Bancruptcy?
i owe 40k in secured debt and 35k in unsecured, if i go bancrupt will it wipe the secured debt too? even if its in joint names? im currently on a debt management plan for the unsecured stuff. i have two children and a mortgage.
Answers:
Hi Bigbirdbecky,
Well bankruptcy may well me a strong option for you but it will very much depend on a number of factors including:
1. Any surplus income that you have that could be used towards debt repayments.
2. Any assets that you have that would need to be considered (home equity for example)
3. More importantly - how you as an individual feel about your situation and what you short, medium and long term goals are.
Debt Management Plans are for many people not a very good way out of debt if the repayment period is likely to go on for many years. As DMPs are not binding agreements with creditors they also fail to deliver any real benefits to people on them in many cases.
That you have already explored the IVA option a number of times and found the suggested monthly payment to high suggests that this is perhaps also not a strong option for you as it simply may not be affordable. If you have equity in your home however an IVA may still be an option though I must stress.
Can I suggest that you peruse the resources on the Myvesta site as I think you will find them particularly helpful. I have attached some of the key links that I think may be of most help to you below.
http://myvesta.org.uk/
http://myvesta.org.uk/media/video/bankru.
http://myvesta.org.uk/media/video/iva/.
http://myvesta.org.uk/forum/index.php.
Hope this helps!
Regards
Sean
you may well loose your house as this will be taken into account if their is any equity in it
your best option would be to make an appointment with citizens advice or take a free hour with a solicitor.
http://www.citizensadvice.org.uk/.
if u go bankrupt it will wipe all your debt secured and unsercured everything you owe will be wiped they may ask u to pay it back if you can but just say u cant afford it and they will never ask again. also if you go bankrupt you cant get credit or anything for 3 years untill you get discharged. and you wont be a ble to open a bank account. I went bankrupt but im discharged now phewww thank god for that. if u need mroe info email me
Your security on your secured debt will be called in. When someone is bankrupt the courts will seize and sell all assets. If the security you speak of is your house yo will lose it.
If you own, or have a mortgage on your house, you may lose it.
Speak to the CAB. They can help you.
insolvency law 1986 states that if you have childern under the age of 16 living with you, then they cannot force the sale of your family home. you need to speak to either debt conciladation service or solicitor. hope this helps
Even though you may right off debt by going bankrupt, your credit rating will be BAD for many years and trying to get back on your feet later will be hard, maybe you should think about resolving as much of the problem as possible then trying to write the remainder off.
Bankruptcy and writing debt off will make you a leper in the financial and borrowing world.
When we filed two years ago.chapter 7, we filled out papers and we decided on what we were keeping(not filing on) and what we were filing on.
We kept our house and our paid off car.
And our debt was around the $30,000 mark.
You should call around and get a lawyer and ask them all the questions you do have. Ours answered questions over the phone and internet.
Good luck!
I will tell you this. We waited around a year or more trying to pay our bills and getting deeper and deeper. Finally when we did it, we walked out of court and it was like ahhhhhhhhh. No more bills. It was so awesome!
:)
well, i used to work in the legal division of a debt company dealing with IVA's (or if you are scottish it is a PTD) and bancruptsy is the not the best way out trust me, i think you are probably best getting advise from an independant insolvency practitioner, reason for this is if you go through a company you are just paying aload of fees for paperwork and it is not worth while. i'm sure you can look one up on the web or even ask CAB. Basically you pay an amount you can afford each month based on your incomings and outgoings this goes into a fund for 5 years and then all your creditors get a lump some (which they obviously agree to with the IP) thing is you will have to release a certain amount of equity after four years to go towards this and also you will still have to pay your secured debt but the IP will advise you about this and how to do it in a way which you can afford, also your partner will have to pay for his half of the debt if you are in joint names, but you can get a joint IVA where you can pay off all your debt, i genuinly think this is the best option as after the five years when debts have been paid off you can start to rebuild your credit history. I would really think long and hard about what you want to do as to go bancrupt has to be the VERY last resort and is definitly not worth it, you could end up losing all the equity you have. I hope that's enough info for you good luck!!
yes you will lose every thing
how to get a loan unsecured with bad credit history?
How do I get my emergency tax coding changed?
who is Daniell Morrisey?
what is the cushiest job you have had?
