So confused what Debt Action to take

lucmand

Hi newbie here,

I have learnt a very hard lesson to only support myself and son and not a partner or friends (sounds awful i know).

My history

I split from my ex (I was the main breadwinner) in 2007 we had a joint mortgage and a 7 month old I also loaned him 7k to pay off his debts at this time I only had my student loan debt. To cut a long story short my ex has refused to pay me back the loan, pay CSA (although now he is PAYE so they can take from source) and refused (used sols and so on) to pay any of the mortgage or to pay towards selling the property. The mortgage is a NR Together mortgage and is 105% so selling after the bust in 2007 was near impossible.

I am at the point of where I want my life back. I have never been in debt b4 and it scares me how the debt has accumalated especially with a child.

The options after SOA

My mortgage is joint and SVR and I am worried what will happen in the next few years with regards to interest rates. The house is now worth £175k what we bought it for but would not cover the additional 5%. The Together mortgage is 160,820.83 secured and 25,736.68 unsecured = £186,557.51.

I saw the CAB last year they said to file for bankrupcy
I have spoken to CCCS recently they have said to try a DMP but this would mean paying £253 per month to creditors and the plan is based over 18yrs!!!! I don't see my situation changing unless I win the lottery and I see DMP as a short time method i.e. 5-6 yrs but they seem to force this.

IVA option but based on SOA is this possible?

My concern NR how are they with regards to including the unsecured part in a DMP or IVA? IVA CCCS warns against due to retsrictions.

Other option my black horse loan will complete in 3 years my Nr in 5 years my main debts do I just keep going??

Statement of Affairs


Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1702.93
Benefits................................ 388
Other income............................ 176
Total monthly income.................... 2266.93

Monthly Expense Details
Mortgage................................ 635
Council tax............................. 72
Electricity............................. 38
Gas..................................... 38
Water rates............................. 31
Telephone (land line)................... 15
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 10
Groceries etc. ......................... 247
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 20
Car Insurance........................... 47
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 56
Childcare/nursery....................... 540
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 0
Buildings insurance..................... 7
Contents insurance...................... 7
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 2017

Assets
Cash.................................... 0
House value (Gross)..................... 175000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 179000

Secured & HP Debt
Description....................Debt......Monthly...APR
Mortgage...................... 160820...(635)......
Total secured & HP debts...... 160820....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
NR Together mortgage...........25736.....140.......
blackhorse loan................5082......163.......0
First direct loan..............16495.....266.......0
Student Loan...................5152......0.........0
Virgin CC......................4539......35........0
Bank overdraft.................2000......0.........0
Total unsecured debts..........59004.....604.......-

Monthly Budget Summary
Total monthly income.................... 2,266.93
Expenses (including HP & secured debts). 2,017
Available for debt repayments........... 249.93
Monthly UNsecured debt repayments....... 604
Amount short for making debt repayments. -354.07

RAS

Hi

Your rather sad tale is all too common.

Re your options, has your solicitor talked to you about going to court to force a sale?

Were you married, as this would give you more leverage when the financial settlement was sorted out?

I am going to put a few very basic point up. Please take them or leave them.

I would suggest going over to the BR forum and asking people there who have had NR Together mortages how things went when they went BR.

Also how much would it cost to rent a similiar property?

dancingfairy

One of the problems at the moment as I see it is the fact that your mortgage is joint - you need to look at what happens to the mortgage if you go bankrupt - I'm just concerned that you're paying the mortgage yet your ex may try to get money when (if you) sell, the other thing is if you went bankrupt presumably your ex could buy beneficial interest in your share but then if he refused to pay the mortgage you could potentially leave yourself open to the house being taken. I'm not 100% sure on this so the best place to ask would be the bankruptcy board with regards to this.
The thing is you can't really keep going as you are - I know you said one of the loans will be paid off in 3 years but currently you are ovespending by 354 pounds a month.
I don't know anything about IVA's apart from the fact that they are usually suitable if you have equity to protect (which you don't).
Bankruptcy would look to be the most sensible option as far as I can see but regards to how NR would deal with the secured and unsecured part of the mortgage and questions about how the whole house thing works in bankruptcy I would check out the bankruptcy board.
Good Luck with it all.
df

RAS

lucmand wrote: »

Other option my black horse loan will complete in 3 years my Nr in 5 years my main debts do I just keep going??

How much is actually outstanding on these loans, rahter than the full amount first borrowed?

Statement of Affairs


Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1702.93
Benefits................................ 388
Other income............................ 176
Total monthly income.................... 2266.93

Monthly Expense Details
Mortgage................................ 635
Council tax............................. 72
Electricity............................. 38
Gas..................................... 38
Water rates............................. 31
Telephone (land line)................... 15
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 20 - you could get rid of this?
Internet Services....................... 10
Groceries etc. ......................... 247 - this could be reduce, subtantially if necessary
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 20
Car Insurance........................... 47 - quite high, do a comparison and look at a cashback web-site to switch.
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 56
Childcare/nursery....................... 540
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 0
Buildings insurance..................... 7
Contents insurance...................... 7
Life assurance ......................... 0 - you need this, urgently
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 2017

Assets
Cash.................................... 0
House value (Gross)..................... 175000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 179000

Secured & HP Debt
Description....................Debt......Monthly...APR
Mortgage...................... 160820...(635)......
Total secured & HP debts...... 160820....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
NR Together mortgage...........25736.....140....... - finishes in 5 years
blackhorse loan................5082......163.......0 finished in 3 years
First direct loan..............16495.....266.......0
Student Loan...................5152......0.........0
Virgin CC......................4539......35........0
Bank overdraft.................2000......0.........0
Total unsecured debts..........59004.....604.......-

Monthly Budget Summary
Total monthly income.................... 2,266.93
Expenses (including HP & secured debts). 2,017
Available for debt repayments........... 249.93
Monthly UNsecured debt repayments....... 604
Amount short for making debt repayments. -354.07

Could you consider getting a lodger, if you have room, not ideal but ythe income is tax free?

Anything knocking arond the house that you no longer use? Sell it and pay off the most expensive card or OD.

Join www.freegle.co.uk for clothes, toys, household goods.