bankruptcy help needed

dialysis

bankruptcy
Hi everyone
Need a bit of advice about bankruptcy. My husband and I are considering going into bankruptcy. Up unitl four months ago we were both working with decent wages coming in. Unfortunatly i have had to finish work through ill health and consequently our income has dropped. We have four unsecured loans, a mortgage and a large secured loan. We have had our house valued and with the mortgage and secured loan we are in negative equity by around £60000. When we go bankrupt does anyone know if the OR will take our home and also does our secured loan go onto the bankruptcy? Also we own a car which is worth around £2000 and a motorbike worth £2000. My husband needs transport to get to work, what will happent to these? Any advise about bakruptcy would be appreciated thank you

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dialysis

Bankruptcy?
Hi there Anyway I need some more advice please. I got in touch with the national debt helpline yesterday and they have sent me a load of info and advice. Hubby and I did our income and expediture today and it does not make pleasant reading. Basically our outgoings are more than our incomings, you know the story:eek: I decided to get in touch with our secured loan and our mortgage and they have agreed to let us pay half the monthly payments for the next two months. Unfortunatly the can only help for short term and it looks like my illness will prevent me from working for quite a few months. So long term we are in trouble. My salary has now reduced to half pay and that will last fro two-three months, then I will go onto incapacity benefit, which is far less than my half salary. So then we will be deeper into trouble. I also wrote to my creditors with token payments only as that is all we can afford. I asked them to stop the interest to prevent further debt.
The way we see our situation is our options are:

Go BR hopefully keep the house, negative equity and continue to struggle to pay mortgage and secured loan

Go BR sell the house, rent and the shortfall on secured loan will go to BR

Give house up go for voluntayr repo

Stop paying everything and let them repossess and make us bankrupt.

Dont know what to do. had enough really. on anti depressant as it is, husband off work with stress, just feel like saying stuff it. we are also in process of fighting our secured loan company over missold PPI, we were not aware I was not covered on insurance for illness, if it wasnt for this we would be OK loan would be paid. How do they expect you to survive when you lose one salary. they still expect premiums and are chasing both of us for it. Anyway thats another story which is posted on the PPI forum.

Sorry it is long just need bit more advice. Thanks foryour help:T

debt_doctor

Hi,

As your property is in neg equity then you would prob able to keep it by selling interest to a friend/ family for a £1 plus costs ( total about £ 250 ) But it seems that the payments are crippling anyway, so that would hardly be a fresh start.

Maybe stop paying secured loans, ( and all other debts) and save that money for a deposit/ rent advance for a private rent, before you go BR.

Make sure you take advice from a debt charity in my sig before you take any decision.

Best

DD

dialysis

Got a telephone appointment withCCCs on Friday morning and they are sending info and paperwork via email so will see how it goes. Thank you for your help and info.:T

dialysis

Hi everyone got advice from CCCs and bankruptcy looks like our only option. Dont know what to do or when to do it. Feeling really really low. Dont want to lose our home but does not look like we have much option. Need advice as to which order to do things in.
Do we find rented accomadation then go bankrupt

Stop paying our mortgage and secured loan, go bankrupt find rented and move out

Stop paying laon and mortgage go bankrupt and let OR sort out house

How do we stand with private landlords and bankruptcy has anyone got any advice please all I seem to do nowadays is cry on antidepressants anyway and OH off work with stress.
We had lots of good advice from CCCs, national helpline and from you guys but just so down and not sure what to do.Please help.

Thank you

debt_doctor

I would suggest that you stop paying the mortgage and secured loan ( and all other debts ) and save that money for a deposit / bond for your new rented accomodation.

Dont "do" anything with the house and go BR after you have left the property if your new landlord would be ok with that, or go BR just before you leave the property so the OR wont contact them.

Best

DD

Scarlett.1974

dialysis wrote: »

Hi everyone got advice from CCCs and bankruptcy looks like our only option. Dont know what to do or when to do it. Feeling really really low. Dont want to lose our home but does not look like we have much option. Need advice as to which order to do things in.
Do we find rented accomadation then go bankrupt

Stop paying our mortgage and secured loan, go bankrupt find rented and move out

Stop paying laon and mortgage go bankrupt and let OR sort out house

How do we stand with private landlords and bankruptcy has anyone got any advice please all I seem to do nowadays is cry on antidepressants anyway and OH off work with stress.
We had lots of good advice from CCCs, national helpline and from you guys but just so down and not sure what to do.Please help.

Thank you

Hi dialysis,

I know it might seem like it's easy for me to say, but try not to be too sad I know this is all very frightening and that you don't know what to do for the best. But believe me, you have made the first most important step by realising things can't go on like this and trying to sort it out

Now, onto the practical side - H and I were in practically the exact same position as you a few months ago. We had a massive amount of unsecured debt, as well as a huge mortgage, a crippling secured loan and the lovely cherry on the cake that was negative equity. Once we decided that BR was the only option for us we stopped paying everything immediately (mortgage, SL, all debts) and started saving that money for the fees and costs of moving. We moved into rented in Jan and went BR last month.

