New here - think we are going down the BR route :(

MrsST

I've been pointed in this direction as my husband and I are looking at bankruptcy.

We are horrifically in debt and our income comes nowhere near meeting our outgoings now.

One thing I did notice from scanning a few posts was mention about secured debts not being covered by BR. This is worrying me a lot as the bulk of our debt is secured.

Can anyone set me straight please?

maxmycardagain

first, you should get proper advice fron CCCS or the CAB

as you susupect, secured debts are not included in a BR, nor are student loans, CSA arrears or (often but not always) current year council tax bills

maybe post a little more detail for a better appraisal?

cheers, welcome and good luck

MrsST

Thanks, I'll call the CCCS on Monday.

Basically, we have a mortgage and a secured loan, plus a few unsecured bits (credit cards, unsecured loan). The total of our secured debt (mortgage & loan) is approx 150k with a house value of around 125k. We have approx 25k further in unsecured debt.

There is just no way that we can continue to meet the payments for all our outgoings including the secured loan.

I have spoken to an insolvency expert and no mention was made of the secured loan not being covered.

I'm in for another sleepless few nights now worrying about this. We have to sell the house/get repossessed, but we have nowhere near enough equity to cover the loan.

God, this just gets worse

maxmycardagain

so consider your options

HA/LA housing or private let (requires bonds/month up front)

sleep easy, tomorrows another day

tigerfeet2006

Hi and welcome.

If your house is reposessed and you go BR the shortfall and secured become un-secured and are included in your BR. If you want to keep the house then they won't be.

Numbers and links to the debt agencies in my signature.

Just off to get a link to a diary that will be good reading for you.

MrsST

Thank you.

We are in the process of sorting out a rental property with a view to the house being repossessed. It's not really in our best interests to try and sell the house as we need to do this quickly.

I'm definitely going to call CCCS for advice as we are stumbling along blindly here at the moment.

maxmycardagain

indeed, i was looking at it from the perspective that the OP wanted to keep the house

a BR with a repo is a clean sweep by most standards

tigerfeet2006

Here we go, a link to Scarlett's Diary. She is a very ispirational lady indeed.

http://forums.moneysavingexpert.com/showthread.html?t=596237&highlight=scarlett+diary

Also check out the CCCS website and do there Debt Remedy, then when you ring them on Monday you will have some idea where you stand and it will also give a reference number to give them which will help.

So_Sad_Angel

Hi MrsST

Firstly welcome & well done for finding this site & posting your situation. Definately speak to one of the debt charities asap. You can also look at CCCS / National Debtline web sites where you can get loads of info.

The unsecured debts (ie mtge & sec loan) would be outside bankrupcy if you can afford to stay in the property. There is negative equity so the OR is unlikely to insist on sale as there is nothing to gain for your creditors.

If however you cannot afford the mtge & SL then, if you move to a rental at lower monthly cost ,the shortfall on any property sale will then fall into the BR. I am assuming here that you have joint mtge & both will go BR otherwise the non BR party would get landed with the shortfall.

I hope this makes some sense.

Angexx

MrsST

Thanks for the link.

It's already making interesting reading, particularly about the bank accounts. Another thing I've been stressing over.

Tried the CCCS online thing but as my H is self-employed, we have to call them anyway.

I can't believe it's come to this really. Our own fault, I know and understand that, but circumstances haven't been kind to us either.

tigerfeet2006

MrsST you are among friends here and we will help and support you all we can.

here is some more light reading for you

http://www.insolvency.gov.uk/