32k Debt Looking for a bit of advice

jonsyt

Ok so a a while ago my home got repossessed because i was made redundent and couldnt keep upmortgage payments .

The mortgage company went on to sell the house at less than half what we paid for it 18 months earlier and its left us with a debt of 32k.

Was wondering what i can do about this debt , I dont want to go bankrupt was wondering what other options are available for a debt this size .

happy_bunny_2

Hi,

If you post an SOA, people will advise. See the sticky post at the top of the forum.

HB

NeverAgain_2

Posting an SOA is a good start:

http://www.makesenseofcards.com/soacalc.html

Having said that, unless you have hundreds spare each month, repaying £32K is going to take some doing.

You may have to reconsider your views on bankruptcy.

fatbelly

When they approach you for repayment, send letter M1 in this factsheet

Factsheet | Mortgage Shortfalls

From the factsheet:

Can I dispute the amount being claimed?

Building societies have an obligation to find the ‘best price which can be reasonably obtained’ whilst banks have a ‘duty of care’ to a borrower. From 31 October 2004 the FSA Mortgage: Conduct of Business rules say that all lenders must obtain the ‘best price that might reasonably be paid’. It is possible to dispute the amount being claimed by the mortgage lender in some cases. You have six years from the date of sale to make a claim against the lender. You will need proof to support any case, such as valuations for your house at the time.
•If you can show that the house was sold for substantially below the proper market price taking into account the market conditions at the time of sale.
•If the house was not marketed sufficiently to obtain a good price.
•If you arranged a sale which was refused by the lender, but after repossession the house was sold by the lender for a much lower price.
•If the house stood empty for a very long time you may be able to argue that the mortgage company should have rented it out and therefore off set possible rental income against the shortfall balance.
•If the lender decides to leave the house empty and not sell it either, then you may have an argument for asking the court to order a sale.
•Check who bought the property. Your lender should not have sold it to a related company.
Advice
If you feel any of these examples apply to you, phone us for advice. 0808 808 4000

I think if the mortgage lender ever took court action for the 31k shortfall that you may have grounds for a counterclaim. Until that is sorted out you only have 4k of debt, and surplus income accoding to your soa. I think bankruptcy would be premature but I understand that you might want to go for it.

jonsyt

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1196
Partners monthly income after tax....... 280
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1476

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 320
Management charge (leasehold property).. 0
Council tax............................. 81
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 20
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 10
Car Insurance........................... 258
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1124


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 1,476
Expenses (including HP & secured debts). 1,124
Available for debt repayments........... 352
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 352

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 500

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

tigerfeet2006

Is that a typo on your car insurance? Is it really £254 a month?

shadydaz

tigerfeet2006 wrote: »

Is that a typo on your car insurance? Is it really £254 a month?

Was that a typo? I am sure it says £258

shadydaz

Even at £200 a month your looking at 15 years or something fella. Goods luck. Determination will win through in the end.

DS4215

It might be worth contacting CCCS or one of the other debt charities to discuss your situation. There might be options other than a 15 year repayment or bankruptcy that are more suitable for you. It might also be that with your level of debt and assets that bankruptcy may be the best option for you.

tigerfeet2006

shadydaz wrote: »

Was that a typo? I am sure it says £258

It does . That'll teach me to multitask in the early morning.

Note to self: trying to get 3 kids ready for school, do lunch boxes and get myself ready and try and read and respond to posts on MSE does not go.

BTW Jonsyt, you have responses to your other post
https://forums.moneysavingexpert.com/discussion/3646299