Author Topic: house repossession, what to do ? ? ?  (Read 2568 times)

jordanjordan

  • *
  • Posts: 1
house repossession, what to do ? ? ?
« on: Aug 25, 2009, 07:19:18 PM »
Hi, i am after some help i really dont know what to do so i just wanted some advice as to where to turn, basically about 2 years ago i brought a brand new house £153,000 with my partner, we have since split up, around 18 months ago, he then moved to the other end of the country leaving me to cope on my own, i tried to keep my head above water by having a lodger, but after numerous problems, and slowly getting more into debt i had to let the house get repossessed, i was now left with a lot of debt and have had to go on a debt managment scheme, the house has now sold for £109,000 and i have now had a bill through saying i owe about £59,500 the letter has no mention of my ex partner and i have no address or contact number anymore, and i am under the impression he is keeping out of it, and kind of hiding hoping it will go away, or that i will be left with the whole bill, i am just after some advice as to where to go as they are now asking for payment plans etc, is bankruptcy an option? and do i just contact them and say half the debt is my ex's or is it all mine as then cant contact him? It surely cant be my responsibility, i am quite tight for money at the moment and having to pay any amount back towards the debt will make me struggle a lot, we were leant a lot compared to our combined monthly wage in the first place. What is the best route to go down, and where do i go from here? and what extent of debt/struggling to generally live do you need to be in to go bankrupt? any help would be greatly appreciated, i just feel abit stuck. Thanks.

bankruptcy.co.uk

  • Sr. Member
  • ****
  • Posts: 90
Re: house repossession, what to do ? ? ?
« Reply #1 on: Sep 03, 2009, 09:16:01 AM »
You have 4 choices.

1) Remain in your debt management plan.
2) Get an IVA.
3) Move into the protection of an assisted bankruptcy.
4) Do bankruptcy yourself.


Let us look into these and consider them individually.

1) A debt management plan parks your debt. It is only a viable option to be in a debt management plan if you can foresee a change in your circumstances. If you believe that your financial situation is going to change in the next few years i.e. promotion at work, a windfall, a rich relative with you in their will etc etc then this can be a viable solution. Otherwise you are effectively paying a monthly payment every month JUST to manage your creditors and park your debt.
2) An IVA is the following.
i) Relies on new government legislation
ii) Lowers your monthly repayments
iii) Gets you debt free in 5 years
iv) Writes off up to 60% of your debt.

It does everything it promises and will get you debt free in 5 years if you do not fail on the payments.

However... do research before entering this.

i) You are paying lets say £300 a month for the next 5 years..... Well thats 60 months of £300.... thats £18,000 in total.
ii) It only costs you £510 to go bankrupt yourself via the courts. (Compare that figure to £18,000)
iii) Your credit rating drops through bankruptcy as well as in an IVA and the TRUE irony is... that it takes longer to rebuild your credit in an IVA to a bankruptcy SIMPLY as the IVA is a 5 year process BEFORE you can start rebuilding your credit rating. Effectively therefore a 10 year process. With bankruptcy you can rebuild your credit rating immediately.
iv) IVA's were initially created to safeguard the assets of small businesses. Do research!!! You will see that what you are PAYING for is what I call "asset insurance".

YOU DO NOT HAVE ANY ASSETS TO INSURE.

Effectively, if a salesman rang you offering you powerboat insurance for your powerboat.... what would you say?

I'm sure it would be on the lines of bog off, i dont own a powerboat!

For someone in your circumstances, that is exactly what situation you will be in if you choose to go down the IVA route.

I hope this helps you, and others in your situation.

I would like to finally clarify that if you have assets to protect, and IVA is an excellent solution that will solve your debt problems, keep your assets safe from your creditors, lower your monthly repayments and get you debt free in 5 years. TRULY an excellent product if you have assets :)
Raphael Gilbert
Head of Insolvency Divison www.ban

Trustee

  • *
  • Posts: 1
Re: house repossession, what to do ? ? ?
« Reply #2 on: Sep 03, 2009, 04:21:22 PM »
Regarding your partner, if the house was in both your names then he should be partially responible. If it was just in your name then maybe not (and that's a big maybe). The first thing you should do is figure out if he can take half the debt off you this will make a huge difference to you.

You don't necessarily need to go into debt because if you only owe half that money then you can probably come up with some way to repay it.
Debt negotiators

bankruptcy.co.uk

  • Sr. Member
  • ****
  • Posts: 90
Re: house repossession, what to do ? ? ?
« Reply #3 on: Oct 05, 2009, 12:27:36 PM »
Good Point.
Raphael Gilbert
Head of Insolvency Divison www.ban