Please help:(

Sarah_x

Hiya all,
I wil try and keep this short and sweet. Me and my husband are in bother financially he recently left is work 6months ago to be a carer for our 3 years old who is going through autism.
We have tried to sell our house but it will not sell to try and help us out of this financial mess.
We owe 138k and the house is valued at 150k.
If anybody has any advice for me it will be very much appreciated xxxx
I have posted a soa
The benefits is universal credit
Partners income is carers allowance
Other in come is child benefit and sons disability living allowance.


Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1390
Partners monthly income after tax....... 286
Benefits................................ 428
Other income............................ 396
Total monthly income.................... 2500

Monthly Expense Details
Mortgage................................ 550
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 120
Gas..................................... 0
Oil..................................... 0
Water rates............................. 57
Telephone (land line)................... 0
Mobile phone............................ 75
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 40
Groceries etc. ......................... 550
Clothing................................ 50
Petrol/diesel........................... 160
Road tax................................ 14
Car Insurance........................... 75
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 20
Other child related expenses............ 60
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 15
Buildings insurance..................... 15
Contents insurance...................... 0
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 50
Total monthly expenses.................. 2209


Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 152000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 138000...(550)......2
Total secured & HP debts...... 138000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan joint names...............18000.....270.......4
Loan ..........................15000.....300.......0
Cc.............................3000......30........0
Store..........................4000......80........0
Total unsecured debts..........40000.....680.......-


Monthly Budget Summary
Total monthly income.................... 2,500
Expenses (including HP & secured debts). 2,209
Available for debt repayments........... 291
Monthly UNsecured debt repayments....... 680
Amount short for making debt repayments. -389

Personal Balance Sheet Summary
Total assets (things you own)........... 152,000
Total HP & Secured debt................. -138,000
Total Unsecured debt.................... -40,000
Net Assets.............................. -26,000

fatbelly

You have enough money to live on and pay the mortgage - it's just the non-priority debts that are a problem.

A debt management plan at nearly £300 per month would take about 11 years to clear, which is a long time. But in your situation that's what would go for, remarket the house in spring and and then review things when you are in your new accommodation.*

There are a few things in your soa that could be shaved a bit but probably not by £400 so I think that's the best plan.

Obviously you want a bank account not connected to your debts and to pay no-one anything for a few months while you build up an emergency fund. Do you already have one? I see you have budgeted £50 per month for it.

*Edit: If that's what you want to do - it's not immediately clear to me how that will help you

Willing2Learn

Hi Sarah and welcome to the forum

I know that this is bankruptcy question, but I was wondering why you are not considering a DMP. If you were able to trim down your grocery budget to around £400-450 and do away with your holiday for the time being, then you could maybe make a DMP work for you. There is a possibility of being able to work from home to boost income.

kazwookie

Any chance your OH can go back to work when you are home from work and you can take over the child care?

Sarah_x

Hi thank you for replies
The thought of paying debts for 11 years:(
My husband seems to fink if we stop paying our morgage payments and debts
Then move into is parents and get a council house then file for bankcruptcy and start a fresh.
Would this work or is he being stupid:(

Willing2Learn

Sarah_x wrote: »

Hi thank you for replies
The thought of paying debts for 11 years:(
My husband seems to fink if we stop paying our morgage payments and debts
Then move into is parents and get a council house then file for bankcruptcy and start a fresh.
Would this work or is he being stupid:(

If you could reduce your groceries expenses by shopping at Aldi/Lidl and batch cooking and doing away with the holidays then your debts could be busted in around 8 years. You may also find that after 5-6 years of DMP-ing, your creditors will accept reduced final settlement figures. Add on the possibility of working from home then you could further reduce the time taken to clear the accounts. I earn £100-£200 per month doing online surveys and market research from home. Just something to think about...

MovingForwards

You probably won't get a council property as you would have willingly gave your home up.

Can your husband not work evenings / weekends ie opposite shifts to what you do?

You could do a DMP, yes you are paying your debts off for 11 years or less, but you keep your home and stability for your kids, especially as you have one autistic child.

You could consider an IVA also.

There are also ways of cutting your budget once in an IVA / DMP and having a bit more money in your pocket.

Many of us have been in long-term DMPs, we so know we come out of it the other side, learn to budget, live within our means and make sure we never repeat what happened before.

Sarah_x

Thank you for your replies
Tbf we did live within our means its just circumstances as got us in this mess:(
Surley we wud get a council house in a overcrowded 3 bedroom house with a disabled child living at is parents.
Its all just one big mess.
Job wise its gettin a job what pays well nn to fit around my job. Difficult but he certainly his trying .

Willing2Learn

Sarah_x wrote: »

Surley we wud get a council house in a overcrowded 3 bedroom house with a disabled child living at is parents.

The thing is, you and your family could be assessed as having become intentionally homeless.
https://england.shelter.org.uk/housing_advice/homelessness/rules/intentionally_homeless

You don't want to end up stuck in your parents home, in overcrowded conditions, for an indefinite period of time.

Make an appointment with the CAB to look at what your housing options would be. Ring up StepChange on Monday morning for advice re your current financial situation.

I think you and your husband are panicking. I don't think you should make any decision without speaking to professional advisors first

Sarah_x

Thank you x
we are trying to sell just not selling at all.
The dmp option is just abit too long
This house is in-need off new windows n door bad.
Thought of waiting 8 plus years
No 1 prepared us for this situation
I never ever thought we wud be in this position.

MovingForwards

You will not be priority to house, regardless of overcrowding, because of letting your house go. There isn't enough properties for everyone, at best you may get emergency accommodation which isn't cheap and doesn't allow pets.

Your husband can get any job on opposite shifts to you. It doesn't have to be well paid, any job is better than just surviving on carers allowance and will help you both clear your debts off quicker. It's the run up to Christmas, there are plenty of seasonal roles and depending on his hours he could keep his CA too.

Looking at your SOA:

Mobile phone............................ 75 - how long til the contracts are up? SIM only for two of you will be £20pm

Internet Services....................... 40 -- can you drop your speed to get a lower bill?

Groceries etc. ......................... 550 -- where do you shop? You could easily get this down.

Clothing................................ 50 - dont buy anything for your / husband, only as required for the kids. Where do you normally buy clothes?

Petrol/diesel........................... 160 - is this commuting to work? Is public transport cheaper?

Car Insurance........................... 75 -- shop around on renewal, I'm assuming young / new drivers?

Childcare/nursery....................... 20 -- what's this for if your husband is a stay at home dad?

Other child related expenses............ 60 -- again, what does this cover?

Medical (prescriptions, dentist etc).... 20 - whose? If just one of you then look at prepayment certificate. Or see if you can buy them over the counter, or if prescription ask your GP to write out a prescription for more as you can't afford the monthly prescription fee (I've done that before and the GP understood)

Pet insurance/vet bills................. 15 - what animal? Who is the insurer? How much you covered for?

Buildings insurance..................... 15 -- I hope this is buildings and contents?

Life assurance ......................... 10 - this for both of you? Does it cover the full mortgage and some or is it a decreasing policy?

Presents (birthday, christmas etc)...... 50 -- this is £600 a year, cut back, love is free and adults can go without, bake biscuits / cake if you want to give adults a gift.

Haircuts................................ 20 -- for the kids and adults? If adults too then leave a longer time between getting your hair done.

Entertainment........................... 50 -- what do you do?

Holiday................................. 50 -- is this booked and a deposit paid?

Sorry if you think I'm being harsh, it's not meant that way, you need to get a cup of tea/coffee and read all the comments, take onboard everything we are saying and look at other options.