Can't Get Away From Bankruptcy

Jaelor · 9 March 2006 at 11:53AM

As you can see from my signature, we have pretty horrendous debts. I've posted before about what to do and the possibility of bankruptcy and, for the past month or so, had decided to really fight against doing that, but it seems like higher powers are conspiring against me, and I really don't know which way to turn.

Basically, our house is worth around £180k, we have a mortgage for £158k and bloody FirstPlus have a second charge on the house for around £67k. With all our outgoings cut to a minimum, we have around £70 a week to live on - thats for everything..food, petrol. We were paying £34 a month for electricity, well they've just put that up to £140 a month!!! I got this down to £90 but its still put me way behind.

The other thing is, I'm currently on materntiy leave, going back on the 3rd April 4 days per week but pretty much full time hours. My Dad is going to look after little'un, but I just don't see that working out - he's very awkward with him, freaks out a dirty nappy and when I go and pick him up from his 'bedding in sessions', he's always in front of the TV watching Baby Einstein in his bouncer. This is okay occasionally, but not all the time!!! With £70 a week to live on, there is no way I can reduce my hours more or pay for proper childcare. We earn to much to qualify for assistance.

As the FirstPlus loan is so huge, we pay £661 a month and this is for another 19 years, so there isn't even light at the end of the tunnel.

Just don't know where to start - been told, as we have negative equity, selling up will be hard as FirstPlus will not allow out, although PayPlan say they cannot stop it. I just don't know where to turn - none of the debt charities like PayPlay and CCCS can really help as the debt is secured.

Help!!! I'm getting so depressed and waking up at night trying to figure a way out of this mess, but I just can't. My DH is pretty useless and says things like "if you think bankruptcy is the answer,then I'm with you all the way". I resent him so much at the moment as he is the cause of this debt - I'm pretty frugal, always have been and could see this day coming but to avoid arguements I've always given in to his 'Can I do this? can we buy that?' attitude. He even asked the other day for sea fishing equipment around £75!!! When will I get it through to him?

Are there any agencies out there that can help me? Tried CAB, but the guy I got wasn't really 'in the know'.

tattooed_lady · 9 March 2006 at 11:56AM

You poor thing - I don't know the best way out for you but just want to offer some 'virtual' support. :grouphug:

in*the*red_6 · 9 March 2006 at 12:07PM

Hi Jaelor

I have read some of your earlier posts and really feel for you and the difficult position you are in. It seems very unfair that you cannot get help and advice because your debt is secured. You've tried Payplan, CCCS and CAB - have you tried The National Debtline? I don't know if they can offer any more help in your situation but at least it's someone else to pick up the phone and have a chat with. Seems to me this is a huge thing for you to deal with on your own and it's no wonder you are feeling under so much pressure. Sorry I can't offer any more advice but I think it's probably worth knocking at every door you can until you can find someone who can genuinely help you.

Best wishes

ITR

paul10mm · 9 March 2006 at 12:16PM

Hi ya
First off let me say i so hope your life improves for you!
second you sound a wonderfull woman just like my wife in fact, sad bit is i sound just like your husband! If i wanted something i got it she always gave in to keep the peace Thats not the awnser it took a long time but i dragged my wife down with me and now we are both bankrupt it was all my doing no one else to blame my wife was always sensible i just used what ever means to get my own way your OH has to change its the only way You can get out of this mess
can you not apply for houseing or rent? then if you must go bankrupt you at least have somewere to live??Everyone here will help and give you support just ask for anything you need i just hope your OH can understand the hurt and pain he has caused you When i had my lightbulb momment i just could not belive i was lucky enough to still have my wife and children and although i own nothing at all and live in arented house i dont fear the letter box or phone anymore and or children dont lose out through my actions
I wish you the very best you will sort this and soon

kevker · 9 March 2006 at 1:13PM

I think the biggest question here regards the secured debt. If you do decide to go down the bankruptcy route (which looking at things I think is more and more likely) what will happen to your house. I'm pretty sure that even though you have negative equity it will be sold to repay some of the secured debt. I'm sure someone more knowledgeable will be along shortly to confirm this.

This leaves you in two positions.
1) fight not to go bankrupt. But how likely is it that you can continue to survive on £70 per month. What happens if you need repairs on your car for instance.
2) declare bankruptcy and lose your house. This means you will have to go into rented accomodation. I know this appears bad, but looking at your secured debt, how likely is it that you will own your house in 20 years time?

Sorry to be a bit blunt and I hope I haven't shocked you too much, but it took a friend of mine saying roughly the same to me to shock me into realising that bankruptcy was the best route for me.

If you have got yourself into this much debt, then bankruptcy really is a breath of fresh air. You do get to make a fresh start. It does mean your credit rating is shot for 6 year, but I'd imagine that with that amount of debt it already is. The important thing is, a fresh start is no good unless your partner changes their ways and controls their spending. Since declaring bankruptcy I have never had so mcuh money (and believe me I don't have a lot), simply because it was such a wake-up call, that I am now very frugal with my money.

Good luck.

Can't Get Away From Bankruptcy

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