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hi there, some advice needed please.
I am a late 50s senior executive whos job was made redundant just over two years ago. Had no luck on the job front and the prospects are not getting any brighter!
My wife has a 25 hours pw part time job and I have pensions (that I took early to get some money to live on) along with child benefit for our remaining child living at home (16yo). This broadly gives us an income stream after tax of circa £2k pm.
Our mortgage of £225k has a monthly variable repayment of £471 which until the end of April is being met by payment protection cover. Once that ends we will need to have discussions with the building society. We have a two bed flat which once fees are paid might at best realise around £240k.
Our outgoings on household expenditure, insurances etc (exc the mortgage payment) are circa £2300pm. Of that the most worrying is the debt on my credit cards that has built up to around £24k with minimum monthly payments of £400 pm which is eating in to the modest final savings we have of £2k. We have one small car that is owned outright and is registered in my wifes name.
All the current credit card debt is in my name. My wife has a loan outstanding that paid for the car but that will be fully settled by September. She has credit but no other debts.
We have never defaulted on our debts and our credit rating was previously very good. We have no CCJs from the past.
We are seriously considering undertaking personal bankruptcy in respect of my debts. As the mortgage is in joint names would the property have to be sold as part of the bankruptcy process? At best the maximum equity that might be realised would be around £15k.
What other options might be open to us as alternatives?
In terms of benefits we are wondering if we would be better off renting than owning but the low interest rate we are on with the mortgage could not be matched on renting. Our flats are currently renting out at over £1000 pm.
Any thoughts would be appreciated.
Regards
Dan
I am a late 50s senior executive whos job was made redundant just over two years ago. Had no luck on the job front and the prospects are not getting any brighter!
My wife has a 25 hours pw part time job and I have pensions (that I took early to get some money to live on) along with child benefit for our remaining child living at home (16yo). This broadly gives us an income stream after tax of circa £2k pm.
Our mortgage of £225k has a monthly variable repayment of £471 which until the end of April is being met by payment protection cover. Once that ends we will need to have discussions with the building society. We have a two bed flat which once fees are paid might at best realise around £240k.
Our outgoings on household expenditure, insurances etc (exc the mortgage payment) are circa £2300pm. Of that the most worrying is the debt on my credit cards that has built up to around £24k with minimum monthly payments of £400 pm which is eating in to the modest final savings we have of £2k. We have one small car that is owned outright and is registered in my wifes name.
All the current credit card debt is in my name. My wife has a loan outstanding that paid for the car but that will be fully settled by September. She has credit but no other debts.
We have never defaulted on our debts and our credit rating was previously very good. We have no CCJs from the past.
We are seriously considering undertaking personal bankruptcy in respect of my debts. As the mortgage is in joint names would the property have to be sold as part of the bankruptcy process? At best the maximum equity that might be realised would be around £15k.
What other options might be open to us as alternatives?
In terms of benefits we are wondering if we would be better off renting than owning but the low interest rate we are on with the mortgage could not be matched on renting. Our flats are currently renting out at over £1000 pm.
Any thoughts would be appreciated.
Regards
Dan
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