What would you do if you were me?

spud30

As some of you may know, I have just lost my job and am starting along the road of a tribunal for unfair dismissal. I was in the same job 22 years and was advised by my doctor to take a bit of time to get over the stress of recent events.

I have a DH, 2 kids and unsecured debts of approximately £30,000. I was the main earner in the family. Hubby's income will cover the essentials like mortgage, council tax, utilities etc, and the increase TCs due to our reduced income will see us right for groceries etc.

We have a mortgage balance of £56,000 and our house is probably worth in the region of £300K (house was inherited following the death of my folks)

From reading previous postings, it would appear that you need a certain amount of surplus income before CCCS etc will set up a DMP. As I am now unemployed, I will not be able to release any equity via a re-mortgage.

I was thinking of asking our creditors to go for charging orders on our property, then the debts would be repaid if or when we ever move or re-mortgage in the future.

I will be speaking to CCCS on Monday, but wondered if anyone could give me a bit of advice beforehand on the pros and cons.

Any advice would, as always, be very much appreciated.

domesticgoddess

Hi sorry to hear about your news, I don't know much about charging orders, hope someone can help you.

Take care
DG

mountainofdebt

but to me it sounds like a very high risk way of solving what may be a short-term problem. By that I don't mean to be flippant but I understand that you have been offered a part-time job and whilst it may not bring in as much money as your old job, you may find that you can pay the bills without going to extremes of getting a charging order.

Personally I would take your doctor's advice - you've had a traumatic time and whilst it may seem the best option now, in a few weeks time you may come to realise that it was the wrong thing to do.

Speak to CCCS and see what they say - listen to their advice and then sleep on it.

Emmzi

My advice is no decisionsfor 2 weeks. About anything. Research, think, but no decisions.

You've had a helluva shock to the system. Real danger of panic decisions here.

Let us know how you go with CCCS?

OberonSH

I wouldn't risk anything that involved my home, personally, but I can see why you are considering this option, with that amount of equity.

I would advise you to really look at your current SOA before doing anything. With a part time job you will obviously not be earning what you were, but can't you make the shortfall up in simply cutting household expenditure?

spud30

Thanks everyone.

I do have the chance of a part time job. I am currently being CRB checked with a view to hopefully starting in September.

The income will be a fraction of what I was previously on, but I feel I need a complete change of direction. Hopefully if things go well, there will be opportunities to earn more, or even become full time.

We do want to repay our debts, but my last job was very well paid for what we did. I can't dream of earning anywhere near the same, even if I did walk straight into another full time post.

In my last job, I'm ashamed to say I dealt with debt recovery, and did apply for charging orders, attachment of earnings etc, but only to people who didn't respond to any correspondence . When people made contact, I would do everything in my power to help. The charging orders I obtained never led to anyone losing their house through an enforced sale, it just meant that on sale or re-mortgage, the debt was settled.

I will speak to CCCS tomorrow and check out any possible alternatives. I just dont think our income will be sufficient to enable us setting up a DMP.

homersimpson_3

I was thinking of asking our creditors to go for charging orders on our property, then the debts would be repaid if or when we ever move or re-mortgage in the future.

:eek: :eek: :eek: :eek: (4 of these for added emphasis- sorry but necessary)
your home is not only the roof over your head but you main asset. if there is a charging order on house you may not be able to remortgage anyway- priority of creditors etc. you can always make cutbacks- find ways of reducing outgoings. if you have a chance of part-time job and 2nd income (however tiny) why are you gambling with house. whilst in your previous job such action did not lead to anyone else losing house your circumstances are not being dealt with under previous job and are different- don't let this cloud your judgement. if charging order on house company can apply to court for house to be sold. speak to cccs first about other ways- final, final resort!

spud30

Thanks Homer.

I'm sat here going through our finances, and things may not be quite as bad as I first thought.

Hubby, child benefit and tax credits all get paid 4 weekly, so we have more monthly income than I had calculated.

I just dont want the creditors thinking we don't want to pay. We have never been in arrears before, so this is all very new to us.

I really do appreciate all the advice !!!

southernscouser

spud30 wrote:

I was in the same job 22 years and was advised by my doctor to take a bit of time to get over the stress of recent events.

Please don't take this the wrong way but how do you feel about taking time off to get over the stress?

It seems to be a bit of a cliche these days that everything causes stress. I know I see things more in black and white and appreciate that there are grey areas but my philosophy is '!!!!!! happens'. You deal with it and get on with your life or you can let it swallow you up.

I personally don't count stress as a health issue like I would depression but hey thats just my opinion!

spud30

My doctor knows me very well. He is fully aware of past problems and is concerned this could lead to depression - his words, not mine.

I am aware that these things happen all the time, but different people handle things different ways.

You are very lucky if you can take all that life throws at you without any problems, so people aren't as lucky as you.

southernscouser

spud30 wrote:

My doctor knows me very well. He is fully aware of past problems and is concerned this could lead to depression - his words, not mine.

I am aware that these things happen all the time, but different people handle things different ways.

You are very lucky if you can take all that life throws at you without any problems, so people aren't as lucky as you.

I wasn't having a go. Thats why I said please don't take it the wrong way. Just trying to understand your situation thats all!