Hello, bankruptsy becoming an option.

lyniced

Ring CAP - they may be able to help. 01274 760720

MonkeyMad

I'm still unclear - you have debts of £7K and a POTENTIAL shortfall of £20-30Kish if you decided to move? You do say that you are paying the bills but have little disposable income.

Genuine question, but if you are making the payments on the £7k and the mortgage (are you?) then are you still technically solvent until the time you make a sale on the house to realise the shortfall? And in this instance could creditors block a petition?

I would question whether just removing your name from a joint account will sever the link as cleanly as you hope?.

bloom1234

Yes, we're not insolvent. I'm new to the idea and asking for advice, not making assumptions. The joint account thing wasn't an assumption it was an idea. Apparently we can both go into the bank and have me removed. Just as someone would if they wanted to after separation. None of my money goes in and I don't use a card. Money is paid into mine every now and then though. Will have to see what any creditors would think to that later down the line depending upon what road we follow.

We can pay but I imagine that we couldn't afford to pay a huge interest rate on a loan if the bank allowed us to sell at large shortfall. They could well bar it, in which case we'll have to apply to go bankrupt if that's a possibility. Possibly surrender the house and up and leave. We do have a guarantor for renting and wouldn't be homeless as there s space with family at a push.

Who arranges IVA's?

Speaking with the local housing associations to see if and what they'd offer. Estate agent for advice but I thik we've worked that one out. Speaking with cccs tonight. Will contact CAP too, thank you lyniced.

louisejansen

Hi Bloom, I am also in a very similar situation to yourself and also trying to work out whats for the best, Sorry i dont have any advise but would be keen to know what you are advised,

It is difficult isn't it, we are a small family "stuck" in a house beyond repair in a very horrible area with a possible 20-30k shortfall so we are also thinking about Repossession and BR..

I hope everything works out well for you and your family !

bloom1234

Hi Louisejansen!

I will definitely keep you posted. I think what I fear the most is uncertainty. Something we've had to try to cope with all the while the house prices have been falling. We've stuck it out for such a long time.

I worry that if we did go bankrupt or have an IVA (if we're allowed, not sure how you apply for it to be honest) they'll,

Take my car which isn't expensive, maybe 1.5-2k but I used it to get the kids to school and to run errands and the odd work run.

We'll be forced to live on a measly amount and scrimp on food, school shoes, clothes and toiletries (I already try to shop wisely),

Our children won't be able to have any of the days out etc that we have now,

We won't afford christmas or birthday presents,

If our TV (it's 6 years old), fridge (passed on and must be a good 15 years old), microwave etc. break we will be completely stuck if we can't afford to get another one.

All of this could continue for 5 years.

louisejansen

Exactly the same as what i worry about.. xxx

I would be BR soley as we are not married, But my BF is due to move out as the house and area is that bad, throwing money at a house we'll never sell / can't afford to repair is maddness especially as it's tearing us apart.

I dont have a car thankfully, But if i go BR and move in with my BF are they going to take a massive chunk of my wage? It is all very worrying especially as i seem to have spent ages trying to make everything better.

I *think* your assets are looked at but i really dont think they would take your tv etc?? Not sure but i do hope not !...

The BR only lasts 12 months but would stay on your record for 5, So as long as nothing major changed in the year ??..

Sorry i'm still trying to work it all out myself ! I'll be making a call to my local CAB to see if they can advise me.. However last time i went there with money problems, they told me to pack my job in, get house repossessed and clai benefits :-/

GDB2222

louisejansen wrote: »

I *think* your assets are looked at but i really dont think they would take your tv etc?? Not sure but i do hope not !...

Even if they take the wide screen TFT, you can get CRT TVs for nothing on Freecycle. I was at the dump the other day, and somebody dumped a CRT TV that was miles better than the 20" CRT we use. Don't get side-tracked on inessentials.

Anondebtadvisor

Making a decision on leaving a property and allowing it to be repo'd is a difficult one and full of unknowns.

You can voluntarily surrender the property with the lender or allow it to be repo'd by the lender in which case you need to stop paying the mortgage - this could take 8-10months as a guide.

If you take that route and allow the lender to repo the house you can then save the money for rent, bond etc on a rented house.

You can declare yourself bankrupt before the property is sold by the lender and any shortfall will go into the bankruptcy.

If you have a plan it is a lot less stressful.

If you only have 7kdebts you cannot do an IVA and will have to wait until the mortgage shortfall arises when the house is sold. At the moment the mortgage is secured on the property but when the hosue is sold any shortfall becomes unsecured

bloom1234

As far as I know Louise the affordable payments can last for 3 years in BR but % years through and IVA although they both seem a 'severe' as eachother I think an IVA is perceived as less severe. It looks like you still carry the poor credit rating for 6 years either way.

Thank you debtadvisor. My husband says they might say to us just go bankrupt in which case we'll save the mortgage payments to put down as bond, rent and I know it's risky but keep a bit of cash outside of a bank as rainy day money. Also, if it does take 8-10 months to repossess is that only if we don't tell them we're surrendering and will bailiffs chase us for the 8 months at our new address? If we tell them we're surrendering will it happen sooner?

I was under the impression that because the mortgage and debt are in his name that he would be the one going bankrupt not me. Child benefit goes into my separate account, will that affect how the list of outgoings is worked out or is it worked out from both of us?

bloom1234

Sorry hadn't read your reply properly. I see that it can take 8-10 months when you tell them.