Should I or shouldn't I, advice please

chihuahua_mommy

Hi All

I live with my Mom as her full time carer so we are both just on benefits. I used to have a good job and during that time we lived UP to our income, when I was made redundant (a couple of times in 1 yr) I had no option other than to make arrangements with my creditors to pay them £1 a month, this was no where near the full payments but actually more than I could actually afford. Then my Mom took a turn for the worst and so I am now her full time carer, the problem is that we are now only able to pay our creditors the stupid £1 a month and it's never going to pay the debt off. We jointly own our own house and are not keeping our heads above water. There's no way for me to go back to work so no chance in an improvement in our situation. The only option I can see is for us both to go bankrupt and sell the house and beg the council for housing. Just removing the debts won't do it as we currently only pay about £10 in total towards our debts. The thing that's killing us is the mortgage and the £150 death insurance, without these we could manage. Problem is if we just sold the house both my disabled Mom and me would be out on the street. ANY advice would be SO welcome. Thank you.

debt_doctor

Hi,

Is there any equity in this property?

DD

chihuahua_mommy

Hi DD

There will be a bit but 2 of my debtors have charges on the property as well as the mortgage, so probably not that much left over.

thanks

PippaGirl_2

Given there is no equity in the property and you say there is no chance of you being able to work in the future as you will be caring or your Mum, I would think BR is an option for you, defaulting on the house and moving into cheaper rented accommodation.

chihuahua_mommy

Problem with that idea is that our mortgage isn't huge so taking the mortgage pymt and insurance into account is only about £550pm and you can't rent a house for that and flats are no good.

Any more idea's welcome, thanks.

black_paw

maybe if you have room a lodger ? to help out with bills .
or phone and chat with the free advice or on-line ..http://www.cccs.co.uk/?WT.srch=1&WT.mc_id=200001&gclid=CJm7lpXQ07ACFUdlfAodFx5A1w

my friend works for them and there company has helped my brother and many friends when they have been at lost of what to do ..they are free

fatblackandwhite

chihuahua_mommy wrote: »

Problem with that idea is that our mortgage isn't huge so taking the mortgage pymt and insurance into account is only about £550pm and you can't rent a house for that and flats are no good.

Any more idea's welcome, thanks.

Surely if you are on benefits/low income you would be claiming housing/council tax benefit anyway when you move into rented accomodation? (subject to any capital from the house sale) Are either of you getting mortgage interest payments with your Income Support/Incapacity Benefit (or ESA?) Are you claiming Council Tax Benefit now?

Before jumping in to Bankruptcy you really should sit down with someone and take proper advice about your options. Someone who can look at everything. (Including where you would stand if you lose the home and present as homeless) Go to your nearest CAB - make sure you take proof of your benefits and any other income and details of your debts and they can look at booking you an appointment with an advisor. Don't go without the proof of benefits/income though otherwise you will have to make another trip - to get it!

chihuahua_mommy

Thanks for this I will make an appointment, believe it or not the mort interest payment started at just over £5 a month but is not about 87p a month, so not super helpful ... LOL gotta try and keep a sense of humour.

debt_doctor

Hi,

I wonder if mortgage rescue would ultimately assist you? You may well have the priority need (but for you to prove) with the disability issues.
This (if successful) would allow you to sell your current home to a HA and rent it from them, which you may well be able to claim HB for.

DD