we are both scared at the though of bankruptcy and i suppose we are looking at ways to avoid it. I'm not sure how long it will take for the shortfall figure to reach us and we are hoping that by then we will be in a better financial position and hopefully avoid bankruptcy but offering GE a minimum monthly payment, however that would mean paying this off for the rest of our lives. I am confused and do not know what the best course of action to take is. Do we go BR now or wait for the shortfall and do it then? I suppose we are just trying to avoid it, however doing it now and combining the shortfall, unsecured loan and car finance will sort our life out quickly and stop the worrying. If we leave it then we'll still have to pay the loan and car in the meatime which is currently £500.00 a month.

we had decided that we will apply for BR when the shortfall bill comes in rather than now. Would this be OK?

my mum plans to move within the next 6 - 8 weeks could be earlier. I have been chatting with my wife and this is our current plan so please advise if what we are doing is not the right way to go about it, We are due in court on the 23rd February. January's mortgage payment is due tomorrow and they have asked for me to pay £1100.00 so they can suspend the reposession order (will still go to court). We were going to make this payment and send a letter to them saying that we agree to the £1100.00 a month and would not be attending court. Wait until we are given a date for my mums move and carry on paying the £1100.00 until this date (may only be Feb to pay). Once we are given a date send a letter to GE VR and forwarding my mums address. Don't sign any forms accepting the shortfall. Once shortfall received, offer low payment or apply for bankruptcy. the alternative being, Don't pay tomorrow's mortgage Don't (or do) go to court have have the house reposessed. Hopefully being given enough time between now and the eviction date to move into mums. Is there any difference between VR and reposession with reagrds to the fees/cost incurred and forms to sign?

would this be the best way to go, Send a letter to GE offering and extra £40.00 a month, pay the £1000.00 tomorrow (due), don't attend court, bide some time until my mum moves out (6-8 weeks) then send a letter asking to VR. Sit tight, don't sign any forms and when the bill comes in apply for BR? gizmo idea was good, however i need 6 - 8 weeks in my home. Court is 3 x weeks away so not sure what to do for the best.

Hi, Yes we have decided that moving out would be the best option for us. The loan is unsecured (sorry if i put secured) and totals £17k The car finance has an outstanding balance of 8k approx The house is estimated at 140k and we currently owe (with early redemption fee and arrears) £159k Obviousley if we VR then further costs will be added along with payments due until they sell the house. I estimate that the shortfall could be 50k depending on what they sell the house for and how long it takes to sell. Basically we are in a mess and robbing Peter to save Paul. We also have a 1k npower debt and owe yorkshire water approx £800.00 We also still have a few outstanding debts that companies have been trying to get us to pay for years and years. I'm not sure what they are for any more, maybe capital one, mail order etc. They don't add up to much but i'd like them off my back if possible.

sorry about all the questions and i such a short space of time, Would i be better voluntary repocessing now, waiting until the shortfall bill came in (could be years) and then applying for bankruptcy, applying for bankruptcy now and VR straight after or VR now then BR straight after? What would be the benefits of any of the above? Would BR be our best option or would VR and then entering into a IVA be better? My head is spinning!

Thanks again for the advice. By mums house is mortgaged (interest only) and has 6 x years to run so the plan (in an ideal world) would be rent until the full balance is due and buy the house when, hopefully we are debt free. Failing that find somewhere else to rent in 6 x years with a view to getting another mortgage once our credit file/bankruptcy is clear.

I think what we really need to know is whether bankruptcy is our best option and whether it will clear the shortfall. What i'm not sure about is whether we should vol reposess before applying for br or the other way round. Also what should we do about the court hearing on the 23rd of Feb? My wife is worried that we'll ask for vol repo, apply for br and have it turned down and we are hit with a 50K + shortfall. As there is no equity in the house and we only have an interest only mortgage can they refuse our offer to find elsewhere to live in the br interview? Can we just give up the house claiming we can no longer maintain the montly paymemts (even if they ty to reduce them for us)? Ideally we would like to attend the interview and tell them we pay 1100.00 mortgage, 300.00 loan and 200.00 car and it is killing us, therefore we would like to leave our house and find somewhere else to live. I'm sure its not that easy. Looks like i'm going to need you guys for a while so all advice and help will be very, very much appreciated. Thanks

