Help & Advice - Mortgage Shortfall

Ineedaname

Unfortunately I'd say paying off his debt should be his first priority. It's not enough to make an offer in full and final settlement, but a deal may be possible whereby he pays this lump sum and they reduce the total debt by a larger amount on the condition he pays a regular monthly amount until it's all paid off.

Worth a try on the basis that if the mortgage company sell the debt on they'll seel at a loss anyway.

AuntyJean

Still waiting for response to first letter asking how debt has been calculated. Just a thought but why did mortgage company allow OH to increase mortgage to £101k for a house worth less than £85k? It would seem he topped up the mortgage in 2007 by £29K

silvercar

AuntyJean wrote: »

Still waiting for response to first letter asking how debt has been calculated. Just a thought but why did mortgage company allow OH to increase mortgage to £101k for a house worth less than £85k? It would seem he topped up the mortgage in 2007 by £29K

In 2007 valuations were higher and lending was more relaxed.

AuntyJean

Have downloaded the PBS from National Debtline but need help.

OH has the debt in his and his ex wifes name only.

PBS asks for partners salary. As he lives with me do I have to declare my salary? Presumably this is net? His pension is taken at source, does he have to add this into his salary then show it separately as outgoings?

Also, are the Outgoings for him (i.e. 50%) or joint? I have mortgage payments of £220 pm but he has none.
Would it be preferential to show contributions towards utility bills, food ect. as rent or do I show contributions and rent?

He needs new glasses soon, how do I account for odd, one off projected payments?

AuntyJean

I tried to search threads for this company but the search engine separates the words and quotes or + don't work so forgive me if this has been asked before.

Have had a response from the solicitors acting for Morgan Stanley with answers to all the questions suggested in the template letter from National Debtline. Rang ND again to ask what we do next and was basically told it was up to us!

Tried filling in the personal budget sheet but not sure I was doing it right. Was also concerned about Beneficial Interest so started searching the web and found

http://bankruptcy.org.uk/archives/item/3905-do-i-need-to-worry-about-beneficial-interest

Rang the freephone number for advice and they gave options and said they could sort out all the paperwork for bankruptcy for us for a one off fee of £350 (+£700 to go bankrupt).

We are seriously considering using them as they are obviously experienced in this field and suggested OH would end up having to make a monthly payment circa £200 whereas I thought he would have to pay the balance after all expenses leaving him with nothing. They also said this would end after three years whereas ND suggested he would have to pay all his working life if needs be.

I am always wary of using companies that charge so before he 'signs up' so to speak I would ask if anyone has any comments or has used such companies?

fermi

Not worth paying a penny for such firms. Utter and complete waste.

There is nothing they can do that you can't get for free and/or with help of the people here.

An IPA would be for 3 years.

They can't say what any such IPA would be, or say it won't be more than £xxx. If they are then they are misleading you.

An IPA would be all surplus income of your OH for 3 years.

tigerfeet2006

DON'T USE ANY COMPANY THAT WILL CHARGE YOU FOR THEY'RE SERVICES!

Sorry to shout but it is a waste of money and they are preying on the venerable. They can't do anything for you. You have to get all the paperwork together, you have to go to court and deal with all that, you have to talk to the OR. If you haven't filled the paperwork in how can you understand it if you haven't filled it in and the OR is asking you questions. And I have seen some very dodgy advice from the firm you linked to.

The forms are straight forward and anything you get stuck on then ask NDL and post on the board, there are enough people on here who have done the forms to give you an answer.

If you fill out the SoA template we use, then some one will show you how a OR may look at it. You need to put the joint household bills down and his personal bills down ie: travel, clothes, haircuts etc. Then put his full income down and the amount you contribute to the joint household bills. The OR will just want to see that you pay a fair share of the bills.
http://www.makesenseofcards.com/soacalc.html

If he gets an IPA then it will last for 3 years from the first payment.

I will reiterate....

DO NOT PAY ANYONE TO DO THIS FOR YOU.

AuntyJean

We did consult NDL but they did not give any advice on filling in the forms apart from their PDF's. This company says they would not say on the forms he pays half of any of the household bills and just go for contribution towards housekeeping ........

I did post here asking for help but no-one is responding......

They took all the details of his income etc over the phone as a guideline.

AuntyJean

fermi wrote: »

An IPA would be all surplus income of your OH for 3 years.

But how do you arrive at surplus income?

fermi

AuntyJean wrote: »

But how do you arrive at surplus income?

Basically looking at income and expenditure and assessing whether there is any surplus left.

Expenditure should be allowed to the extent that it allows you to meet your "reasonable domestic needs".

Usually that is more generous than you might see allowed for an IVA or DMP.

Can get a bit involved, but have a look at the IPA links in the main sticky.

https://forums.moneysavingexpert.com/discussion/1056083

As said, probably the quickest way to get an idea is to post an SOA thread for opinions.