Help Im Sinking Fast

Crazy_C

Hi All,

Im a new member and Ive been reading some of your postings over the past couple of days and thought maybe you could help me with some advice, Im to ashamed to go to my family and let them think im a faliure and its so much easier to be open on honest on a forum like this.

Ive recently split from my husband of 15 years due to debt problems, there isnt anyone I dont owe money to but the worst and most disturbing issue that I have to resolve at the moment is my Mortgage arrears, I currently have £2800 pounds worth of arrears and have been served with a re-possesion notice, the court date was on Tuesday 1st but I didnt go to court because I was to ashamed and scared but I have realised now from reading your articals that my debt isnt going to go away and I have to face up to it and I dont want to loose my house, I have 2 children and I need to keep a roof over there head. I have a good job and earn good money, but I have no way of coming up with the money to pay my arrears off.

Please help What do I do.

rchddap1

The main problem that I see is that you didn't go to court. Its possible that things are already out of your hands. The court may have granted the repossesion already. Have you been informed of the result of the case on Tuesday?

You need to find out the result of the court case before you can work out what to do.

Edit: Welcome to the boards by the way, and don't panic.

Crazy_C

I have not been informed of the result of the court case yet,

I think Im on beyond panic now, im begining to despair.

file_wizzard

Firstly welcome to the forum and i am sure you will get all the help you need.

With regards to the repossession you need to be strong and deal with this head on, if you ignore it you WILL have the property repossessed as the courts will always rule in favour of the creditor if the debtor fails to show.

You need to contact the court and explain your situation, they will be understanding, and you may even be offered the chance of a secondary hearing with a view to obtaining a re determination.

You should also contact your local CAB they are excellent on things like this, i know it is hard to face up to , but if you dont things will only get worse.

Also with regards to the arrears, i appreciate that you are probably not in a position to settle these over short term repayment plan, so the following test case may be of use to you.

http://www.creditlaw.co.uk/Cases/cheltenham.htm

Crazy_C

Thank you, that is so helpful.

I realise I cant hide from this anymore and I will be ringing the court either today or first thing on Monday to explain my situation, this is just one of many debts that I need to tackle but at the moment its my priority.

I have the details of the solicitor that is dealing with it, would it be best to contact them or the court.

I have made an appointment for the CAB on Monday, I am also looking at remortgage options, but it would be with a non high street lender and an interest only option for 2 years until I get back on track with my finances.

Its so nice to be able to discuss this in open for once,.......

file_wizzard

Deal with the court, or with their solicitor Via your own ( more cost but unfortunately it is at that stage now )

Good luck with it all and let us know how you get on, or if you need any further guidance

Sparklemonkey

Do not feel ashamed, this is a safe and supportive place.

You must contact the court and/or solicitor involed to see if you can sort this out ASAP.

I wish you the very best and keep us updated

xxx

Crazy_C

Im on the case, debt is a terrible thing it turns you into this horrible person who will go to any length to avoid things, but Im not like that and I have decided that debt will not win. Im going to beat this, I am more determined than ever.

1313

Can you afford to pay the mortgage payments each month?

I think what you really need to do is an income/expenditure, but when doing the expenditure only include priority debts such as Mortgage, gas, elec, council tax etc.

I would then ensure that these are paid!

I would then, if the figures add up in your favour, contact the Mortgage Lender, Solicitor dealing with the repossesion and tell them your situation. This should also be followed up with a letter. It may also be worth including an Inc/Exp to show that you can make future payments. However when completing this do not show too much expendible income if there is any! You will find that the mortgage lender may give you some good advice (ask them for a solution?), as they do not like to reposses

The next step would then be to look at the non priority debts, such as credit cards. But right now they can wait, as you need to sort priority debts first.

johannamse

1313 wrote:

Can you afford to pay the mortgage payments each month?

I think what you really need to do is an income/expenditure, but when doing the expenditure only include priority debts such as Mortgage, gas, elec, council tax etc.

I would then ensure that these are paid!

I would then, if the figures add up in your favour, contact the Mortgage Lender, Solicitor dealing with the repossesion and tell them your situation. This should also be followed up with a letter. It may also be worth including an Inc/Exp to show that you can make future payments. However when completing this do not show too much expendible income if there is any! You will find that the mortgage lender may give you some good advice (ask them for a solution?), as they do not like to reposses

The next step would then be to look at the non priority debts, such as credit cards. But right now they can wait, as you need to sort priority debts first.

This is good advice.

I know how very very painful it will be, but use this weekend to get organised. You need to list ALL your debts, the amonts, APR's etc. You then need to work out all your other outgoings. Food, clothes etc etc. Once you have all this information. Whatever you have left, split between all your creditors fairly (ie the biggest debt, gets the biggest chunk etc). We can help you with this if you post.

Then on Monday (could you get a couple of days off work this week) ring EVERY creditor, and offer them your payment offer, or if you feel unable to do this, ring the CCCS. See here http://forums.moneysavingexpert.com/showthread.html?t=95468

If you act now, you will alomst certainly not loose your house. BUT ACT YOU MUST. If you act now, you have everything organised by Xmas. Your debts will not be paid, but all the creditors will be happy ,and you can relax. In the New year, you can work out how to really get the debts down, with some extra income etc etc.

Please do not remortgage. This will not solve your problems.

Get reading all there boards, and start to familiarize yourself with becoming a moneysavingexpert. Even the worst people in the world have been transformed from spendaholics to money angels.

Good Luck.

fast_track

you need to be able to make an offer to the court to pay the arrears. They can, in theory be paid during the life of the loan. I would suggest that you make an offer of full mortgage payments and enough to pay off the arrears within say 10 years. The court will also need to know if there is any equity in the property. The more equity and the longer the life of the remaining mortgage the more likely the judge is to agree. I know you are already in debt but if necessary borrow to make the best offer you can.

CAB should be able to produce a Financial Statement to show to the judge and the opposition solicitor to prove you can make these payments. The judge has no discretion on when the mortgage repayments start but can alter (defer for a couple of weeks) the start date for the repayments of the arrears.

Best of luck. If the court goes against you then you must make a homeless application to your local authority imediately. You will have to prove to the local authority, again with the help of your financial statement, that you are not intentionally homeless on the grounds that it was not reasonable for you to stay where you were because you could not afford to. This is valid grounds for them to accept your application

Best wishes