It's not been all plain sailing, but I can honestly say that it's the best thing we ever did. We have our lives (and our sanity) back now.

We did want to do voluntary repossession with our mortgage co. but they've been SO slow about it (we could still be living in the old house now if we'd wanted to!) that now we've gone BR we're just letting the OR deal with it now.

If you decide to let the house go and go into rented then my advice would be to do this before you go BR. Private renting can be quite difficult if your credit rating is a little wobbly - once you go BR you could find it almost impossible unless you can do 1 of the following 2 things:

Pay 6 months rent in advance and then subsequent 6 months in advance each time it's due.
Secure a guarantor - not as easy as you may think - in my experience the person needs to be a homeowner and earning minimum of 3 x the monthly rent. They also have to provide 3 months payslips, 3 months bank statements, all their bank details and references. So, it's quite a big thing to ask of someone.

I hope this has helped a bit and that I haven't bombarded you with too much information Any other questions, then fire away.

dialysis

Hi Scarlett 1974
I hope you dont mind I have a few questions
I have a car worth 2500 ish my OH uses it for work as he does on calls and has to travel for these at a distance of 45miles each way, how do we stand with regards to OR
Plasma TV worth 900 do we get to keep it
Recently sold our motorbike to get money for BR and rent, move etc will the OR need to know about it?
We have decided to go to estate agents tomorrow to get rented accom do we tell them about BR or not? then when we get set up in new houser we will go BR
How do we stand with mortgage SL and unsecured debt do we have to tell them what we are doing as we are not going to pay them anymore.
I hope you do not mind me asking all these questions it really hepls to talk to others who have been through the same. Everything seems so foggy at the moment. It is really strange but I never really cared for bricks and mortar but now we are going to lose it, it does seem to matter. Anyway thank you.:T

MammaCas

Hi there

We too were in the same situation and spoke to CCCS mid December.

From mid December we stopped paying all creditors inc. mortgage and sec loan and we privately rented from 1st February. We still haven't handed the house over to mortgage company but will be doing so in the next few weeks. Our BR date is 28th March.

I can only say from my experience, once we'd made the decision and got the rented house, everything seemed to fall in to place and we are much happier now. I know BR is not an easy option and I am expecting a rough 12 months, however, by far the worst bit up to now was coming to terms with and making the decision re: bankruptcy.

Good luck and keep posting, there are some really helpful and friendly people on here :T

Scarlett.1974

dialysis wrote: »

Hi Scarlett 1974
I hope you dont mind I have a few questions
I have a car worth 2500 ish my OH uses it for work as he does on calls and has to travel for these at a distance of 45miles each way, how do we stand with regards to OR I'm not too clued up on cars I'm afraid, so hopefully someone else will be able to answer this for you
Plasma TV worth 900 do we get to keep it Is that what you paid for it? When did you buy it?
Recently sold our motorbike to get money for BR and rent, move etc will the OR need to know about it? Yes, I'm sure it asks on the forms if you have disposed of any motor vehicles/bikes recently, so you'll have to put that down there, but once you explain what you used that money for the OR won't have an issue with this I'm sure.
We have decided to go to estate agents tomorrow to get rented accom do we tell them about BR or not? then when we get set up in new houser we will go BR In my opinion, no, don't tell them. We didn't. I didn't think it would help for them to know that
How do we stand with mortgage SL and unsecured debt do we have to tell them what we are doing as we are not going to pay them anymore. That's up to you. Personally, I would say no, don't tell them, it can often make them increase the calls/letters/general pressure. We told the mortgage co. in Jan we wanted to hand the house back, but as for the SL and unsecured debts - we told them nothing, we just went with the 'ignore and avoid' approach.
I hope you do not mind me asking all these questions it really hepls to talk to others who have been through the same. Everything seems so foggy at the moment. It is really strange but I never really cared for bricks and mortar but now we are going to lose it, it does seem to matter. Anyway thank you.:T

I won't lie to you, making the decision to let go of our old house was one of the hardest I've ever made, but I know it was the right one. Corny I know, but once you make the decision in your head, your heart will soon follow You would have to have a heart of stone for it NOT to effect you, but it does get easier I promise. Time is a great healer and I can look back now and feel almost nothing where the old house is concerned, whereas only 6 months ago I felt like I would do absolutely anything to keep it. I eventually realised I was fighting a losing battle and from then on, it all became a bit easier.

lookingforhelp_2

Hi dailysis,
We stopped paying everyone in december.Went BR 27th feb.We have just left the house not told abbey or firstplus :eek: thats for the OR to sort. As MammaCas says the hardest part is admitting it to yourself and family.
It will get easier.
Take Care
Sarah