debts

princessclare12

Hi - we are really struggling and I am not sure what to do for the best. We pay out nearly £450 a month in debts and there is more that needs to be added that we are being chased for. We live in rented accommodation at the moment but we own a house elsewhere - the problem is this house is half owned by my dad (not on the mortgage though) and the mortgage is for £75000. The house is probably worth £110000. I have to pay £360 a month on the £75000 mortgage and I have to give my dad £190 per month from the rest of the mortgage from their property, this will be paid off in 5 years but the house cannot be sold till then as my dad will lose a lot of money. Based on this is there any debt programme or anything that will resolve all my other debts that could total anything up to £40000 that will not force me to sell my house. At the moment we have about £300 a month available for food, petrol and anything else that may be needed. Any advice would be greatly appreciated.

HappyMJ

You pay for your needs first...then once your needs have been paid for you pay for your debts. You're doing it the other way around by paying your debts first then seeing you have £300 left over each month which in my opinion isn't enough for your needs. If after your needs are paid for you don't have enough to pay the full payments on your debts then you need to come to an arrangement to pay.

You've posted in the Bankruptcy board which isn't a good idea. If you took the bankruptcy route you would have to sell the equity you have in your property either to your dad or to another buyer.

I'd suggest a DMP but that might not be the best solution for you. If you spoke with a charity such as Stepchange they might give you better advice.

Brock_and_Roll

Look at it another way....you owe circa £40k to your creditors but are looking to "resolve" your debts despite having an asset worth a net £40k that would just about clear your debt. So from your creditors perspective, they have little incentive to be flexible.


Clearly your situation is unsustainable as you cant live on £300pm - better to grasp the nettle now. For starters you need to have a long chat with your dad.

tigerfeet2006

As Happy says bankruptcy is probably not the route for you. You most likely need a DMP (Debt Management Plan)

Please contact National Debtline https://www.nationaldebtline.org/

or

Stepchange http://www.stepchange.org/

They will give you free impartial advice on your situation.

Also post on the Debtfree Wanabe board with your SoA (statement of affairs) and ask for help.

SoA calculator http://www.stoozing.com/calculator/soa.php

DFW board http://forums.moneysavingexpert.com/forumdisplay.php?f=76

Annisele

princessclare12 wrote: »

I have to pay £360 a month on the £75000 mortgage and I have to give my dad £190 per month from the rest of the mortgage from their property, this will be paid off in 5 years but the house cannot be sold till then as my dad will lose a lot of money.

I don't understand that bit.

Who is living in the house now? Your Dad? Unrelated tenants? Or is it empty?

Are you giving your Dad £190 a month to pay towards his mortgage on his own property? If so, then it looks like you're paying his debts in preference to your own - and your creditors won't like that very much.