Stuck In A Rut - Interest Only / Secured Loan!

vwmadgirl

Ok not sure where to start will try and post what i can please ask any other questions or for other information i have left out as not to great at things like this.

My husband and myself have been in a plan with Payplan for the last 18 months which is hardly moving the amount we owe, i am a housewife stay at home mum to our 5 children we live on a tight budget, my husband works full time in a good job but we have lots of debt between us he owns a flat he has a interest only morgage(112k) on with a secured loan(about 25k left) from 1st (Robbing) Plus, he lives with me and our family in a rented council property and the flat has been either rented out or empty.

We really don't want the flat and would love to get rid of it somehow it is a right pain in the backside, we can't sell it as there would not be enough left after we sold it to pay off 1st plus, we have contacted them and they wont let us sell, we have even looked at going bankrupt but ideally wouldn't want to as would like to buy the council property at some point when we can, now the property he has the morgage and secured loan on is causing us lots of hassle things are starting to go wrong with it and need fixing we don't want this property and don't want to spend money we have not got on it either, if we could just hand the keys back we would or give it to a local passing tramp that is how much we hate the place!!

Is there anyway we can get rid of this flat without going bankrupt?

I never see us getting out of debt, or being able to loose the pain in our lifes which is this flat....

Any ideas anyone please?

Conrad

Bankcruptcy is a usefull way in which to start over. You wont get a mortgage anyway with a payplan and the other property and no doubt a few missed payments.

These payplans and IVA'S tend to extend the pain and solve little imo. Bankcruptcy is a once and for all start over plan and allows you to repair your credit rating much quicker as you can instantly get back on track without all the debt.

My own Brother did this and didn't loose his car or anything as these were for the use of family and working life.

Beware speaking to 'specialist' middlemen because THEY ONLY EARN MONEY FROM PAYPLANS AND IVA's, bankcruptcy earns them now't so they wont recommend it.

vwmadgirl

Thanks Conrad for your reply.

We have never missed a payment on the flat or house.

We did think about Bankruptcy i do see what you are saying with it being the quicker option too, if we went bankrupt in the next few months how long would they take a % of his wages, this would get rid of the morgage/flat and secured loan right?

I don't earn so i guess i would be discharged straight away? i do own a car Zafira GSI not in good nick though but do need a 7 seater being a big family.

If we choose to do this do we just stop paying payplan? Do they really get money out of the DMP's i thought they were a do it for free company but thinking about it i guess they have to be making money out of it somewhere.

How long do you think if we went bankrupt we could once again get a mortgage? As i said Hubby earns a good wage and if it wasn't from the massive amount of debt we have we would be in a great position, can they stop us from going bankrupt as he has a high wage and we have been paying into a plan for 18 months?

Thanks for your help

Thrugelmir

vwmadgirl wrote: »

How long do you think if we went bankrupt we could once again get a mortgage?

Expect to rent for a very long time.

So not a decision to be made lightly.

vwmadgirl

Thanks .... Yes it's something I don't really want to do but we feel like we have no option, our plan with Payplan still has 9 years to run so we would be renting for that time and any time added on our credit ratings which will take god knows how long to come off so I was suspecting e would be renting for a long time would it be longer than that?

Thanks for the reply