Is Bankruptcy the best option here?

[jane jennefiers]

I own 2 properties.
Both are mortgaged in both mine and my wife's name.
Equity in Property 1 is between 100k and 250k
Equity in property 2 is 25k
Mortgage outstanding on Property 1 is 1,000 000 and costs 5.5k per month
Mortgage outstanding on Property 2 is 175k and costs 1.1k per month

Can not pay Property 1 Mortgage at all
Can pay property 2 Mortgage for another few months
Have 150K of unsecured debt

Have a pending commercial litigation case that could cost 60k to make go away.

That makes for around 210k unsecured plus a mortgage I can not pay.

I can not sell property 1 because the tenancy agreement with the tenants is unexpired.

Bankruptcy is tempting except for the fact that I am afraid that I will be placed on an income plan that will force me to pay anything I get in the future towards my creditors.

Unsecured consists of HSBC, AMEX, MBNA, Barclays (CDCS)

I can start again, but with the weight of all this over me, there is no point. I'll be paying it all off forever. That's how it feels.

Anyone with experience happy to say what they would do. Just looking to bounce some perspectives.

[bottomburp]

deleted

[bottomburp]

whoops!!! posted twice

[sarah1975uk]

Just wanted to say your not alone there are a lot of people here that are very knowledgeable and will help you out as much as they can

[blind-as-a-bat]

If you where to declare BR the worst you would have to do is pay an IPA out of your surplus income for 36 months from the start of the agreemant (wich can comence any time in the 12 month (or less) period that you are BR before discharge)

So worst case is that you will be stuck for four years before your finances are your own, so to speak, to rebuild

Not sure if that helps any as you may already know that but if you didnt at least it gives you a time frame

[travisperkins]

Mistake. Sorry.

[jane jennefiers]

I am so scared.

I only just noticed I had some replies.

Thank you to those who posted.

CCCS has advised BR. They say that I have no real chance of paying back Unsecured; plus they say very soon the mortgage companies will step in.

The problem is, this all started due to mental health problems, hospital, medication and finally a slow move towards recovery this year; and it is so hard to remember the actual events financially.

If I go BR then it seems I could pay for four years into the IPA. And if I do not I could spend four years trying to get rid of the debt.

None of it seems worth it at all.

No wonder people just walk out into the distance so to speak.

I suppose my question now is: are the CCCS almost always right. because if so, there little point dwelling on the decision any more.

[The GodMother]

Have you got CCAs for the unsecured debts.

If not and they are not valid CCAs you can use this as a barganing tool to get certain things sorted out like reduced payment.

With the cards is there any charges like overdrawn fees etc. U may want to look at getting these back and creditored to your account.

You could always CCA any of the unsecured debts, Mortage will not cum under a cca, and see if they hold a valid Consumer credit agreement of th e1974 rules. If not they have no rite in charging you any penalty charges and then you can offer a reduced payment offer based on this.

You will find the letter template in the template letters in the stickys above this thread you will require letter N.

Send a £1 postal order and send buy recorded delivery at lteast.

DINT SIGN THE LETTER. Companys have been known to get photoshop happy and copy and paste your signature into a cca. that is also why you dont send a cheques.

They have 12 working days from recipt of the letter to send you the documents and if they dont you can stop paying them. after a further 30 calandar days they cannot enforce a credit agreement without going to court.

Remember to send buy at least recorded delivery as you need proof of delivery.

Chrissi

[bottomburp]

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[bottomburp]

Sorry about that coming out in one big chunk, copied it across from word and can't get line spacings in.

[sarah1975uk]

im sure ive read somewhere that even if you have tenants in your house, that if you need your house back to move into or for personal reasons that you are able to give notice for the tenants to vacate.. cant remember where i read this but im sure someone will be along that knows the right answer

[jane jennefiers]

I do not mind answering questions.

My business is such that I am about to take up a new opportunity (Self-Employed). If I had no debts it would earn me a modest living. But with all the debts it will just serve to make a minimal impact. So, ironically, the future is quite bright, except for the fact that when you look at potential income set against debts it is hard to see the point.

Yes I am the defendant. It is a breach of contract case claimed by someone wanting to get money. He has done it before to someone else. Basically, they claim I did not provide the full service as advertised.

Tenants have another 15 months.

I intend to use the letter templates today to see if the unsecured are enforceable.

[tonycee]

Originally Posted by sarah1975uk

im sure ive read somewhere that even if you have tenants in your house, that if you need your house back to move into or for personal reasons that you are able to give notice for the tenants to vacate..

This is correct and depends on the type of tenancy agreement.
Debt Factsheets - How can my landlord end my Assured Tenancy?


I would suggest that YOU start the process immediately.
If you house is re possessed,
BBC NEWS | England | Devon | House repossession 'lost me £22K'
your mortgage provider will have to follow the same process, and you will be liable for their costs.
A judge at a repossession hearing, will look favourably at you if you are actively trying to sell the property.
Good luck.

[bottomburp]

deleted

[The GodMother]

Originally Posted by sarah1975uk

im sure ive read somewhere that even if you have tenants in your house, that if you need your house back to move into or for personal reasons that you are able to give notice for the tenants to vacate.. cant remember where i read this but im sure someone will be along that knows the right answer

You are rite. All you have to do is:-

if the rent is paid 4 weekly give them 4 weeks. If the rent is paid weekly give them 4 weeks notice. It does depend on how the rent is paid but you still have to give 4 weeks notice. If they have paid 6 mths rent in advance l would speak to a solicitor and see what they say but you could always let them live out the tenancy and then evict them that is unless the no owner wants them to stay on as tenants. You could even leave them in the property and let the new owner deal with them.

But l would advise them that the property is going on the market and that ppl will be viewing. I would also advise the real estate agent that there are tenants in the house as they would need to inform any potental buyers.

Chrissi

[sarah1975uk]

Originally Posted by jane jennefiers

I am so scared.

I only just noticed I had some replies.

Thank you to those who posted.

CCCS has advised BR. They say that I have no real chance of paying back Unsecured; plus they say very soon the mortgage companies will step in.

The problem is, this all started due to mental health problems, hospital, medication and finally a slow move towards recovery this year; and it is so hard to remember the actual events financially.

If I go BR then it seems I could pay for four years into the IPA. And if I do not I could spend four years trying to get rid of the debt.

None of it seems worth it at all.

No wonder people just walk out into the distance so to speak.

I suppose my question now is: are the CCCS almost always right. because if so, there little point dwelling on the decision any more.

hope your ok today Jane jennifers, been thinking about you! Im going through crap aswell at the moment and have had a tremendous amount of support from kind people from this forum. Had a really bad weekend, but have learned that you have to take things in small size chunks and deal with things in a list like manner to make sure you keep a handle and some level of control on the situation. Another option im thinking about regarding the house which isnt ideal but would get rid of one of the houses. You know these companies that by houses from you, perhaps some as much as 90% of market value, they dont charge upfront fees and you dont have to then worry about estate agents fees which on a house of massive value of yours you would save money that way too and having the tenants paying rent in that house may also work in your favour if this scenario was viable for you. because you have a huge amount of equity in the house that it may be that even though they offer below market value that the equity will balance this out enableing you to either break even or have a bit of money left over to pay onto your debts.


Just an idea in these situations got to try and investigate every possible way to get out and then gather all info and try with the help of your friends on this site make an informed decision of what is best for YOU & Your family as at the end of the day thats all that matters.