advice needed

[Biscuit01]

if i was to go bankrupt would i still have to pay off my creditors or would my debts be written off.

secured loans
northern rock £114,000
nemo £23,000

unsecured loans
northern rock £29,000
black horse £6,000
lloyds tsb credit card £2,000

many thanks in advance for you help

[MelanieGiles]

Hi there

If you were to go bankrupt, you would be discharged from your debts automatically, but any assets you own would be used to repay those debts. You may also have to make ongoing contributions from your disposable income for a three year period.

[Reviva UK]

Hi Biscuit01 and welcome to the forum

Your ability to pay all or some of your debts in either Br or an IVA is dependent upon your situation and disposable income after the essentials have been taken care of.

Do you have disposable income aftyer mortgages plus living costs ( excluding loan payments?)

I probably should assume but is your house worth LESS than 137,000. If so and if you are able to maintain the mortgage payments then the house would be safe in BR and an IVA.

Do you have any other assets - car etc.

What type of work do you do and are you employed / self employed?

looking forward to the answers

[Biscuit01]

I have no disposable money after living expenses, we have a car worth £2,500 we are both employed one full time and one part time and the house is worth £140,000...

Thankyou for you answers what is the best way out of this for us

[Reviva UK]

Hi biscuit

If you don't have any disposable income then an IVA would be difficult.

On the face of it bankruptcy would seem a solution to the financial difficulties but there are lots of things to consider.

Beneficial Interest in your house.
Is your mortgage Interest Only?
Value of your car
Is your mortgage on a fixed rate?
what level of arrears are you in with your creditors
Are they taking legal action or is it just phone calls & letters so far.

really suggest you speak with a professional IP- firstly to see if your income / expenditure can be reworked to give you choices.

Lastly if you decide that Br is the right way forward for you the forum can help with moral support and if you need help with the practicalities of Br then there are assisted bankruptcy specialists that are worth a call to for some free practical advice.