bankcrupcy

[alder7]

i am struggling paying my debts everything is unsecured,i have a total of �20,000 i have a car on finance and share a loan with a ex-partner plus i wish to get a self-cert mortage within the next year is any of this possible.thank you,david

[clever trev]

If you are struggling to pay debts what on earth are you thinking, in taking on more for at this time, ie mortage??

[saxy_jag]

Trev's quite right too. You should be thinking of getting your existing debts under control before you even think about a mortgage. You could get a mortgage that covers some of your debts, in addition to house finance, but it's likely to be expensive and I wouldn't advise it.

Give your local citizen's advice bureau a call, and ask them to put you in touch with a debt counsellor (not your bank, and not a financial advisor, because they're usually biased). A DC can help you to prioritise your debts and negotiate easier payments with your creditors.

Ask yourself, too, where you can make financial cuts in your life. Do you really need that car, or could you get by with something smaller, slightly older? How often you go out? Can you cut back on that at all? Not buy so many clothes, bottles of wine etc etc?

Of course, if you go bankrupt, either self-petitioned or at the instigation of a creditor, you'll most likely not be able to get any credit for at least two years, and often longer than that - whether you declare it on an application form or not (and actually, not declaring it is an offence).

[EverClean]

I'm not suggesting that it's a good idea getting a mortgage when already in financial trouble but bankruptcy will not stop you from getting a mortgage for any amount of time. You will pay a higher rate but there are several lenders that will take on undischarged bankrupts for a mortgage.

The previus advice is wise - get conselled and try to reduce outgoings wherever possible.

[SLUGGER.U.K]

Call the CAB for free advice about debt they are always the best place to start. Ignore the stupid comment from ignorants like caz1975 they have no idea how hard it can be to be in debt and just to make stupid comments like "just pay off your debts then" {DUH}!! is not helpfull or even funny and loans and mortgages are available for all, but a poor or bad credit rating just means you will be paying a higher rate of interest than normal. Try an IVA from a debt company {but make sure they are recommended by the CAB first} Dont just ring one up you have seen advertising on telly!! Keep up with the payment schedule and you could be free from debt and get you good credit rating back within 5 years. Bankruptcy stays on your record for 10 years and will cause problems for you until its wiped clean