Voluntary Surrender NRAM

down.butnotout

Eellogofusciouhipoppokunu wrote: »

How long have you been living rent free in your family home?

For the past 3 months. I used to get £435 in rental from the flat and gave that straight to the mother-in-law (whos house we are in)

Eellogofusciouhipoppokunu

down.butnotout wrote: »

For the past 3 months. I used to get £435 in rental from the flat and gave that straight to the mother-in-law (whos house we are in)

Are you able to stay there rent free indefinitely?

down.butnotout

Eellogofusciouhipoppokunu wrote: »

Are you able to stay there rent free indefinitely?

Yes at the moment. The property is actually on the market, and has been for 4 years with only 2 viewers. So we are in it until it sells.

Eellogofusciouhipoppokunu

How old are your kids?

down.butnotout

Eellogofusciouhipoppokunu wrote: »

How old are your kids?

1.5 years and 6 months

Eellogofusciouhipoppokunu

down.butnotout wrote: »

1.5 years and 6 months

Then there isn't a real problem with them sharing a bedroom at that age.

down.butnotout

Eellogofusciouhipoppokunu wrote: »

Then there isn't a real problem with them sharing a bedroom at that age.

The bedroom is 10x10, thats a double bed and a wardrobe. It is unrealistic to also fit 2 cots in, the rest of the property is very small. It is a an hour drive from where we are now. It just isn't an option at this stage.

Eellogofusciouhipoppokunu

down.butnotout wrote: »

The bedroom is 10x10, thats a double bed and a wardrobe. It is unrealistic to also fit 2 cots in, the rest of the property is very small. It is a an hour drive from where we are now. It just isn't an option at this stage.

I'm not sure why being an hours drive from where you are now is relevant? Your kids won't be in school and neither you and your wife are working so don't need to be near a particular workplace.

It's not ideal to live in a 1 bed apartment, but it's also not ideal to rely on the charity of your OH's mother, especially as that house is up for sale and once it sells you will be effectively homeless.

If you move back to your old property, you can start taking control of your finances. With your benefits, the SMI and if your wife gets a job you will be able to make in-roads into your mortgage debt (the other debts will be written off if you go BR or will be made more manageable if you go onto an IVA).

Once we start coming out of recession and property prices pick up, your house might regain some of its value (especially if you make overpayments) and you'll be able to sell it for a reasonable amount and move into a more appropriate home.

I'm not sure how you managed to get into all this debt and these problems in just 3 months (you stated that you were 'comfortable' with an income around £4500 - 5000 a month and that your rent was effectively free as it was covered by the rental income), but I don't think just walking away from your problems and living on the short-term charity of your mother in law is the solution.

down.butnotout

Thank you for the reply, but as stated I have filled in a Income and Expediture with CCCS and they have advised BR. My wife has applied for a job for where we live. If she gets it, then that is a 2 hour commute everyday. We are not relying on the charity of the mother-in-law, she is helping us out, as we have with her in the past. I don't mean to come across as rude, but please don't think we are taking charity or walking away from anything. You don't know our situation and why we are in this situation, only the finances.
I got into this debt within 3 months as I had a wage that covered everything with a decent disposable income at the end, when I could no longer work, everything fell in like a house of cards. I suddenly had to meet payments of £2100 a month whilst having no income. That over 3 months totals in some serious arrears with no way out.

Eellogofusciouhipoppokunu

down.butnotout wrote: »

Thank you for the reply, but as stated I have filled in a Income and Expediture with CCCS and they have advised BR. My wife has applied for a job for where we live. If she gets it, then that is a 2 hour commute everyday. We are not relying on the charity of the mother-in-law, she is helping us out, as we have with her in the past. I don't mean to come across as rude, but please don't think we are taking charity or walking away from anything. You don't know our situation and why we are in this situation, only the finances.
I got into this debt within 3 months as I had a wage that covered everything with a decent disposable income at the end, when I could no longer work, everything fell in like a house of cards. I suddenly had to meet payments of £2100 a month whilst having no income. That over 3 months totals in some serious arrears with no way out.

Sorry if I have come across as uncaring. You came here for help and I'm trying to give advice, sorry if there is an element of "tough love" but going bankrupt and throwing your keys back at the mortgage lender is a huge step, especially after just 3 months of difficulties, and one that you really should think deeply about. There are serious ramifications from going BR and especially from doing 'jingle mail' which you might regret once your current difficulties are over. Perhaps your illness is affecting your decision making process, often illness goes hand in hand with depression.

Good luck with whatever you decide to do, antrobus.