Serious debt advice-long post
Discussion
I know that lots of people on here will give me a very hard time but this is the situation that I find myself in due to over 10 years of being an alcoholic.
With the help of a very close friend I have now been sober for a while but I am finding it a real struggle but I must keep going.
Just trying to sort out my finances etc and find myself in £200k of debt. I feel like I have been hit in the chest by a freight train and my head is spinning.
Yes,I know I have been a stupid irresponsible drunken idiot but now is the time to face the music. All borrowing is on cards and short term loans so very expensive interest rates. I have defaulted on payments in the last few months.
Can anyone offer any advice, is there a way out of this? No, I am not trying to avoid paying back what I owe, in fact it is my duty and part of my recovery process to repay everything that I have borrowed. But how can I do that without people knocking at the door very soon.
I don't think that there is any way I can get this sorted. I now have a new job but the wages just about cover the mortgage,food & travel but at least I am working again. I have no equity in my house and now it is worth less that I paid for it.
My home really in precious to me & my family and my biggest fear is loosing it. At this point I can see myself living on the streets very soon and that makes me very very scared.
How does bankrupcy work? do they take everything? Will I be thrown out on the street? Any other ideas?
This is so hard for me to deal with but I am determined to see it through, I would be very grateful for any useful advice.
I know many/all of you reading this will think what a f***ing idiot, and yes, you are right, I agree with you. I cannot offer any suitable excuses or reasons or blame anyone else.
wildmanp
With the help of a very close friend I have now been sober for a while but I am finding it a real struggle but I must keep going.
Just trying to sort out my finances etc and find myself in £200k of debt. I feel like I have been hit in the chest by a freight train and my head is spinning.
Yes,I know I have been a stupid irresponsible drunken idiot but now is the time to face the music. All borrowing is on cards and short term loans so very expensive interest rates. I have defaulted on payments in the last few months.
Can anyone offer any advice, is there a way out of this? No, I am not trying to avoid paying back what I owe, in fact it is my duty and part of my recovery process to repay everything that I have borrowed. But how can I do that without people knocking at the door very soon.
I don't think that there is any way I can get this sorted. I now have a new job but the wages just about cover the mortgage,food & travel but at least I am working again. I have no equity in my house and now it is worth less that I paid for it.
My home really in precious to me & my family and my biggest fear is loosing it. At this point I can see myself living on the streets very soon and that makes me very very scared.
How does bankrupcy work? do they take everything? Will I be thrown out on the street? Any other ideas?
This is so hard for me to deal with but I am determined to see it through, I would be very grateful for any useful advice.
I know many/all of you reading this will think what a f***ing idiot, and yes, you are right, I agree with you. I cannot offer any suitable excuses or reasons or blame anyone else.
wildmanp
bankrupcy may well be you best option if there littel or no eqitu in you house
yourd lost the house but would be debt free
www.debtquestions.co.uk/debt_forum/
try here fo more info in debt and help
but before deciding it would be a idear to take advice
yourd lost the house but would be debt free
www.debtquestions.co.uk/debt_forum/
try here fo more info in debt and help
but before deciding it would be a idear to take advice
Can't help you with ideas of what to do, but I would suggest that you seek professional advice, CAB as suggested, or a professional debt advisor. DON'T fall in to the "Ocean Finance" trap - they might be able to help you short term but I believe there are cheaper ways out of your situation.
If I were you I'd seriuosly consider the bankrupt route, speak to the CAB, its not as bad as it sounds & the stigma attached is nowhere near what it used to be. Just consider yourself one of the many thousands who go down that route. To get into that situation you must have been given the money without proper advice & many consider it the lenders fault not your own.
wildmanp said:If you haven't already done it, cut up all the cards and go and see your bank manager.
All borrowing is on cards and short term loans so very expensive interest rates.
You need to get the debt consolidated with a sensible rate of repayment.
If your bank won't take you on, then contact all the card companies and tell them the situation and that you are on the verge of bankruptcy. They will probably be remarkably flexible.
Try to avoid going bankrupt if possible.
How expensive is your mortgage? I pay about £800 each month on a £155,000 debt. Can you downsize and reduce the outgoings?
That's about it, really.
You have my respect for facing up to your problem, for blaming no one else and for keeping off the drink.
Pat
cptsideways said:
If I were you I'd seriuosly consider the bankrupt route, speak to the CAB,
I thought there was a new thing out where you arranged with the debtor to pay a reduced payment rather than just delaring yourself bankrupt. I have seen it advertised on TV and its not one of those Ocean Finance loan things
Sorry to hear of the situation you find yourself in but you are by no means the only person in this position.
As you are facing up to the situation, you have essentially 2 choices. These are bankruptcy and an Individual Voluntary Arrangement. You can find information on bankruptcy at www.insolvency.gov.uk where you can download 'A Guide to Bankruptcy' and www.r3.org.uk where the leaflet 'Is a Voluntary Arrangement Right for me' can be found. Between them these should explain the position but I would suggest you find an Insolvency Practitioner in your area, many will give you an initial interview and advice without charge.
I must emphasise that no one can properly advise you without knowing all your circumstances, eg do you own your house? and taking advice now can avoid difficulties later on. Also the bankruptcy rules changed last year with the intention of reducing the stigma.
If you want more detailed advice email me through my profile.
