Im new and need some advice please

Bugster01

Hi everyone

I have really enjoyed reading on this forum peoples situations and how they have come to deal with debt. My story is as follows:-

I am a 28 year old female and a joint homeowner of a property worth around £110,000 with a mortgage of £88,000 (the other person on the mortgage is an ex partner who agreed to stay on the mortgage so i had a roof over my head, this was the agreement 6 years ago when we split up, mortgage company will not lend me the money to buy him out due to debts i have).

I have personal debts of £45,000 which consist of £27,000 joint with ex which he paid his half to me but foolishly i didnt pay it off and kept that money to do renovtions in the house. I have a few smaller loans, catalogue and about £500 on a credit card which total the £45,000.

I am currently on a DMP with Payplan paying a steady chunk each month however i would like advice on declaring myself bankrupt. I thought of a few things i could do as i know declaring myself bankrupt would effect my ex (and i dont want to screw him over) so if i sold the house asap as there is approx £22,000 equity in it, that would clear our mortgage and majority of joint loan leaving £5,000 unless mortgage company would settle with the money i have from house sale or if i rented a room for a year, my disposable income would be more which would effectively i could clear that remainder of joint debt pretty quick, would i then be able to declare myself bankrupt over my personal debts or would that be seen as fraud....i really dont know seeing as i wouldnt be selling the house to make a loss but to clear a massive chunk of debt.

I could declare myself bankrupt now but i dont want to do that to my ex as he has pretty puch provided a roof over my head although he hasnt contributed financially since we split, his name remaining on the mortgage was enough as i could afford the bills etc.

I have struggled for 6 years paying this debt and with my current DMP it will take me anout 8-9 years to complete my plan, the disposable income comes mainly from renting a room out in my home which i have done for 6 years..... i am 28 and would like to think that i would meet a new partner at some point but i have struggled to hold a relationship down as i do not expect anyone to stick around with the amount of debt i have.

Can anyone suggest anything for me, i do have a CAB appointment booked for 15th Feb which i hope will point me in the right direction.

Thanks in advance to all you lovely people

IF

Hi Bugster01 and Welcome to the Bankruptcy (BR) Board. Well you have done the first step contacting CAB they will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two for your own piece of mind. Your BR could be refused if you have not sought advice.

* Blue text on this forum usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

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

Others:

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

Please don’t do anything rash take your time and weigh up your options and read everything you can.

For ‘essential’ BR info this is Fermi’s sticky.

BR friendly home insurance thread.

BR Friendly bank accounts sticky.

BR Abbreviations.

If you are new/old to this board and receive/see a comment that is not helpful or insensitive please don’t let it put you off posting, often these comments are made by people who don’t normally contribute to this board and don’t speak for us.

What to do if you get an insensitive or hurtful comment.


And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.


Best wishes
If...x

sniggings

without knowing all your details its hard to know what is best,hence why ringing a helpline who go through your case step by step is a good move but if you were to sell your house would you not be able to service the reminder of the loan? because even after BR if the official receiver thinks you will have enough income remaining after your basic expenses are paid will set a repayment plan for 3 years,which will not as bad as your DMP but still worth thinking about,as getting any form of credit for the next 6 years will be next to impossible.

Selling the house before going BR is not a good idea because you are not allowed to pick and choose who get what money you have left,if you know you are going BR,it goes into a big pot and the OR chooses who gets what,and also it could be seen that you are protecting your ex BF which again would not be good,but once you ring one of the above lines you will have a clearer picture.