I don't really know where to start as I feel that I'm sinking fast and need a hand to pull me out. We have been struggling for some time now and have a dmp in order 190 per month, mortgage is around 860 with insurances, other debts 150 per month and now arrears on utility bills. One of the mortgage accounts is 300 per month and on 29k, we will end up paying back over 80k due to interest. Ive had enough. Each month we are borrowing off my sister to make ends meet, have young children and an income of around £2000pm tops with child benefit between us. Before we start the outgoings are around 1600k thats without food/petrol and extras so you can see we are struggling big time. The house has been up for sale a while and we just reduced the price 10k now in at least 7k negative equity, any more and we are in serious negative equity but it wont sell for the price its up for judging by all properties in the area.
We dont know which way to turn really and if we drop the price, we walk away with at least another 15k loan to the second mortgage co which will take years to pay off if they allow to do this.
What I really want to know before I bury my head in the sand further is what my chances of going bankrupt are and whether I will end up owing creditors/mortgage after bankruptcy, I get a bit confused when I check out bankruptcy sites. I'm sure I read somewhere that you have to make a payment for years after declaring bankruptcy. Can anyone help as I cannot see what other options we have right now. Many thanks for your time, I am in the uk.
Just to add - I just read that houses are not included in bankruptcy (ie secured lending) so if we can't sell unless we end up in negative equity big time, how do we go about ridding our house. I also read that bankruptcy is placed in the London Gazette and a local paper that was on an up to date advice site - on here Ive ready it doesnt go in the local paper. Can anyone advise what is best to do as it seems that the mortgage we have strapped around our necks of £144k is going to be the biggest problem. We are now in £1900 arrears too.