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mikyla
Starting Member
United Kingdom
4 Posts |
 Posted - 24 October 2008 : 10:27:55
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Hi,
hope someone can help i'm stuck with what to do with regards to going bankrupt. Dh and i have approx 16k unsecured debt and at 95k mortgage. I think due to the ressession that my house is in negative equity now. We have a reasonable income and could manage the mortgage without the other debts i am in a DMP with payplan paying 100 a month, which to be honest i am incurring more interest so my debts are still going up. We are not the bothered about keeping our home its needs some work, and the only way we could save for br fees would be not to pay mortgage...is this advised? i'm really stuck does it take Mort Co months to reposess or is it fairly quick? i'm with Accord mortgages.
As we would have to save Br fee's and Deposit and months rent for rental. So it would take us 4 months to save maybe little less. Any help would be appreciated. thanks |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 October 2008 : 10:36:37
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Hi Mikyla
Welcome to our forum.
Right lets see what we can do.
How long have you been in your DMP?
Have you kept up with the payments but feel that your going no where fast, is that why BR has started to become an option for you.
If BR is on the cards and i think maybe it could be it would be ok to stop paying your mortgage to get the fees together to pay for the BR, if both of oyu go BR then its £495 x 2.
Have you spoken to your DMP company about how you feel with how things are going, that could be a first step, otherwise i think really that you should speak to one of our main experts on here like Bret England or Paul at Reviva.
Firstly give our free helpline a quick call and leave a name and contact number and someone will get back to you and go through your available options. This would then put things into perspective and you can work out which way to go.
That number is 0800 078 9367.
As for rental as well you can save the money from your mortgage for this as obviously you have to find the money somehow and that will be fine.
Is it both of you thinking about going BR or just you?
Let us know and give us a call:-)
Jo
x
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Needafriends Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk |
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mikyla
Starting Member
United Kingdom
4 Posts |
Posted - 24 October 2008 : 10:41:09
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Hi Jo.
thanks for the reply, yes both us are considering Br, i understand the fee's are 495 each, could we be refused br, as to be honest we spend too much will i be asked for my bank statements as i never keep them. We think the only way to go is br i'm so unhappy, and yes i feel we are not getting anywhere with payplan one creditor is still chasing us asking for more money, i haven't spoken to them , we usually communicate via email. We have been with them nearly a year. thanks again. |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 October 2008 : 10:47:09
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Hi Mikyla
I would give us a call and let someone go through your options.
Have you been still spending whilst in a DMP and getting more into debt, or is this the old debts your worried about, the reason i ask is that many of us have to live and to be honest if you have not gone out and got other credit cards or loans and then not paid them back but had to live then the OR will need to know this.
I do think that a proper chat may be in order and then you can go through a lot more than you can post on here, do give us a call on the free number like i said leave a name and a number and someone will get back to you.
LOL
Jo
x
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Needafriends Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk |
Edited by - Needafriend on 24 October 2008 10:47:40 |
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mikyla
Starting Member
United Kingdom
4 Posts |
Posted - 24 October 2008 : 10:52:36
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thank you,
we have not got anymore credit cards or loans, but i have had my overdraft increased at the start of my dmp and we have spent on a comet store card for a new cooker, can Br be refused, thats what worries me , if the judge think we have be stupid and made silly mistakes and refuses us. thanks will call the number x |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 October 2008 : 10:59:50
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Yes bankruptcy can be refused usually if your not insolvent as in a case where you have enough say equity in your home to pay of your debts or if your debts are due to crinimal activity for example.
We dont hear much indeed hardly anything about people who have been refused, it would be a very rare thing that someone would be.
A judge looks at your case and make therr mind up, if your outgoings out weigh your incomings then yes you are insolvent, unable to service your debts and so BR should be allowed.
Hope that makes sense.:-)
Jo
x
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Needafriends Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk |
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Major Dan
Starting Member
United Kingdom
3 Posts |
Posted - 24 October 2008 : 14:39:03
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Hi Mikyla
You state that if you did not have the other debts you could afford the mortgage, if you stopped paying the mortgage you could afford the BR fees. Why not consider stopping the DMP and using those fees for the BR and keep the property. If its repossessed the chances of getting back on the housing ladder wil be remote. If there is no equity in the property you can keep it, you have three years to take it out of bankruptcy, it will cost you about £1 plus legal fees, and after three years it reverts back to you anyway. Just because you are going bankrupt you dont need to give up your home, or indeed make that choice now.If you think renting is cheaper please be aware that future mortgage payments will count as outgoings in a IPO/IPA order and any savings you make by renting betwen 50% to 70% of those savings will be lost to the IPO/IPA. Also you are renting someones home who may want it back or may also have it repossessed you also have the costs in moving and finding a deposit. Legislation is near to the goverment forcing mortgage companies to find ways of allowing you to afford your home. You can walk away from Payplan anytime do you really need to walk away from your home |
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Jo.
New Member
76 Posts |
Posted - 24 October 2008 : 14:44:39
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Well said Major Dan and welcome.
You also know your stuff.
Thanks for the input and keep the advice coming we need more experts and users on here to give advice.
Thank you
Jo Nye
x
Forum Adviser on behalf of:
www.bankruptcyhelp.org.uk
Tel: 0800 078 9367
You can read my blog for other information here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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mikyla
Starting Member
United Kingdom
4 Posts |
Posted - 27 October 2008 : 15:09:54
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Hi and thanks for posting,
I only pay 100 to payplan per month it would take me 10 months to save for fee's. my mortgage is in negative equity and interest only, its need work and honestly i want to move back to my home town a few miles away, better area and much better school for my son, so to be perfectly frank a house is not a home, imo. We are unhappy here, whilst i take on board ur advice major dan, i'm not that bothered about the house. I couldn't care less if i never own a home again, as long i'm debt free and happy and my family are settled, then to me i will have a better life. =) |
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pix1
Average Member
689 Posts |
Posted - 27 October 2008 : 19:14:02
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| This is a good time not to be owning a home as prices are plummetting. Renting for a while could be good and a new mortgage in 5 years or so might be possible (buying at a lower price, of course). You could stop paying the DMP and the mortgage immediately and would find that the mortgage co. would take at least 6 months to finally evict you. You would end up on the Possessions Register, in the Gazette newspaper and listed on the Insolvency Service website. Apart from a few debts (such as for fraud or student loans) all would be written off by the BR. There might be some difficulties getting a rental from an agency as they might carry out a credit check but a private landlord probably wouldn't. You might even be able to put in for social housing. |
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PJHughes
Starting Member
United Kingdom
3 Posts |
Posted - 27 October 2008 : 19:53:53
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Hi Mykyla,
Have you looked into how much money you would be saving if you did switch from your mortgaged property into rented accomodation? It may well be the case that you can increase your debt management program payments or even cut out the middle man and offer your creditors a payment they are happy enough with to freeze the interest and actually start seeing those debts coming down? Alternatively you may even be able to propose an IVA to your creditors. As Major Dan stated, the majority of the money you would be saving by going into rented would go into the bankruptcy anyway over the next three years. Obviously there are many factors invovled, such as how much of a shorfall would incure with the mortgage.
I understand the situation is very stressful at the moment but there are a world of options available to you, and I would consider them all carefully before you make a decision in 'the heat of the moment' for want of a better expession. I would suggest you have a chat with as many people as you can, your creditors, mortgage company, payplan and some IP's before doing anything rash! |
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advice regarding Br
