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nanashummer
Starting Member
United Kingdom
2 Posts |
 Posted - 29 June 2010 : 22:35:36
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| Sorry for the ignorance but I am enquiring on behalf of someone else ! Is it at all possible to declare bankruptcy because the mortgage and secured loans payments are completely unaffordable Even after approaching the finance companies concerned and explaining the situation they won't consider reduced payments or extending the loan period. This is having a severe effect on his family life. Can anyone please shed some light on this nightmare situation ? Many thanks in advance |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 29 June 2010 : 22:54:15
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Hi Nanashummer
yes you can declare bankrupt if you cannot afford to pay your debts and your assets are worth less than your debts.
when i first got into the OH Boy I cannot pay im in trouble my mind went into over time with all of the what ifs, shared room in the poor house, public flogging.etc
The bar room non expert advice i received was confusing and did not help as every one knew the process (or thought that they did)
The best thing i ever did was sit down with an industry proffessional, who talked me through the whole scenario, gave me the truth not hype or fiction.
Paul and His team at Reviva have been absolute rocks to me, always at end of email or if urgent phone and guided me through the process.
so please encourage your friend that it is not the end of the world, yes bankruptcy does throw up some challenges but for some people it is the right decision
good luck on the path ahead
regards Richard |
Edited by - Richard P on 29 June 2010 22:55:36 |
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nanashummer
Starting Member
United Kingdom
2 Posts |
Posted - 30 June 2010 : 09:56:15
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Hi Richard
Many thanks for the message, we really do appreciate your support. My son in law, like you, is at the end of his tether and is about to loose his family if something isn't done to relieve the situation. i think the trouble is that, like you, he has been talking to friends, workmates an anyone who will listen and he has been given very confusing advice. His unsecured debt is small in comparison to his debt secured on his home and it is this that is causing the problem. He has been told that he cannot make himself bankrupt for his secured debt even though he is prepared to sell the house to pay off what he can he knows that the value of his home will not cover the total debt owed. He has tried his utmost to keep up payments for the past 3 years and know he just wants to throw in the towel !What CAN he do ?? quote:
Originally posted by Richard P
Hi Nanashummer
yes you can declare bankrupt if you cannot afford to pay your debts and your assets are worth less than your debts.
when i first got into the OH Boy I cannot pay im in trouble my mind went into over time with all of the what ifs, shared room in the poor house, public flogging.etc
The bar room non expert advice i received was confusing and did not help as every one knew the process (or thought that they did)
The best thing i ever did was sit down with an industry proffessional, who talked me through the whole scenario, gave me the truth not hype or fiction.
Paul and His team at Reviva have been absolute rocks to me, always at end of email or if urgent phone and guided me through the process.
so please encourage your friend that it is not the end of the world, yes bankruptcy does throw up some challenges but for some people it is the right decision
good luck on the path ahead
regards Richard
JuneySpooney |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 30 June 2010 : 18:59:23
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There is nothing stopping your son-in-law from declaring BR even with the secured loans on the property. This sounds like something that the loan companies may have told him as they realise that once he has been declared BR they will not get their money.
If there is equity in the property then once he declares himself BR the OT will want to release this to pay to the creditors. The creditors with loans secured on the property will normally be classed as priority debts so they will get the first share of the equity but this is something that the OR will take care of and your son-in-law won't need to worry about.
The same if there isn't any equity in the property. Your son-in-law can give the property up voluntarily to the mortgage company and any mortgage shortfall will be written off in the BR.
In either case (equity or no equity in the property) all debts (secured and unsecured) will be written off when your son-in-law declares BR.
I would recommend that your son-in-law registers for this site and posts his exact situation at the moment (i.e. any joint debts, other assets, etc.) so we can advise him. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 01 July 2010 : 11:59:14
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Hi Nanashumer
The situation your son in law finds himself in is no different to myself and a lot of the people who post here. (ok the figures will be different but the outline is the same)
financial over exposure, i paddled like crazy to keep my head afloat, sending small additional amounts of money here and there to keep creditors happy, initially i was paying more to those that shouted loadest, then i started being cheeky and saying that if they shouted at me they would go to the back of the queue, I didnot have enough money top pay every one in the queue those that were patient got extra money.
I spent more time dealing with the debt and creditors than actually going out and earning more cash to be able to make some payments.
eventually i realised that i was paddling flat out and only taking very small movements forward behind me the tidal wave was getting bigger and bigger.
I paddled around for months talking to any one that would listern to me and had bankruptcy "knowledge" the best thing that happened to me was being introduced to Paul and his team at Reviva
because of my actions or inaction, my wife was also sucked into bankruptcy, (incidentally she has been discharged from bankruptcy last night yippeee).
regards Richard |
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anyone please shed some light on this nightmare situation ?
