Author Topic: Help  (Read 1109 times)

philngems

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Help
« on: Jul 30, 2010, 10:47:01 PM »
Hello. I will try to keep this short.


I have got debts of a large amount and due to mental health reasons i have decided to leave my job(best for both parties). My debt is all my fault and partly down to the credit crunch. Bought a house at the peak and then thats in negative equity. Broke up with partner which led to suicide attempt. tried to get my life back together with throwing money at problems, being conned into a business venture, dreaming of my future career and that i will be ok and be able to pay things back. My mental health problems are mainly avoidance so while i have had the creditors trying to [** sorry, no personal contact invitations allowed **] every time they do i get so anxious that i moved out of my house to avoid them all. now i will be unemployed and no where to go from here. Considering going bankrupt but worried that my acions that i have taken will be judged to be self inflicting and thay will put a restriction order on me and i will never get out of this mess. how do i find out what will happen and also if a company makes me bankrupt how would that work.


Thanks

Googley

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Re: Help
« Reply #1 on: Jul 30, 2010, 11:12:06 PM »
Hi, we are all in a mess here so dont believe that you are on your own.  If you go bankrupt you can wipe out all your debts and stay in your home if it is in negative equity.  My plain advice would be firstly change your phone number so you get no more harrassing calls.  List all your creditors on a sheet and go the the county court and register your bankrupcy.  They will not take the house if it is in negative equity as its no good to them.  Go back to your home and continue to make the mortgage payments and wait until your situation improves.  Copy the bankrupcy order to all your creditors and life should be a lot more peaceful.  Everyone who goes bankrupt has had it "self inflicted" but life throws rocks into the path that makes it worse to deal with.  If you go bankrupt you will get no more credit for the next 7 years probably but would you want to anyway after all this happens.  If you are in certain "financial" employments than it could lose you your job, it may (not sure) show up on a police check, stop you getting any loans.  Most companies wont make you bankrupt as they have to pay the court fees.  If you are on benefits you can get a reduction on them.  Best advice is to ring your local court and ask to speak to someone there or even go the Citizens Advice Bureau for the best action plan.  Worst plan is to ignore everything and think it will all go away it wont.  I believe there are other options if your debts are less than £15000 and equity is less than £500 but the CAB will advise you best and they do it all day long.  You are not alone so stay strong.
 
Good luck

philngems

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  • Posts: 4
Re: Help
« Reply #2 on: Jul 30, 2010, 11:14:14 PM »
Thanks for that.. i will get in touch with the court

Steven Jackson

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Re: Help
« Reply #3 on: Aug 02, 2010, 02:51:55 PM »
Hello Philngems
 
As Googley has said, if your property is in negative equity, you will be able to keep it if you declare bankruptcy. However, in order to keep it from being repossessed you will have to maintain your mortgage payments. Will you be able to do this if you are leaving your job? Going bankruptcy will not write off a mortgage debt.
 
If you feel you are going to struggle to pay the mortgage, it might be worth considering actually handing the keys back yourself and then declaring bankruptcy.
 
I do not think that any of your actions have made it more likely that you would get a bankrutpcy restriction order. It sounds like an unfortunate situation rather than one whether you have consciously acted in a way that will make your creditor's position worse.
Debt Expert
ivainformation.com