Don't know what to do

rachycakes

Hi everyone
I am in a big pickle and need some advice. At the moment I have a personal loan of £25k, and about £8k on credit cards. I work full time but I am currently off work ill ... this is the problem. I need to work to pay the bills and the debts, but it is my job that is making me ill (this has been ongoing on and off for years - there is no decent light at the end of this tunnel). If I hand in my notice with nothing to go to then I am faced with the likely situation of having to go bankrupt. I have a husband whose earnings will not stretch far enough by themselves. We have a mortgage and are in negative equity - if my husband can pay the mortgage payments, would we be able to keep the house if I went bankrupt?
Sorry for the rambling ... all advice gratefully received please

bjaich

I am sorry to hear of your situation, have you thought of looking for a different job? That way you you have somewhere else to go instead of just resigning?

rachycakes

bjaich wrote: »

I am sorry to hear of your situation, have you thought of looking for a different job? That way you you have somewhere else to go instead of just resigning?

Thank you for replying Yes, I have been job hunting for about 3 years. The difficulty was my husband changed careers so I was the sole earner then major earner ... now I am still having to look for something that pays enough to cover the debts ... kind of restricts the options.

dancingfairy

Bankruptcy is a potential option for you but there are others such as a dmp or an IVA.
You need to speak to one of the debt charities such as National Debtline , StepChange or your local CAB to go through all the different options.
Best of Luck
df

National_Debtline

Hello rachycakes,

The quick answer to your question is that you may be able to keep the property if you were to become bankrupt. It is generally the case that a property would only be sold if there was equity which could be released. If your property is in negative equity the usual process would be for the official receiver/trustee to see if there is any equity in the property two years and three months after the bankruptcy date. In some areas house prices seem to be increasing, how much negative equity are you in? Do you think there could be equity a few years down the line

This useful guide explains your options with regard to your home in bankruptcy

And this link is our bankruptcy fact sheet

Hope you find this information useful, feel free to ask any further questions.

Best wishes,

David @ NDL.

IF

Hi rachycakes, as everyone has said your 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 you're 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:

• Debt Advice Foundation
  
• Christians Against Poverty
• Business Debtline
  
• PayPlan
• TaxAid - Help with tax debts.
• Debt Support Trust
  

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.

Beware of advice via PM.

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

rachycakes

Thank you ... I have some thinking to do then I will contact one of the charities as advised.