James
As you are facing up to the situation, you have essentially 2 choices. These are bankruptcy and an Individual Voluntary Arrangement. You can find information on bankruptcy at www.insolvency.gov.uk where you can download 'A Guide to Bankruptcy' and www.r3.org.uk where the leaflet 'Is a Voluntary Arrangement Right for me' can be found. Between them these should explain the position but I would suggest you find an Insolvency Practitioner in your area, many will give you an initial interview and advice without charge.
I must emphasise that no one can properly advise you without knowing all your circumstances, eg do you own your house? and taking advice now can avoid difficulties later on. Also the bankruptcy rules changed last year with the intention of reducing the stigma.
If you want more detailed advice email me through my profile.
James
I know from experience (having worked as a telephone collector for a credit card firm) that you can call each card company you have a debt with, fill out an income and expenditure form, then pay back what you can afford and they have to accept. It will do your credit rating no good at all, but that's the least of your worries. Even at a pound a week, if you show you're willing to meet your commitments, they have to accept, and the interest rate stops there and then. Make those calls.
Some good advice here - defo do the rent a room thing up to 2 and a bit grand is tax free too...
Also no need to be so apologetic for trying to turn your life around - yes you
ed up, but unlike many people you're doing your best to turn it around! Good on you.
And go see the bank manager/ credit card co's...
Also no need to be so apologetic for trying to turn your life around - yes you
ed up, but unlike many people you're doing your best to turn it around! Good on you. And go see the bank manager/ credit card co's...
julianhj said:
I know from experience (having worked as a telephone collector for a credit card firm) that you can call each card company you have a debt with, fill out an income and expenditure form, then pay back what you can afford and they have to accept. It will do your credit rating no good at all, but that's the least of your worries. Even at a pound a week, if you show you're willing to meet your commitments, they have to accept, and the interest rate stops there and then. Make those calls.
In the past I have spent too much money on cards, and found difficulties in paying them back, although not as extreme as in your case. As has been stated do call the loan companies, most will be flexible in discussing ways of paying off their cards, including charging no interest. They would much rather get back what you owe them now, than you go bankrupt and they get nothing!
However also speak with CAB etc.
The fact that you have no equity in your house may actually be a good thing for you at the moment as it means creditors have nothing to try and grab and it`s highly likely no one will try to force it`s sale as there is no point!
They cannot get "blood out of a stone" so the credit card companies will probably accept whatever you can give and interest will stop.
Best of luck to you.
They cannot get "blood out of a stone" so the credit card companies will probably accept whatever you can give and interest will stop.
Best of luck to you.
Firstly, Well done for getting off the pop & starting the turn-around.
It isn't going to be quick but it will happen.
There's a lot of possibilities but with 200k bankruptcy may be an option if your income isn't going to pay that off in any sort of reasonable time.
Remember, the insolvency rules are there for you just as much as the creditors and no-one should have their whole life ruined trying to achieve the impossible. Bankruptcy, IVAs etc should not be seen as a route for people to deliberately evade their responsibilities but neither should you carry on in an nrealistic positon.
I don't like IVAs as they often don't work and if they fail at the last hurdle, you're immediately into bankruptcy having seen even more cash go down the drain.
There's another fantastic forum that you really need to read. Get a very large cup of coffee and wade through as many historical posts as possible - ad then post yourself about your situation with an idea of income/outgoings. The people there are very nice & helpfull! (It was from a link on another board on that site that I found PH!)
Get over to http://boards.fool.co.uk/Messages.asp?mid=9343763&bid=50079 and aso check out the messages from this guy http://boards.fool.co.uk/Message.asp?mid=7759984
Good Luck.
It isn't going to be quick but it will happen.
There's a lot of possibilities but with 200k bankruptcy may be an option if your income isn't going to pay that off in any sort of reasonable time.
Remember, the insolvency rules are there for you just as much as the creditors and no-one should have their whole life ruined trying to achieve the impossible. Bankruptcy, IVAs etc should not be seen as a route for people to deliberately evade their responsibilities but neither should you carry on in an nrealistic positon.
I don't like IVAs as they often don't work and if they fail at the last hurdle, you're immediately into bankruptcy having seen even more cash go down the drain.
There's another fantastic forum that you really need to read. Get a very large cup of coffee and wade through as many historical posts as possible - ad then post yourself about your situation with an idea of income/outgoings. The people there are very nice & helpfull! (It was from a link on another board on that site that I found PH!)
Get over to http://boards.fool.co.uk/Messages.asp?mid=9343763&bid=50079 and aso check out the messages from this guy http://boards.fool.co.uk/Message.asp?mid=7759984
Good Luck.
x10Another great site is :-
http://forums.moneysavingexpert.com/forumdisplay.html?f=76
The people there have a multitude of experience in dealing with debt of all scales and are helpful and friendly.
http://forums.moneysavingexpert.com/forumdisplay.html?f=76
The people there have a multitude of experience in dealing with debt of all scales and are helpful and friendly.
john75 said:
Bankcrupcy is an option but you will never be able to borrow from a high street bank again in your life.
Thats not entirely true or it wasn't a few years ago. You do the porridge and start again. It may take a few years before they give a loan or credit card but they'll be back within 5 years after the bankrupcy. Some banks will take you back much quicker than that.
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