I need some advise urgently please

timida

3 years ago I purchased a house in Spain mortgage-free. I then met a man who I married shortly after. He was an MD and told me he would look after me and we would move to Spain. I was working and gave my job up.I owed debts in the UK and obtained a mortgage on the spanish house to pay them back, but one month after my marriage my husband gave up his job and did not work or make any attempt to work. Instead of using the money to clear my UK debts, I used it for us to live. The money lasted a year and he returned to the UK, leaving me and my children with no money and no food. I was told that because the marriage lasted for only a year, I could not claim any maintenance, but I don't know if he is working or not anyway. I am attending college in Spain to learn the language as it is hard in Spain to get a job anyway. I remortgaged this house again for me and the children to live. I have debts of 28,000 pounds in the UK and I have not used my credit cards for a year, just pay the interest. I am unable to pay the UK debts and am seriously considering bankruptcy. I have a 100 pounds left in my UK account and only have sufficient money to pay for the mortgage on my spanish home for 6 months. I have no savings, no pensions nothing, but debt and I feel suicidal. If I come over to make myself bankrupt in the UK will the Official Receiver take my mortgaged spanish home? I do not know which way to turn. My husband is issuing divorce proceedings and I have had 2 letters to which I have not responded as I cannot afford a solicitor. I am trying really hard to obtain employment here but the only jobs appear to be commission only sales on properties and I am just not a sales person. I don't want to return to the UK - I will have nothing, no home, no car and just debt. Do I need to disclose to the Official Receiver that I have this house in Spain or would he be interested in it anyway? I guess there is about 50.000 pounds equity in it. My son is returning to the UK in 2 weeks because I can't afford his school fees here anymore and so he will live with his natural father. I am heartbroken and do not know which way to turn. I feel I have lost everything. Can somebody advise me. My daughter wishes to remain with me. I just think bankruptcy is my only option but don't know what to do. I think that if I went bankrupt in the UK at least it would ease my burdens and for me to try and find employment here in a City without keep sending what little money I have left each month to cover my credit card interest. I cannot claim any benefits in Spain as I am not officially a resident and I have made no contributions to the social security system here. Looks bad doesn't it and I am so fed up of trying to turn things around.

gettingitsorted

Hi timida,

im sorry you have found yourself in this situation ,you could try contacting

the uk insolvancy helpline on 0800 0746981

https://www.insolvancyhelpline.co.uk

They will be able to assist you .

bloomin_freezing

hi

I'm sorry that things are tough for you at the moment.

i'm guessing that the or would be interested in property overseas that you own. You should admit to it to save any extra future upset.

good luck to you.

timida

Thank you for responding. Will the OR take the property of me? It is already on the market, but there are so many houses here for sale and nothing is moving. I had hoped to sell it quickly but the Agents tell me they are taking 2-3 years to sell. If I could sell it at least I could clear my debts and rent somewhere, but I think I have run out of time. Should I put some money of the little I have left into my UK account to cover next month's payments on my credit cards/loan, in the hope that I may find a buyer, or should I just hold my hands to it all. If the OS take my home then if it ever does sell will they give me any remaining equity left after my debts have been cleared. If the spanish bank that it is mortgaged with repossess it which I guess they will in approx 6 months time when I won't be able to pay it anymore, and they will sell it at auction value, just to cover the mortgage. Would the OS have a 2nd charge on it? I am really scared and frightened and feel very alone. I am scared to take the plunge into bankruptcy, but I guess it will happen anyway.

gettingitsorted

Timida,
you really should get some proff advice so they can help you and go through all the choices available to you at this time .

https://www.cccs.co.uk
https://www.payplan.com
https://www.nationaldebtline.co.uk

Somerset

timida wrote: »

I have debts of 28,000 pounds in the UK ................ I guess there is about 50.000 pounds equity in it .

Well first thing, the OR would go for that equity - after your spanish mortgages the sale funds would satisfy your UK creditors. Also you HAVE to disclose it to him. Bankrupcy is the path for insolvent people ie where debts exceed assets/cash. You're not in that position. But you are cash poor. Only solution I can see is to sell up and rent. I read that you've tried to sell and are running out of time re cash. Maybe just drop the price until someone picks up a bargain. I realise it's not fair or ideal but I don't see an alternative. If you default on the mortgage, or hand over responsibility to the OR, they'll flog the house for what it gets anyway.

You need to get expert advice quickly. The insolvency service has been mentioned, there's also NationalDebtline. Check out net based debt sites like http://www.debthelpuk.co.uk.

Best of luck

timida

Many thanks for the above responses. I have been reading about credit card debts and it says that I can ask for them to be frozen for a while. If I explained my situation and that I am trying to sell my house and would pay them off when it is sold, maybe that would give me some breathing space if they agreed. As for the house I have reduced it already by 25,000 and still not an enquiry. You are right, it's not fair or ideal, but I can't change what has happened and I just want to find a light at the end of this tunnel. You have all given me a bit more hope though. I will get in touch with the above and see if they can help me sort this horrible mess out. It is great to find a website like this. Thanks so much.

shameless-about-money

Since you are living permanently in Spain you must petition for bankruptcy in Spain, not in the UK.

timida

Can you advise me as to what are the different laws in Spain to bankrupcy in the UK? Is it any easier? Do you know? This website amazes me, I cannot believe the amount of people that are suffering the same sort of problems. It is the first time I have ever joined a forum and I can't tell you how much I was shaking yesterday when I did it, then I cried because it was such a relief to obtain some sort of help. I contacted Nationaldebtline by email because I was too afraid to call them and await to hear back. Bankruptcy, I guess it is like waiting for an operation, the fear is immense, but when it is all over......... I guess it is a relief to sleep at night. I do appreciate that I must sell this house 'pronto' but you can't sell so easily as you thought.

Alba_3

Hi...I am in a similar position in that I have been living in Spain for 5 months but I have been told that if you are within the timeframe of 3 years you can petition for bankruptcy in the UK.

Can anyone actually direct us to somewhere that says what we can do definitively? I´ve heard that bankruptcy in Spain is not so easy to go about or as good on the petitioner in that might not be discharged for years...

:rolleyes: