me Again..Still unsure with this whole giving my keys back :(

DEBT_23

my head is still in a mess i cannot decide what is the best thing to do. The rented acc i have seen is now of the market and mine.. ( subject to me handing over rent and bond in exchange of keys) thurs 31st July. then once im BR i persume im debt free and all i pay back is IPA or something like that...

But if somehow i get to keep the house due to it being in negative equity ( 10% deposit) soon went down with market prices i will be left here with my mortgage of £450( deal ends feb 09) expected to jump even so with me having arrears, my £2000 arrears stupid me built up at xmas and my welcome secured loan of £10,000, . missed this months payment due to go BR and they been knocking on my door 3 times in last week. ( dont think i want them around tbh)
so if i stay in the house i pay
£450 min mortgage payment
£200 arrear ( got 2k to clear)
£126 secured loan ..over 20 years i think :O

£776 total, could be more when mortgage ends.
then i have a loan in my ex 's name i pay them £120 ( 14 more payments left)
and thats not including bills,car insurance shopping etc.

so for the sake of keeping my own house im not better off or debt free !

Rent
£345 rent ( tho could go up i know)
£120 to ex ( loan with yorkshire bank)
*** IPA no doubt i wil get one .

I would have no other debt... i persume the OR will take a bigger chunk of my surplus income..
I clear on a basic wage £1100 p/m without overtime.

Common sense tells me to go to the rented acc.. tho i know its not mine and could be turfed out at anytime.
wil the OR take most of my surplus and could i be worse off ?!?

I know the OR wont take my loan to ex into account, and i also pay my dad or £80 p/m for my holiday next year..will the OR say thats a NO NO..
i aint been away for years and i do overtime to cover it !??!

k2nga

Deb i believe that if the OR thinks that you cannot pay your mortgage now or in the near furture then they will take and sort the house and i also believe it is your decision anyway so if you like you can decided you no longer want the property so ask for it to be dealt with as part of your BR.

DEBT_23

i think if i keep it i will struggle later on. then im stuck. the 200 pm arrears cripple me stops me paying for other things. since my arrears i spend very little on food, eating rice and soup all the time and even cereal for tea ?!!? my only decent food is when i go my sisters or mums at the right time
im fed up of living like this at 23. got myself into this mess i dont go out with mates on weekend , i know its a luxury and that i just think i can start to breathe and live again in rented accom, even just going asda to buy decent food :O

I want to be debt free. i just worried the OR will take all my income tho its too be expected. i cant be worse off than i am now.

shadowdragon

DEBT_23 wrote: »

my head is still in a mess i cannot decide what is the best thing to do. The rented acc i have seen is now of the market and mine.. ( subject to me handing over rent and bond in exchange of keys) thurs 31st July. then once im BR i persume im debt free and all i pay back is IPA or something like that...

But if somehow i get to keep the house due to it being in negative equity ( 10% deposit) soon went down with market prices i will be left here with my mortgage of £450( deal ends feb 09) expected to jump even so with me having arrears, my £2000 arrears stupid me built up at xmas and my welcome secured loan of £10,000, . missed this months payment due to go BR and they been knocking on my door 3 times in last week. ( dont think i want them around tbh)
so if i stay in the house i pay
£450 min mortgage payment
£200 arrear ( got 2k to clear)
£126 secured loan ..over 20 years i think :O

£776 total, could be more when mortgage ends.
then i have a loan in my ex 's name i pay them £120 ( 14 more payments left)
and thats not including bills,car insurance shopping etc.

so for the sake of keeping my own house im not better off or debt free !

Rent
£345 rent ( tho could go up i know)
£120 to ex ( loan with yorkshire bank)
*** IPA no doubt i wil get one .

I would have no other debt... i persume the OR will take a bigger chunk of my surplus income..
I clear on a basic wage £1100 p/m without overtime.

Common sense tells me to go to the rented acc.. tho i know its not mine and could be turfed out at anytime.
wil the OR take most of my surplus and could i be worse off ?!?

I know the OR wont take my loan to ex into account, and i also pay my dad or £80 p/m for my holiday next year..will the OR say thats a NO NO..
i aint been away for years and i do overtime to cover it !??!

The Holiday will ahve to come out of your surplus income.
You cant just be Turfed out of rented accomodation, they need to give you notice and reasons for doing so. If your going into private rented property also get your name on Housing Association/Council waiting list. IMO HA/Council are far better, there cheaper and you can decorate ect without getting there permission. The tenancy is lifelong (well ours is anyway), and they only evict the very worst people, and that takes a longggggggggggg time to do.

