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jwmc77
Junior Member
United Kingdom
195 Posts |
 Posted - 06 October 2008 : 22:25:35
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ok....help needed, we're considering br but need to be sure.
we are a married couple with 3 kids (8,5 and 5 months) live in a mortgaged house and have 17k of debt tied up with c.c.c.s.
i also have a secured loan of 20k, together total secured on house (inc mortgage) is 120k, the house was on the market 6 months ago for 127k so will be worth a lot less now.
i have a take home pay of £1500p/m and my wife is on maternity leave right now so is getting £320p/m untill january, and realisticly wont be able to return to work afer that.
morgage, loan, c.c.c.s. and other bills come to around £1300p/m (not including food shopping) as you can see we're left with very little.
my questions are: how much is the o.r. likely to take from me p/m?
how long am i likely to be able to stay in my house?
will it be hard to rent a house because of the br?
any help would be great, especially from anyone who has similar circumstances to mine...
j mcalindon |
Edited by - jwmc77 on 06 October 2008 22:26:50 |
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John
New Member
United Kingdom
73 Posts |
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jwmc77
Junior Member
United Kingdom
195 Posts |
Posted - 06 October 2008 : 22:37:50
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what choice do i have?? ive already tried the d.m.p. way, even if i could get rid of my unsecured debt, id still be left with what is effectivly a £860 mortgage as well as all the other bits and bobs.....i really dont see any other way...
j mcalindon |
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digman
Junior Member
United Kingdom
319 Posts |
Posted - 06 October 2008 : 22:47:26
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Hi jwmc77 ,
Please dont think there are no other ways . Our household income is £1550 my wages / £560 wifes wages and we are in neg equity and have just gine BR on friday . We expect to keep the house .
I would strongly suggest calling the helpline above and speaking to one of the advisors . Its free and they discuss all the options . They are excellent . I thought BR would mean losing everything but it certainly is not that straughtforward . Please give them a call !!
Andy |
Edited by - digman on 06 October 2008 22:50:17 |
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John
New Member
United Kingdom
73 Posts |
Posted - 06 October 2008 : 22:48:27
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Hi
that's fair enough just wanted to make you aware that you could probably keep the property AND declare bankruptcy.
As you say, little choice really.
From the time you miss your 1st mortgage payment you can, if you wish, expect to stay in the house for a minimum 5 to 6 months.
Many stop paying to accrue the rental deposit and 1st months rent and moving costs.
Best to obtain the rental before you declare bankruptcy as credit checks are made which makes renting usually more difficult if you are bankrupt already.
How much you will pay into an IPA based on a family of 5 living, soon anyway, on £1500 p.m. I would estimate to be Nil.
What are the rental costs in your area for a suitable property for the 5 of you?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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jwmc77
Junior Member
United Kingdom
195 Posts |
Posted - 06 October 2008 : 22:48:29
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is there any way of getting rid of unsecured debt without losing the house?? unlikely i know, had to ask though!!
j mcalindon |
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John
New Member
United Kingdom
73 Posts |
Posted - 06 October 2008 : 22:50:16
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Hi yes there is.
If you want to keep it and it's in negative equity then if only you are declaring bankruptcy your wife could buy what's known as your beneficial interest from the official receiver for £1 plus £211 legal fees.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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jwmc77
Junior Member
United Kingdom
195 Posts |
Posted - 06 October 2008 : 22:52:36
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heres the thing..my house is only a 3 b/room, so in reality i could upgrade to a 4 and still be better off. (£600/£700p/m)
how are you able to keep the house??
j mcalindon |
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jwmc77
Junior Member
United Kingdom
195 Posts |
Posted - 06 October 2008 : 22:54:50
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in words i can understand please!!lol i take it all secured monies would still need to be paid.
j mcalindon |
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John
New Member
United Kingdom
73 Posts |
Posted - 06 October 2008 : 22:57:53
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Hi
if there's no equity then it is of little or no use to the official receiver as, if he forced you to sell, the sale proceeds would not cover the secured debts, which take priority, let alone pass any funds to your unsecured creditors.
You definately can stay if you wish and you estimate negative equity.
If you decide you would prefer to do this, get an estate agent round to give you a current market appraisal to make sure of the value.
As far as bankruptcy goes, and if you want to keep it, the more negative equity the better.
Of course you would still need to keep up to date with the secured payments in order to keep the property.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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jwmc77
Junior Member
United Kingdom
195 Posts |
Posted - 06 October 2008 : 23:11:28
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it really would be tempting bar the fact that by doing that id only be freeing up the £80p/m that im paying to c.c.c.s....hardly seems worth it, especially as when my fixed rate ends in 2 years im in no position to change my mortgage as i have a ccj because the t.s.b. felt like they had to do that to me before accepting my offer...anyway my predicted increase from my current mortgage provider is over £100p/m. trust me... all of my kids were born while living in this house, the last thing i want to do is walk away from it...but if it means being debt free, then so be it!
j mcalindon |
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jwmc77
Junior Member
United Kingdom
195 Posts |
Posted - 06 October 2008 : 23:13:30
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one more thing....how long is it before the br completely dissapears from your credit file...ive heard 6 years, is this correct??
j mcalindon |
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John
New Member
United Kingdom
73 Posts |
Posted - 07 October 2008 : 00:38:10
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Hi
yes that's correct, 6 years.
The credit reference agencies base their files on a 6 year history partly due to the Statute of Limitations which dictates that in the right circumstances unsecured debt becomes null and void once 6 years has passed since you last made a payment.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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jwmc77
Junior Member
United Kingdom
195 Posts |
Posted - 07 October 2008 : 04:04:28
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also, would it be wrong for us to sign everything over to me? obviously i mean everything thats in joint names (mortgage, secured loan) all the unsecured stuff is in my name anyway...seems pointless paying nearly a grand when that could be halved...you do have to pay 2 fees if a married couple declare br dont you???
j mcalindon |
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got there
Junior Member
United Kingdom
461 Posts |
Posted - 07 October 2008 : 06:51:24
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| Yes it will cost you 2 x 495 there is no reduction for couples. Sorry not what you want to hear. Hope it helps though. |
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RHB
Senior Member
1159 Posts |
Posted - 07 October 2008 : 07:33:55
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| It would cost you money to sign everything over to you anyway, especially the house. |
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heeeeelp!!
