Half way through Dmp but losing the will to live!

skint_chick

You might want to ask about this on the bankruptcy board because depending on your job and whether you can still do that post bankruptcy you might find that bankruptcy is a better option. You have repaid what you can, your house is in negative equity and you can't live without heating. This would mean you could sort out a rental property for you and the kids and walk away from the debt and the house. You would possibly get an IPO where you pay a monthly sum for 3 years to pay back part of the debt, but at least after 3 years you would be done, and the payment is set at a level that allows for you and the kids to live a reasonable life rather than the hard time you're having now. You can call National Debtline for some free advice on this.

sourcrates

Lover_of_Lycra wrote: »

I'm going to suggest something a bit radical. Why don't you just walk away from the house, hand the keys to the mortgage lender and let it be repossessed. Having a property repossessed is not something to do lightly. It seems to me that the property is in negative equity, it's in desperate need of repairs and maintenance, the neighbours are awful, and it's something your ex still has over you so is it really worth hanging on to?

You could start afresh renting somewhere better for you and your children that has absolutely nothing to do with your ex.

Actually, from what you have said in your posts, this is probably the option i would take, it may seem radical, but it hands control back to you, something you so desperatly need right now, infact, I may go one step further and suggest bankrupcy, that way you would be released from all your debt, but will most likley have to pay an IPA for up to 3 years, still a lot less time than your DMP would have been, and you will be financially and emotionally free of the house, the neighbours, and the ex, at the end of it.


You do not have to carry on living as you are doing.

[Deleted User]

Hi Wirbs, just wanted to say hello.

Sorry about your situation. I know what it's like to have noisy neighbours and it absolutely drains you to the point that you can't think straight. Do you have anybody you could stay with for a couple of days, just to get a break from it?

Also, just to let you know that now that you're here on DFW you're not alone

bln x

Wirbs

Thank you so much everyone. I really appreciate the advice and support. I’ve been given a lot of conflicting information about bankruptcy. A woman in the CAB said I should definitely. Then another woman in the CAB said I could not. Then a financial advisor said not to. Stepchange said an iva or Dmp. Also with the house being in negative equity I’d probably have to keep the house which is the main source of the problem. I’m a teacher and I’ve been told different things about if I could continue if I go bankrupt. I definitely couldn’t progress to slt. As to giving the house back I’ve thought about that but I wouldn’t know where to start. Don’t you still have to pay for it? The shortfall anyway.
I’ve been looking at rentals but they are a lot more expensive than my mortgage for a hovel. Plus they want all kinds upfront and they do a credit check.
I’ve been looking into the benefits my union have so I may be able to access a benevolent fund. I really do need the heating.
Thanks again for all of your kind words. I was feeling proud of myself but exhaustion got the best of me I think.

[Deleted User]

Wirbs wrote: »

Thank you so much everyone. I really appreciate the advice and support. I’ve been given a lot of conflicting information about bankruptcy. A woman in the CAB said I should definitely. Then another woman in the CAB said I could not. Then a financial advisor said not to. Stepchange said an iva or Dmp. Also with the house being in negative equity I’d probably have to keep the house which is the main source of the problem. I’m a teacher and I’ve been told different things about if I could continue if I go bankrupt. I definitely couldn’t progress to slt. As to giving the house back I’ve thought about that but I wouldn’t know where to start. Don’t you still have to pay for it? The shortfall anyway.
I’ve been looking at rentals but they are a lot more expensive than my mortgage for a hovel. Plus they want all kinds upfront and they do a credit check.
I’ve been looking into the benefits my union have so I may be able to access a benevolent fund. I really do need the heating.
Thanks again for all of your kind words. I was feeling proud of myself but exhaustion got the best of me I think.

Are you sure you couldn't progress to SLT if you went bankrupt?

https://www.stepchange.org/debt-info/bankruptcy-and-my-job.aspx

https://debtcamel.co.uk/repossession-deed-of-acknowledgement/

Are the rental hovels better that where you are living now? Do they have have heating and windows that aren't falling out? Could you cast the net a bit wider and look at areas further out that you are now?

What kind of mortgage do you have on the house you're living in now? Is it interest only?

I'm not saying that repossession and bankruptcy are definitely the right options for you, just that they are worth exploring. I have lived next door to the neighbours from hell myself and I know how it impacts your mental health when you can't even relax in your own home.

tlc678910

Hi OP,
To begin to look at what's best for your circumstances people really need to know things like your income (you have said you are a teacher but is that full time/top of the scale?), your outgoings - bills/debt repayments/mortgage and your house value and how much you still owe against the house.

It's not nosiness but the fact that the right solution for you depends on these things. - I will try to post the link to the statement of affairs in a minute. I believe you have to choose "format for mse" or similar before posting it here.

If you did decide to go bancrupt you might decide/be advised to stop paying all debts and the mortgage to save for a deposit and advance rent for a rental.

Another main drawback of bankruptcy is that it is difficult to get finance e.g. a mortgage again afterwards. Just a mention so it is considered. People do manage it though and you will be able to seek the advice and information you need here and on the house buying/bankrupcy boards

For now try to fill in and post up you "statement of affairs" link to follow

tlc678910

Link to statement of affairs: http://www.stoozing.com/calculator/soa.php

sandybrowneyes2002

Hi,

I completely understand, I left and abusive ex with a huge amount of dept in my name, my heating was condemned nearly 3 years ago now. My house is damp and the windows are horrific, the difference is however I am on an IVA. From my experience i would NOT recommend going on an IVA, especially as your house has all these issues already. If i had know what i do now, I would gone bankrupt.

The IP will nor care that you do not have heating nor your windows are falling out. they are there to get the maximum for the creditors (This is fair enough). Also another thing to consider IVA are not regulated the same way as DRO's. Guess what i am trying to say is if your finding it hard now, would you want another 6 / 7 years before your allowed to get on with your life ?

Good luck with what you decide, these are just my thoughts i would suggest always grab professional advice


.

gwynlas

I am self managing my plan but my partner is with stepchange.
Due to income level his payments are likely to last 19 years.
Renegotiate and lower your payments as they are unsustainable, you urgently need to sort out the house issues and as you say your mortgage is likely to be cheaper than rent.
Is there anyone within your family who could help you with the house/holiday?
I know it might seem never ending but if payments set at a reasonable level for longer it should not feel so bad.
Do not dismiss breaks through the newspapers eg Sun, Mail

sourcrates

Wirbs wrote: »

I’m a teacher and I’ve been told different things about if I could continue if I go bankrupt. I definitely couldn’t progress to slt. As to giving the house back I’ve thought about that but I wouldn’t know where to start. Don’t you still have to pay for it? The shortfall anyway.

Donald Trump has been bankrupt 6 times, and he is now the president of the USA, I don`t think been a teacher is a bar to bankrupcy, or vice versa.

Remember, after one year you are discharged, after a further 5 years, it disapears from your credit file, bankrupcy should be seen as the start of something new and exciting, not the last resort option.

To give back the house you simply send the keys back to the lender, along with a letter of explanation, bankrupcy is an all encompassing solution, all, and I mean ALL of your debts, prior to the bankrupcy been approved, are included, the mortgage outstanding, any shortfall, all credit debts, wiped out, read the debt camel article linked to above.

You have so much going on here with various issues, this option would take them all away in one fell swoop, of course you need advice, good advice, National Debtline are very impartial, I would try them as an alternative to stepchange or CAB.