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bencymru
Starting Member
United Kingdom
3 Posts |
 Posted - 26 February 2009 : 15:07:32
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Hi, i 'm hoping you can advise me. I have a worsening debt situation and on several occasions over the last few years have considered bankruptcy as a real option.
I now have unsecured debts totalling £ 50,000 , spread across a number of different creditors. Worryingly 15k is on credit cards which have now reverted to normal interest rates after the interest free period.
We rent our premises and one of the loans is in joint names ( my wife ).
I guess after paying all the usual costs per month we have approx 500 left over to live on, which considering i have a 5 year old and the current utility costs, will reduce rapidly over the coming months.
I can't see a way out as each month, the debt increase as we seem to be hit by constant price rises, income reduction ( due to my wife taking extended leave to cover school holidays etc ) . We are genuinly trying to avoid it but the pressures on us both are immense and is affecting home life etc.
total monthly debt payments amount to approx £1000.
Can anyone advise what the best course of action is?
we are in a new tenancy agreement so would the landlord be informed.Does the OR make a judgement on whether the amount of rent we are paying is suitable? we have a 3 bed detached that costs 875 per month - not unreasonable i think.
How would the joint loan be dealt with?
many thanks
ben |
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peppa-pig
Starting Member
26 Posts |
Posted - 26 February 2009 : 18:33:02
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hi ben and welcome to the forum.
firstly you need to get some professional advice from either the helpline on here or from the CAB, they will advise the best course of action for you in your situation.
If bankruptcy is the only way forward, the landlord is usually informed of your bankruptcy. However, i have heard that some ORs don't advise them. If you are a good tenant and not behind on your rent then it may not be a problem as a lot of landlords would be happy to have a tenant paying rent each month rather than having to evict you and then spend how ever much money trying to get someone new in.
The OR looks at the average rent in your area for the size of your house. If they deem it too expensive i believe they can cut the amount of rent allowance that they take into consideration for your incomings and outgoings.
with regards to the joint loan, if it is only you going bankrupt then the lenders will chase your wife for the whole amount not just her half.
hope this helps.
if i have missed anything or not explained quite right i am sure someone else will be on later to give a better aswer.
best of luck. |
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Hi, i 'm hoping you can advise me.
