Will we lose our home?

poormummy_3

My mental health issues are not up for discussion on this thread - I am receiving treatment and will get a job again as and when I am well enough - regardless of what other people have done to recover from their illness and regardless of what other people think about people being on benefits. I have not gone into details of the state of my mental health, so although some may feel it is good advice to tell me to get a job, you do not know my situation and I have said I am not well enough at the moment.

We have done absolutely nothing to defraud the benefit system - and as we do not currently have jobs, we need to receive benefits to feed ourselves and our son and prevent us becoming homeless. If people get annoyed by others being on benefits, then read a different thread.

The only thing we have 'done wrong' is to both be made redundant and for me to be too ill to work.

I am trying to 'deal with my issues' by getting some advice as to the best way forward so my family do not become homeless, and was using the online benefits checker as per the advice given previously on the thread to see how to get out of my situation - not to find out how to 'fleece the state'.

I shouldn't have to explain or defend myself - I came on here for some financial advice not for a complete character assassination and for strangers to judge me have opinions based on very little information.

I have been trying to find a way forward that is best for my family - as everybody else would too. I cannot see how my OH getting a low paid job will help our situation - we will still get the house repossessed as we wouldn't be able to afford to pay the mortgage.

As it stands, in 8 weeks time, we will be in 6 months mortgage arrears and so the bank will start legal proceedings. I cannot see that I will be well enough to work in the next 8 weeks or that my OH will be able to get a job to earn enough money to cover our outgoings.

So without any knowledge of these legal proceedings or what will actually happen, I do not know how best to deal with the situation - whether to look into going bankrupt, sell and rent, or wait to be eligible for the mortgage rescue scheme.

sleepless_saver

jinky67 wrote: »

of course you could, you would then get HB

Using capital to pay off non priority debts in full is not a good idea. For HB purposes they could well be treated as if they still had the money, as they would have chosen to pay back more than the minimum required instead of using the money for living expenses.

Jowo_2

sleepless_saver wrote: »

Using capital to pay off non priority debts in full is not a good idea. For HB purposes they could well be treated as if they still had the money, as they would have chosen to pay back more than the minimum required instead of using the money for living expenses.

I have never seen the term - 'non priority debts' - used in any of the HMRC and DWP guidance relating to deprivation of capital.

There's definately a reference to something along the lines of 'early repayment of loans where there is no legal requirement to do so' as a potential factor in DoC among the guidance.

I don't specifically know what is acceptable/not acceptable in terms of debt repayment by those on benefits but the term 'non priority debts' seems to be used as a general debt management term to help those in debt determine the important debts to repay, and this is nothing to do with Deprivation of Capital rules.

It's a complex area, though, but I still think you've conflated debt management good practice with DoC rules.

meercatsunited

I was in exactly your position many years ago and what cured me was medication, good gp help, and then a job.

I was highly qualified but took a low level position as a temporary measure and it just felt so good to be out there, it gave me the motivation for something better.

The house that was the home we raised our children was sold in the 90's recession. we walked away with insufficient to buy another property but the relief was indescribable.

we used that money to start a business that we would never have thought of if all the above had not happened, often things happen for a reason and when one door closes another opens.

its easy to say pull your socks up but very difficult to do when in your situation. I do agree with others who have said find a job because it will save your sanity, do anything, clean houses, do bar work just to get yourself out there with people, you will have less time to think of the problems you face.

A relative was made redundant 3 months ago and is applying for all types of jobs daily and at much less than they were on before just to get out of the benefits rut.

magicstrawberry

To the OP,

I am genuinely very sorry for your predicament and I really do hope that everything gets sorted out in the end. I'm posting because in one of your earlyer posts you state that "the whole financial mess and insecurity triggered the depression".

I think that people might seem like they are being hostile because your first view is to try and fix the problem with benefits and then further going on to say about claiming DLA and carers for your husband hit hard because the 'impression' given is that you want DLA/ carers for extra money not because its essential. Do you have care/ mobility needs? if you do by all means apply but just be aware the way something is typed on a forum does not necessarily come across as well as it could do in real life. Also are you aware that claiming these benefits may not be the stress free solution you wish it to be? long forms, appeals etc i dont think many people have a hassle free claim.

Good luck

Magic

sleepless_saver

Jowo wrote: »

It's a complex area, though, but I still think you've conflated debt management good practice with DoC rules.

Yes, I probably have, thanks for pointing this out.

