Author Topic: Is bankruptcy the best and only option? My marriage is suffering! I need help!!!  (Read 2172 times)

morwenna21

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My husband and myself are in a position where bankruptcy has become an option, but we would like some advice as to whether it is the right and only course left to take. We bought a house for £82500 in 2005. A loan was secured on it in 2007 for £20000. Unfortunately the house is now in negative equity, as it is worth at least £10000 less than we paid. Selling up is not an option as the mortagage owing stands at approx £68000 ( we have been paying interest only for about 5 years)and now the loan owing is still £18000 and selling up would not clear both. Secondly we owe about £13000 in various credit cards between us. We are on a DMP paying £400 a month, but not all credit companies have frozen their interest and some have for only a short time. Although I am actively looking for a job, I am unemployed and my husband's business is slowly dying. We are struggling to pay our bills for the business and the home. We have a £3500 debt owing to the electric company for the business. This situation is going bad fast. I am suffering with depression and my husband and I are arguing all the time over money. We need serious help and fast!!!!

James Falla

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Hi morwenna21
 
From what you have said it sounds as though bankruptcy might well be a sensible option for you both. If you are unable to pay your bills and your debts are increasing then as you say you need to do something. With your property in negative equity it will be impossible to sell. Therefore a good way out of the problem is to move out into rented accommodation and then allow your property to be repossessed. You and your husband then both declare bankruptcy which will take away all of your debts.
 
In terms of your husbands business if he is self employed then he will be able to continue with this even when he is bankrupt so he should have very little issue in that regard (although of course he will not be able to continue using credit).
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