Need help after seperation

Evixx

Hi

I’m currently going through a separation and struggling to keep things together financially. I’ve a car on HP which I can no longer afford and the lender is now threatening to take the car from me and take me to court to pay the outstanding balance of 10,000. I’m happy for the car to go, but to also have another debt of a considerable amount is scaring me

I’m also behind on a few mortgage payments, my lender has spread the arrears over 6 months, but this has increased my repayments by 200 pounds. This was manageable when I was with my partner, but on my own it’s impossible. It seems everything is just falling apart very quickly. I’m going over and over in my head what I can do, but cant see any solution.

Because I only got my house 2 years ago, I don’t really have any equity in the property. If I were to sell I’m afraid I will lose the house before I could sell. Then have my mortgage company chasing me for money as its probably in negative equity

Would and IVA be a good way to go or is there any other way to get out of this situation? I would love to just give it all up and rent a small flat, but it’s not that simple.

Many thanks in advance for any advice or help

sazzledazzle

Firstly dont feel like you are on your own, I went through this 6 months ago and though it has been tough and there has been some tears, I have made it to the 6 month stage.
Firstly call the mortgage company and explain the situation, ask if you can spread the remaining outstanding payments to 12 months. I have mine over 12 months so I could afford to make the extra payments and normal monthly payments. They would rather you kept up then had to go through the hassle of repossing.
Post a Statement of Affairs on here and lots of people will give you really good advice.
I have found just cutting back as much as possible, constantly checking where I am with my internet banking, and making aims of clearing off certain things quicker I am getting there, even if it seems like it will take forever.

RAS

Hi

if you have no equity to protect and are struggling to pay your mortgage already, an IVA may not be appropriate.

You need to talk to one of the debt charities http://www.moneysavingexpert.com/loans/debt-help-plan#help

It is important that you keep up the mortgage payment above everything else.

Please dig out the documentation regarding the HP agreement before you ring them as you may be able to return the car with no penalty after a specific time., The debt charity need to know the length of your contract, how many payments made and what it says in your contract.

With respect to the house, can you take in a lodger to cover some of your costs?