News

MACH · 14-11-2009, 12:14 PM

I will try and make this as short as i can. My current situation is this:

- I am married with 2 kids under 5, we have a £160k mortgage, interest only, due for renewal May 2010.
- Currently in year 2 of our joint IVA agreement repaying £340 pcm to them.
- In this IVA is both of our personal unsecured debts obviously.
- I have a secured loan on the house sitting at approx £25k at the moment, with repayment of £280 pcm.
- There is no equity in the house, as if sold today would not be worth anywhere near the £160k we paid for it.
- My wife is currently expecting our 3rd child

, 4 months after giving birth to our 2nd.

I am 100% seeking advice from CAB, and CCCS, but while flicking through this site, thought i would see if i can get a heads up on a few things.

Will Mrs MACH be entitled to receive maternity pay for the 3rd child, when her current maternity pay finishes in March 2010?

If we were to go down the bankruptcy route, as baby number 3 is going to put a further strain on an already tight IVA repayment, would we lose our house especially with 3 young children?

These are my main worries at the moment, as i can see the tough times up on the horizon, and do NOT want to bury my head in the sand.

imindebttoo · 14-11-2009, 12:24 PM

Hi MACH

If you're property is in Negative Equity, and you were to take the bankruptcy route, the Official Receiver can sell the 'beneficial interest' in your home to a third party - you can find a buyer yourself - someone you trust - such as family or a very good friend.

In Negative Equity, the beneficial interest would be £1 only - on top of this would be a set court conveyancing fee.

You can stay in the home (providing the person buying the beneficial interest agrees of course - hence you would use someone you trust), but you would still be liable for the secured debts on it. Your unsecured debts would of course be included in the bankruptcy.

If you consider this route - obviously take some professional advice first - and make sure you speak to your insolvency practitioner, who should clearly be able to advise on this.

I'm afraid I can't offer any words re maternity pay - sorry.

IIDT

MrsTine · 14-11-2009, 12:53 PM

Maternity pay will depend on how far along she is I'm afraid and to a degree on her employers policies. Mine would say no... but there are other things she might be elligible for. Personally I would just say I think it's deeply foolish financially to bring another child into your family right now and certainly to do so without having thought about how to provide for this child and the existing children beforehand... You may want to read the Gov site for maternity pay etc
CLICK HERE

Best of luck

MACH · 14-11-2009, 12:58 PM

Thanks IIDT, the option of selling to a family member or friend is sadly not a viable one.

At the moment things are tight on the money front, but manageable. I just see problems further down the road, especially if wifey does not get any further Maternity pay.

Will certainly be seeking the pro's advice.

I can see myself chucking the keys back and shipping the family to rented accommodation. As even at the moment the kids are on a shoe string Xmas.

Poor Mrs MACH deserves a little treat after going nearly 2 years "up the duff" and things are not looking up to be able to do that. We've not been out together since about 18 months ago.

Still, gonna get through Xmas as best we can, then tackle the demons in the new year.

2010 is gonna be the year of reckoning. I shall keep all updated.

MrsTine · 14-11-2009, 1:03 PM

You can't just chuck the keys back - if you let them repossess you they will still come after you for any shortfall and costs of reselling the property etc... be very vary if you do this! And don't do it without taking legal advice.
It looks like BR may be the way forward - at least in BR you get a certain allowance for living before your creditors get anything...

As for tackling it after christmas... I'm sorry but I think that's a bad idea... tackle it now or at least start to. Christmas is still a month and a half away!

MACH · 14-11-2009, 1:03 PM

MrsTine, i thank you for your reply, and for the useful link.

This was the advice i was looking for, although personally i respect the fact that you think it foolish, i really was not looking for moral advice on how to live my life or that of my family situation.

imindebttoo · 14-11-2009, 1:14 PM

You're welcome

Quote:

I can see myself chucking the keys back

Just thought I'd also mention (and I know you're looking at this as a worse case scenario) - if you do end up handing the keys back, from what I understand you may have problems finding social housing from your local government - apparently they have been known to take a less than favourable view of this action, and you may find you're not given the options you'd expect.

It would be wise therefore, to research/consider privately renting well in advance.

IIDT

MACH · 14-11-2009, 1:51 PM

Appreciated, a statement that goes through ones head and gets banged onto the keyboard.

Frustration and wild thought meant as a feeling.

Being completely serious and with clear thinking, not something that would be done. Advice and meetings with all said recognised agencies will clearly be the course of action.

I would also like to say i find this site and all other posts around it extremely useful, can't believe i only stumbled across it now. I shall be reccommending this to everyone i know. Wonderful.

katsu · 14-11-2009, 4:50 PM

Your wife should be able to claim maternity allowance from the DWP, if she is unable to get maternity benefits from her employer. She should receive statutory maternity pay from them, but they may not wish to pay her any additional maternity pay that they usually pay in excess of SMP. As it is quite rare to have two babies without returning to work, they may not have any policies around this, so may just pay her their usual maternity benefits.

BecBlueC4 · 14-11-2009, 4:56 PM

Hiya

How far along is your wife??

I fell pregnant with my 2nd when my 1st was just 4 months and went back to work for 3 months. I was lucky and they paid me the basic maternity plus the back to work bonus.

I'm afraid I can't offer any other advice other than ask the employer.

Regards

Bec

firesidemaid · 14-11-2009, 7:00 PM

perhaps you could do an SOA - list of incomings and outgoings - STICKY on how to do this at top of page.

you would be amazed at how much money the folks on this board could save you on your outgoings to try and make things easier.

Prudent · 14-11-2009, 7:35 PM

I am jsut wondering about the timings. If you wife's income goes down after April you may be entitled to better tax credits next year which may help with any loss of wages. Put up an SOA because you will get great advice.