In a crisis

mrpips69a

Hi - new member here. I need some advice if poss.

I currently owe 10.8K on one credit card and 2K on another. Both are now maxed out. Ihave a personal loan from my bank of 16K, which has just under 5 years left to run. I've now got to the point where I can no longer afford to make the payments from my monthly salary. I've not long moved in with my fiancee, who was unaware of this until yesterday, and has now ended the relationship. I am still living in the house, as I am a co-owner ( I bought out her ex's share and own 27% of the house.) I've asked the bank to see if they could refinance my PL, but they refused.

I do still have my name on a property that I bought with my ex wife, which we had agreed would be put in trust for our two children (ages 10 and 13). My worry is that if I have to enter into an IVF or suchlike, they will look at my ownership of my current property, which would force my ex-fiancee to sell the house and mean her and her daughter having to move out. Would forcing the sale of my co-owned ex-wife's property be the only solution? It's not my ex-fiancee's fault that she is now in this position and she should not have to suffer through my failings. Also, I would not have the funds available to start an IVF, as I believe they may be around 4K or so????

I'd appreciate any general advice on how to tackle my debt issues, as I am at my wits end. I've called one CC company today, but they were not too sympathetic and would not offer a "holiday" period.

rising_from_the_ashes

Hi Mrpips ... welcome to the boards - sorry to hear things are tough just now.

The best thing to start would be to post at Statement of Affairs http://www.makesenseofcards.com/soacalc.html with your income, outgoings & debts on.

This lets us see exactly "what's what" and we'll be able to offer some advice ....

Tixy

Hi and welcome

There ar 2 steps I would suggest. First completing a statement of affairs to show your income and expenditure and how much you have left for debt repayments compared to how much your payments are. We use this calculator - http://www.makesenseofcards.com/soacalc.html
You might want to consider posting the results on here so people can see your situation clearer and make suggestions on options available to you as well as perhaps suggestions as to how you could reduce outgoings to better afford the debt repayments.

Once you have done that I would consider speaking to one of the debt charities for some advice.
In terms of an IVA - this would have a big impact in terms of the equity in both properties, and on both your ex's credit ratings. (I don't think IVF would help with your debts ) . An IVA however doesn not have upfront fees that you fork out in a lump sum, you just pay the agreed monthly payment each month).
A DMP would not impact on the equity in the properties but would still impact on the credit files of anyone you hold joint debts/mortgages with. But the debt charities will be able to advise you on all the implications should you consider either of these options.

As both houses are jointly owned a forced sale order is not possible for debts that are in your sole name.

mrpips69a

Hi,

I've tried that - as a new user it won't let me!

I went through it anyway, but it is not straightforward, as my ex has made it quite clear that I must sort out my own debts without overtly harming her or her daughters welfare - rightly so.

Most of the bills come from my account, though a couple do come from hers. I only own 27% of this house, as she was already the owner with her ex husband for several years before I moved in and took over his share.

My key concern is that she would be forced to sell if I was being chased to pay my debts, but I think that has been answered already. Can I not be pursued for the 27% share I have for this house though? Could that not force a sale to realise its' asset? I've only been living here since August 2011, so it seems unfair to already own 27% in such a short space of time. When we made this arrangement, it was with the long-term view in mind.

Still panicking....

Thanks,

Many thanks,

rising_from_the_ashes

mrpips69a wrote: »

Hi,
I've tried that - as a new user it won't let me!

You can't post links but you can copy & paste the info:




Choose the "MSE" option and then just copy the text & paste into your post.

mrpips69a wrote: »

I went through it anyway, but it is not straightforward, as my ex has made it quite clear that I must sort out my own debts without overtly harming her or her daughters welfare - rightly so.

Yup, she is right but I'm afraid we really need to see the SOA to provide any useful advice as to how you can go about sorting it out ....

Tixy

If you just remove the bit at the very bottom of the statement of affairs - that contains a website address then you will be able to post it up.

No you couldn't be forced to sell the property, at worst if a creditor went for a CCJ and then a charging order what they would be granted would be a restriction - which is meant to ensure that when the house is eventually sold by the owners that the restriction is repaid out of your share of the equity.

In terms of if a creditor petitioned to make you bankrupt this could potentially be an issue with regards to the property but this is a very unlikely scenario to happen, especially if you are paying what you can afford towards your debts.

Not money saving related but do you really think that your relationship is over? it might just be the shock of her finding out about debts she didn't know about. Do you think that if you get some professional advice from a debt charity and come up with a plan to repay your debts and to minimise the impact on her and daughter that you may have a future together?
I hope that this might be a possibiltity for you.

mrpips69a

Thanks for that. Let's try this.....

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1760
Partners monthly income after tax....... 1000
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2760

Monthly Expense Details
Mortgage................................ 800
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 150
Electricity............................. 88
Gas..................................... 78
Oil..................................... 0
Water rates............................. 64
Telephone (land line)................... 0
Mobile phone............................ 21
TV Licence.............................. 14
Satellite/Cable TV...................... 65
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 25
Petrol/diesel........................... 150
Road tax................................ 25
Car Insurance........................... 75
Car maintenance (including MOT)......... 100
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 260
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 14
Contents insurance...................... 10
Life assurance ......................... 95
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 5
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2339


Assets
Cash.................................... 60
House value (Gross)..................... 275000
Shares and bonds........................ 0
Car(s).................................. 2250
Other assets............................ 2000
Total Assets............................ 279310


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(800)......3.04
Total secured & HP debts...... 150000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................10500.....340.......11.9
MBNA...........................2000......55........11.9
Total unsecured debts..........12500.....395.......-


Monthly Budget Summary
Total monthly income.................... 2,760
Expenses (including HP & secured debts). 2,339
Available for debt repayments........... 421
Monthly UNsecured debt repayments....... 395
Amount left after debt repayments....... 26

Personal Balance Sheet Summary
Total assets (things you own)........... 279,310
Total HP & Secured debt................. -150,000
Total Unsecured debt.................... -12,500
Net Assets.............................. 116,810

Thanks all. My ex is pretty clear that the trust has gone, and so that is the end. Which is fair enough All my own fault.

rising_from_the_ashes

Thanks Mrpips - few comments from me .....

