do next.

We are now 9 months into our BR and although BR is a giant leap for mankind (and womankind) - life is a whole lot easier nowadays. We both ended up with an IPA and we know just where our money goes. Our earnings are not taken up with late charges and we do not have the fear of the postman arriving.

On the downside, of course, we do not own a property, but like you, we had umpteen years left on the mortgage and were paying out enormous amounts in charges on the secured loan and credit cards etc etc.

On the plus side, if something goes wrong with the property, it is not our responsibility any more. :T

It was because of Firstplus we chose to go BR, they blocked our sale - we had a purchaser lined up, but they would not accept the offer of our payment to them (which would have been two thirds of what we owed them). Santander would have received all of what we owed them.

Ironically, shortly after BR, Firstplus contacted us to say that we would be in line for receiving a PPI settlement. We notified the OR of this and have heard nothing since. I realise we will not be entitled to anything now, but the situation seems like they will be paying themselves for being so darned greedy in the first place. Its a fully old world :eek:

So take a deep breath and jump - you will find that you can and will survive and life will get easier :A

xxxxx

miaoww

just a quick comment re first plus - is it a joint secured loan and are you both going bankrupt otherwise they may chase the other party.
we managed to keep house and secured loan post bankrupsy but we werent struggling to pay these just the credit and store cards after i lost my job and had to take a lower paid one so was only me that went bankrupt as all credit was in my name - the mortage and secured loan we have are in joint names and think even if i went bankrupt and we had to include the house they would of persued my husband for the payments.
start the year ahead afresh and move into the next one debt and worry free - good luck

TRAVELMAN_2

Yup-check what Miaoww has said re: joint debts (secured)-if only one of you is going bankrupt. Not much to say as at work but Maxnana, I followed the same route. A brill place for advice is http://www.debtquestions.co.uk/forum/index.php .Simon on there gave me the 'push' I needed. I had thousands of punds of arrears & secured loans-he advised me on how to go about giving my mortgaged property back & how to make sure any shortfall was included (mine was a single bankruptcy). Best thing I ever did! If it was me I'd stop paying mortgage/IVA/secured loans-put by enough money for rental deposit & BR fees. Good luck-best thing I ever did! Took me a while to man up & just do it....but once its done its done. A line in the sand-debts-GONE.

Emmenelle

Hi Maxnana

We were in your situation nearly 6 years ago now. We couldn't afford to pay our mortgage and the dreaded First Plus, and despite having a purchaser lined up, FP blocked the sale which left us very little choice.

Our credit rating, up until that point, was excellent - I hadn't 'dropped any balls', but we stopped paying the mortgage for 2 months and used that money to put down a deposit on a rental house. We then filed for bankruptcy a month later.

That was nearly 6 years ago now and I know exactly what your going through, but now you've made the decision, believe me, your half way there. Its the staying up at night and wrangling over what to do and trying to make figures stretch impossibly that causes the anxiety - your doing the right thing.

We rented a 3 bedroom house instead of the 2 bed shoebox we 'owned' and we are still there. I was discharged from banruptcy after 5 months, my husband did the full year, but it should finally drop off our credit reports at the end of the year.

What we did - we sent the keys back to the first mortgage holders with a covering letter saying we were leaving the property and intended to file for bankruptcy. We included the house and the mortgages in the bankruptcy, which takes care of any short fall. The first mortgage holder did send us a form to sign, but DO NOT sign it - it makes you liable for the short fall. Just ignore it.

The other thing to do is notify the local council so you dont have to pay council tax for the abandoned property. I can't quite recall, but you get it moved to status 'O' or something, we means your no longer liable.

I hope all goes well for you.

Teen_the_Drama_Queen

Ah yes Emmenelle, I had forgotten about the Council Tax bit - yes Maxnana, do contact them too.

You might want to change your mobile phone number too! Once you stop paying the mortgage and definitely with Firstplus, you will become their 'favourite number' and they will ring you non-stop. (Just to pile on the stress you are already feeling!). Of course, once you move into rented property, you will have a new landline number which makes life a lot easier (and quieter )

Do keep posting on this forum Maxnana - people on here have been through what you are going through now and come out the other side.

Keep your chin up.

xxxxx

Ineedaname

Very good point Emmenelle, council tax exemptions haven't been mentioned for a while.

This thread has all the info on which band to aim for.

debt_doctor

Hi,
You have received good advice on here.It's difficult to give up on the 'homeowner dream' but ultimately 'owning' a house coupled with no family life and the permanent juggling with debt misery is not worth it just for the sake of a neatly stacked pile of bricks.

To just sum up the logical steps are;

Stop paying the mortgage, secured loan and IVA.

Use that money to secure your accomodation with the bond and deposit. ( it is much easier, as has already been said, to obtain private rent before bankruptcy.) I cannot stress enough that sorting your housing means everything - the debts can just wait for now. Ignore the debt collection letters, dont speak to them on the phone.

If you get court forms post back on here for advice.

Once you are rehoused, you can 'sweep up' the debt with BR, when you have the funds - do not use your money for BR fees until you are rehoused. Dont tell your creditors you have moved, dont sign anything regarding the property.

Post back on here for 'in the interim' advice.

Good luck.

DD