Please - any advice guys?

hey guys - just found your site and i hope you can give me some valuable advice.

I currently have unsecured debts of approx £30k and a mortgage on a house worth £77k (not sure what my total mortgage is- ill get to that in a sec). I earn £1080 per month. I have had an appointment with CCCs (very helpful) and they have advised me to go bankrupt but there a few questions I would like to put to you guys before I possibly take the plunge...

1. I have noticed on some of the threads that gambling would be frowned upon when going bankrupt. I had / have a gambling problem and a reasonable percentage of my credit card balances will show gambling activities, and also my bank account shows a lot of transactions concerning betting - how will this affect me? I have obviously stopped doing this with immediate effect and i was wondering how far back the OR will go back through my statements (i.e if i wait for three months of gambling free statement will this mask it?) Im really worried about this as with all gamblers i was trying to gamble my way out of trouble.

2. I notice that the OR takes money from your income for the year you are under his care. If this is the case i am seriously thinking of resigning from my job and going on sickness benefit until i am discharged. That way my mortgage would be paid for a year giving me one less thing to worry about. This is not a scam because I seriously am finding it extremely hard to cope at the moment. Any comments on this?

3. As well as my previous debts mentioned I also have a £12k unsecured loan jointly with my ex partner. I understand that they will persue her for the whole debt if i go brupt. Is this true as this may be a huge problem as she is barely on her feet herself and is trying to get a mortgage and she is unaware of my huge debt problems - would she be left with the whole balance of this loan or just her half?

4. I am getting mixed signals about whether my house is at risk. I have only had my mortgage for 5 weeks - literally 1 week after moving in I suffered a massive cut in wages which has led to my financial 'armageddon', and therefore have only paid one mortgage payment of £500. I paid 77k for the house whilst it was on the market for 80k and paid 4k deposit. Does any of this info suggest to anyone that there would be any equity in my house or if there would be any equity likely to be in it during the time that the OR would be interested in taking it?

If none of the above are going to cause problems im certainly going brupt - as i am settled in my home and i simply do not want any more debt- i just want to live hand to mouth. If any of the above are going to cause me serious problems i dont know what im going to do as I cant take much more!

Thank for taking your time to listen to my ramblings, and any advice at all would be warmly recieved.

Thanks guys

Comments

  • Xbigman
    Xbigman Posts: 3,884 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    You have a whole bucket full of problems I'm afraid.

    1. If gambling is involved in bankruptcy you are considered to have contributed to your problems. Under the new legislation you could have your bankruptcy extended to 15 years. I think this is unlikely but it *is* possible.

    2. The OR will take any spare income you have but will leave you enough to live on. The DHSS does not pay your mortgage for the first year and any insurance you have will most likely not pay out if you go bankrupt. You need to check your insurance ASAP.

    3. Yes your partner will be pursued for the money, no question about it.

    4. You would certainly have a charge put on the house, so if you sell it in future the OR can take any equity you have for your creditors. It is possible to keep the house if you go bankrupt but it is quite rare that it works out. Given the short time you have had your mortgage the OR and the mortgage lender will be very suspicious of the timing of the bankruptcy and you will have a lot of explaining to do. On the subject of the house. If any one debt you (or your partner if in joint names) have is over 5k that creditor can put a charge on the house too.

    In your circumstances you need to avoid bankruptcy except as a last resort.

    I can only suggest you do a budget and a statement of affairs and post them on this forum. Lots of us here will advise you on which debts to prioritize and how to cut outgoings. Does your partner work? If so 77k mortgage and 30k debts should be survivable.
    Regards



    X
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  • Thanks for your advice. I will post my outgoings on here soon but I have already gone through this with CCCS and they came to the conclusion that a token payment to my creditors would be my only option as money is so tight, and in answer to your question i am single. In view of your advice I really dont see an obvious solution - I dont ever foresee being able to earn enough to make anything bar a token payment. How far would the OR look into the gambling as i think only approx 25% can be attributed to this - and would they not be sypathetic to see I have stopped gambling now I am in trouble and was only gambling to try and pay my debt off? Also you mention putting a charge on my property - would this only last as long as my bankruptcy or would it last indefinately?

    Again - thanks for your time - and any other comments from anyone would be gratefully recieved.
  • Malestrom
    Malestrom Posts: 983 Forumite
    A charge on your property lasts until the property is sold and must be repaid in full at that time. Even if you never moved and left the property to your children or next of kin, when the property was eventually sold, the charge would be repaid.

    I would advise, as Xbigman has, that you post a full SOA here so that we can offer better advice. I really don't think that bankruptcy is a very good idea for you given the gambling, the ex-girlfriend and the very recent house purchase. Token payments at this time would certainly be advisable but you must contact your creditors and inform them of your difficulties.
    He huihuinga taangata he pukenga whakaaro – A meeting of people; a wellspring of ideas (Maori proverb)
  • fatbelly
    fatbelly Posts: 20,440 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    studmuffin wrote:
    I have had an appointment with CCCs (very helpful) and they have advised me to go bankrupt
    studmuffin wrote:
    I I have already gone through this with CCCS and they came to the conclusion that a token payment to my creditors would be my only option

    Sorry, what did they recommend?
  • mountainofdebt
    mountainofdebt Posts: 7,795 Forumite
    First Post First Anniversary Combo Breaker
    Have you thought about renting out a room as an extra source of income?
    2014 Target;
    To overpay CC by £1,000.
    Overpayment to date : £310

    2nd Purse Challenge:
    £15.88 saved to date
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