URGENT Advice/Help

[Murada]

I am in a right state financially - but hope SOMEONE out there can help (please!!).

 

Firstly I work full time with a decent salary and my take home is around £2,500, however just seperated from my wife - so my situation is dire:

 

Paid 204k for the house 18 months ago - worth now 150K

 

Outstanding mortgage 147k (approx) with Abbey - 955 p/m

Secured Loan 57k (First Plus) - 563 p/m

 

In addition, 33k of unsecured debt (2 x credit cards - virgin and tesco/1 x personal loan - tesco) - total payments around 550)

 

Then of course got all my other priorites - utilities, council tax etc. The upshot is almost more going out than coming in. Secured debts are in joint names, everything else in my name (my wife does not earn that much).

 

I am hoping to avoid bankruptcy on the grounds that I do have decent money coming in and (for the sake of my daughter keep the house). CCCS 'online' assessment recommended bankruptcy, though I hoped to:

 

Switch to interest only on morgage (should save upto £300)

IVA for unsecured debt (hopefully for no more than £200 per month)

Then cut expenditure in all other areas to a minimum.

 

Any help or advice gratefully recieved. I was particulalry interested to know that, if I chose bankruptcy, would that mean the house would go (given it is in negative equity) and is bankruptcy that 'painful'???

[phat256]

hi murada i cant advise much but if your house is in negative equity then you may be able to keep the house if your OR think you can afford it ! however if your are Br and you keep the house u will have still the secured debt to repay !

 

however if you loose the house, the secured loan will become the liability of your wife alone if it was a joint secure loan .

 

be warn BR and house are a minefield with OR soem alow you to keep it , soem will ask you to buy the Beneficial interest + OR fee and some will say reposession too depend of your OR and the mood is in and not you i am afraid .

 

Br is not painful as such it allow you to start afresh when you have severe debt problem and u cannot repaid them . but icome with it bad point too .

 

have you though also to get some advise with an other charity to see what they have to say about your fianncial situation such as national debtline ? before being Br i took advise from CCCS ( i didnt; find them particuralry helpful and disinterested at my situation ), national Debtline and the CAB.