bankrupty should it be done advice please

Chrysalis

A relative of mine has the following circumstances and I have already advised her to see someone for advice.

House shared with ex boyfriend.
20k of secured loan on the property.

above shared equally with ex.

mortgage payments currently unpaid last 3 months and has been notified proceedings will start end of nov. Same with secured debt not been paid last 3 months. If any equity on property is low as only 2 years ago been brought. Mortgage that has been paid is interest only.

Ex is declaring bankrupty so above debt would all go to my relative?

So far I advised her that she looks like will be going bankrupt so since she already behind on payments stop wasting money into something she cant keep and save it for new accomodation to rent.

I have since had second thoughts on my advice and getting her to speak to people who know what they talking about but she really needs pushing. Her ex has more personal debts of his own so personally he has more reason to go for bankrupty then her.

She is still living in the property in question and has a car which has been brought on credit. Earns approx 17k a year. Mortgage plus secured debt amounts to approx 900 a month if paying on her own but she does have a lodger paying 350 in rent.

Richard_S

Hi Chrysalis,


Your relative's first port of call should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only. CCCS operate a system of telephone appointments that are designed to be flexible and don’t require you to attend an office based interview. At the CAB you will need to make an appointment with a specialist Financial Advisor; other advisors may not have the specialist knowledge you’ll need.

http://www.cccs.co.uk/

http://www.nationaldebtline.co.uk/

http://www.citizensadvice.org.uk/index.htm

If she's advised that bankruptcy is the most suitable solution to her financial problems then we can offer the best support and anecdotal advice that you’ll find anywhere on the Web.

For more specific advice and support, in an environment that is managed by people with first hand experience of bankruptcy, and moderated to ensure that no deliberately inflammatory or abusive posts are made then please visit:

http://bankruptcysupportersclub.co.uk/default.aspx

Just remember, as desperate as she may feel at the moment, we have all experienced what she is going through at the moment and with the right support and advice things will improve. It’s not an easy route to take but it is a route that will put her back in control of her life rather than just reacting to events.

This is a pro forma response but it's an essential starting point.

Propery and secured debt always make bankruptcy more complicated which is why she really needs to take professional advice.

Any other questions please post again,

Kind regards

Richard

Chrysalis

thanks will pass these details on.