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audrey.je
Starting Member
4 Posts |
 Posted - 21 February 2010 : 14:40:50
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Hi Can some one please give me some good advice about my financial situation.
I posted a message a few days ago about declaring myself BR thinking this was going to be the best solution. I completed an application for bankruptcy online but havent took the paper version to my local county court as yet, (still trying to gather the £510 thats needed for this). Any way I am beginning to have second thoughts, dont know whether an IVA will be better, but I owe a great deal of money to creditors thanks to the mortgage company.
In June 2008 we voluntarily surrended our family home back to mortgage company after coming to the sad fact that we could not sustain our mortgage repayments of £600 per month.The mortgage was an interest only. We practically begged the mortgage compnay tpo allow us to reduce our payment until our finances improved or to actually rent the property from them. At this time the country was on the brink of recession.Any way mortgage compnay would not agree and took the propety back. my family and I moved into privately rented accomodation as there was no council property available, (we are on council property waiting list). 2 Weeks ago both me and my husband both got letters demanding £52000. The mortgage company sold the property for £97000 and we had borrowed from them £25000, so they sold the property for a song.
Any way I find myself in a situation where I dont know which way to turn as my income is not very good. I dont know what to do for the best, can some one please give advice, thanks Audrey.. |
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debtinfo
forum expert
2826 Posts |
Posted - 21 February 2010 : 15:14:04
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hi , i cant really advise one way or the other as this is something you have to decide, have you spoken to any of the free advice people, CCCS, CAB or national debtline.
The question is how much can you afford to repay each month and do you have anything to protect that would be affected by bankruptcy. |
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RHB
Senior Member
1159 Posts |
Posted - 21 February 2010 : 16:41:00
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| It's not often I would advise bankruptcy outright but with that amount of debt & a small income I can't see much alternative. If you don't ever want a MORTGAGE AGAIN then it could be the way to go BUT you are best talking to CAB or an IP to explore all possible options. |
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audrey.je
Starting Member
4 Posts |
Posted - 21 February 2010 : 16:49:58
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thank you RHB and Debtinfo i think my only path to follow is BR, I have had contact from a company in regards to an IVA, they took initial details from me and asked what I could reasonably pay back I explained I could only pay back about £120.00 per month, they advised I would need to pay £190.00 per month for 5 years as this apparently is what is left from my income and expenditure. The only problem I have with this is I have no money left for emergencies, i.e clothing or footwear for my children.
If I went for BR would I still have to pay that amount? and how do they work my income out?, can any one reply please, thank you, audrey.j
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debtinfo
forum expert
2826 Posts |
Posted - 21 February 2010 : 17:08:50
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In a similar way to the IVA, although the amounts allowed are sually a lttle mre generous. Additionally only 50% (on your figures) of the amount is taken as a payment rather than the whole amount in an IVA.
There are other things to take into consideration such as if the bankruptcy would affect your employment (check your employment contract) |
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slavetodebt
Starting Member
6 Posts |
Posted - 21 February 2010 : 19:50:17
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| i am very new to this, but i would say DONT WORRY. i used to worry all the time about how will i manage but after alot of reading on this forum and another site called 'debtquestions' i feel loads better in my mind, after all its only numbers on a bit of paper, no crime has been commited :-) i would suggest takin a look at topics regarding dmp's on both sites. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 22 February 2010 : 18:18:00
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sorry the maths does not add up for a DMP
unless you have a huge capital reserve or some one to lend you a big lump sum a DMP does not seem appropriate.
In your situation 200PCM to cover a 52K debt means that you will be paying until at least 2030.
you could hope that the mortgage company will petition for BR on your behalf, very unlikely.
Audrey BR is not too bad, no one really wants to become BR but if it is the best solution for your situation then do it.
speak to one of the experts to the left they will help answer your questions and help position you the most appropriate way for BR
I used Paul and his team @ Reviva, i found them very helpful
regards Richard |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 22 February 2010 : 18:20:24
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however slave to debt is right to say do not worry
that first letter from the mortgage company is a shot accross the bows, you still have plenty of time before they start sending firmer letters,
regards Richard |
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Hi Can some one please give me some good advice
