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I have 30k of unsecured debt,also I pay out 834pounds a month on my mortgage and secured loan.A debt management plan will cost me 182.00 a month,I also have c/t and all other amenities to pay.Im earning on average 1,200 a month take home.with my mortgage and loan it comes to 82k and my property has been valued at 75k,my outgoings is more than my incomings now,should I go bankrupt? Also Im so scared of talking to anyone at the moment.I will be 1 month behind on my mortgage and 2 months behind with my loan.I cant see any other way out.Please help.

Hi Bono

I know it is hard when you have no one to talk too but this site is fab !!!Have you tried contacting Payplan or CCCS they do not charge any fees and give impartial advice on your situation and will advise which way to go...

I know one of the experts will be on shortly to advise you of this and give you any further info you may need.

Try not to worry there are loads of friends on here so talk away !!

Nicki [:)]

Good morning Bono,


Thank you for your post and welcome to the forum.

My first question is regarding your mortgage payment. You say you are paying £834 per month which is almost 70% of your income which is a problem. Is £1200 the only income?


Kind regards,

Julia Simavi

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Hi Bono,
How much is secured (mortgage and secured loan)?
The first question is do you want to keep the house?
By not wanting to talk to anyone this will make things worse please try and talk on here.
Always pay secured debts first.
Some mortgage companies take possession quicker are you with an adverse lender IGROUP Southern Pacific Kensington ?
How did you get a secured loan over the 100% value of your property?

Regards
Adrian

Bono
On the limited info that you post it certainly seems that bankruptcy is an option that you must consider.Your secured lending takes up a huge part of your income and I really can,t see how you would have £182 to pay into a DMP.
Do not feel embarrassed about posting further details on this forum as we will not judge you,only advise you.
We are all,or have been,in the same boat on here.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

bono

If you have a negative equity secured loan it strikes me that you are with one of 2 companies, have you contacted them and explained the situation to them? Possibly converting to interest only payments in the interim may be of help to you. It is so important that you take advice from the correct people at this stage and would encourage you to post more detail so you can be better advised. Tony

Hi all,

Thankyou for all your messages.My mortgage is with BM and Ive told them I cant afford this months payment,they cancelled the D/D then I have to ring them on my due date on the 28th to make arrangments on how I will pay them the extra I will owe them.

My current secured loan,Im paying 390.00 over 10 years,early repayment to them would cost me 22k.I have just over 8 years left.

When I got a secured loan they told me my property was valued at 130k so thats how I got the loan.I dont know how they got this fiqure,I recently had someone value it at 75k,My property is on the market at 89,995k and its not selling.Im on the 10th floor in a tower block and Ive tried to get a mortgage to wipe out the loan but no one will help me,it would bring my payments down over 250 a month.

The DMA called churchwood financial said I have to pay 182.00 a month to them and they will deal with my creditors.Im looking at a 16 year plan but would put me on an IVA later on.

The unsecured debt is all C/C,which the DMA would pay.
Ive tried people that buy and rent back but what they are offering wont pay the mortgage or loan off completely.
Every month I have basically nothing to live on,and I have no life.
If I go bankrupt I have somewhere to go.

If anyone requires more info them please ask me.I cant live like this anymore.

Regards

Bono

Hi Bono

You have already realised that you are too over-geared with your borrowings secured against the property, hence the reason for selling I assume. When you are no longer having to fund mortgage and secured loan payments, this may leave you with sufficient income to fund an IVA or reduce your payment term in a DMP.

After all of this, bankruptcy may seem to be a more favourable option to you, expecially if it does not affect your employment.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thanks again,

Well I am struggling big time,and if my place wont sell and already seen others cant get finance here as many companies wont deal with a flat above 6 floors,so Re-mortgaging and paying a lower amount is also not going to happen.

Im unsure of what to do,so do I just not pay my mortgage and loan and let things take its course because their is no point paying 1 and not the other as it will still have the same effect.

Eventually they are going to take this place off me,or do I reveal to both companies that I will be making an application to go bankrupt?

If you are unable to fund your mortgage and secured loan payments, once you have missed three monthly instalments the secured lenders have the right to apply for possession proceedings. If successful, they can enforce this against you and see you evicted from the property.

Until the date of an eviction order, you are allowed to stay in the property, and can then look for hopefully cheaper rented accomodation. If you are facing bankruptcy, you may well wish to get into rented accomodation whilst your credit rating is still relatively good, as most private landlords will effect a credit check which may prevent you from being accepted as a tenant. You may also need to put down a few months future rent as a deposit.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi Bono
Once you are sure that you are going to declare bankruptcy then you can do this yourself by downloading the forms from the internet.The fee is approx £450 or you could let the mortgage company start proceedings to repossess your home,but this may well take several months.
Please take advice from an insolvency firm but bankruptcy would certainly bring an end to your current financial problems,especially if you already have somewhere to go and live.
Good Luck
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Once again many thanks for all the advice.

I do have somewhere to go which is a relief,so this is the best option for me in missing 3 payments both ways and then let things take their course.
I will continue with the debt management company with the unsecured credit.I think Ive found the answer now from all your advice.This will save me from going bankrupt.

please advise me if you think this is the best way of doing this as this seems a better option.

regards

Bono.

Just to let you know that BR fees are nearer £500 now - I'm not sure exactly how much as they went up after I went BR in March. You can get the answers to most questions, and also download the forms on www.insolvency.gov.uk.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

They are £485!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thanks Melanie - I can't even remember how much the fees were when I went as stupid me didn't have enough copies of the forms and ended up paying extra for photocopies!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/