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whattodo
Junior Member
Uzbekistan
171 Posts |
 Posted - 30 May 2008 : 23:58:29
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Hello,
Don't know what to do really, and am feeling really stuck. We've been muddling along for about 18mths now but the siutation is getting worse to the point that my marriage is on the brink.
We have 114k in secured debts but the area that we live it has taken a dive (to the point we are now in a regeneration area), the house has severe damp and its literally breaking up my marriage.
We have got to get out of this house but in todays market its only worth 75k-80k max, leaving around 40k shortfall. My husband went self employed but is currently not bringing home enough cash to cover everything and I work pt as I've got a 3yo little one with another on the way.
I also have 11k of unsecured debts that i am struggling to pay also.
Even if i did sell my house it wouldn't cover the mortgate nor the 17k second mortgage. I've worked out that we have currently about £150 more going out then coming in, thats without car insurance for 2 cars which we will have to pay monthly from July, any clothing, car maintenance, house maintenance allowence or life/income protection. We#ve talked and talked about it and want the house or at least the £860 we pay for it off our backs even if it means going into rented accomodation.
Basically are we in a position to go bankrupt even though we haven't missed any payments as yet? Would my husband get to keep his business as its his only source of income? (a burger van worth about 2k)
Many thanks in advance
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 31 May 2008 : 10:19:02
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Hi whattodo - welcome to the forum!
Ihave recently gone BR so know exactly what you are going through.
It is not an easy decision but once done it takes a huge weight off your mind.
One of the BR experts will be on line over the weekend and be able to answer your questions about your property/mortgage etc.
It looks like the vehicle is under the £2500 value limit but as it is for business use I will let one of the experts clarify that it's safe.
Keep posting and good luck
Vicki x |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 31 May 2008 : 12:39:42
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Hi Whattodo,
In your situation it sounds like the property has become a weight you could both do without.
You need to consider your options, however you could hand the keys back to the mortgage company for them to sell.
You could then move into rented accommodation which sounds like this would be more affordable for you without the worry of maintaining the property.
If the house sold for a shortfall this shortfall would become an unsecured debt your husband and you would be liable for so Bankruptcy may be an option as this would clear this and your other unsecured debts giving you a fresh start.
A great deal to consider, but it seems it may be the change you need.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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whattodo
Junior Member
Uzbekistan
171 Posts |
Posted - 01 June 2008 : 19:47:07
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Hi All,
Thanks for the replies I know deep down that BR is the only option but it almosts seems a faliure to everybody that knows and loves me, but the current person I am is of no benefit to them either.
Do I basically not pay my mortgage and other debts (I would need to do this in order to get a deposit and BR fees saved), move elsewhere and then hand the keys back?
When Northern Rock come to sell the property there is no way the sale would cover the mortgage so do we wait and see if they make us bankrupt or get in there 1st?
The 2nd charge we have with Welcome would therefore not be touched by the sale but having just read their T&C's I'm hoping they won't come after us. Basically I've found this in clause 3:
'The Mortgage Indemnity Fee shall be charged to you by being included in the Total Advance. In return of payment of this fee, we agree that, in the event that is necessary for us to enforce the Security, and the value of the Secured Property upon sale is insufficient to cover all sums then due by you to us under this agreement, we shall not pursue you for such shortfall'
Would this be relevant in our circumstances, ie defaulting and giving the house back or would they still what us bankrupt and we have to name them in any legal paperwork?
Thanks again all |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 01 June 2008 : 21:59:13
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| Hey whattodo, I can't answer your questions but I just wanted to say that you shouldn't feel a failure. You are taking control of the situation and you should be proud of yourself. I'm sure everyone loves you for the person you are and I bet they are all just worried about you. Good luck, I'm sure an expert will be along shortly to advise you. Viki X |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 02 June 2008 : 11:41:58
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Hi Whattodo,
I would suggest waiting until after the property has been repossessed and sold. In a reposession scenario, the lender has to put it on the open market to sell for a couple of months. If it ffails to sell in that time period, then they will sell it at auction. In this case, the property will generally realise "red book value" which is about 75% of the market value. Any shortfall would then be a new unsecured debt which can be written off in BR (to be safe, wait for the property to be sold before going BR).
If you require any further information, please contact the helpline.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Don't know what to do, and am feeling really stuck
