Debts and fresh set of eyes required

jill02

lilybankrupt wrote: »

Re: the OP and building insurance, I'm guessing since there's a property management fee in the budget he lives in a leasehold block of flats or similar and this fee covers building insurance on a shared basis? That's how it worked when I lived in a mortgaged leasehold block of flats.

Spot on !!

jill02

Thanks all for your replies, much appreciated. I called National Debtline this morning, very helpful and advised that I offer token payments of £1 or Nil which is what I did yesturday and that if I was go to bankrupt I need to watch that my property won't be valued higher than I have quoted else it could get rejected and also if they didnt sell the property, in three years they could apply a charge on the property and use that to pay off my creditors which I'm not too concerned about as I'm paying interest only anyway ad was also considering just selling up and paying off the creditors that way . They advised me to carry on as I am doing and try to balance my outgoings better although they did say that I was quoting very minimal payments anyway on things like groceries etc but if I decided to go down the bankruptcy route to give them a call.

Annisele

I think you do need to consider asking your daughter for a higher contribution. I can see why that's a very unattractive option, but "several hours a week" on minimum wage probably gives her quite a lot more disposable income than you have.

If your council tax is £95 a month, then the £20 you're getting from her doesn't even cover your loss of single person discount.

debt_doctor

Originally Posted by debt doctor Hi,


I wondered a few things;
What arrangements do you have to pay off the capital part of the mortgage (the original amount borrowed)? Thats another problem, I don't have any funds set aside for the capital, I could potentially switch to a repayment mortgage in years to come but not until my debts are paid off and credit score improved.
Is the property jointly owned or solely (and if solely, in who's name)?My name only
What is the equity in the property now, and where do you see the equity in 3 years time? equity approx £8 to £10k, in 3 years time, probably not a huge difference
Can you demonstrate a NEED for the car? This is something I have thought about and definately if I had to move to rented accomodation, obviously I would still require a bus pass which are about £55 month


I agree with the others about how well you manage your budget, and I also understand why you are having difficulty as to what is best - so do I !
Firstly, if you don't find a way to pay off the capital then you will clearly never own the house - your first question to yourself must be "am I stopping or going" as far as the house is concerned.
If you are stopping, then bankruptcy is medium to high risk for you as if your property has up to £10k equity then a charge would be placed upon it, but if it acquires much more it will be sold for the benefit of the BR estate.
Your car is at serious risk as I see the OR would settle the outstanding finance and sell the car. It seems you feel you can't demonstrate a need (unless you rent??) so would get nothing from the car.
I f you are staying put, I see the token offer route the best as soon you will be better off (no HP to pay for the car) and you don't have the risks outlined above.


Now if you moved out, (sell) it would seem that you would walk away with £9k (less sale costs). You could do as you wish with that money -perhaps full and final settlements (30% upwards) or use the money for sorting the rented property (don't know how much you could rent for?).
If the money had gone, and you still had the debt, then perhaps if your debts were less than £20000 (from Oct 15), you could obtain a DRO - a simpler regime and costs only £90. The value of that vehicle would have to be £1k or less at the time, or you may need to obtain a different vehicle.
Decisions, decisions......
DD

jill02

Hi,

I agree with the others about how well you manage your budget, and I also understand why you are having difficulty as to what is best - so do I !
Firstly, if you don't find a way to pay off the capital then you will clearly never own the house - your first question to yourself must be "am I stopping or going" as far as the house is concerned.
If you are stopping, then bankruptcy is medium to high risk for you as if your property has up to £10k equity then a charge would be placed upon it, but if it acquires much more it will be sold for the benefit of the BR estate.
Your car is at serious risk as I see the OR would settle the outstanding finance and sell the car. It seems you feel you can't demonstrate a need (unless you rent??) so would get nothing from the car.
I f you are staying put, I see the token offer route the best as soon you will be better off (no HP to pay for the car) and you don't have the risks outlined above.

Now if you moved out, (sell) it would seem that you would walk away with £9k (less sale costs). You could do as you wish with that money -perhaps full and final settlements (30% upwards) or use the money for sorting the rented property (don't know how much you could rent for?).
If the money had gone, and you still had the debt, then perhaps if your debts were less than £20000 (from Oct 15), you could obtain a DRO - a simpler regime and costs only £90. The value of that vehicle would have to be £1k or less at the time, or you may need to obtain a different vehicle.
Decisions, decisions......
DD[/QUOTE]

Thanks for the advice Debt Doctor, I have thought about the DRO aspect so its something to consider, I would probably sell my car and possibly trade in for one of lower value and pay off the creditors pro rata to avoid preferential treatment.
I think will plod as I am, for now and consider it again in a few months, :-)