Advice On My Current Situation Please

TheLegendIsBack

Hi,

I'll post all the info of my situation below and would really appreciate if people could post advice on it, thanks.

Basically can't keep up with the payments on CC's and mortgage and recently haven't been able to pay all CC's every month.

* £30, 000 debt credit cards
* £260, 000 house value (£220, 000 owed to bank from a previous loan so own £40, 000)

Option 1. Sell house at £260, 000. Use the £40, 000 to pay cards (30k) and 10k for lawyers fees. Then re mortgage and move to a cheaper property roughly a £190, 000 property. This will mean I'm only paying the mortgage every month and leaves me £800 better off a month because I'm not paying CC's. Also won't get black listed.

Option 2. Bankruptcy - Done a lot of research on this but don't understand it fully which os why I'm looking for opinions on which is the better option?

I appreciate any help as many will know this is a stressful time.

ani*fan

Hi there

I just wondered if a DMP would be worth looking in to if you don't want to lose your house. I'm no expert, I don't have a DMP myself, but you'll find lots of info on here about it. If you contact a DMP organisation, make sure it's one that doesn't charge you anything to use their service.

Hope this bumps up your post too.

Skint_yet_Again

TheLegendIsBack wrote: »

Option 1. Sell house at £260, 000. Use the £40, 000 to pay cards (30k) and 10k for lawyers fees. Then re mortgage and move to a cheaper property roughly a £190, 000 property. This will mean I'm only paying the mortgage every month and leaves me £800 better off a month because I'm not paying CC's. Also won't get black listed.

Hi TheLegendIsBack I understand the dilemma you are faced with and I am sure there will be lots of people along soon to give you better advice than I can.
However having read your post I dont think option 1 is realistic for the following reasons:
assuming that you can get a buyer
assuming you can sell for £260000
"then re-mortgage" (this is not as easy in current climate and if you have sold the house how can you re-mortgage? ) buying a cheaper property for £190000 - with little/no deposit?

You may find even more help and advice if you post your SOA http://www.makesenseofcards.com/soacalc.html

Whatever you decide, good luck x

mellonicoley

Hi, I suggest giving Payplan or CCCS a call, they'll be able to talk all your options through with you.

Also consider posting your SOA so we can see where you might be able to cut back your spending.

best of luck
mel

Googlewhacker

Do a statement of affairs because option 1 is unlikely to work and option 2 may not be required...