How do I go Bankrupt?

magicmaria

Hi All

In 3 months I lose my job and I owe thousands (long story) if I was to declare myself bankrupt what would I have to do? would I lose my home.

I have a 13 year child and am a single parent (widowed)

I owe

Mortgage £72,000
CC 1 £10,000
CC2 £ 6,500
Loan 1 £10,000
Loan 2 £9,000
Loan 3 £4,000
Loan 4 £7,000

my current salaray is £28,000 which I lose in 3 months - realistically I would be able to get another job paying about £18,000

I have a 5 year old car but would need this for work - please can anyone offer any help, I have never missed a payment on the above but want a clean slate I have learned the hard way.

rog2

Are you able to 'manage' your debts on your current income?
How do you know that you won't find another job on this type of salary?
Is there no chance of relocation within the company?

Before you consider bankruptcy, as an option, you should consider all other options.
You have 90 days in which to look for another job - will your presnt employer assist in this?
You should speak to one of the Debt Counselling Charities - see links at top of DFW page.

NekoZombie

Like rog says, you give no indication of if you're struggling on your current income and expenditure, so its difficult to say if BR is for you. Would you be able to manage of £18,000? If you don't mind me asking, why do you think you'll be earning 10k less that you currently do?

with regard to the loss of your job; If you're being made redundant, will you get some sort of pay off? If its the end of a contract, can you not look for something similar? Like rog says, three months is plenty of time to get something else in place.

magicmaria

Hi Both, I know I very well paid for what I do and the majority of jobs that are going are only offering around £18k for the same job - I only just manage now on £28k so I know with a drop in salary no matter how small I will struggle. I will get about 7.5K pay off which I am going to put in a sepearte account just in case I dont get a job straight away. I am not looking for an easy way out but don't think I can live with the strain of the debt any longer - I make the payments now but the cc don't go down, and the loans have have 4 to 8 years left to run on them, my present employers have said they will bring in a consultant to help with CV and looking for another job - I am probably panicking a bit too soon but with everything else that happens in my life over the past 4 years I just feel this is the final straw

lisyloo

How much is your house worth?

Do you have room for a lodger?
Could you downsize i.e. sell current property and buy a smaller one.
Could you sell up altogether and rent until you get yourself sorted.

Please tell up how many bedrooms your current house has and how much it's worth so that we can make suggestions.

House prices have gone up in recent years so there's a possibility you have equity in the property which could now be put to good use.

NekoZombie

Just bear in mind that if you do decide to go for bankruptcy, the OR will probably be interested in what you do with the 7.5k payoff.

magicmaria

HI

it only has 2 bedrooms - as my son lost his dad 4 years I don't want to up root him and it would cause too many questions my family think I am debt free. The mortage is for £73K its worth about £80

RAS

Hi

You really need to get professional advice from one of th debt charities ASAP. Since you have equity in your house, you would be required to release that to pay off your creditors. That might mean moving.

lisyloo

Is your mortgage the repayment type?
What are your monthly payments for mortgage and loan?

Sorry for so many questions but people need the info in order to be able to help.

I am just wondering if you could change your mortgage to interest only for a while.
You would need to start up repayments again you could do that once you had finished off paying the loans.