www.iva.co.uk

Have major problem. Firstly have a Northern Rock Together Mortgage that is £108k mortgage, 32k unsecured loan.
On a debt management plan that we owe roughly 33k(which we have paid off 10k now of that) and that includes a CCJ of what was 5.5k, but they are adding interest of around 19%, so that is going up by £50 per month.
My husband and I have had a child who was born last year. However he has disability, so needs extra care so therefore, my husband will go part time to look after him.
We are thinking of going bankrupt, as I may well be looking at redundancy pretty soon, so that is not good, and our together mortgage is £850 a month, my husbands wage would not cover it, let alone food etc.
If we did go bankrupt, would we lose our home? We are in negative equity anyway, so Northern Rock would lose out big style. Plus we are in deep discussion of splitting anyway, so it's very very complex in that respect. I couldn't have the house alone, and nor could he. I can't see any other way at the moment, but I don't want to lose the house, but it seems inevitable. Any advice? And my redundancy is likely to be at around 19k, which although would pay some off, not much, and given a severe lack of jobs, I seem stuffed!!
Any advice would be useful, and especially on what they take in bankruptcy. I really don't want to have to hand over my little boys toys

Hi Oliver and welcome to the forum, I don't know too much about bankruptcy but do know they won't touch your little boys toys, someone who does and understand what I think are new rulings may be along very soon.

I would suggest you try www.iva.com for a list of companies and some reviews of these, choose 2 or 3 and chat to get some free impartial advice, all debt solutions including bankruptcy can be discussed. All the best x

Welcome from me as well.

As Lesley says, your childs toys would be safe, as would all of your belongings unless you have anything of significant value.

I do suggest that you take professional advice via the link that Lesley posted. The advice is free and impartial and you can sort out the best solution for your situation.

Its very very worrying and stressful trying to figure out the best route to take. I know its easy to say pick up the phone because you as the caller never know what reception you are going to get. I was sick with worry wen i phone that first time. but by the end of the call i was feeling so much relief.

Take a look at the link and choose a few. once you've spoken to the first one you'll know what the others will ask.

Welcome from me too Oliver. I found picking up he phone really difficult too however was amazed that no one judged me, were very fiendly and construtive in their advice. The help was free and left me in a good position to make decisions about my future, so please just pick up the phone, it will be the best thing you can do

You wont loose your home as it is in negative equity.
But it is advisable to appoint solicitor as this is property matter.

The rules for bankruptcy have changed recently so I don't know how things go for negative equity. I would seek some professional advice via the link provided above.

Other than in exceptional cases the OR will not deal with the beneficial interest until 2 years and 3 months at the earliest from the date of BR.

Thanks Skip!

I should have said that although they won't deal with the BI before 2 years and 3 months, the OR still has a maximum of 3 years to deal with it before the interest will revert to the home owner.

It certainly has changed a lot hasn't it?

Just a bit, and some of it not for the better. I can see why they are waiting to deal with the BI as they housing market could improve over time, but some of the other changes I think will cause more problems than they will solve.

I always thought that the BR allowances etc should be more in line with the IVA allowances. I think it could come as a bit of a shock to some people.

I would have preferred to see the IVA allowances put more in line with BR allowances than the other way round.

Hi Oliver2010.

So is the mortgage jointly held? And the debts?

Has redundancy been confirmed?