Any help or advice would be appreciated

G2M

Hi All,

I owe approximately 35k on cards, to date the payments are up to date but I am unable to continue to service them, I have struggled to do so for the past few years but it is now coming to a head.

I am a sole trader but have just registered as a limited company, as I need to separate my personal mess from my livelihood, and saw this as the best option.

I am considering an IVA and could maybe afford £2-300 per month, I have done a lot of reading the last few weeks an am feeling quite desperate.

My wife and I separated two and a half years ago, she is still in the house where we have a joint mortgage, she stays at home to look after our daughter whom is 4.

She is not aware of my situation as I don't wish to make her worry and stress, which is something she finds easy to do.

The 'problem' I have is that there is approximately 75k equity in the house, although without selling there is no chance of a re-mortgage, also, and to me this is the important bit, 80% of the equity belongs to my wife, as when we met she had her own house that was mortgage free, due to an inheritance from her late father, so I would be gutted if that equity was used to pay off my debts.

As I said I have struggled to keep up the payments and have been paying the minimum, but this has got me nowhere and the debt doesn't seem to come down, they also keep hiking up the interest rates on them.

I am quite desperate now so any advice would be very welcome, I do not know where to turn, my family have started to notice that something is wrong.

Thanks for listening.

Charco_2

Is there any paper work to say that your wife owns a higher proportion fo the equity?

G2M

Thanks for your reply Charco, at the moment there isn't no, this is what I'm worried about.

Charco_2

Well you'll probably be able to show from the solicitor's paperwork when you bought the house that that's where the money came from and argue te toss with your creditors over it anyway. That is certainly going to be the BIG issue for you.

Other than that you'd have the makings of a good IVA with a decent dividend for your creditors.

How much is the home worth in total and how much is the mortgage? You're arguing that you only have £15k equity for yourself even if it LOOKS like you'd have £37k or so.

But you'd also have to take into account how much of that equity is realisable... £85% is about the most you'd be able to get a mortgage for.

G2M

Thanks again,

Mortgage is 148k, house is probably worth about 225k ish.

I'd hate to lose the house, as my daughter is there and it's her home.