Quandry regards BR

bustedbilly

Hi All,

I am new to the forums but not to the site. I have £70K worth or unsecured debt so am definitely a candidate for BR. I have read loads on this site, other literature and spoken to the NDH.

Top line SOA.

Loans: £16K
CC: £24.5K
Student Loan: £4.5K

I have two mortgages the 1st is one owned 50/50 with my wife, this is our 1st home that we have been renting out, but the tenants are moving out soon. The property is in negative equity, so I expect my wife will be able to buy the beneficial interest for £1 + legal fees.

The second mortgage is a together mortgage from Northern Rock and is in my sole name. It has a £95K mortgage and a £25K unsecured loan (the extra 25K to make £70K). I'd expect the OR to sell this to recoup some of the debt; it's probably worth £115K, so that would leave £20K towards the debts, if it achieves that price. I am comfortable with this as we are planning to move back to the 1st property anyhow.

I have a good job earning £1950/ 4 weeks, but it's not covering my outgoings and I am covering payments by balance transferring etc, however this will not go on much longer.

My real issue is this; several years ago my mother sold her house and asked me to invest the profits, which I did by putting £5K in an ISA, buying £10K's worth of premium bonds and depositing £10K in an NSandI bonds, which has just come to maturity but not yet cashed. All of these are in my name, and we never sought any legal help to say I was acting on her behalf as I never expected to be in this situation. I can probably demonstrate that the money was deposited from her solicitors to my account, and I have paid her sums of money from the ISA through the years, which is now empty. However, I am really worried that if I go BR, then I will lose all of my Mum's retirement money and let her down.
Problem is I could really do with going BR, my wife is pregnant and due in 4 months, she will be getting statutory maternity pay and I will be the main breadwinner supporting her and my new born (all being well), but I cannot do it with the mountain of debt I have.
Question 1: What do you think the OR's view will be toward my mum's money?
Question 2: Is worth cashing in the premium bonds and savings and giving these back to my mum, will this show up somewhere on my records?

I don't want to lose the money, but clearly I need to go BR.

I have tried to be clear and honest but if anyone needs more details then please shout. I know there is a wealth of knowledge on these forums and I want to get this clear before I take the next steps to BR. I would appreciate any help or suggestions.

Thanks

A confused and desperate soul!

peachyprice

Hi Billy,
Welcome to the BR forum.

Could you cash them in back through the solicitor who originally transferred the money to you for your mum to re-invest in her own name? You definitley need some legal advise on this, if you just cash them in the OR may take it that you have disposed of assets

bustedbilly

Thanks peachyprice, I think your right I need to seek some legal help!!