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options? Please help
nulon
Posts: 7 Forumite
wondering if anyone can help. I have a friend who thinks the only option open to them is bankruptcy....
She owns a property (135,000 'ish with a mortgage of 120'000)
She has mortgage arrears of nearly 5000 :eek: and another debt of 4,000.
Self employed, (franchisee) earns around 600+ a week.
No dependants and just generally been very silly with money.
Obviosly she is worried that she will lose her franchise if she has to go bankrupt - and therefore lose her income,does anyone have any suggestions as to what she should do. She won't speak to anyone else and I haven't any knowledge to do with this. Can anyone help???
She owns a property (135,000 'ish with a mortgage of 120'000)
She has mortgage arrears of nearly 5000 :eek: and another debt of 4,000.
Self employed, (franchisee) earns around 600+ a week.
No dependants and just generally been very silly with money.
Obviosly she is worried that she will lose her franchise if she has to go bankrupt - and therefore lose her income,does anyone have any suggestions as to what she should do. She won't speak to anyone else and I haven't any knowledge to do with this. Can anyone help???
0
Comments
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I think that your friend should speak with one of the debt counselling charities, such as CCCS, CAB or National Debtline.
Since the equity in the house is more than her debt, then there are, probably, other solutions open to her.I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0 -
The answer is very simple. Stop blowing money on crap and spend it on reducing her debts. She's not got a lot of debt and she should be able to come to an arrangement with the mortgage company about the shortfall and pay future mortgage payments and the £4k debt at the normal terms.
If she stupidly decides to bank, the OR will force the sale of the house so not only will she possibly lose the franchise but her home too.
She is nowhere near bankruptcy, she just needs to learn how to be responsible with her money.0
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