please could someone advise us please.

dancingfairy

I'm just wondering why you are giving up on the house? rental in your area will be more plus there's little/no equity in your house.
If your dmp is causing you to struggle and not pay your mortgage then it's kind of pointless to be honest. You'd be better off paying less into a dmp and paying the mortgage.
Also if you did go bankrupt then it does not necearily mean you will loose the house (if there is little/no equity in your house then the OR may not be interested).
Moving house is stressful and expensive (and rents will be more) please make sure you are 100% sure this is what you want to do.
df

waterboy2

yes the dmp i think we have over 37 years to pay it back.we just cant go on like this as my mam is helping with food and clothes etc(she doesnt know about the position we are in)

waterboy2

dancingfairy wrote: »

I'm just wondering why you are giving up on the house? rental in your area will be more plus there's little/no equity in your house.
If your dmp is causing you to struggle and not pay your mortgage then it's kind of pointless to be honest. You'd be better off paying less into a dmp and paying the mortgage.
Also if you did go bankrupt then it does not necearily mean you will loose the house (if there is little/no equity in your house then the OR may not be interested).
Moving house is stressful and expensive (and rents will be more) please make sure you are 100% sure this is what you want to do.
df

thanx for your input.we are currently paying £700 per mnth regards to mortgage/secure loan and just cant manage that.so if we did go br then we still couldnt pay the mortgage etc.i dont think we have a choice as both mortgage and lloan company from next month will not budge and i tend to think if they did budge then it would just be delaying the inevitable.

dancingfairy

Have just realised about the secured loan (and I guess that's whats crippling you).
Have you been on the direct.gov website and done a benefit check to see what you may be entitled to in terms of benefits - ie housing benefit etc?
If house is repossed then the debt becomes unsecured and you can then go bankrupt. If you went bankrupt first then there is a chance you would be pressurised into reacknowledging the debt (and it therefore wouldn't be covered by the bankruptcy) but as long a you didn't sign anything the debts would all fall into the bankruptcy.
To be honest you'd just send back the keys and not bother about the house anymore (apart from maybe sorting out things like empty house insurance, council tax and utilities) but the actual mechanics of it being repossed would sort themselves out.

df

debt_doctor

Yes, don't sign anything regarding your mortgage company and your potential mortgage shortfall will always be part of your BR, it does not matter when the property is sold.
Key matters in your family plan is;

Use all available monies to secure re housing, attempt to drag out the process of possession for your own advantage. Of course you could consider re housing via your local council under homeless legislation........

Go BR, when you can, after you are re housed.

DD

waterboy2

had a quick look on gov website but couldnt really put details in as we are not renting etc yet.if we decided to go br how would we go about it and who to contact

dancingfairy

You'd need to get one of the debt charities to say that bankruptcy was a sensible optionfrom you. The judge can ask whether you have taken advice (and MSE doesn't count in that regard!).
You'd fill in the relevant forms (you can download them or I guess you can get copies from the court).
You turn up, pay your money and wait, you may/may not see the judge, you then get your paperwork stamped and bobs your Uncle. That's it pretty much.
It's like getting something at the post office, most of it is waiting time. Some courts used to do bookings so you can contact your local court and see if you can prebook, otherwise they all do on the day drop ins.
df
Edit: you normally get a very quick phone call after the bankruptcy from the person looking after your case and to arrange a time for a telephone interview. In the phone interview they just go through your statement of affaris (ie your balance sheet), discuss your budget with you - ie do they agree with it (they should do if you are sensible) and whether they will require an IPA. They also need to get a feel for why you ended up in thi situation and just to check there is no funny business going on - you will put this on the form so it's just a case of providing a bit more detail (if any is required). They will also let you know if they need any more paperworkfrom you (although I believe they can get copies of any bank statements themselves that they may need so don't worry too much if you don't have these to hand).

waterboy2

so i guess we need to look for a rented house,so what happens to our direct debits etc to for mortgage/council tax/webb etc.

debt_doctor

Do you actually like where you live but clearly can't afford it?

If so, have you thought about mortgage rescue (MRS)?

This is a government scheme where a Housing Association buys your property and rents it back to you at an affordable rent (market rent less 20%).
It turns you from a homeowner to a tenant of the same house.

It can be a challenge, but I have had some good results from MRS.

DD

dancingfairy

In addition to what debt doctor has said I believe that once you are a housing association tenant you can still go bankrupt (if necessary).
df