|
|
| The independent answer to your debt problems | login join |
|
cindy
| 08-03-2009 10:29 AM |
|
Joined: 08 Mar 2009 Posts: 2 | Hi, I've got debts of approx £36k (through loans, credit card, overdraft and a catalogue) and I have a mortgage with my partner on our flat with negative equity of around £62k. I earn just over £1000 a month and my partner has recently lost his job. We have been in touch with the cccs and set up Debt Management Plan (DMP) but only managed to pay one month due to my partners job loss. We haven't paid any creditors for months now (as the cccs advise this before setting up the DMP) and we have fallen behind on our mortgage payments. We are receiving letters threatening to take us to court if we don't pay outstanding balances in full. Would I considered for bankruptcy as I feel this is the only option left to me at the moment as I can't pay everything on my one income and I don't know when my partner will find another job and what salary he will be on. Please help, your advice would be much appreciated. Thanks! |
| DW George | 08-03-2009 07:23 PM |
|
Joined: 01 May 2007 Posts: 401 My Profile | Hi Cindy It looks as though even with your partner's income you would be struggling with the repayments. How much would your partner earn if he was employed in his area of work and how likely is he get work quickly? Bankruptcy may be your best option, although CCCS did suggest to you DMP, this is really only a short term fix. Do you have £62k negative equity or negative equity with a house value of £62k? If it is £62k negative equity then it may be a consideration to either sell your house or hand back the keys before you go bankrupt. This way the shortfall will be included in your bankruptcy and your debts wiped off. George |
|
cindy
| 09-03-2009 08:50 PM |
|
Joined: 08 Mar 2009 Posts: 2 | Hi, Thanks for your reply. We have negative equity with a house value of £62k. My partner won't earn much more than I do and I'm not sure when he'll find something. Exactly how does it work when you hand the keys back?? Do I just send a letter to our mortgage lender with the keys? Do you think we should do this and find somewhere else to live before applying for bankruptcy? I'm not sure of the order in which to do things! Thanks. |
| paladin | 16-03-2009 11:44 PM |
|
Joined: 06 Jun 2007 Posts: 225 My Profile | Call your mortgage company and say that you are considering handing back the keys and walking away from the house and see if this provokes them into doing something like giving you a payment holiday. The best thing you should do is to try and sell the house privately. This way you'll achieve the best price for it rather than what the mortgage company will do which is put your house to auction. The shortfall in the mortgage will be classed as an unsecured loan which the banks can pursue you for up to 12 years, although this can be written off through insolvency, either bankruptcy or an IVA (England and Wales) or a Protected Trust Deed (in Scotland). P |
|
FeeFee
| 22-05-2009 03:22 PM |
|
Joined: 22 May 2009 Posts: 3 | Can; I ask a question on this subject. I too find myself in a similar postion as Cindy. The problem is that i cant sell my house. Husband business failed and he applied for bankruptcy. house is mine - we have mortgage arrears, I only earn around 1200 per month - 2 teenage kids and the debts are steadily rising - no way round but to sell the house. If I sold it for its value 380 - 400k I would be in a position to pay all my creditors Mort/secured loan and unsecured debts which I have a DMP for. I have a mortgage/secured loan of around 365K I have been looking around these companies who can buy your property quickly to see if i could get someone to buy the house, obviously at a reduced market value. But if I had a company interested but they wished to purchase for 340 - 365k and I make a loss on the money owed to the mortgage/ loan company - would they accept this? Should I approach them to consider a slightly less payback. By all accounts it will be cheaper than taking me to court and them auction the property with no guarantee of full purchase either and get nothing as I am thinking of sequistration myself. I just cant sleep at night and think that at least if i sell and secure rented accomodation - i can at least apply for benefits and have some money by which to live. Our credit rating is nil anyway and will likely to be for years! Cant get credit - dont want credit just want the stress lifted. |
| paladin | 23-05-2009 06:53 PM |
|
Joined: 06 Jun 2007 Posts: 225 My Profile | Hi Fee Fee You need to speak to your mortgage company to see if they will give you a payment holiday. The amount you are expecting for your house is quite clearly above what people are willing to pay for it. If you explain to the mortgage company that you are actively selling your house then they may give you some breathing space until you sell. So lets look at what happens if you reduce your sale price and your still left owing money. All the money you owed would now be classed as an unsecured loan. You could then either go for an Protected Trust deed or seek bankruptcy which leave you debt free. Don't go down the quick sell route if it would leave you owing money which you couldn't afford to pay back. These people are no fools and will only buy your house if there is any clear profit in it for them. There are many people in your position, not being able to sleep etc. You need to take positive steps to sort out your situation and by the sounds of it you've motivated to do something about it. P |
