confused.com

whitey31

:eek:Hi,

Well i am so confused but here i go hoping i will get some much needed advice, as i have been looking on here and everyone seems very helpful and supportive.

My partner has just been informed that his wages will be taking a 500 pound loss a month due to shift change which is out of his control, so as you can imagine that's a huge amount (to us anyway) a month.

So we have a mortgage on a home and a secured loan attached, at the moment we just about manage monthly as we also have a DMP which is going great with CCCS. But due to this hugh wage loss something has to given.

Our house is in a state of repair eg: new boiler needed, in much need of damp proofing, guttering needs changing, and the list goes on, as we just about manage money wise monthly we clearly can not afford to renovate :-(, which gets us down and not nice for my 5yr old boy to live in, we have been very unhappy since we bought the house over 3 years ago.

So our plan, or what we think our plan is to just go and rent and give up the mortgage and secured loan, but our problem is we are in negative equity courtesy of the house price drop!

So where do we stand as we just want to rent, i know its empty money but my families happiness means allot more to me then money, and the fact we can not afford everything.

And do we think about going bankrupt as we would have mortgage arrears, secured loan and DMP money in total i think its roughly 36'500 plus any short fall on the sale which i can imagine will be at least 15'000 min so is bankruptcy our best option, and if we did rent would the landlord not like the idea of a tenant going bankrupt even though we can pay the rent?

As you can see i am i much need of some advice, can any one help.

Sunnylooloo

Hi Whitey

Sorry to hear your situation, I can't offer you much advice as still very much in the learning stages and going through everything.

Have you taken advice from the usual charity debtlines (ie the National Debt Helpline or your local CAB office??)

I found both to give me really good sound advice, just think it might be a starting point.

As for your other questions I am sure someone with much more experience than me will be along soon to help.

Take care, and try to keep your chin up, just remember that you are not alone.

LL

skylight

Don't worry too much about a landlord. Most are more interested in tenants being good ones and paying the rent on time! Although, it may be better to be renting before any BR so that you have that proof you are a good tenant. Trying it after BR will see you fail the credit checks and you will need a guarantor or bond in place (six months rent upfront, that would be lost if the landlord went BR!!)

Me personally - I am well aware that there is far more to life than money. The kids being happy and relatively secure is my priority then as a Mum I get to come in second.

How does your OH feel about it all? Have you discussed all the options? Does he feel the same as you?


So. If you were both to go BR, the mortgage shortfall and any secured loans plus (most) unsecured debt will go into your BR pot and you will no longer be liable for them. Liabilities to the mortgage and secured loans end when the property is sold on, but most places don't chase in the meantime because A) you haven't passed on your new address and it's a waste of their time knowing you are BR and the place is repossessed.

There is the possibility of an IPA being in place - an Indivial Payment Agreement, where the OR works out your outgoings and if there is enough surplus, take 50% of that surplus to go towards the debts (for 36 months). So, arm yourself with facts etc. Get online and looking at rents in the areas you want to live. You DO NOT have to take the cheapest property in the naffest areas. (Likewise, Buckingham Palace is out of bounds too!) Check online with the councils the council tax for the areas and sort yourself out a complete SOA with your OHs new income level and no debts being paid out; make it reflect as if you were BR and renting. Just so you can see what you can do with your money. You do not have to skimp on anything to make it look good!

whitey31

thanks for that advice my partner is in total agreement with me IE us both going bankrupt and renting not a great security but we my partner and little boy will be happy, i am going to see CAB Monday to get some much needed advice but surely our only option is to go bankrupt.

I have worked out outgoings and in comings and can surely add outgoings such as holiday allowance and clothing which i normally cant afford just so they don't take my money that i do have spare, as i would like to treat my little boy occasionally to days out even something as simple as a magizine and some sweets, they wont get my spare money.

alfiesmum

Have you looked at schemes locally to help pay for bolier improvements? With a young child in the home, you should be eligble for a fair few of them hopefully.

I'm sorry I don't have advice on your present situation, only to say what a lucky son and husband you have. It clearly comes cross in your post that the absolute most important thing to you is the happiness of your family.

Everyone on here is so helpful and they will definitely tell you all the items you can add as outgoings like haircuts and everything else that you don't think of!

Good luck, it'll be a weight off your shoulders, so hoping you have a slightly less worrying weekend.

alfiesmum
xx

whitey31

thanks for that advice my partner is in total agreement with me IE us both going bankrupt and renting not a great security but we my partner and little boy will be happy, i am going to see CAB Monday to get some much needed advice but surely our only option is to go bankrupt.

I have worked out outgoings and in comings and can surely add outgoings such as holiday allowance and clothing which i normally cant afford just so they don't take my money that i do have spare, as i would like to treat my little boy occasionally to days out even something as simple as a magizine and some sweets, they wont get my spare money.

skylight

Yes - you can add clothing (£70 for the 3 of you) and a holiday fund (£45); but surprisingly you are not permitted an emergency fund.

Ensure that as you have to include child benefit as income on your forms, you also include specific child outgoings such as clubs/playgroup etc.