Just spoke to CCCS - not good! :-(

Desperate4help

I have to be quick as am just finishing lunch break! But I spoke to CCCS about gettng advice about BR and they said they wouldn't give me any! They said seeing as I earn quite good money and would have a surplus etc they wouldn't give me any advice about BR as it wasn't my best option :-( But what they were talking about was some sort of IVA type thing (maybe not a formal one) where ALL my surplus would go to paying off my debts - including the shortfall in my mortgage that's in negative equity.

If you remember, my ex is talking about walking away and leaving me with all the mortgage arrears and negative equity etc - and if this happens then my preferred option is to also go BR as I just need a fresh start and don't want this hanging over my head on some majorly restrictive payment plan for the next five years.

I've very quickly done a SOA for you guys to look at - see below. The interest rates might not all be right for my credit cards but the figures are true. I've put the minimum payments - at the moment I'm on a reduced payment plan for them all for another 8 months but that will run out and they made it clear it's only for a year - so what I've listed is worse case scenario (for info the current combined repayments I'm making between them are around£189).

Can anyone give advice please???? :-(

d4h

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2692
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2692
Monthly Expense Details
Mortgage................................ 790
Secured/HP loan repayments.............. 380
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 77
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 15
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 60
Road tax................................ 16
Car Insurance........................... 24
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 60
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 25
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 20
Emergency fund.......................... 10
Total monthly expenses.................. 2534

Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 200
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 160700

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 200000...(790)......5.9
Secured Debt.................. 18000....(380)......0
Total secured & HP debts...... 218000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Card 1.........................6000......180.......11
Card 2.........................5500......165.......15
Card 3.........................4000......120.......11
Loan...........................5077......299.......5.9
Total unsecured debts..........20577.....764.......-

Monthly Budget Summary
Total monthly income.................... 2,692
Expenses (including HP & secured debts). 2,534
Available for debt repayments........... 158
Monthly UNsecured debt repayments....... 764
Amount short for making debt repayments. -606
Personal Balance Sheet Summary
Total assets (things you own)........... 160,700
Total HP & Secured debt................. -218,000
Total Unsecured debt.................... -20,577
Net Assets.............................. -77,877
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

debt_doctor

Hi,

You are insolvent so BR may well be an option for you. The reaction you got from CCCS is one that I fear of an organisation who has a vested interest in IVA,s. Great shame actually as CCCS do lots of excellent work and have been an absolute lifeline to many (and still are).

So it would appear that you will have quite a surplus when not paying the secured borrowing and if your ok with giving 70% of that surplus to the insolvency service on a monthly basis for 36 months then thats fine. ( I think your housekeeping could have another £100 pm added and your gas / elec look very low too)

DD

fatou256

I had the more or less the same response last year with CCCS they said they woukldnt help me as i was on JSA and that Br wasn't an option for me ..... give a try with National debtline which i found more helpful.

the-muffin-man

[QUOTE=
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2692
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2692
Monthly Expense Details
Mortgage................................ 790 Why mortgage and rent?
Secured/HP loan repayments.............. 380
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 77
Electricity............................. 20 Seems very low
Gas..................................... 20 Again seems very low
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 15
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 60
Road tax................................ 16
Car Insurance........................... 24
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 60
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 You have a house but no insurance on it?
Contents insurance...................... 25
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10 Would have to be found from any surplus under BR
Haircuts................................ 10
Entertainment........................... 20 Would have to be found from any surplus under BR
Holiday................................. 20
Emergency fund.......................... 10 Would have to be found from any surplus under BR
Total monthly expenses.................. 2534
[/QUOTE]

If you remember, my ex is talking about walking away and leaving me with all the mortgage arrears and negative equity etc

If your ex is on the mortgage and secured loan they can't walk away from it any more than you can. And they would become liable for any shortfall if you went BR.

crowman19

Although CCCS may have told you that BR isn't your best option it is still an option. As said above try national debtline. As long as you have sought advice which you have and you are insolvent ie. outgoings more than your income which it is then you can go BR.

I did read in a previous post of yours that you didn't want to move back to your mortgaged home as this is too far from work. Is this definately not a possibility as you would save the £600 on rent if you did ?

Or would there be a possibility of renting your home out now that your husband has moved out ?

Desperate4help

Thanks guys for being so helpful yet again! Basically, the CCCS said that a judge probably wouldn't make me BR due to the surplus I have - but, to be honest, i don't think the person I spoke to *really* understood what I was saying. I think what she was getting at was that if I sold my house - even at a loss - then I'd be saving the money I've currently listed for mortgage and secure loan, and could use that money to restructure the mortgage shortfall and secured loan into unsecured loans with the respective creditors, paid over five years.

yes, I can see that at a push I could possibly do that, but it would take months to sort, and in that time I'd be even more behind with the mortgage and my credit history would be scr*wed anyway - basically BR would be quicker, cleaner and leave me more money from my surplus.

Thanks for the comments on my SOA:

- happy to ditch the presents/entertaining etc. tbh I thought it strange that they were on there but thought that as they were I was supposed to put a figure!

- the reason I haven't listed insurance is because I don't live in my house anymore. Ex is walking away from it so I suppose technically I should pick up that cost too - but as I'm hoping to just go BR and ditch the house altogether, I haven't listed as an outgoing. All of the bills I've listed (fuel etc) are for my little one bed flat which is rented and so I don't need buildings insurance.

i will definitely try calling that other place you recommended (debtline?). It really did feel as though the CCCS weren't willing to even consider anything other than a payment plan type option - were they right that a judge would probably refuse me BR due to my surplus? If ex is refusing to pay mortgage anymore, and secured loan, then technically they sit on my SOA don't they? Which tips me way into insolvancy. I know one of you said something about him sharing joint liability as it's a joint mortgage, but as he's already decided he's definitely going BR, doesn't that put it all on me?

Oh it's all so confusing!! :-(

D4h

crowman19

If the £790 payment you make towards the mortgage is only your share (half) then when your ex goes bankrupt you would certainly be in a BR position.

fatou256

here the link for national debtline

http://www.nationaldebtline.co.uk/

the way i understand about being insolvent mean that you have more outgoing than incoming or you have more debt than asset.

Desperate4help

crowman19 wrote: »

If the £790 payment you make towards the mortgage is only your share (half) then when your ex goes bankrupt you would certainly be in a BR position.

No, that's the full mortgage payment - but as it's a joint mortgage and he's stoppped paying, I'm assuming I have to cover it all? I thought that as it was in joint names they can go after whoever can pay it? And he obviously won't be stumping up anything!

D4H

miss_spooky

Hi,

I posted this on your other thread. This may help you decide the best option & not have him round your neck.

What was the mm-yyyy he went br?
Did the house already belong to the pair of you?
What were the circumstances that allowed him to keep it? i.e did you buy the beneficial interest?

It MAYBE that his liablility to pay the mgt has rolled over to you & that if you went br then the house & secured loan won't fall back onto him and by vol repo the shortfall will go into your br.

This is just a thought for you to follow up & get proffessional advise on. Pls don't take my word on this.

Desperate4help

Hi thanks Miss Spooky - sorry I only just spotted your reply in my other thread.

He went BR in 08_2007. In the end they relinquished any claim on his half as it was pretty much in negative equity by then, plus we had the secured loan on it so there was technically no available equity at all! If I recall, he paid them around £250 for them to do something to formally release any claim on his half.

So I guess that doesn't help!? :-(