mortgage arrears, rates arrears and £20,000 debt

Josweetcakes

Hi
I've been looking into IVA's and Bankruptcy and how to hold on to my home. I am a single mum with a 13 year old son and all this debt is really getting to me. I am too worried to enter into an IVA as I dont have a permanent job and have been made redundant twice in 4 years. Currently doing community work which is quite good pay (£300 PW) but that ends in April and work in County Tyrone, Northern Ireland is hard to get. I would not be sure that I would be able to pay the monthly payment needed for an IVA for the 5 years necessary.
My mortgage arrears is approx £3500 and I am in constant contact with the Bank of Scotland regarding this. They allowed me a payment holiday a few years back. Then last year they allowed me to move to interest only but I missed payments and they put me back onto repayment. I owe about £82,000 on the mortgage. I have been in touch with various debt help companies over the past few years and most recently with Advice NI (free help). They said that when going bankrupt the Insolvency Practitioner (or whoever takes charge of that) appoints a valuer in my area to value my home. They also said that they will then add 20% to that valuation and if there is any equity after a certain period of time (not sure how long) that I would be able to sell that equity to someone like a family member or friend so that I could keep my home. Unfortunately all my friends and family are struggling through these uncertain times and could never 'bail me out'. Does anyone know about this 20% add on issue? I had never heard that before? There are 2 other houses similar to mine on the market for £90,000 but I dont think they will sell for this. 4 years ago my house was worth over £200,000!!!!! I wish I could find a way out. If I had a job that paid an average wage that was permanent I could do an IVA but that seems like a dream. Any new information would be gladly accepted.

IF

Hi Josweetcakes and Welcome to the Bankruptcy (BR) Board. I not sure about BR in NI, hopefully another poster can advise further but in the meantime your first step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two others for your own piece of mind. Your BR could be refused if you have not sought advice. (Advice on here does not count, this has to be from one of the Debt Charities, an IP, an Accountant or a Solicitor. The Judge just wants to be sure that you can never come back and try and overturn the order on the basis that you were not aware of all the consequences).


* Blue text on this forum usually signifies hyperlinks, click on the blue links below *

Advice 4 Debt NI - http://www.advice4debtni.com/

StepChange Debt Charity (Was CCCS) - http://www.stepchange.org/Debtadvice...rnIreland.aspx

CAB - http://www.adviceguide.org.uk/nireland.htm


For information in Northern Ireland you should contact The Insolvency Service of Northern Ireland at:

The Insolvency Service
Fermanagh House
Ormeau Avenue
Belfast
BT2 8NJ

Tel: 02890 251441

N.I. Direct - http://www.detini.gov.uk/deti-insolvency-index.htm

Online forms - http://www.detini.gov.uk/deti-insolvency-forms.htm

NI FACT SHEET - www.hmrc.gov.uk/factsheets/ef5-ni.pdf

Best wishes
IF...x

Anondebtadvisor

Apart from having mortgage arrears do you have any other unsecured debts?

Josweetcakes

Hi
Thanks for your reply.
Yes I have mortgage arrears of £3500 approx.
Rates (council tax in England) of about £600
Unsecured debt of £20000 to 4 different creditors.
I am keeping the creditors at bay by paying them all £5 each per month. (Although sometimes the Direct Debits fail and then I get bank charges)
I've been battling with debt for about 4 years. Was in a debt management plan with the CCCS back then but got made redundant and therefore had no income to have a DMP.
i have worked on and off since then and am so unsure of regular income that I could not set up an IVA for fear of not being able to keep up the payments over a 5 year period.
So I have sought advice from 2 different charitable organisations and I still dont know what to do. I could cope with the mortgage payments alot more easily if I didnt have all the other debt hanging over me. I just really don't want to loose my home. I suppose the laws are different in England?
Can anyone help please

Anondebtadvisor

If you unsure of income in the coming years you are right to be cautious of entering an IVA.

I would suggest that you make your Mortgage, Council tax and other essentials your priority and pay the other creditors £1 per month until you have found a solution.

If you are getting bank charges maybe you should consider changing your bank account and not setting up the creditor DD's from the new account.

I understand it is difficult but you need some time to decide what is going to be the right solution. If you decide upon bankruptcy you need to be sure are making the right decision.

Would it be cheaper for you if you rented a similar property in your area and allowed the mortgage company to reposses? Would you be entilted to housing benefit if you rented?

Have a look at http://www.turn2us.org.uk/?gclid=CIaL6uiikrUCFQ7LtAodm0wAFg to see what benefits you are entitled to