Can I get a mortgage on a DMP

DrWatson1

katherinealice_8 said:

The problem I’ve got is that if I go bankrupt, I lose my car on finance which I need for my job and I won’t be able to rent anywhere. No landlord will have me if I’m bankrupt which will put me at risk of homelessness. I won’t get any help from the council either because I earn well…

Is this car worth £48k to you? That's what it is effectively costing you by not going bankrupt. 

You have a choice of ripping the plaster off now, or letting the wound fester for 15 years. It's obviously a tough decision to push the reset button, but you will be far better off in the long-term and it sounds like you are still relatively young. 

JadedAngel88

DrWatson1 said:

katherinealice_8 said:

The problem I’ve got is that if I go bankrupt, I lose my car on finance which I need for my job and I won’t be able to rent anywhere. No landlord will have me if I’m bankrupt which will put me at risk of homelessness. I won’t get any help from the council either because I earn well…

Is this car worth £48k to you? That's what it is effectively costing you by not going bankrupt. 

You have a choice of ripping the plaster off now, or letting the wound fester for 15 years. It's obviously a tough decision to push the reset button, but you will be far better off in the long-term and it sounds like you are still relatively young. 

It will be longer than 15 years, more like 21 years till the entries disappear off of her credit record.

fatbelly

Depends when/if defaults are registered.

There's no doubt that bankruptcy would be the less expensive option.

If you are in stable rented accommodation and being a good tenant then no sensible landlord would be bothered.

You are unlikely to be allowed a car finance agreement while bankrupt so you would have to be running a sub-£2000 car that you owned outright. 

It's a cheaper way to run a car so it's win-win if you can get organised.