Repossession etc What would u suggest?

needawayforward

Hi there

We have had loads of financial problems for years n years, a lot was caused by buying a home which cost way more to fix up than we anticipated and secondly from when i was ill and ended up having to leave my better paid job.

We have had a suspended repossession on the house for the first mortgage, which we have kept up the payments for.

But now First Plus who are a 2nd mortgage on the house, who many years ago said they would not pursue us for payments as there was no money available at that time, have decided to go for possession.

we have not paid them anything for prety much 5 years and according to them have £40k worth of arrears. Which is probably right.

This is 2 months after we got a chunk of money removed from the total due to a PPI refund award.

We did not even know they were going to do this until the court papers arrived at the door.

I have sent in the defence form, btw the hearing is 10th april

Now if things were different i would have sold the house years ago and rented. But, living with us is my mother in law who suffers from pretty much everything - from heart conditions, to having had breast cancer, to osteoporosis etc etc. This means she requires things like raised toilet, hand rails everywhere, cant climb stairs so needs a bedroom downstairs, has a carer every day etc etc. Which as you can imagine is not something many rental places would allow you to make changes for.

I would estimate we also have non secured debt of about 30k

Now im pretty sure that unless a miracle happens we will lose the house.

So what do we do next, i dont know how we ever will find a rental, also how do i afford the deposit, our credit rating is so crap they would probably want loads in advance too, the mother in law would rather die than go in a home, do we go for bankruptcy?

I did tell First Plus that, as after the 1st mortgage is paid out of the sale of the house, their would be little if anything left for them and that we may have to go for bankruptcy and then they would get nothing. we have also written to them twice since the PPI refund to try n start paying something, but had no reply, also again since the court date arrived, offering them £300 a month ( i expect they want the £520 + some towards arrears), but we just dont have that money yet.

I dont really want to have to go for bankruptcy as i dont like shirking away from what i owe, but i need to find a way forward and do whats right for my family rather than make things more difficult.

Any advice would be really useful

Thrugelmir

Sorry to hear your tale. You may well be better taking bankruptcy on the chin and starting afresh. As that way all the stress and worry will be removed. There's no disgrace in being declared bankrupt. Sometimes its unavoidable.

Suggest you ring the National Debt Helpline. Totally free service.

Here's the link

http://www.nationaldebtline.co.uk/

needawayforward

Hi there

thanks for your response

How does bankruptcy affect, getting accommodation, obviously thats my biggest concern, i cant leave people on the street.

Thrugelmir

needawayforward wrote: »

How does bankruptcy affect, getting accommodation, obviously thats my biggest concern, i cant leave people on the street.

Make an appointment to visit your local citizens advice bureau. They'll be able to give you all the advice and support you need on those aspects.

SouthCoast

And speak to your local authority housing department as your mother in law care needs should make her a priority case.