Where can I find an apprentice bricklaying job in Cheltenham?
Does anyone in the UK know how much someone needs to be on before they have the tax code 509?
Buying over the internet?
how can i be rich?
Issues associated with claiming on my home contents cover?
Answers:
Hi Bigbirdbecky,
Well bankruptcy may well me a strong option for you but it will very much depend on a number of factors including:
1. Any surplus income that you have that could be used towards debt repayments.
2. Any assets that you have that would need to be considered (home equity for example)
3. More importantly - how you as an individual feel about your situation and what you short, medium and long term goals are.
Debt Management Plans are for many people not a very good way out of debt if the repayment period is likely to go on for many years. As DMPs are not binding agreements with creditors they also fail to deliver any real benefits to people on them in many cases.
That you have already explored the IVA option a number of times and found the suggested monthly payment to high suggests that this is perhaps also not a strong option for you as it simply may not be affordable. If you have equity in your home however an IVA may still be an option though I must stress.
Can I suggest that you peruse the resources on the Myvesta site as I think you will find them particularly helpful. I have attached some of the key links that I think may be of most help to you below.
http://myvesta.org.uk/
http://myvesta.org.uk/media/video/bankru.
http://myvesta.org.uk/media/video/iva/.
http://myvesta.org.uk/forum/index.php.
Hope this helps!
Regards
Sean
you may well loose your house as this will be taken into account if their is any equity in it
your best option would be to make an appointment with citizens advice or take a free hour with a solicitor.
http://www.citizensadvice.org.uk/.
if u go bankrupt it will wipe all your debt secured and unsercured everything you owe will be wiped they may ask u to pay it back if you can but just say u cant afford it and they will never ask again. also if you go bankrupt you cant get credit or anything for 3 years untill you get discharged. and you wont be a ble to open a bank account. I went bankrupt but im discharged now phewww thank god for that. if u need mroe info email me
Your security on your secured debt will be called in. When someone is bankrupt the courts will seize and sell all assets. If the security you speak of is your house yo will lose it.
If you own, or have a mortgage on your house, you may lose it.
Speak to the CAB. They can help you.
insolvency law 1986 states that if you have childern under the age of 16 living with you, then they cannot force the sale of your family home. you need to speak to either debt conciladation service or solicitor. hope this helps
Even though you may right off debt by going bankrupt, your credit rating will be BAD for many years and trying to get back on your feet later will be hard, maybe you should think about resolving as much of the problem as possible then trying to write the remainder off.
Bankruptcy and writing debt off will make you a leper in the financial and borrowing world.
When we filed two years ago.chapter 7, we filled out papers and we decided on what we were keeping(not filing on) and what we were filing on.
We kept our house and our paid off car.
And our debt was around the $30,000 mark.
You should call around and get a lawyer and ask them all the questions you do have. Ours answered questions over the phone and internet.
Good luck!
I will tell you this. We waited around a year or more trying to pay our bills and getting deeper and deeper. Finally when we did it, we walked out of court and it was like ahhhhhhhhh. No more bills. It was so awesome!
:)
well, i used to work in the legal division of a debt company dealing with IVA's (or if you are scottish it is a PTD) and bancruptsy is the not the best way out trust me, i think you are probably best getting advise from an independant insolvency practitioner, reason for this is if you go through a company you are just paying aload of fees for paperwork and it is not worth while. i'm sure you can look one up on the web or even ask CAB. Basically you pay an amount you can afford each month based on your incomings and outgoings this goes into a fund for 5 years and then all your creditors get a lump some (which they obviously agree to with the IP) thing is you will have to release a certain amount of equity after four years to go towards this and also you will still have to pay your secured debt but the IP will advise you about this and how to do it in a way which you can afford, also your partner will have to pay for his half of the debt if you are in joint names, but you can get a joint IVA where you can pay off all your debt, i genuinly think this is the best option as after the five years when debts have been paid off you can start to rebuild your credit history. I would really think long and hard about what you want to do as to go bancrupt has to be the VERY last resort and is definitly not worth it, you could end up losing all the equity you have. I hope that's enough info for you good luck!!
yes you will lose every thing
The answers post by the user, for information only, UKQnA.com does not guarantee the right.