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Bankrupt Royalty
| 28-01-2010 03:01 PM |
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Joined: 28 Jan 2010 Posts: 2 | £10000 Loan and £40000 Credit cards. Paying minimum payments for about 3 years by taking cash out of cards. Now is the time that can't afford it. No job. Working as self employed earning about £300 monthly. I also have house/mortgage of £215000(current price £200000) which I rent through local council for rent of £1050 per month whereas the mortgage is £1015 per month. Wife earns £600 monthly and also have a 2 year old son too. Living in a shared accomodation because can't even afford even one bedroom flat or the mortgage of my house. Can anybody suggest me the best solution please. Can I go to local council for housing needs either by going bankrupt or just as it is now. Please suggest me a solution. Many thanks |
| Annie Nonymus | 01-02-2010 10:35 PM |
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Joined: 01 Feb 2010 Posts: 13 My Profile | Your mortgaged property appears to be an unecessary millstone. Can you sell it and then start from a more even playing field? Bankruptcy would likely result in that outcome anyway. The local authority do have a legal obligation to "house" you, but the standard or area of the house is not likely to be good. Unless there is a liklihood of financial improvement you are probably drifting towards bankruptcy at the moment and it is up to your creditors how hard or fast they push you. Get educated by talking to your local housing office, and while you are there, ask if the council offer free debt advice. If they don't, approach your local CAB.They can also offer advice in relation to your housing situation. |
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| 02-02-2010 12:31 AM |
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Joined: 29 Jan 2010 Posts: 5 | The numbers that you quote are very tight - the house is worth £ 35.00 per month income at present - provided that mortgage rates do not rise, so the advice about getting rid of the house is sound. The only reason for hanging on to it would be to take advantage of property value appreciation which is not likely to happen for some time. You do not say if the loan is secured or unsecured. If it is unsecured like the credit card debts of £ 40,000 then all you have to do is stop making all payments and wait until the CCJs arrive. One of the creditors will ultimately go for bankruptcy proceedings which is cheaper than doing it yourself (unless you can find between £ 450 and £ 600 that you would have to pay into the court when you file. £ 50,000 of debt is manageable provided that you have the income to make offers of low repayments for the time being, request freezing all interest and charges. To do this you need to contact all the loan providers with a statement of affairs showing your present financial circumstances. The difference here between just trying to make minimum payments is that the interest must be frozen. I would suggest that you have been overtaken by ongoing interest charges in spite of making your minimum payments. Unfortunately selling houses at the moment is a slow process and remember that you will still be liable for the shortfall in the mortgage amount after deducting the selling price. As you are now self employed you have the freedom to take on a second job; there are opportunities out there. I have first hand knowledge of unsecured debts of £ 37,000 being repaid at £ 34.00 per month so it is doable - for the time being. Things can only get better. |
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Bankrupt Royalty
| 05-02-2010 08:21 PM |
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Joined: 28 Jan 2010 Posts: 2 | Trying to get through to local CAB, probably visit the office as it is difficult to get hold over the phone. Is there any difference in filing bankruptcy yourself or a creditor making you bankrupt ? I mean can the creditors sell the debt to other agencies and they chase you. Does this still happen when creditors get a CCJ against you or you get bankrupt yourself. Many thanks for reminding me to discuss the situation with local council as I am very confused what will happen if council refuse to accomodate me and my family that I made myself bankrupt just to cover my housing needs. This way I will lose the house(any chance of future appreciation in house price which might be the only chance I left with to pay off the debts). |
