Considering bankruptcy

sallymeak

Hi 

Another one who’s buried their head in the sand! 

Recently discovered that I have £45k sept (including interest on a costly loan), also have a house on interest only which is due for full payment in 4 years, I have no way of paying this as negative equity, selling in a few years might work - might not

I am diagnosed with ADHD and spending has been something I’ve done for feeling better. 

My wages just about cover my outgoings. I can either make a DMP or go bankrupt. 

If the house is put on there I’ll owe £140k. If not, I might cover the house only. 

I don’t know what to do for the best. If I’m going to do bankruptcy I would be better handing the house over now and managing it all as I wouldn’t like to go through bankruptcy to then have to do it a second time 

i don’t know what I’m asking really, but looking for some guidance or advice. I am so torn and am just sick of it all. I cleared debt and got a good credit score so this £45k has been run up in just 2 years, I have no control.

Thanks 😞

MovingForwards

Re-read all your previous threads, post a statement of affairs and people will be able to make suggestions.

MalMonroe

Hi, I agree with what MovingForwards says, above. Also, once your SOA statement of account/affairs is done, you could do worse than contact one of the free debt help agencies, which are -

Citizens Advice - https://www.citizensadvice.org.uk/

StepChange - https://www.stepchange.org/hello.aspx

National Debtline - https://nationaldebtline.org/

The government says this - https://www.gov.uk/bankruptcy  - about bankruptcy.

Also, your credit score is never seen by anyone but you, it's the credit report and your credit history that are important.

From what you say, you really could use some sensible and non-judgemental advice, which you will receive from any of the debt help agencies. They will go through your SOA with you and then they will discuss your options and you can either accept or decline, no obligation at all.

I do hope you manage to get things sorted out. Once you actually have a structured plan, I'm sure you will feel a lot better. But do talk to someone who understands and can help, as in the links above. I have been through similar myself and asked for help from StepChange. They did help me and so I do recommend them. 

All the best to you. 

fatbelly

What I wrote in August still applies:

Please do not petition for your bankruptcy without taking proper advice. It's very easy to do and very difficult to undo.

There are lots of points in your post that indicate that you do not understand what bankruptcy involves.

Take a step back. Go to the debt-free wannabe board and post a statement of affairs

https://www.lemonfool.co.uk/financecalculators/soa.php