Am I looking at Bankruptcy

Gaster

I have posted about this a couple of times but have some full facts now that might enable somebody somewhere to guide me?

My wife, having had an affair for the last 11 months has decided to leave me. We have 2 children involved aged 7 and 12, and I am gutted. We are also poor as a result of poor financial planning, and I guess we are classic credit crunch contributors.

We live in a house that is worth at best £300000, with a mortgage of £174500 (interest only) - yes I know we are idiots. worse, we have 4 adults named on the mortgage and a declaration of trust that gives 2 of them (my parents in law) a minimum of £150k if we sell, and half of whatever a bigger sum may be.

We have a personal loan with a current settlement of £12024.37

A credit card with £8500 outstanding (in my name although she has a duplicate card with her name on it)

Another credit card with £7354 outstanding (in my name via the bank where we have our joint current account.

The borrowing is as a result of maintaining a lifestyle for all of us, beyond our means and also includes family holidays. So stupid, but I wasn't expecting the affair and this crisis- still stupid though.

We have some HP agreements that are all due to finish this year (in the next 4 months)

2 store cards - one with £200 left on it and one with £400

we have one final agreement with a finance company for a suite that is worth approx £1k now.

My salary is £40k - no other income.

I need to set myself up with somewhere to live etc. and I need to do the right thing by the kids. With no money or savings what course of action do you suggest I take. Its so hard here and I need to get something sorted no matter how hard it is.

alastairq

Hi..firstly, bankruptcy really is the last thing you need to address......but there is no harm in preparing yourself [financially & practically] for such an event.

Has your nearly-ex moved out of the family home?

Are the kids living with her? Or with you?


Are you currently living in the family home?


If the family house was sold...and those with a charge on the property paid out, do you think there would be anything left to divide between you and your ex? [in other words, what would your beneficial interest be? An OR would look for that in event of your BR]

Would either the mortgagor, or the in-laws who have the other charge, give their permission for the sale of the house [given that in fact it might be in negative equity?]

What are the current payments per month on the mortgage? Could you alone afford them..if you remained in the family home?

Do you, yourself, wish to remain in the family home?


[If you and your ex agreed to sell and divvy up.....don't worry about any shortfall.]

Do you yourself expect to get residency of the children? Or will you share that with your ex?

[this dictates your own property needs in the near future].


As for the unsecured debts? Can you currently service them?

The joint account needs to be sorted out soonest...preferably by closing...which would need both your permissions.

You yourself need to establish new bank accounts in your name only....preferably basic accounts, as I mentioned in a previous thread......[preparation???}


I advise sorting the marital home out soonest....in any event, it might provide you with a small amount of working capital, to set yourself up in house& home.

Finally, please don't consider your past actions as those of an idiot.

You did what you did with the circumstances and information you had available,at the time.



People ask why I have been married & divorced three times..to which I answer...''it seemed like a good idea at the time?''

IF

Hi Gaster, First step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two others for your own piece of mind.
Your BR could be refused if you have not sought advice.
Advice on here does not count, this has to be from one of the Debt Charities, an IP, an Accountant or a Solicitor. The Judge just wants to be sure that you can never come back and try and overturn the order on the basis that you were not aware of all the consequences.

* Blue text on this forum usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Business Debtline
  - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

Please don’t do anything rash take your time and weigh up your options and read everything you can.


For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

BR friendly home insurance thread.

BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

BR Abbreviations

Beth's Guide Reasons for your BR

Charities who help with BR Fees

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.


Best wishes
IF...x

darren_clarke

first off, cancel the credit cards, or get them blocked, so she can not run up more debt,


i dont get the thing with the house, if you sell for £300, do they get £150 and then the mortgage gets paid off, or they get half of what remains after the mortgage gets paid

darren_clarke

are all the debt just in your name or joint names?

Mouse1812

It's clear to me, you have negative equity.

So long as the in laws agree, you can keep the house if you want to.