Obviously things are a bit up in the air just now but I guess you and your ex need to sit down and work out a) is there a chance of reconciliation or b) if not, what do you do about the house ... obviously this could have an effect on the bills

Also - there may need to be some hard choices to make ie if your ex wants to keep Sky/cable, she may have to take on the full cost of it .....

mrpips69a wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1760
Partners monthly income after tax....... 1000
Benefits................................ 0 Should be some CB in here?
Other income............................ 0 Any maintenance?
Total monthly income.................... 2760

Monthly Expense Details
Mortgage................................ 800
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 150
Electricity............................. 88 This is really high - check readings/bills are accurate, consumption and comparison sites
Gas..................................... 78 As above
Oil..................................... 0
Water rates............................. 64 Again quite high - could you get a water meter?
Telephone (land line)................... 0
Mobile phone............................ 21
TV Licence.............................. 14
Satellite/Cable TV...................... 65 Sorry but not an essential - cut to basic package (£21) or even better get rid & use FreeView
Internet Services....................... 0
Groceries etc. ......................... 120 Seems quite low for 3?
Clothing................................ 25
Petrol/diesel........................... 150
Road tax................................ 25
Car Insurance........................... 75 Ouch! Check comparison sites at renewal time
Car maintenance (including MOT)......... 100:eek: Every month? Sorry but this is huge! Are there any alternatives to get to work?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 260 Is this covered by CB/Maintenance?
Medical (prescriptions, dentist etc).... 0 Need something in here - even £5
Pet insurance/vet bills................. 0
Buildings insurance..................... 14 Check comparison sites at renewal
Contents insurance...................... 10 As above
Life assurance ......................... 95:eek: This is really high - try the Insurances board for advice as I'm sure you'll be able to cut this down a lot by just having cover for what you def need
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 Cut to £20
Haircuts................................ 5
Entertainment........................... 150 Sorry needs to go - cut to max of £50
Holiday................................. 0
Emergency fund.......................... 0 Need something in here to cover house repairs/appliances etc - ideally around £50
Total monthly expenses.................. 2339


Assets
Cash.................................... 60
House value (Gross)..................... 275000
Shares and bonds........................ 0
Car(s).................................. 2250
Other assets............................ 2000 Could you sell?
Total Assets............................ 279310


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(800)......3.04
Total secured & HP debts...... 150000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................10500.....340.......11.9
MBNA...........................2000......55........11.9
Total unsecured debts..........12500.....395.......-


Monthly Budget Summary
Total monthly income.................... 2,760
Expenses (including HP & secured debts). 2,339
Available for debt repayments........... 421
Monthly UNsecured debt repayments....... 395
Amount left after debt repayments....... 26

Personal Balance Sheet Summary
Total assets (things you own)........... 279,310
Total HP & Secured debt................. -150,000
Total Unsecured debt.................... -12,500
Net Assets.............................. 116,810

Thanks all. My ex is pretty clear that the trust has gone, and so that is the end. Which is fair enough All my own fault.

Not sure what size the house is (?) - but as a comparison for gas and elec, I pay £34 for Gas and £30 for Elec.... this is pretty much bang on (small underspend over the year but only a little which usually covers price rises) & I have a 3 bed semi

Same with House Insurance - I pay £15/month for both in total.

There are a couple of suggested cuts - car maintenance, entertainment, sky/cable etc but I'm not sure how you will be splitting costs if you've now technically split (?) eg you shouldn't be paying the childcare costs of £260 and if your ex wants to keep sky/cable she'll need to pay for it etc which may free up a bit more money for you to help?

pleasedelete

Is the £800 27per cent of the mortgage?

mrpips69a

Hi all,

Another question!

I jointly own a property with my ex wife. It is currently rented out to private tenants. We always planned to put the house in trust for our two children as a way of providing for university fees etc. We bought the house with the proceeds of the sale of our first house approximately 10 years ago. Our first house was funded totally be me, as my wife was not working at the time.

Since me and my wife separated over 8 years ago, I have not contributed to the house, or taken any profit made from the rental income. Since I am now in dire need of funds to clear my debts, can I force the sale of the house? I've asked her about it but she flatly refused. Can I legally force this to happen?

whitewing

Be a little careful that you are not trying so hard to sort things out that you rush into bad decisions and start (continue) upsetting everyone around you. You will get some good advice on here so try to give it a couple of days to let the thread run. Think of things to ask here of course, but try not to mention radical solutions until you are clear about how you want to proceed. Your ex-w and ex-f will of course need and want to protect themselves. Be honest too with yourself, are you thinking that if you sort things out then you will get back with your ex-f? You need to sort it out for yourself and not hang other consequences that you have no control over on it.

Good luck with it all.