Martin (or anyone!), advice DESPERATELY sought: £122,342.83 of (non-mortgage) debt!

DarkConvict

Rolling my eyes up a Snippa post, it does sound like the harsh truth. You have over stretched yourself and pulled in your parents aswell, and if not careful pull them down with you.

Professional advice is seriously needed is no under statement.

I see 3 options

1) Cut your losses, sell up the houses to reduce the debts (hopefully your not in negative equity) and thus with no mortgage reduce the monthly outgoings. And pay what is left off the debt off for the remainder of the next many years with your remaining income.

2) Cut your parents losses, get rid of as much debt that is secured against them, and then go bankrupt. This will do the best to reduce impact against them. The official receiver may want to know why you paid your parents debts off, worth considering.

3) Go bankrupt and see what happens, the £70k to your parents isn't included so you will have to own up and sadly admit you have ruined there retirement (this is going to seriously hurt you alot so be prepared). You've taken £70,000 from them and can't pay it back.

katsu

Sorry, there are no magical fixes. I have no idea how you are even meeting your minimum payments.

What did you do to get in £122k of debt? What did you spend it on? What assets do you have? If your car is worth more than a couple of hundred quid, sell it and buy a banger or go without a car. What do you have that is not nailed down? Sell it.

We can give you some advice on an SOA about how to cut your expenses.

None of that will save you, but it may give you some money to give your creditors or your parents (if you used your Mum's ebay account to sell lots of valuable junk it would mitigate some of the costs they are facing - not enough but surely best to do what you can for them?).

Get a second and possibly third job.

I'm really not trying to make you feel worse. I'm sure you must feel very worried - if you feel really bad you can always call the samaritans to talk confidentially about your feelings of stress and panic that you describe.

If you do go bankrupt and have disposed of assets/given money to your parents, then the Offical Receiver may look into it. I don't know if they can make your parents give it back - you may need to look into that.

Good luck.

dancingfairy

It would probably help to split the debts out as in your name and in your parents name (even though you are paying). Also we need to see how much 'spare' money you have after basic living expenses to repay the debts with.
Are you parents able to pay the minimums on any of the debts for you? I mean if they can pay the minimums on 'their' debts then you could maybe tackle yours and then 'theirs' - if you see what I mean.
I think you need to sell some of the properties if you can and get what you can for them (within reason). Otherwise you are in danger of going/being made bankrupt and also making your parents do the same/sell their house or it being repossed etc.
df

Noname29

i assume you are behind with payments ?
You say you have a bad credit record and that must have happened after you got loans for the flats, or you wouldnt have got them.
What was the loan in your parents name for ?
Did they know about it or did you defraud them. Harsh , but if they didn't know the full picture and signed for a loan then 'perhaps' the bank has not lent properly.
I don't want to suggest YOU use this route, I am thinking of your parents.
If it is fraud then you lose all your assets and go bankrupt but at least the bank cannot repossess your parents home.
You go to jail and when you come out you start again with no debt.

oscar52

Realistically, as well as the unsecured debt, OP really needs to advise of the mortgage debt - ie we need the full picture and need to know the TOTAL debt.

Only then can the correct advice be given. - Not that I am stating the above is wrong or unuseful - but its all be given with half the story - so to speak - while non mortgare debt is £120K, mortgage debt may well be at a similar level - so now at double the original amount - £240K.

LexieLou

Hey there,

Firstly, talk to someone when you are down, the samaritans have been mentioned somewhere. Use them!!! (plus they are free!!)

Secondly, list all your outgoings etc and all your debt. There are so many people on here who can help, even just to let you know that we are here! It all helps.

Then sell what you can. Who cares if you don't have 4 properties any more, they are making you sick, get rid!! 'Your health is your wealth'

Finally, talk to someone face to face with all your debt, they will suggest ways to help you. Yip it won't be dressed up, but at this stage you need HONEST advice and you won't want to hear it, but it's meant the best way.

Keep up your post, it's amazing to look back in a few wks and see how far you've come, it could be something really small but all those things add up.

This message might seem really unhelpful compared to the other posts, but at the end of the day, you've admitted you've made a mistake and you are now asking for help and support.

Take care and let us all know how you are getting on.

LLxx

On_A_Financial_Death_Bed

Dear All,

I just wanted to say thanks JUST SO MUCH for all the words of encouragement and advice -- I'm extremely grateful to those who have replied and even taken the time to read my post, so I just wanted to say a huge thank-you to you all.

All the best to you all.

Simon

Yargo1

Hi Simon, what have you done then? Have you spoke to anyone or set any plans in motion?

sanfrancisco

Any assets you have try to pay off as much of your parents debts as possible.

Go Bankrupt.

Move in with your parents. Say sorry to them every day. Work every hour god sends to pay off their debt. Move out when you have paid it all off.

immoral_angeluk

If the OP were my client I would be seriously looking into whether the creditors have breached any kind of responsible lending legislation. How on earth could a debtor be given access to that kind of money.
It's a slim to none chance but possible that if taken to court for irresponsible lending perhaps some of the debt could be written off, BUT I'm saying this in speculation, as without seeing the OP and getting the full circumstances it's impossible to say for sure.