Considering bankruptcy

Daveybones

I currently have a mortgage, payments are up to date with around £68k remaining. I took out a secured loan some years ago and for a couple of reasons could not keep up payments for the last few years. The balance remaining on the secured loan is around £48k with £8k of this being arrears. The property value at present is around £65k.

I feel like I'm in too deep. I understand it was my decision to borrow and my responsibility to keep up payments but now my family are suffering for my mistakes.

I need to free my family from this burden but I'm not sure if it's possible.

Is it possible to have my wife's name removed from the mortgage/secured loan? I am thinking of handing the keys back to the mortgage company and filing for bankruptcy but I don't want to drag my wife and kids down with me.

Does anyone have any advice? Has anyone been in this position?

alastairq

BAnkruptcy, of course, only deals with unsecured debt.

The secured lenders may be reluctant to lose the advantages of having joint names....


What makes you think that Bankruptcy will potentially drag your wife & kids anywhere?

If you intend ultimately to allow re-possession, then you will all have to find somewhere new to live [rent].....this really needs to be done first & foremost.

Bankruptcy will subsequently deal with any shortfall......but the timing of a bankruptcy in this instance is really not important.

If the mortgagor and secured lender won't play ball regarding removing your wife from the accounts, then...if the shortfall is not addressed, she too, may have to consider eventually petitioning for BAnkruptcy.

In any event, since ...as a family..the existing debts are unsupportable, then changes are going to occur regardless.

How much unsecured debt do you have?

Is there any reason why your wife could not consider bankruptcy too? [usually, work issues]


My view is, if the debts are unsupportable, then the sooner this is realized, and actions commenced to deal with them, the better for all the family.

Best to first talk to one of the debt charities such as Stepchange, or CAB.

IF

Hi Daveybones 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

CABmoney Bankruptcy Payment Order Calculator

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