mortgage and unsecured loans.

jamesfeatherstone

hi
i am strugling with repayments of unsecured loans, however i have a joint mortgage. Can i apply for insolvency (freeze or eradicate the interest on the loans if poss, (its the interest thats the killer)) and not affect my home owner status.

help me and my long sufering wife (before she goes) please

james

GirlRacer_2

Hi James,

I found myself in a similar position a number of years ago. I entered into an IVA where all my unsecured lending was taken into account. It didn't affect my mortgage. In fact I've changed lenders since ending my IVA and had no problems there either. Don't know a lot about this, can only tell you about my exerience. I'm sure the more knowledgable DFW's will be along with some useful suggestions.

jamesfeatherstone

thank you for your help.
to clarify i have 2 loans total £15,000. approx 5.8 % (northern rock)
but over 10 yrs and with interest and payment protection, the repaymant total at year 10 will be about £22,000

am i able to reduce this in any way ??


james

CLAPTON

you need to post full details of your financial situation before advice can be given in your particular situation

An SOA Statement of Affairs

a. list of income
b. a detailed list of spending (include mortgage and secured debt but exclude unsecured debt)
c. a total of spending as above
d. now you can see how much you have to pay debt monthly by forming income minus spending
e. a list of unsecured debts
i.e. debt amount, minimum monthly debt repayment, APR
f. a total of unsecured debt and of monthly unsecured debt repayment
also say if you rent or buying , if so how much is the house worth and how much the mortgage, also your general situation: partner, children, working etc.

and by the way insolvency does mean that...

GirlRacer_2

Can't quite remeber what my debts totalled. But I can remember my payment to the IVA It was £247 per month (it may sound a lot but one onf my loans was £242 pm and I have lots of other 'little' things). Both my ex-husband and myself paid the same amount. Think the debts were around about £40K. From what I can remeber we have 2 £10K loans, Amex £2000, Lloyds OD £2500, Lombard Tricity £5,000, MBNA card £5000 just to name a few. Unfortunately my marriage broke down half way through the IVA. I was able to get the IVA searated. Fortunately for me my family helped me out and paid my half, however, my ex wasn't so lucky He ended up bankrupt!!!

What I will say though is make sure when you make out your Statement of needs that you include absolutely everything. The budget you follow is very tight and doesn't leave much leeway for 'emergencies'.

Best of Luck

jamesfeatherstone

many thanks for sharing this
james