Need some advice on banckrupcy

[paulmac]

Hello all

I need some advice before we make the decision on going bankrupt

 

Our current situation

We have unsecured debts of £29k to various banks, cred cards, loans etc etc

We have a mortage with £75k outatanding

We have a secured loan with £15k outstanding

We just have had the house valued which came in @ £80k to £85k

 

 

I have just lost my job due to redundancy, my patrner earns just enough to keep food on the table any cover mortage payments.

Have 2 kids as well

we know all the unsecured debts will be gone, but have know idea what will happen with the house.

Will they reposses it ? or what would happen with secured loan ?

will that be gone aswell.

I have been reading so much on the web but finding some of it a little unclear

 

We have no savings or pensions or investments of any sort.

 

Any sound advice will be greatly appreciated

 

many thanks

[debtinfo]

If the house is in negative equity as it seems that it is, the the OR will normally offer the Beneficial interest (your share of the house) back to you for £1 plus legal costs. The proviso is that you must keep up the mortgage and the secured loan.

 

If you dont want to do this and let the house go any shortfall will fall into the bankruptcy

[loobyloo85]

With you currently being out of work, your bankruptcy would last 12 months. You would not be required to pay into an income payment order as you have no surplus.

Your house would be treated as in debtinfo's post above, and you would not really lose much by going bankrupt, especially if you have no high value assets/savings etc.

The only thing is, is that bankruptcy can affect certain careers etc, so if you go for a position in the future, this may be affected by bankruptcy, but it does depend on the profession/career.

[paulmac]

Thanks for the replies

As for career, well I am a engineer and partner works for local council

 

I was just going to ask about the income payment thing, as just spoken to a friend who went bankrupt and he was told about income payment order that he may have to pay for up to 3 yrs, but they never even asked him about it and that was approx 18 months ago.

 

EDIT:

Where we then stand on credit checks as will will need to rent a property ?

our credit score is not good anyway and we were currently been managed by CCCS

Edited March 3, 2010 by paulmac

[out of cash]

private land lords are ok,and letting agents are more welcomeing as there are huge numbers of people going br i have already spoken to 3 letting agents all are ok some want 3mths deposit some want 6.

[loobyloo85]

Yes, it depends on individual tenancies and agreements really, you would need to check the contracts x

[Dodgy Geezer]

Would renting be cheaper than your current mortgage payment?

 

Are you entitled to any of the mortgage help schemes?

[paulmac]

Hi....

Well have done the Bankruptcy and all is going as should be at this point.

Been told that we probaly wont lose house.

But i have a question.....

With a secured loan the advisor at the court told us to ask lender to reschedule the loan and extend to help lower payments.

We contacted lender and they said because it was a FSA regulated loan it is legally not possible to rescheule .

Can anyone tell me if this is correct ?

Sorry if this is posted in the wrong area

 

many thanks

 

EDIT :

The lender is : Nemo ......( yes, i wish i never went near them )

[loobyloo85]

Hi, it may be worth looking into the original credit agreement for your secured loan to see if there is a clause or any information about being able to make reduced payments. x