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claire25
Junior Member
206 Posts |
 Posted - 02 September 2008 : 14:04:24
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| My boyfriend is considering gonig bankrupt as he has debts in excess of 25,000. He is on minimum wage and has far more going out each month then he has comming in. He is on the verge of a breakdown with stress over it. We own a property together which we have on the market desperate to sell. We also have a secure loan on the property which is in joint names. Any advice and hep would be sooooo appriciated. We are a little in the dark and would love to hear from people who have gone through or who are going through the same thing. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 02 September 2008 : 14:13:16
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Hi Claire and welcome to the forum.
If you could elaborate with some further details, I'd be delighted to help.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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claire25
Junior Member
206 Posts |
Posted - 02 September 2008 : 14:23:38
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my fiance in excess of £25,000 worth of personal debt. We bought a property together a few years ago with the plan to get a secured loan and tie everything up with that and just have the one monthly payment. However we did not have enough equity in the property to take out the full amount we needed but were offered a smaller secured loan short term which could be added to when we had more equity in the house. Unfortunaley it never worked out that way. My boyfriends parents took a loan out for him in thier names a few years ago and the payment he has to make to them, plus out secured loan and a few other bits of debt here and there means there is far more going out each month then there is comming in. I already pay a couple of his smaller loans for him to try and help but its just a drop in the ocean. We have had a property on the market for a while now. We no longer live in it as we cannot afford to. We are hoping to sell it to try and pay back what we can of the secured loan.
He is thinking of declaring himself bankrupt as the situation is making the both of us and our families il with worrie. I am wondering what effect his possible bankrupsy will have on me as my name is on the secured loan and we also jointly own the property?
Many thanks for you help! x |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 02 September 2008 : 14:30:21
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Hi Claire,
What's the value of the property? What's the total secured owed on it?
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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claire25
Junior Member
206 Posts |
Posted - 02 September 2008 : 16:46:49
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its value is £72,000. We have two years worth of equity in
it. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 02 September 2008 : 16:47:59
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Hi Claire,
What is the amount secured?
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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claire25
Junior Member
206 Posts |
Posted - 02 September 2008 : 17:05:26
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| the full amount. 100% mortgage |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 September 2008 : 13:15:50
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Hi claire,
Given the property is now likely to be in negative equity, the beneficial interest can be sold to a third party (who you can nominate) for £1 + costs (circa £211). This will enable you to keep the property in BR, and you can buy back the BI once discharged.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 04 September 2008 : 15:03:33
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Hi Claire
I went BR in April of this year and just wanted to reassure you that it really isn't all that bad!
My life has changed for the better, the process of going BR is fairly painless and worth going through just to be able to sleep at night and get rid of the stress debt creates.
I know exactly how your boyfriend is feeling and you have to see BR as a fresh start, debt and worry free.
Please ask any questions you need answering and you will get lots of support.
Take care
Vicki x |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 September 2008 : 15:09:39
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Hi Vicki,
Many thanks for sharing your experiences. The emotional support is every bit as important as the technical advice. Keep up the great work!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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andymac
Junior Member
193 Posts |
Posted - 04 September 2008 : 15:49:30
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my 10 cents worth...
I agree with Vicki, the sense of relief following BR when the creditor hassle stops, and you are not having to rob peter to pay paul is fantastic, wish I had done it sooner rather than putting it off like we all do until there is no other choice.
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claire25
Junior Member
206 Posts |
Posted - 04 September 2008 : 16:37:19
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Hi all
Thanks for your kind replys - i cant tell you the amount of sleepless nights i am suffering and i am pretty convinced my boyfriend is on the verge of a breakdown!
He spoke to a debt help line who told him he didnt have enough debt to declare himself bankrupt which made us feel like we were back at square one! I'm not all that intersted in keeping the house. To be honest it has brought us nothing but bad luck! but in this market it has has zero interest even though we have marketed in at a very low price. An IVA wouldnt be an option because a big part of the debt is secured on that flat which we cant get rid of! ive been researching voluntary repossesion but just cant find any clear answers. We are just at a loss now - whare do we go from here?
Ps - thanks for your post vicki - really cheered me up. xx |
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John
New Member
United Kingdom
73 Posts |
Posted - 04 September 2008 : 16:44:50
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Hi
just to confirm and please correct me if I'm wrong, you have a £72K property which has a 100% mortgage plus a secured loan against it.
Your boyfriend also owes £25K in unsecured debts.
What about you Claire, do you carry any personal debt?
Not being overly worried by the loss of the flat helps. And would you be concerned if you needed to go BR too? (If that meant all your debts and the mortgage are not a worry any more)
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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claire25
Junior Member
206 Posts |
Posted - 04 September 2008 : 16:54:12
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the 25K includes the secured loan. I have a bank loan which i go out for my boyfriend and i pay. Its only for a few thousand and isnt an issue in comparison. My name is also on the secured loan but thats it as far as my debt is concerned.
The flat was 72,000 with a hundred percent mortgage and it only has 2 years worth of equity.
One of the bigger loans is a problem as it is not in my boyfriends name and so i am assuming that nothing can be done about this?
The secured loan was for 14,000 and even though we have been paying it back for two years we are in arrears and we apparently still owe them around the full amount!
I would prefer not to declare bankrupsy myself - i dont think i need to with the amount of debt in my name - having said that i would be prepared to do aything to get us out of this. I would be so grateful for any advice
Thanks xx |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 September 2008 : 17:34:12
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Hi Claire,
The only way secured debt can be dealt with in BR is if you go down the voluntary reposession route first, so the shortfall becomes a new unsecured debt.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 04 September 2008 : 18:03:55
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Claire - I have been in the same position, I didn't have a property but I did have nearly £65k of debt on credit cards, bank loans etc.
I went BR in April and it has totally changed my life for the better.
If your property is repossessed, any money owing to the mortgage company can be included in your BR and then all your debts are cleared and you can both start a fresh - debt free. (I am assuming you will both go BR to include the joint debts?)
Just remember you are not alone, you are not the first nor will be the last to get into money difficulties. Once you know what you are going to do and start to get control of your life again you will both feel so much better.
Keep posting - I am happy to support you through this
Take care
Vicki x |
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Topic |
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My boyfriend is considering going bankrupt
