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Posted by leon1978 : March 13th, 2008

debt help

myself and my partner are considering declaring ourselfs bankcrupt. our debts are around £60k, these are all unsecured lending, we have not missed any payments. the problem is loss of hours at work and we are not going to be able to pay the monthly payments. we own our own house and the mortgage we have is what the house is worth, we have no equity. again we have not missed payments on the mortgage. we can afford to pay the mortgage and our bills including living costs. but not our debts. if we went bankcrupt would we lose our house? we are waiting for an appointment through the citizens advice, and was wondering if you could give us some advice before hand? our main worry is losing our home. could the creditors make us sell our house if we are bankcrupt? many thanks leon
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Debt Management Plan or IVA

Hi Leon The answer for you is either a debt management plan - through someone like the Consumer Credit Counselling Service (CCCS) - whereby they calculate how much money you have left each month after paying off all your secured debts (mortgage etc), gas, electric, food, etc, and then use this to pay a reduced amount to your creditors. You will increase this amount if your income goes up etc, Alternatively an Involuntary arrangement may also work - this is an agreement with your creditors (75% of them have to agree) - a repayment figure is calculated and it normally takes 5 years to repay all of your debts at this reduced rate. I wont talk about bankruptcy - the first two options should provide your solution. As it happens i had unsecured debts of £90k in 2001 - and i am now down to £20k - so i can see the end in sight!! (An IVA was refused by some creditors back then or else I would have been debt free in 2006.)
Posted by: steviewonderboy

Debt Man Plan or IVA??

Leon, the answer is debt management or iva or bankruptcy or consolidation or re-mortgage or sell the proerty before its taken of you or rent a room out with a lodger or sell soem expensive items that arent really needed. Basically, there are a lot of option available for you to choose from. Speak to independant ADVICE companies dont go looking for a debt management plan or an iva as they may not be suitable and you coul dend up in a worse situation
Posted by: Captain Jack

Hello Leon1978

Im sorry to hear about your situation. Unfortunatly, the creditors can and normally will take your property when you are made bankrupt. As will any other assets you have eg. car. Have you explored any other options at all to avoid bankruptcy? Bankruptcy is the last resort when it comes to paying your debts. If you were to call us, we could look through all of your details with you over the phone, and look to see what is definetly the right route for you to take. Our Number is 0800 954 6518. When you speak to the citizens advise, ask them about bankruptcy as they will be able to run through the proceedings in more detail. Including the querie you have on your house being taken from you. Hope this helps.
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