Point I was trying to make is that using profit from house sale to pay off debts in full and then trying to claim HB, which another poster had suggested doing, is likely to cause problems.

silvercar

So without any knowledge of these legal proceedings or what will actually happen, I do not know how best to deal with the situation - whether to look into going bankrupt, sell and rent, or wait to be eligible for the mortgage rescue scheme.

I don't see how going bankrupt will help. Your mortgage would not be part of the bankruptcy, so you would still have that debt. Given that I assume you are prioritising the mortgage over other debts, all bankruptcy would do would be to get rid of the other debts - it wouldn't pay your mortgage and that is what you are struggling with.

Selling and renting is an option IF the rent would be less than the mortgage. Though selling property takes time and you don't seem to have time to sort yourself out with already 6 months arrears.

Waiting for the mortgage rescue scheme is an option if the lender will be happy with the arrears before the scheme kicks in and if the SMI (support for Mortgage interest) will give you enough to make your mortgage repayments. If it won't then the arrears will get worse and it won't be long before the lender is taking you to court for a repossession hearing.

Another option (and you would need to consider this carefully) is to accept that the lender will repossess and stop paying the mortgage and save for a rental deposit and first months rent. If you can move into rented then the lender will repo and sell the home. If the sale price doesn't cover the mortgage then you can consider how to deal with that later, when bankruptcy may be an option.

For the moment I would consider whether you can afford to stay in your home or not and plan accordingly. From what you say, you are unlikely to have much of an increase in income in the near future so you now need to make a decision on your home.

Oldernotwiser

poormummy wrote: »

My mental health issues are not up for discussion on this thread - I am receiving treatment and will get a job again as and when I am well enough - regardless of what other people have done to recover from their illness and regardless of what other people think about people being on benefits. I have not gone into details of the state of my mental health, so although some may feel it is good advice to tell me to get a job, you do not know my situation and I have said I am not well enough at the moment.

From a benefits point of view, whether or not you feel you are "not well enough" to work is totally irrelevant, as is the opinion of your GP and specialist.

You have received sensible, practical advice on here, including from others who have been in your situation. If people don't have enough information to go on, that's because you haven't given enough.

FBaby

My mental health issues are not up for discussion on this thread -

I agree it isn't right for people who don't know you to comment on your mental health and whether you are able or not to work.

The only thing we have 'done wrong' is to both be made redundant and for me to be too ill to work..

You and your partner have done nothing wrong, but losing one's home is not about punishment for having done wrong.

I am trying to 'deal with my issues' by getting some advice as to the best way forward so my family do not become homeless, and was using the online benefits checker as per the advice given previously on the thread to see how to get out of my situation - not to find out how to 'fleece the state'.

You would not be made homeless, you might just not being able to keep your home.

I have been trying to find a way forward that is best for my family - as everybody else would too. I cannot see how my OH getting a low paid job will help our situation - we will still get the house repossessed as we wouldn't be able to afford to pay the mortgage.

I don't think most people here think badly of you or that you are a lazy benefits scrunger, however, you seem to think that you are entitle to keep your house without working because it is not your fault if you can't work. As I said above, it doesn't work this way.. You work, you get to be a home owner. You then have the choice to take on protection if something happens and you can't work any longer. You don't take that protection, you can't go back to work, you can't remain owner of a home.

So without any knowledge of these legal proceedings or what will actually happen, I do not know how best to deal with the situation - whether to look into going bankrupt, sell and rent, or wait to be eligible for the mortgage rescue scheme.

Your priority is to get better, for yourself, for your partner and your children. Nothing is more important than health and family, so look after yourself. That means that your best way foward is indeed to sell and rent until you can go back to the person you were before. As someone said a few pages back, you can still get back on the market and own your home one day. Renting is not the end of the world. Many people faces setbacks through no faults of them but it doesn't mean that the it is the start of the end, more the opposite, it is often those hard times that bring you closer to those you love, make you realise what is important and make you a stronger person.

catfish50

poormummy wrote: »

Unfortunately I suffer from severe depression so am unable to work, so my partner has to do the childcare when I'm not in a fit state. Also, his industry hasn't picked up from the recession and there are no jobs in his field. So really JSA isn't the right benefit for us to be on, I think I should be on ESA, but don't know how this would affect the mortgage interest benefit payments, so we haven't switched.

Going back to work can be really helpful for severe depression. It gives you something to get up for and takes your mind off your anxieties.