Advice on what to do.

The_doctor

Hi All,

Basically to cut a long story short back in 2009 i lost everything, i lost my job in the credit crunch, my relationship at the time and to top it off the family home was repossessed. 4 years on, things are much better thankfully. However i still have this huge debt of over £100k which was the shortfall from the sale of the property. I have been paying this off at £120/month but at this rate the debt will out live me.

I don't have buckets of cash to make them an offer of £50k to clear the debt etc. But at the moment i can't ever seeing myself of being rid of this debt and being able to move on and get a mortgage. So do i take the plunge and go bankrupt, wiping this and a couple of smaller debts out, or continue to live in limbo.

Also, if i were to go bankrupt, would i lose everything like my car etc? I am also living in a rented property which states i can be evicted if i do go bankrupt. Do i have to let the landlord know?

Looking at my credit report, it's not bad at all since 2010, it was just that rocky patch between the end of 2008 and 2010 that really upset the apple cart.

Any advice would be appreciated.

Thanks

The doctor!

National_Debtline

Hello there,

How much is the car worth? If it is worth more than £1,000 it may well be implicated within the bankruptcy. Depending on its value, the Official Receiver may allow for a car to be sold and a cheaper one bought instead - with the difference going into the bankruptcy.

Bankruptcy clauses in private tenancies are reasonable common. You may find that your landlord is happy for you to stay if you have no arrears. They could find out about the bankruptcy so please do consider letting them know what your intentions are.

Unless your circumstances are going to significantly change, bankruptcy seems like it *could* be a good option. It is vital that you seek further advice as it is expected as part of the application process. We've a useful guide, which you can find here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

Best wishes,

David @ NDL.

IF

Hi The_doctor and welcome to the Bankruptcy (BR) Board. 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 MSE 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

Reasons for your BR - 6.28

Charities who help with BR Fees

Diary of a broken gambler

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