Is the Ex Loan in your name or your exes? if its in your name will be included in the BR, if its in joint name they will take over the debt and if you want to pay it, it will have to come out of your surplus. If its in there name alone, to hell with em, there problem not yours!!!!!

What I would advise is fire up a spread sheet and enter the Income and expenditure when your bankrupt, one in your house paying the secured loan and arrears ect, then another in rented accomodation, and see how the numbers compare. Remember the OR enforces an IPA on surplus over 100 quid and on a sliding scale.

Edit - Just read your siggy, dont worry I took a vol repo when I was about your age, cos shabby abbey misold me my mortgage and were messing me about, ended up neg equity, handed keys back with no arrears!!!!!! waited for the bill to pop through the door and offered them 5% of bill to go away, they accepted it. Your not the first and wont be the last, so dont get cut up about it.

DEBT_23

i have done a speard sheet and staying in mortgage is scary.. still lots of debt etc..
I never thought of HA i will do now thanks
as for the loan in my ex's name i used to loan 4 years ok i have to repay it, i couldnt not. will the OR allow it out of surplus before they take their share. ?
Im unsure how much they allow you to have shopping for food, etc clothes, dental etc.

but if im in rent ( my figures)
£350 rent
£65 council tax
£80 elec /gas
£15 water
£13 tv licence
£150 food for me and my lil dog
£95 car insurance.:( im trying to sell a performance car with no luck
£80 petrol tho i could bike it to work and save pennies
£848

£252 surplus

£120 ex for loan.
£132 left over... will the OR take any of this ??

if i can sell my car and get a cheaper one my car insurance and petrol will be alot cheaper £100 petrol and insurance.
my gas and elec could be cheaper im in a larger house to what im going to.

Is food a little much ?? i usually have £50 for month if that

piggeh

Your food bill should be fine at that amount.

I agree with the advice above about not worrying about the payments to your ex. Tell them to fight it out with the OR if they want some money from your estate (unlikely they'd get anything that way though). Alternatively talk to them and let them know your situation and that payments will need to be less for the meanwhile until your situation improves. If they aren't willing to come to a compromise then it should be them that will lose out, you deserve more than eating cereal for dinner regardless of your debts.

You should include amounts for things like the dentist, prescriptions, clothing, sundries etc. You need to make sure you do not underestimate what your outgoings are. It is better to overestimate items slightly, and have the OR quiz you about them, than to underestimate and then struggle for the term of your IPA to live a normal life.

It's better to learn these lessons early than later on - I declared bankruptcy at the age of 22 and although I could always regret throwing money away and being a bit wreckless, I am grateful for the opportunity for a fresh start and wiser for the future.

Also - reduce the price on your car if you're struggling to sell it as the car market isn't in great condition at the moment. If it's a performance car try and find some owners forums for that marque or model as you might get a few interested people on there.

DEBT_23

thanks piggeh. yeah my car is reduced and advertised on forums.

my ex is earning less than me. i know i no money and going BR for a reason but i cant just no pay them, they couldnt afford to repay it either,
i planned to pay my ex off with the left over sale of the car but i think my OR will have other ideas with that £1500 ?!!?
do all BR people pay into a IPA ?

philnicandamy

DEBT_23 wrote: »

thanks piggeh. yeah my car is reduced and advertised on forums.

my ex is earning less than me. i know i no money and going BR for a reason but i cant just no pay them, they couldnt afford to repay it either,
i planned to pay my ex off with the left over sale of the car but i think my OR will have other ideas with that £1500 ?!!?
do all BR people pay into a IPA ? Not everyone no.....an IPA is put in place "IF" you have a surplus of £100 a month and then the OR only takes a percentage of that surplus...if you dont have a surplus then no IPA

peachyprice

Debt, from the table above that Phil kindly posted you can see you will have to pay 60% of the £252 (£151)surplus BEFORE paying your dad or your ex.

DEBT_23

thanks peachy. i persume im better off in rented appose to lodging where most of my income would go to IPA ??
Does the IPA last the full 3 years? i may lose my job in Oct this year, and i also have college fees due to 3 yr course i am on.. does the OR take that into account or is part of surplus also??!

shadowdragon

If you loose your job then you will have to inform the OR of a change of circumstances (nameley your on JSA). You must do this within 21 days of change.

College Fees will have to come out of your surplus I would imagine.

If you were paying less by lodging yes your IPA would be more.