Any advice to avert a family meltdown?

Desperate_housewife_3

My partner died recently leaving me with four children, his credit card debts and a massive mortgage (we bought it 2 years ago). We weren't married, there's no life insurance or pension and the house is in negative equity (I had it valued last week).

I'm due to go back to work in the New year (I was on maternity leave) and although I'm on a good salary, I've worked out that it won't even cover the mortgage (already on interest only) and the childcare costs let alone any living costs. We're in real crisis, but I can't see how to go forward as I'm earning too much to get much in the way of tax credits and Housing benefit won't pay out for mortgages. Is there any help out there for someone in my situation?

dmg24

Hi Desperate housewife,

Welcome to MSE, and I'm so sorry that it is in such difficult circumstances.

In order for us to (hopefully) give you some solutions, is it possible to give us more information please? The following would be useful:

Income
Savings/ other capital
Ages of children
Do you receive any benefits at all (child tax credits, child benefit etc)?

On a sidenote, were his credit card debts in his name only? I think there is more information on settlements of debt upon death on the Credit Cards board, but we'll try to help here.

Take care x

rosysparkle

I am sorry for your loss. Mortgage providers usually insist on some form of life insurance, are you absolutely certain that there isn't any insurance?

There is a childcare element to tax credits so if you are eligible for even a small payment, you will get something towards childcare.

If the credit card debts are in your partner's name, the debt doesn't get transferred to you, his estate (anything he had to leave) is liable for the debt.

You could check your entitlement to benefit on www.entitledto.com which will give you a rough idea of what help is available to you.

Try not to panic, there are lots of real experts on these boards who will be able to help you.

Conor_3

Second the life insurance. All policies require it and as your OH has passed away, this should clear the outstanding balance.

Oldernotwiser

Not true; neither of our last 2 mortgages required life assurance and we didn't have any. I hope for the OP's sake that there is but it's certainly not compulsory.

cw18

When we took ours out they didn't insist on seeing anything -- said it was up to us to make sure we had "plans" in place to settle up in the future.

The letter I've just had from our mortgage company (following the death of my DH) simply asks me to let them know if there are any life policies in place I intend to claim on.

dmg24

Oldernotwiser wrote: »

Not true; neither of our last 2 mortgages required life assurance and we didn't have any. I hope for the OP's sake that there is but it's certainly not compulsory.

Seconded. I wasn't even asked when I took out my current mortgage.

deb0020

Desperate_housewife wrote: »

My partner died recently leaving me with four children, his credit card debts and a massive mortgage (we bought it 2 years ago). We weren't married, there's no life insurance or pension and the house is in negative equity (I had it valued last week).

So sorry to hear about your difficult circumstances.

Something that may help you:-
If you claim Income Support the waiting period for help with your mortgage could be less as you are recently bereaved see
http://www.jobcentreplus.gov.uk/JCP/Partners/allowancesandbenefits/10058.xml.html
"people with children who have claimed Income Support because their partner has died or abandoned them will be treated as having existing housing costs ie no help for the first 8 weeks of an IS claim, half of the eligible housing costs for the next 18 weeks, and then all of the eligible housing costs paid"

So would be a much shorter waiting period than the current 39 week waiting period

zzzLazyDaisy

I am really sorry to say this, but you may be better off not going back to work.

As someone else has said, there is mortgage relief if you are claiming income support, but not if you are working. You have four children, including a young baby to care for, so childcare costs may be quite high.

If you go to the CAB they will do you a 'better off' calculation, which will show you what your income would be, working and not working.

I am so sorry for your loss.

Daisy x

dmg24

deb0020 wrote: »

Desperate_housewife wrote: »

My partner died recently leaving me with four children, his credit card debts and a massive mortgage (we bought it 2 years ago). We weren't married, there's no life insurance or pension and the house is in negative equity (I had it valued last week).

So sorry to hear about your difficult circumstances.

Something that may help you:-
If you claim Income Support the waiting period for help with your mortgage could be less as you are recently bereaved see
http://www.jobcentreplus.gov.uk/JCP/Partners/allowancesandbenefits/10058.xml.html
"people with children who have claimed Income Support because their partner has died or abandoned them will be treated as having existing housing costs ie no help for the first 8 weeks of an IS claim, half of the eligible housing costs for the next 18 weeks, and then all of the eligible housing costs paid"

So would be a much shorter waiting period than the current 39 week waiting period

From the information given, the OP earns far too much to be eligible for IS.

alwaysonthego_2

Hi, as someone has mentitoned before your husband's debts will not get passed down on to you unless it is in joint names. The creditors may try and get the money out of you, but ignore this they are trying it on. Go to your local cab who will be able to point you in the right direction. Sorry about your sad loss xxx