Welcome to the new Debt Questions forum. Feel free to say Hi and tell us a little about yourself.

Moderators: TalbotWoods, JaneClack

By Imogen
#289173 Hi,

I've been a "Lurker" for the past 24 hours having only just found this site which is wonderful.
I think I'm at the start of the process of pulling my head out of the sand but I'm terrified - bankruptcy seems my best option but I feel so mentally unable to cope with the whole process - all the paperwork collation etc., I am hiding under my duvet watching the hours to the inevitable tick swiftly past.

I know I need to speak to someone, (I've already called Community Legal Services who were very helpful), but I am so frozen I can't even seem to do that. My problem is that I have an additional legal query that they weren't really able to answer and it's stopping me going any further as I'm terrified. I don't really want to put the details on here.
It's down to my own stupidity but my cowardice is stopping me being able to sort my life out.
I no longer have many close friends to talk to (work obliterated any social life! I'm now unemployed), and don't want to burden those I do have as they have such a lot going on in their lives at the moment, and the only relative I have who I could talk to is too elderly to be worried about me in this way.

I must apologise, I didn't mean to overdo the misery! I wanted to say that the support on here looks practical and amazing so I'm sure I'll find the help I need, I've already learned a lot from lurking.
My situation is an interest-only mortgage (no arrears yet), secured loan (ditto) and £21k of unsecured debt. In a few weeks I will be unable to pay any of them.
Selling the house would cover the mortgage but not the second one and not the selling costs so it looks as though I would have to hand back the keys and that is where my terror comes in.
I'm sorry I can't explain what it is - I dont know how I expect you to help me if I cant give you the full details?!..I think I just needed to write it down and hope someone would give me a kick up the bum!

Good luck to all who are going through this process and thank you for this forum
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By JaneClack
#289193 Welcome to the Forum.

You are not alone being in debt as you can now see, nor alone in feeling like a rabbit frozen in the headlights of a car - which is actually very, very common.

Couple of things
1) if you wanted to sell the house then the first mortgage holder can insist that this is done - they cannot if the second is a charging order but if it is a secured loan, they can overreach the secured lender
2) any shortfall from a mortgage or anything would go into any bankruptcy leaving you with no debt.

However, it may not be the only option - a lot depends on future prospects, whether you want to stay in the property, whether there is any equity and whether it is just the payment of the unsecured debts that is causing the problem.

You will get a lot of advice here on the forum or you could telephone National Debtline, CCCS or Payplan who would listen to the circumstances, offer advice on all options available, be confidential and leave any decision to you - and cost you nothing. As you telephone you are able to keep a certain amount of distance and be assured that they are non-judgmental and empathic. They all have presences on the web too.

Good luck and keep posting.
By Imogen
#289203 Hi Sarah, and thank you for taking the time to respond to my post, I appreciate your comments.

I will talk to CCCS or payplan tomorrow to go through my options, I know I can't sit here forever thinking that a fantastic job will come up and solve all of my problems as it probably won't!

Thanks again and I will keep posting, I think this forum is the reason people keep their sanity.
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By TalbotWoods
#289243 Imogen

Just one thing to bear in mind, is that bankruptcy is nowhere near as bad a it first seems, yes some of the cation you may have to take are difficult at the time, but the process is very very simple really.

OK you may have to move home, you may have to move into rented, but you loose two mortgages (both the main on and the secured loan) and any shortfall that they produce as Sarah has said becomes unsecured, which means ALL your debts can be got rid off.

So when you have no debt worries, you can concentrate on getting back up on your own feet, and being who you want to be again, and not a salve to debt.

And that is from the voice of experience, having done it and now proudly wearing the tee-shirt. It cost me a house and ultimately my job, my biggest regret, is that I didn't do it sooner!

By Imogen
#289273 Thank you Tim, and Nigpet, those are really kind words.

I think those of you that have gone through this are extremely brave and I can only imagine the losses you've suffered.

I keep telling myself that I've got a few weeks and I shouldn't "give in" and I'll find work but I'm middle-aged and we're not exactly flavour of the month at the moment so I do need to face reality.

I will grow a backbone and call someone tomorrow, probably once I start committing things to paper I'll feel a lot better.

Thank you again all, for helping me over a low point.