Wifes debt ,worried sick

Carl100

Could we take her name of the mortgage and go another route?

sourcrates

Carl100 wrote: »

Could we take her name of the mortgage and go another route?

Yes, debt management, it’s an informal, unregulated arrangement, so not subject to insolvency rules.

Debt management plans are free when arranged through one of the debt charities.

Carl100

Can we not take her name of mortgage and go another route ??

sourcrates

Carl100 wrote: »

Can we not take her name of mortgage and go another route ??

See post #13# above Carl. ^^^^^^^^^

Mnd

Carl..stop..make a cup of tea. Read the above posts and stop panicking. You have asked for advice, people have replied, take 5 to absorb it and ask further questions. Sort your plan out and work from there

fatbelly

You have a jointly owned asset and this is probably recorded at the land registry. That's why people are sensibly not suggesting DRO (too much debt anyway) or bankruptcy. Beneficial interest means there's no point messing around with the mortgage or the ownership details.

If you want us to make comments between a dmp and an iva we're going to need more detail from a statement of affairs

There's a calculator here (please format for mse)

https://www.lemonfool.co.uk/financecalculators/soa.php

23k of non-priority debt is not a disaster, just a minor irritation.

enthusiasticsaver

I don't think you should panic about the house initially and taking someone off the deeds and mortgage is not quick and may not even be allowed depending on how high your income is. £23000 sounds a lot but there are many on here with debts much higher so it is not a catastrophe but as you say if you are not used to debt it will worry you. If it is unsecured on your property though there is no reason to think they will come after your house.

Which route she goes down depends on many things not least her income. She can ask for breathing space for 6 months while she tries to find a job and ask them to freeze interest. Was she self employed or did she run a limited company?

Ben8282

The first question that needs to be asked is what is the current situation regarding these loans?
Has she been keeping up with the repayments so far? Are payments on all loans up to date?
If yes, are you as a couple able to keep up the repayments (at least temporarily)?

Taking her name off of the mortgage will achieve nothing. Even assuming that the lender agrees, which they probably won't unless your income is sufficiently high to be able to qualify for this mortgage in your own right as a sole mortgage (in which case you could probably afford the loan repayments), all it would do is to make you liable for the debt. It would not in any way change the ownership of the house.

Don't go down the IVA route except as a very last resort after giving the matter long and careful consideration. It will destroy your ability to obtain credit.

You are extremely lucky to have friends willing to allow your wife to borrow £10,000 from them! Not many people have friends who would be willing to do this for them.

Moneyfordreams

There are many more informed people on here than me, however in 2013 my husband had £120k of business debts, shared with his business partner (family member ) he had always hidden debt from me but became more apparent when he was home more ( simply put). I had paid mortgage for years and supported us all and thought it was so unfair I was responsible for 2 peoples stupid actions.

I paid £300 to a solicitor who told me he was entitled to 50% of the equity in the house. I started the ball rolling to buy him out and pay off any debts OD/CC linked to me that he has been using. When they went bankrupt 3 months later, the receivers did want to ensure I gave then £60k from the re-mortgage, otherwise seen as a dissolution of assets. There were several angry phone calls and letters. Thankfully after a 2nd mortgage cash lump sum I was able to satisfy them with enough cash , the full amount. If I hadn't juggled things that way, I believe wouldn't have been able to remortgage.

Anyhow, £23k is not a lot these days. Well done for paying friends back :T take stock, don't jump into anything, and work things out slowly. (btw, our marriage is better than ever. none of it was malicious just trying to keep heads above water )

patman99

Carl, was her company limited, or just sole trader?.
This information is important if you wish to receive the correct information.