Impending divorce help required

Johnny_Kash

My wife has decided she wants a divorce and we have put the house up for sale. We have a £135k mortgage and the house is worth £150k. We are guessing that, after fees and costs, we stand to make around £12k from the sale.

She is moving in with her parents, who have two spare rooms, to save some money and ponder her next move.

I have been offered a place with my parents, but it's cramped and could prove difficult sharing the custody of our two young children.

Our unsecured debt is £70k so taking off the 12k from the sale, we will still owe around £29k each (5k loans, 23k cards and OD). This equates to a monthly repayment of around £900. However, £450 of this is a loan from my parents, so I have some room for re-negotiation there.

My question is where do I go from here?

I earn £25k plus a tax free 3k motoring allowance, and anything up to £300 per month O/T.

AFAIKS, I have 5 options:

1/ Go to my parents and save some money (although I will still have to pay board and storage for our furniture). However, it will take several years to get anywhere and will be detrimental to everyone's sanity. In reality, they are too old (late 60s) to have toddlers living with them.

2/ I could (just about) afford to rent if I could get my parents to drop their repayments by at around £250, but I would by relying on overtime and pay rises for any spending money.

3/ I could, at a push, borrow a deposit from my parents (generous folk that they are)and try to get a mortgage, but I would struggle if interest rates rise faster than wages!

4/ Pay off my loan with the 6k, then apply for a larger, consolidation loan with a lower monthly payement, which would give me more breathing space for options 2 and 3. What are my chances of being accepted, given my other commitments? (My credit score is good, as you probably guessed from the amount I already have).

5/ Apply for a council house until I've paid a chunk off the debts, although my wife isn't keen on the kids moving to a rough area, which is where a lot of the houses are located.

Help! I'm starting to panic as the house is now on the market.

Trollfever

6/ Visit the Bankruptcy Board on this site.

uzubairu

Johnny_Kash wrote: »

She is moving in with her parents, who have two spare rooms, to save some money and ponder her next move.

I have been offered a place with my parents, but it's cramped and could prove difficult sharing the custody of our two young children.

Your choices are very limited at present.
Living with your parents may be difficult but probably NOT impossible.
You need to cut your cloth according to your current situation, or you will only get deeper into debt.

Johnny_Kash wrote: »

Our unsecured debt is £70k so taking off the 12k from the sale, we will still owe around £29k each (5k loans, 23k cards and OD).

Having a good credit score and no self control can be a bad thing.

Johnny_Kash wrote: »

5/ Apply for a council house until I've paid a chunk off the debts, although my wife isn't keen on the kids moving to a rough area, which is where a lot of the houses are located.

You need to sit down and realistically look at your options.
In your current situation your finances are a mess and your choices are very limited.

Johnny_Kash wrote: »

My question is where do I go from here?

Debt Free Wannabee or Bankruptcy boards