Need Credit Card Debts Solvedanyone Help
Q: Due to several reasons I have run up some large credit card debts. I am not in default though- yet. The only equity I have is in the house (joint names) which is about ??75K plus my pension funds (though one of those is with equitable!), and some endowments which dont mature for at least 7 years for the earliest. I have tried to work my way out of it but the debt has run up faster than I can manage. I now have become somewhat frozen and afraid to do anything and things are getting worse each day. I am unemployed. If I approach the credit card companies will they force me to sell the house? This is my main worry. If I manage to get another job tomorrow it will take me about 3 years to pay it off and have a miserable life too doing it. I do not want to have to sell the house or remortgage (we have a large redemption penalty) as the Mrs will kill me. Her salary (??40k) might just cover the mortgage (??100k). I was thinking of taking my name off the deeds and assigning it to her. I could then move out, say to a rented flat and if I have to declare bankruptcy in say 3-6 months she and the house will be okay. My debts will be assigned to my new address?? (I might move more than once). Is this legal as I'm not bankrupt now? What are my chances? It seems that people do this every other day, or something similar. Does anyone know a good solicitor/accountant?? I live nr Birmingham. Has anyone any advice legal/illegal/moral or otherwise. I fully realise the errors of my ways and I do not need a ticking off from moralists - well maybe I do...but what I need more than anything is frank advice.
A: All I can possibly suggest is that you do contact all creditors before things go into default. This will help enormously with your relationship with your creditors. Contact a body like the CCCS (Consumer Credit Counselling Bureau). They are extremely suitable for debt management of this nature and will help you to keep your family home whilst keeping an affordable regular payment that does not cripple you. Talk to your creditors to get interest frozen |(this is not always going to be offered but asking can not do any harm), even a reduced interest level can make significant differences. If the debts are unsecured then the only way that you might risk the loss of your home might be if your were made bankrupt and had to sell to release money to pay off the debt. If you default and the creditor(s) take you to court they may be awarded less that you might offer to pay now based on a means test. Taking a debtor to court is also expensive and time consuming. They will prefer not to do this. If you contact CCCS (who are a free service), they will negotiate for you and they are also supported by many financial businesses who work in partnership giving donations to the CCCS. .