hi, i came across this excellent forum last night and am hoping for help and advice with our current finanical issues, my wife, 2 x children and i live in a mortgaged house (GE Money) which we have had for appox 14 months. Our standrd monthly payment was £960.00 per month, however we fell behind and owe 2k in arrears. 2 x weeks ago we received a lettter requesting we attend court on the 23rd February as they are wanting to reposess. Obviously scared i phoned them and they said that i could pay the arrears over 24 months which means we now pay £1100.00 a month. We also have a £300.00 a month unsecured loan and £200.00 a month is paid for a car with have on finance. Basically we are in a mess and do not have hardly any disposable income available. Our credit history is poor. Anyway, Last week my mum announced that she is moving away with her new partner, therefore her house will be availble and she has asked us if we would like to rent it off her and just cover her mortgage which is £400.00 a month and a massive saving for us. The problems lie here, With an early redemption charge we will owe £159,000 for our house and will definately incurr a shortfall. We have considered volantry reposession but worried about being hit with a massive bill for the shortfall and having pay this off. We now think that bankruptcy maybe our best option but not sure what to do, Should we apply for bankruptcy 1st and then volantry reposess or volantry reposess and then apply for bankruptcy? Also what should i do about the court date on the 23rd Feb, carry on making the £1100.00 a month payments and keep it quiet until things are sorted? Basically i know nothing at all and we are worried sick. My mum will be leaving within the next 6 - 8 weeks so i need to do something now. what is the best way to approach this? Basically i have to ensure we are not liable for the shortfall and also need to clear/reduce our loan and car finanace as this is crippelling us. Also, If we apply for bankruptcy can they adivse we keep or house or are we within our rights to tell them that due to the mortgage payments being so high we would like to find alternative accomodation? Is there any reason why our bankruptcy would be rejected? Sorry for all the questions but really need advice on what route we need to take to ensure the future of our family and free us from a huge mortgage and crippelling debts. thanks in advance

Many thanks for your kind words and advice.

hi, i came across this excellent forum last night and am hoping for help and advice with our current finanical issues, my wife, 2 x children and i live in a mortgaged house (GE Money) which we have had for appox 14 months. Our standrd monthly payment was £960.00 per month, however we fell behind and owe 2k in arrears. 2 x weeks ago we received a lettter requesting we attend court on the 23rd February as they are wanting to reposess. Obviously scared i phoned them and they said that i could pay the arrears over 24 months which means we now pay £1100.00 a month. We also have a £300.00 a month unsecured loan and £200.00 a month is paid for a car with have on finance. Basically we are in a mess and do not have hardly any disposable income available. Our credit history is poor. Anyway, Last week my mum announced that she is moving away with her new partner, therefore her house will be availble and she has asked us if we would like to rent it off her and just cover her mortgage which is £400.00 a month and a massive saving for us. The problems lie here, With an early redemption charge we will owe £159,000 for our house and will definately incurr a shortfall. We have considered volantry reposession but worried about being hit with a massive bill for the shortfall and having pay this off. We now think that bankruptcy maybe our best option but not sure what to do, Should we apply for bankruptcy 1st and then volantry reposess or volantry reposess and then apply for bankruptcy? Also what should i do about the court date on the 23rd Feb, carry on making the £1100.00 a month payments and keep it quiet until things are sorted? Basically i know nothing at all and we are worried sick. My mum will be leaving within the next 6 - 8 weeks so i need to do something now. what is the best way to approach this? Basically i have to ensure we are not liable for the shortfall and also need to clear/reduce our loan and car finanace as this is crippelling us. Also, If we apply for bankruptcy can they adivse we keep or house or are we within our rights to tell them that due to the mortgage payments being so high we would like to find alternative accomodation? Is there any reason why our bankruptcy would be rejected? Sorry for all the questions but really need advice on what route we need to take to ensure the future of our family and free us from a huge mortgage and crippelling debts. thanks in advance