Bankrupcy

Gabi76

Hi I was wondering if anyone could advise me. I am a single parent and have got myself into a bit of a mess with money it all went wrong when I lost my job a couple of years ago and could not pay my unsecured debts and went into minimal payment arrangements with my creditors. I have since gained employment and increased the payments slightly but TESCO especially are putting pressure on me to increase the payments which I cant afford to do. On paper it looks like I earn a good wage and to be fair i do however once ive paid all of my essential bills out im left with about £50 per month. I am seriously considering bankrupcy but do not want to loose my house. I have debts of around £23,000 over 4 creditors, my house is worth approximately £135,000 and i have mortage £101,000 left on my mortage. I am really unsure what to will i loose my house if i declare bancrupsy as there is some equity in it?? Sorry for waffling i am getting really panicy any help would be much appreciated.:o

Niv

As you have equity in your house i do not see any benefit in you going bankrupt as money from any potential sale of your home would cover the debt and you could do that without being bankrupt.

I suggest you post an SOA (statement of affairs) using the stickys at the top of this board where people will be able to see your incomings and outgoings and sugegst ways to cut your expenses.

Niv

sistafromanothermista

I mirror what's just been said really. Post up an SOA and also maybe post on the bankruptcy forum.

cwal

Hi
I'm sure someone will be along soon who can give more detailed information to you but if you have been managing the payment plan by yourself so far could you go to a free charity like step change? They would review your expenditure and allow reasonable levels for all areas so you may be able to come to some sort of payment arrangement without needing to go bankrupt? Sometimes creditors listen more when they know you are backed by someone else.
The other thing you could do is post a SOA on here, I think the link is at the start of the DFW threads, the very knowledgeable people on here could then advise if there are any areas you may be able to cut back on which may free up a bit more for debt repayment? I really wish you all the best and hope there is a positive solution for you