OR allow saving for rental deposit?

mummybiz5

If both myself and DH go bankrupt will the OR allow us to stop paying mortgage and save this money for 6 months rental deposit? We have no guarrantor and lettings agent insist need 6 months as alternative ?

skylight

No. Any monies after your BR "belong" to your OR and they wont neccessarily allow you to save it for any purpose.

Instead, I (personally) would stop paying the mortgage, save up NOW the money and allow the place to be repossessed and rent somewhere before BR. Mainly because the BR screws up your credit rating even more so you'll fail that for most letting agencies anyway! Get the 6 months saved and rent first and then go BR.

mummybiz5

Thanks - we kind of figured it needed to be done that way round but very scared to start the process of stopping the mortgage. We are worried that because we are managing to pay our dmp and have no mortage arrears it will be looked on badly as though we should be continuing to try and pay back the debt even though it will take 10 years?

mummybiz5

also wnated to ask - if we stop paying the mortgage would you tell them NRAM) that you are going for bankruptcy?

tigerfeet2006

If you have taken the proper professional advice then it won't be looked upon badly. It is a normal thing to happen when you go BR and the OR's have seen it time and time again.

Don't say anything to NRAM If they ring say you are taking advice from which ever Debt Charity you are about your situation and someone will be in touch shortly and repeat as often as you need. Or if you have caller ID then don't answer the phone when they call.

So to recap 1) take advice. 2) stop paying mortgage, secured loans (if any) and DMP. 3)Save that money for deposit, rent, moving costs AND your BR fees. 4) Move to rental (get utilities to come out and read meters and disconect utilities. Let the council know you have moved out. Let NRAM know you have moved out.) 5) When settled go BR.

Maizy

Hi Mummy

Its time to start looking to the future and plan how this goes. It isnt easy I know but we had to stop paying the mortgage and all debts to save like mad for the rent and BR fees. Its the only way to go forward. You have to look after number one, the whole point of BR is to wipe out debts you cannot afford.

Its easier said that done but try to emotionally detach yourself from creditors otherwise it can get you down even more. We had spent so much time trying to keep things afloat and worrying about the debts for too long, that we almost forgot about ourselves, health and family life. You do not need to tell creditors anything and as said before, as long as you take correct advice, follow the process it will all fit together bit by bit.

Good luck.

mummybiz5

Hi Maizy
I remember chatting with you last year - its good to see you have come out the other side - I feel we need to be as brave as you were and go for bankruptcy and start afresh - it seems easier to plod along with the DMP but for ten years?!

mummybiz5

Does anyone see any benefit to must one of us going bankrupt at least initially and the other continuing on DMP - the house is only In DH name though I would have benficial interest. He is thinking of stopping paying mortgage, saving rental deposit, moving to rented then handing back keys to mortgaged house and going bankrupt. We are on a joint dmp with CCCS though none of our debts are joint.

tigerfeet2006

It certainly is a possibility to look into. A lot will depend on how much you owe and how much money you have as income and what the out goings of the house are.

Get in touch with CCCS and go through the options.

lisa.89

mummybiz5 wrote: »

also wnated to ask - if we stop paying the mortgage would you tell them NRAM) that you are going for bankruptcy?

Hi

Just wanted to say we are just deciding on things, like you. We are gonna stop paying and save save save... its quite costly for both to do BR.

Just be aware, if you go withg handing keys back option, don't sign anything!!! we were told this by a professional (we are also with NRAM).

mummybiz5

DH who has the mortgage in his name is determined tonight that we have made our last mortgage payment - we are going to save save and get ourselves a new start via bankruptcy - I am frankly terrified but for him it holds no fear