Bankruptcy

[banksdomyheadin]

Seq, I am considering going bankrupt, I have no equity in my property, 2 secured loans, credit card bills galore, and have been made redundant. I just cannot afford any of it now, it is making me ill.

What would happen if I decide to, do I move out of my house first. I got into this mess but cannot get out.

[sequenci]

Hi there, welcome to the forum.

 

Are you looking to keep the property or would you be resigned to the fact that you'll want to move somewhere else?

 

It is possible to keep the property in a bankruptcy if you have no equity, you would still be liable to pay the mortgage and secured loans though.

 

Let me know your thoughts, we can then start to tailor the advice to suit your situation a little more.

 

Best wishes,

 

Seq

[banksdomyheadin]

I think I would just walk away and try and start again, it is just knowing that it would be a fresh start. I also have two Company liquidations hanging over me and have now been given my redundancy notice in a job I have been in just over 8 months. I can't sleep much, feel ill and hate the postman coming to the door.

[sequenci]

Well if you do walk away any shortfall will be gobbled up within the bankruptcy. Have you read the blog I've written?

[banksdomyheadin]

Yes I have read the blogs, thanks. Is it easier to bankrupt yourself or are you better going to a Solicitor? How quickly can it be done?

[sequenci]

Yes I have read the blogs, thanks. Is it easier to bankrupt yourself or are you better going to a Solicitor? How quickly can it be done?

 

You don't need a solicitor. The actual application is as easy as filling in a form. You don't need to pay anyone to help you. You can find lots of free helpful info via the Insolvency Service website http://www.insolvency.gov.uk . If you need free advice call National Debtline on 0808 808 4000.

[Dodgy Geezer]

Dont just walk away. Stop paying everybody by all means, and wait for the mortgage co to repossess, but if you walk away, you are deemed as making yourself voluntarily homeless, and the council will not help you. You MIGHT just need them.

 

Bankruptcy would seem a solution in your case, but do it in the most beneficial way you can to yourself. The money you can put aside by not paying people, may just feed you in your hour of need.

 

You can still go BR at any stage, today, tomorrow, next year. Your debts will be wiped out regardless of timing, but the money you can put aside in the meantime might be very hard to generate later.

 

Its not an easy ride, but worth it if its making you ill.

 

Best wishes.

Edited November 16, 2010 by Dodgy Geezer
add a likkle

[banksdomyheadin]

Thanks for the above but can I have some more input please.

 

Right will look at going bankrupt this month.

Have no job, 2 secured loans, mortgage with no equity, owe tax man, and credit card and loans plus 2 company liquidations hanging over me. Mortgage is in my name only as is all the debt, have wife and 3 dependants.

What will happen if I go personally bankrupt, do we get the house repossessed as we wish to stay here but if I go bust how can we stay, there is no equity left if you deduct the mortgage from the current valuation plus the 2 secured loans??

Help please?

[sequenci]

You may be able to keep the property due to its negative equity status.

 

This leaflet is very good at explaining your options:

 

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/home.pdf

 

If you wish to keep the property the official receiver will need to be convinced that it's in everyone's best interests. The fact that you have a mortgage and two secured loans may go against you here.

[Determined1]

Hi banksdomyheadin

I really do feel for you my friend and your story/scenario is like a mirror image of mine and it seems like I am in exactly the same position as you.

Maybe we should swap our stories and our experiences ?

You never know we maybe able to help one another ?

[Determined1]

Most if not all of my debts are in a joint name with my wife i.e. business loan, business o/d etc.

If we were to take the bankruptcy route would we both have to file for bankruptcy separately and pay the individual £600 each or can this be done jointly?

[banksdomyheadin]

Hi,

Is there anyone on here who is a bankrupt.

 

I am seriously considering it but want to know do we lose our home,

what happens with the mortgage (Basinghall Finance) etc..

 

. We have over £60k in credit cards and unsecured loans

and it just goes on and on with no light at the end of the tunnel.

 

If I go bankrupt, there is no equity in the house to pay any debts off anyway

and I have a secured loan with GE as well?

 

Help please?

[dx100uk]

although BK could well be thecorrect route.

 

it sometimes better to put up basic details of your debts

as things like

age

who you pay

enforceability

PENALTY charges

PPI

 

etc

 

could all be looked at and a better picture be seen?

 

dx

[banksdomyheadin]

I am late 40's self employed, have a very large mortgage, secured loan with GE for £44K, and £60K of personal loans and ccards which I have had all charges and any PPI's refunded, just seems like I will be paying them all for an eternity and having nothing left each month?? If I know I can keep the house for now but clear all the other debts I would be happier, I think?