About to be made redundant - Bankruptcy Looming

[welch9]

I just found out today that there is a good chance my regional office will close. Therefore I will be redundant with no redundo pay (joined 5 months ago. My mortgage is currently 650 per month and I pay in excess of 500 quid on my 20k debts. I have no equity, I do have a 600quid a month payment protection but not sure if its valid as I changed my job recently.

How does bankruptcy work, I will lose everything and be homeless. The chance of me getting another job that pays the same or more are about 0.001%.

Does the local council have to house me if I have no options?

[Julie]

Hi welch9,

Sorry to hear about the possible redundancy... you don't necessarily lose your home in BR. If there's no equity, chances are you'll be allowed to keep it.

You will have to pay to go BR and depending on your disposable income you may have to make payments into the BR for 36 months.

[MelanieGiles]

Is there any equity in your property? And is it jointly owned?

[welch9]

Property Worth 70,000 max

Mortgage/secured loans 65,000

Additional unsecured top up (northern rock together mortgage) 30,000

Other unsecured debt 17,000

[MelanieGiles]

Then your property will not be affected by the bankruptcy, but will you be in a position to cover the mortgage and secured loan ongoing payments until you find another job?

[welch9]

No, my total outgoing roughtly are 1300 per month. I some income protection insurance that is worth 600 per month but I have changed jobs within the last 6 months so may not be valid.

[MelanieGiles]

The lenders may be able to give you a temporary payment break, but it will be important to try and find a job soon. Would losing the house really be so bad? There are some really nice rental properties around.