Considering bankruptcy - any help please

Mummy2K

Hi, My husband and I owe around £53K. £30K of this is an unsecured loan from Northern Rock - we had a mortgage with the loan attached with 6.1% apr but the interest rates went silly and we decided to sell up. We couldn't pay off the loan so NR said we could keep it on - at just over 12% apr - we didn't have a choice and had to accept. The payments went from £179 pm to £336 pm and with our CC and Cahoot debts it all comes out at just over £900 pm. My husband had a good job but got made redundant and now brings home just over £1000 a month. Our rent is£625 and all this is before we buy food or fuel. We have a 2 year old too so nothing comes cheap.

We have been treading water for a few months but now I have had to cancel some DD and miss CC minimum payments this month just so we can pay the rent. I've contacted the cccs and Payplan and they all say token payments or BR. I've heard some horror stories about the token payment route and it seems to me that although it's tough, BR is our only choice.

The cccs advised that I go bankrupt first as all the credit cards and loans are in my name. The NR loan is joint so my husband would become liable for it until he could go BR a few months later.

Can anyone help with what steps I should take next? I'm rubbish with paperwork and figures and frankly the whole thing is making me sick with worry. I'm already on anti-depressants as I suffered with post-natal depression and I think I'm only holding it together for my son.

We found a lovely house to rent and would like to stay but I'm so worried about what the rental agency will do if we go BR.

Any advice very much appreciated.

xxx

squirrel_pigeon

Hiya Mummy2K.

First step is to post your SOA - you incomings and outgoings - so we can figure out where you can cut back and what situation you are in. I can tell by your post that the SOA isn't gonna yield huge amounts of free money but it can still help to have an objective view. Posting your SOA can also help when you complete the BR forms as you have something to copy straight down.

I'm in the same position as you with the tenancy - I'm trying not to worry about it and I'm just keeping up with my rent in the hope that the OR will agree not to tell my landlord.

Talking on this site will help, I promise. I'm a total stress head and I feel much better and more relaxed after a few weeks on here.

Hopefully someone else will be along soon to add more. It's quite quiet at the moment but keep checking.

xxx

fermi

Welcome.

A good place to start is by reading this:

How to petition for your own bankruptcy.

And have a look at the other factsheets that seem relevant to you here:

http://www.insolvency.gov.uk/guidanceleaflets/Guides.htm

If you contact your local court they will normally send you a copy of the forms, plus a pack of initial info as well. Or you can download the forms or fill them in online.

But most importantly, ask questions here about whatever you need to know.

mclachlan4321

I went through BR at the end of September. I dreaded it, but I must say it hasnt been 1/2 as bad as I expected it to be.

I live in rented accomodation, and hasd no assets, which did help to make it simple.

I also used the on line forms, it made it much easier to fill it in as you go along, and you can save it as and when you want.

good luck