Is Bankrupcy our savior?

Doomboy

Hi guys,
Been taliking to our secured loan people first plus and they have said we could pay a reduced monthly payment...from £610 down to £150 for a short time as long as I give them a statement if affairs...but they want me to do it over the phone...gulp....its weirdthey have suddenly become open to this knid of offer......I also mentioned to them about an MI12 form for gov help towards mortgage and secured loans and first plus were a bit iffy about it saying they were not sure what that was and were not prepared to fill their part on the form in...anyone have any ideas?

fiveyearplan

No, sorry I don't know what that is, why don't you type it in to Google and see what comes up?

debt_doctor

Doomboy wrote: »

I also mentioned to them about an MI12 form for gov help towards mortgage and secured loans and first plus were a bit iffy about it saying they were not sure what that was and were not prepared to fill their part on the form in...anyone have any ideas?

Hi,

It is the form that your lender is required to fill in for you to receive asistance through the mortgage interest scheme towards your housing costs. They should know what it is.

Just a general message to all, until recently you had to wait 39 weeks ( 26 in some cases) to get any assistance with housing costs. From Jan 09 this was reduced to 13 weeks.

Anyone who has been waiting for mort assistance for more than 13 weeks should now be in receipt of some help depending on their circumstances. Some one who 's only family income is Job seekers, income support plus child related benfits is entitled to full help with the interest on their secured borrowing ( any borrowing that was for the actual purchase and / or substantial home improvements).

It is important to realise, and not well known that you do not have to actually receive any JSA / IS to qualify for mort interest payments. You could be working or self employed but on a relatively low income.

DD

fiveyearplan

Thanks DD. What is considered a relatively low income?

debt_doctor

It would depend upon your 'applicable amount' for income support purposes plus your housing costs.For example;

If some one was actually receiving income support, say a couple and two children they would receive WEEKLY amounts of;

Couple element £95.00
two children £ 112.00

Plus after 13 weeks their mort interest met in full, lets say in their case its another £ 100 per week, thats a total of £ 307 per week.

Someone working in the above family situation ( or on other benefits other than JSA or IS ) would be entitled to be topped up with mortgage help to that level. Lets say that the family income was £ 260 pw then £ 47 pw would be applied to their mort interest payment.

It complex and DWP staff and many advisers do not know that you do not have to actually receive IS/ JSA or PC to be eligible for mort assistance.

DD

Doomboy

Hi guys...thanks for you replies
we are now pulling in over a grand a month on benefits...we just got DLA for our son and i got carers allowance too...so thats a bit of good news...I never thought I would be out of work for so long but there is nothing locally where we live and we really dont want to have to move because we have had somewhat of a battle to get things in order with schools and benefits for our son and starting it all again would be the end of us tbh.
I doubt we would get any joy from thhe gov as far as help with the morg and secured loan so I think its gotta be rented for us...we are still in the process of filling in the BR forms the fact that our finances have changed quite a bit from when we first filled them in means we have to change a lot of what we have put in them.
Why cant life be simple eh

fiveyearplan

Post it up here for help with your SOA.

Doomboy

here is a rough run down of what comes in and goes out

COMING IN PM

Jobseekers top up £151
Incapacity £421.80
Child Benefit £80.00
Child Tax £182.00
DLA £340.00
Carers allowance £202.20

TOTAL £1.377.40

This does not include the morgage and first plus secured loan as we have not payed them for 3 months now and are in negitiations with both to try and get reduced payment scheme going

GOING OUT PM

Coucil Tax £22.64
GAS/Electric £150
TV License £11.95
Car Insurance £25.67
Phone/Internet £70
Housekeeping £450
Car Loan £200
Petrol £80
Water £29
Sky £18
Life Insurance £13.19

TOTAL £1116.45

fiveyearplan

Doomboy wrote: »

here is a rough run down of what comes in and goes out

COMING IN PM

Jobseekers top up £151
Incapacity £421.80
Child Benefit £80.00
Child Tax £182.00
DLA £340.00
Carers allowance £202.20

TOTAL £1.377.40

This does not include the morgage and first plus secured loan as we have not payed them for 3 months now and are in negitiations with both to try and get reduced payment scheme going

GOING OUT PM

Coucil Tax £22.64 25
GAS/Electric £150
TV License £11.95 12
Car Insurance £25.67 26
Phone/Internet £70 call this 'phone' leave off 'internet' and put 60
Housekeeping £450 how many people"
Car Loan £200
Petrol £80
Water £29
Sky £18 must come out of surplus
Life Insurance £13.19 is this for mortgage? if not OR may want this
haircuts amt. depends on number in household £10 each adult, £5 each child
prescriptions/dental/opticians £20
clothing again depends on number in household
holiday ..........ditto...............

TOTAL £1116.45

I've made a few comments and additions.

Doomboy

Thanks Five!!!
We are 2 adults and one child who has ASD, asperger syndrome and need a special diet hense our housekeeping is 450...the life insurance is just for me and is seperate from the morg....I have forgot to mention we have been receiving mortgage protection insurance but have not been paying it to Northern rock because we are saving it for poss 6 month rent upfront and BR fees....feel really worried we are doing this too but we need some back up in case we have up front rent and such