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Terry_collins

Hello,

I have contacted my creditors in writing requesting the delay of my payments or giving me a payment holiday but they have so far refused. I have asked my mortgage lender to agree to delaying taking the payment in January till the end of the month in the hope that my MPPI claim would have been processed but the Jobcentre will not issue me with an ABI1 form yet.

My question is what can I now do? The national debt line have advised that Bankruptcy will be an option but I do not want to lose my family home. My debts are increasing as I have recently become unemployed and I am using the credit cards and overdraft to meet my day to day expenses due to my benefits payments being delayed so far by 3 weeks.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 926
Other income............................ 0
Total monthly income.................... 926

Monthly Expense Details
Mortgage................................ 1295
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 17
Mobile phone............................ 45
TV Licence.............................. 14
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 15
Petrol/diesel........................... 30
Road tax................................ 120
Car Insurance........................... 75
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 75
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 31
Other insurance......................... 65
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2094


Assets
Cash.................................... 0
House value (Gross)..................... 260000
Shares and bonds........................ 0
Car(s).................................. 700
Other assets............................ 0
Total Assets............................ 260700


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 249500...(1295).....6.19
Total secured & HP debts...... 249500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................12000.....283.......7.99
Credit Card....................3000......65........0
Overdraft......................500.......0.........0
Total unsecured debts..........15500.....348.......-


Monthly Budget Summary
Total monthly income.................... 926
Expenses (including HP & secured debts). 2,094
Available for debt repayments........... -1,168
Monthly UNsecured debt repayments....... 348
Amount short for making debt repayments. -1,516

Personal Balance Sheet Summary
Total assets (things you own)........... 260,700
Total HP & Secured debt................. -249,500
Total Unsecured debt.................... -15,500
Net Assets.............................. -4,300

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Terry_collins

Also to let you know once my claim is processed I will get £1094 a month but once the Jobcentre provide me with an ABI1 form. I have opened a new account and am getting my benefits to be paid into the new account. Will the jobcentre view the MPPI payment once i get it as Income as they do not pay direct to mortgage lender

dancingfairy

Sorry to hear things are so difficult for you at the moment. You need to try and get the benefits office to move things along - why is it taking so long? can you get any answers out of them?
Normally we would advise getting a basic bank account set up with a seperate bank to get benefits put into so the bank doesn' use them to pay off the overdraft/laoans/credit cards etc to give you a change to work out who should be paid what and in what order. The problem with this is that at the moment you are obviously still using the cards and overdraft to survive - which is reasonable enough. I think I would personally try and get a new bank account set up asap as a safety net aanyway and get the benefits paid in there and hope and pray that your current bank does not act quickly and pull your overdraft in the next few weeks before the benefits come through.
Stop paying the loan (I presume it's unsecured) as you can't afford it - it will have to wait until the benefits are sorted.
Don't rush into bankruptcy yet - I would seek to stabilise the situation first with the benefits and take it from there.
I wish I had some advice on how to get things moving with the benefits people - perhaps others can help with this - perhaps your local councillor/MP can put it a letter for you and push them to get moving along?
df

dancingfairy

Oh don't worry about your creditors refusing to take payment holidays - you simply can't afford to pay them so they will have to wait for now.
Your priorities are food, mortgage, - even if only pay a small amount towards it it shows willing and will help your cause - even 5 pounds- the same to gas and electric. Are you religious at all? most churches/mosques/ places of worship will help people with food I believe even if you are not necessarily religious - you can also try the salvation army etc to tide you over if you get desperate.
How much have your overdraft have you got left at the moment?
df

Terry_collins

Thanks for your reply new current account has been opened last week. The council tax are waiting for my p45 from my previous employer and JSA are waiting for a copy of my wifes passport despite me having provided several times to the jobcentre and via post. I have emailed my MP a few days ago so I am still waiting.I have £1000 of overdraft left to use shall I withdraw the cash as the unsecured loan is with them too?

dancingfairy

Me again - are you currenly getting any benefits? I'm confused as you have put 926 in the SOA or is this what you should be getting?
df

dancingfairy

can you chase up your old employer for your P45? It sounds like you are on the right track already with the new bank aco!!!!, emailing the MP etc.
Sorry about the job centre - it sounds like a nightmare.
Oh and if you need help with making food stretch the moneysaving oldstyle board are good at that.
df

Terry_collins

Benefits in soa is what I will be entitled too hopefully soon been waiting 3 weeks now. Is it wise to take out cash from overdraft now for living expenses?

dancingfairy

Gee that's a tough one - I guess if you believe they will recall the overdraft and you need the money then I would be tempted to take it just in case.- if you find your benefits come through and you don't need to rely on it then it can go towards starting to pay the debts off instead.
df

jintyb

Terry_collins wrote: »

Hello,


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 926
Other income............................ 0
Total monthly income.................... 926

Monthly Expense Details
Mortgage................................ 1295
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0 How come no amount for this?
Electricity............................. 60
Use comparison sites to see if this can be reduced
Gas..................................... 60
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 17
Mobile phone............................ 45
TV Licence.............................. 14 Its £12p.m. - every penny counts!
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 15
Petrol/diesel........................... 30
Road tax................................ 120 Per month??? Seems very high
Car Insurance........................... 75 This seems a lot for a car which is worth £700, maybe shop around for a better deal?
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 75 can this be reduced?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 31
Other insurance......................... 65
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2094


Assets
Cash.................................... 0
House value (Gross)..................... 260000
Shares and bonds........................ 0
Car(s).................................. 700
Other assets............................ 0
Total Assets............................ 260700


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 249500...(1295).....6.19
Total secured & HP debts...... 249500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................12000.....283.......7.99
Credit Card....................3000......65........0
Overdraft......................500.......0.........0
Total unsecured debts..........15500.....348.......-


Monthly Budget Summary
Total monthly income.................... 926
Expenses (including HP & secured debts). 2,094
Available for debt repayments........... -1,168
Monthly UNsecured debt repayments....... 348
Amount short for making debt repayments. -1,516

Personal Balance Sheet Summary
Total assets (things you own)........... 260,700
Total HP & Secured debt................. -249,500
Total Unsecured debt.................... -15,500
Net Assets.............................. -4,300

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

So sorry to hear of your predicament, have posted a few comments which I hope will help. It would be great if your mortgage lender would cut you a bit of slack just for a month to give you a little breathing space. HTH
I wish you the very best:)

Terry_collins

The council tax has not been put on their as I applied for council tax benefit. Road tax is £120 per year.

I think I will visit CAB again and get some advice but I don't want to lose my home and have had one job interview so far