Decisions

michaelj560

Colleagues,

we owe £35k on loans and cards, now we are currently in a DMP for these, yet thing look set to last for 20 years before these are even paid off.

Do we stay on the DMP,

If we made the choice of going bankrupt would we lose the house?

thank you kindly,

Michael

Conor_3

OK...basically whether you lose the house depends on how much equity you have in it and whether you can find a way to buy the OR's interest in the house which is equal to the equity share of the person who BRs plus fees.

If one of you has a low amount of debt, say the wife, and the other the majority and you could afford to repay the wifes payments, then that's a possibility. Remember that for any joint loans, if one person banks, the other person is still liable to ensure it's all paid.

Or, you continue on the DMP and if your situation improves, increase the payments and get rid of it earlier.

Or there's the walk away option but you really need to plan the timing when doing that as many letting agents now do credit checks.

tigerfeet2006

You need to get proffesional advice firstly from one of the non-fee paying debt charities (see my signature.) They will advise you what your options are. If you do decide to go BR then the judge will want to know that you have taken professional advice.

Someone more knowledgable will be along later to explain about houses, though Conner has given you a good basic outline.