Probably as bad as you will see :(

amyloofoo

ETHEL33 wrote: »

I feel at ease reading your replies thank you so much - I have spent months reading posts and kept putting it off as we were treading water but I know we are sinking fast now! I will be ending my contract for my phone in July I have called up about this and I will ask my hubby to reduce the virgin bill to the lowest he possibly can I may amend my SOA as I do need to look at those costs you have mentioned as they will come up. I have already been selling books and CD's and have worked previously as a mystery shopper doing questionnaires but the work is quiet at the moment but I will def keep an eye on all assignments. Come September my kiddies will both be at school full time which will enable me to maybe get a 2nd job but I may then have tax credits reduced or ended so need to look into this one. I'm the one who is panicking my hubby keeps telling me we are good people and we have been ok in the past and we will be ok now but it is seriously effecting my health with terrible headaches, stress rashes, nightmares and never being off my mind for longer than 5 minutes . Will call CCCS this week and will keep you all posted. Bizzarly I managed sister in law through bancruptcy 2yrs ago from start to finish and even managed to help her save her house but none of the family know the mess we ar in I am too ashamed to say anything. Thank you all for listening x

Congratulations for taking hold of your situation and starting to get it under control. I know it must feel terrifying, but this is definitely something you will be able to handle with support and some good advice from the lovely posters on here :grouphug: I am fairly new here but have been so inspired and supported by the others on these threads that I'm sure with their help you will be able to achieve what feels at the moment to be impossible. Also I'm sure CCCS will be able to help and make things feel a lot more manageable.

You say that you're too embarrassed to talk to family about this situation. Obviously that's your choice, but you may be missing out on another source of help and support (especially if your SIL has previously had financial problems) and they probably wouldn't be as judgemental as you think - almost everyone experiences financial difficulties at some point in their life and I'm sure that they'll appreciate you trying to manage the situation.

Kiddies being at school shouldn't affect child tax credits and considering your income I wouldn't have thought (unless your second job is as a stockbroker) that your working tax credits should be too adversely affected either - you may even be better off as there is a bonus allowance if you both work over 30 hours (less if one of you, or your children, is disabled) :j

Have you checked if you may be eligible for some housing benefit / council tax benefit to help you out in the short term? Depending on where you live you may still be eligible, even with both of you earning. Also make sure your kids are getting any free school meals / uniform allowance they're entitled to.

Gimpsdad

I have to say, I see no reason for you NOT to go bankrupt. It is a fresh start, you run very little risk with the property if it is in such high levels of negative equity, and your I&E indicates that you would almost certainly not have to pay any contributions towards an IPO/IPA.

A DMP may be an idea as a temporary fix but it isn't a long term solution in this case with the info you have given.

exarmydreamer

Hi, I read that your husband has reduced his hours due to illness. Depending on his condition, he may be eligible for Disability Living Allowance, he can receive this whilst working and it is there for extra costs of being disabled. You can apply by phoning the DWP.

Do you have an extra room in your house, this could be rented out, especially if your children could share a room. There is a tax free allowance for a rent a room scheme, which can be full time or monday to friday renter's. My next door neighbour has turned her lounge into a bedroom for a foreign student and she has another in her spare room. They are only there for a few weeks and then they change for new students, so she can decide if she want's a break from having people there.

I hope you find what will work for you, good luck.

mrsb83_2

Gimpsdad wrote: »

I have to say, I see no reason for you NOT to go bankrupt. It is a fresh start, you run very little risk with the property if it is in such high levels of negative equity, and your I&E indicates that you would almost certainly not have to pay any contributions towards an IPO/IPA.

A DMP may be an idea as a temporary fix but it isn't a long term solution in this case with the info you have given.

I do agree with this. Sometimes it's the best option.

Whilst it's great that you're working on making day to day savings, you're looking at an extremely long haul to get everything paid off. IMO there needs to be a very compelling reason to enter into a DMP for longer than 6 years.

I hope that CCCS can help.

endora

ETHEL33 wrote: »

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 103714...(547)......0
Secured Debt.................. 52000....(497)......0
Total secured & HP debts...... 155714....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
NR-TOGETHER MTGE LOAN..........18935.....99........0
NATWEST........................15900.....378.......0
CAPITAL ONE....................5000......184.......0
NATWEST OD.....................300.......12........0
BARCLAYS OD....................1550......24........0
ARGOS..........................1500......50........0
NEXT...........................709.......67........0
Total unsecured debts..........43894.....814.......-

Surely the Northern Rock together loan is a secured debt, isn't it linked to your mortgage?

ETHEL33

Hello everyone, well the update for today is I called CCCS and spent over an hour talking to them and discussing the whole story. The solution at present is a temporary payment arrangement for all the unsecured debt - offer a payment of £1 and also ask that interest rates and charges are frozen. CCCS told me exactly what to expect with default notices, demanding letters and calls and the possibility the debt may get sold off. I cannot do a DMP at present due to the free income I would need this to be approx £400 per mth and an IVA was discussed briefly at £225 per mth but these will be discussed when the free income is available. I have also called up regarding term time jobs with more hours that I am doing and completed my tax credits claim form. CCCS have sent over all the details from the call and I just need to get the ball rolling now - I do have enough to cover this months payments with savings but they said to set up a new Co-Op bank account and switch DD and wages and benefits over and then set up a standing order for £1 per month. Hubby calling virgin and I am also contacting financial ombudsman regarding secured loan and the interest rates - need to dig out the paperwork. Feeling glad that I have started dealing with things nervous at the prospect of defaults and my worst nightmare would be someone banging the door down Feel I would prefer a DMP to an IVA for the long term effect and risk to the house with an IVA. Thank you for following the post and all your support and advice.

ETHEL33

endora wrote: »

Surely the Northern Rock together loan is a secured debt, isn't it linked to your mortgage?

There is an unsecured element with NR it is known as their together mortgage.

thatsean

Well done! It's a long road but you'll get there. Don't forget you'll have really bad days (like i did yesterday and came on here in a huff!), but there's always someone on here who will be able to give you some perspective.

Gimpsdad

ETHEL33

FOR GODS SAKE TAKE SOME ADVICE FROM SOMEONE WHO IS NOT DEPENDENT ON THEIR INCOME FROM CREDITORS!!

I cannot stress enough that you have 3 options. What you choose to do is up to you, but do remember that you have a family and have no duty in law to act in your creditors best interests, despite others telling you that you do.

Option 1. DMP through CCCS. Apparently, this will be £400 per month even though you have no hope of paying it. This is because CCCS believe that you should live on nothing in order to pay the debts back as quickly as possible. [text removed by MSE Forum Team]

Option 2. IVA. £200 max per month (according to your SOA you can afford it. You can't but if you are willing to try then fair play to you). As NR are your main creditor then you will be subject to a 6 yr IVA.

3.BR. You are in massive negative equity, and your SOA indicates that you will not pay an IPO/IPA.

I stress again that you have 3 options. DMP which is pants, IVA which is better but still not the best and BR which means that CCCS will not get any commission and greedy creditors will get sod all. Given that this is a money saving forum, do what is right for you [text removed by MSE Forum Team]

Gimpsdad

PS, you won't lose your house in BR or IVA given what you have said.

You may lose it in a DMP though as if you try to pay what you can't afford then you run the risk of prioritising CCCS above your mortgage.