Debt advice regarding iva's/bankruptcy

Toon_Dave

bank_of_slate wrote: »

He's right, BK supporters are the MSE pirhanas for budget stripping!
...Linda xx

thanks linda, i'll start a new thread on the bankruptcy link too, with the SOA as before.

lets see how much stripping they can do...cheers.

Dave.

Robflh

Hi Toon_Dave

The very first thing to do, is to write to Northern rock, explain to them what has happened and that you or CAB, who are helping you, will get back to them soon.

This should put a hold on things for a short time and give you some breathing space. Do not forget to enclose a copy of your SOA.

I believe you can get a free one-hour consultation with any solicitor. In which case, make an appointment to see one or go via CAB and find out how things stand legally with regards to the debts she has run up in your name but more importantly debts she ran up herself.

Also, find out what the situation is if she has run up debts using the house as an asset, even though she has moved out. She still owns half a house and even if she is not living there, she might be able to continue building up debts by using the house as an asset, which you could be paying and not her. Depending on when the Northern Rock loan was taken out, she may have done this already.

You also need to know what will happen if you sell the house. She could get 50% of the money, even though you are the one paying for the mortgage. Her half could kill all HER debt and leave her with a lump sum but your half might not be enough to clear your debts and the ones she ran up for you.

Can you take her to court for the debts she ran up on your credit cards?

I am sure that there are other questions that need to be answered before you decide to go for an IVA, Bankruptcy or selling the house.

If you filed for bankruptcy and the debt was transferred to her, she would most likely have to do the same. You would have no debts, no money, no house and would have a very poor credit rating for a least five years. The plus side of this is that she would also have no debts, no money, no house and would have a very poor credit rating for a least five years. She would also have all the stress of dealing with bankruptcy and at the moment she is getting away scott free.

rog2

Toon_Dave wrote: »

thanks linda, i'll start a new thread on the bankruptcy link too, with the SOA as before.

lets see how much stripping they can do...cheers.

Dave.

And you will be made most welcome, Dave. :beer:

Toon_Dave

Hi Robflh,

Thanks for the advice. Luckily i have been with the CAB for a while now and all interest on the debts has been held. My mortgage and secured loan is being paid inaccordance with court arrangements so that is stable although the two combined come to £1000 pcm before i even think about living or paying other creditors. With regards to the house equity, at present it is equal or negative equity and so would only cover the two secured portions of the debt, so therefore thank god my ex wouldnt get a penny of it.

i hate having all the responsibility and threat of the debt hanging over my head which is why i am seriously considering the BR option so that as you say my ex doesnt get away scot free as she is now. We have spoken about the house and she is happy to transfer the property into sole ownership but i have restrained from doing this as i still want her to hold her hands up and be responsible for her mess too.

With regards to the credit card debts the CAB have said that it may be difficult to prove who ran up the debts etc as i was the one who singned the aggreements when took the cards out so therefore legally they are my responisbility i think...which is bloody annoying to say the least.

i am going to contact the CCCS today as i have been advised to do on here as well as still dealing with the CAB to check what my final options are. I have already been in contact with an insolvency practioner as recommended by the CAB yesterday and today and they are looking through my paperwork to see if the IVA is the best option for me...i will have to make sure that they dont just offer me one to get themsleves the fees as i think these are very expensive.

i am so up in the air as to what way to turn, it is making me ill too. have been in hospital last week due to stress and depression although i am still at work because i cant afford to take time off sick as the stat pay is too low to survive.

bank_of_slate

Hi Dave,
have the BK supporters 'nibbled on your bone yet?'

Robflh gave some great advice 2 posts above, try to see a solicitor.
No one's going to have any quick answers I'm afraid, let us know what the IVA practitioner, solicitor and CCCs have to say
...Linda xx

Robflh

Hi Toon_Dave

As you have mentioned the fact that this is affecting you mentally, let me say this to you.

None of use that have debts and that are trying to sort them out find it easy. It is dam hard work and very soul destroying. Sometimes we could pull our hair out clump by clump because of all the frustration.

However, you have to learn to accept the fact that you have very little control over what is happening to you. Getting worked up about it will do absolutely nothing to reduce your debts but it will make you ill. Therefore, there is no point worrying about it. Yes, it is a lot harder to do then it is to type but you can do it.

Look at your situation and workout what the worst scenario would be. Once you have worked this out you then have to accept that if it all goes wrong, that is what will happen and make plans for it if you can.

For most people it would be loosing their home but you have already accepted the fact that you could loose the house and if that happened you would move in with your parents. You do not have a wife and children to look after and therefore, moving back home would just be a minor set back.

Once you have filed for bankruptcy, your debts are all gone and you can start again, if that is you decide to take that path. The house will be sold and if you had a car worth a bit of money so would the car.

A bit of reading for you. These should give you a better idea about Baknruptcy.
http://forums.moneysavingexpert.com/showthread.html?t=589769

http://forums.moneysavingexpert.com/showthread.html?t=593746

http://forums.moneysavingexpert.com/showthread.html?t=594434

Toon_Dave

hi Robflh, Thanks for the advice.

i have looked at the links you have posted and also have read scarlets diary on another link earlier. my car is provided by my company so im lucky that way. the house has negative equity in it at present so would that still be sold?

to be honest losing the house would save £1000 of monthly debt with loan and mortgage so i would gladly lose it and rent privately elsewhere or move back with my mum (temporalilly!!)..she has been great as have my family and have not judged me at all as they are aware what my Ex partner did to get me in this SH*T hole. so have been very supportive and they too feel that BR may be best so i can start a fresh as not having a life at all at the moment.

i have compiled my CCCS online report and that came back as bankruptcy as best option although speaking to them tm regarding this. (i had to give 24hours before ringing the bankrupt line).

i am also getting a phone call back from a IP on thurs after they too have check the financial statement i have given them.

with bankruptcy how much do you have to contribute monthly and for how long on a usual case?

fermi

Toon_Dave wrote: »

the house has negative equity in it at present so would that still be sold?

Not by the Official Receiver. They would only want a property sold if there was equity in it (that could be said to be yours) that could be used to pay your creditors.

In bankruptcy you only contribute out of "surplus" income (if you have any) under an Income Payments Agreement (IPA) for up to 3 years. An IPA is only set up if you have £100 per month or more surplus, only takes 50-70% of that surplus, and if you haven't been in a position to have one set up before you are discharged then you won't ever get one.

Have a look at: IPO / IPA (Income Payment Orders and Income Payment Agreements)

and: What will happen to my home?

Plus there are a lot of other factsheets here: Information about insolvency procedures

Robflh

Hi fermi

Thank you for the info.

Hi Toon_Dave

The house has been valued but you have not said how much it is worth, so how much is it worth and how many bedrooms does it have?

Your ex is willing to sign the property over to you, with no money involved. The mortgage is £460 a month and her half would have been £230. That would mean she paid £2,760 towards the mortgage each year. Eight and a half years would make a total of £23,460.

That is a lot less then the debts she has left you with but if you keep the property, you could call it her contribution towards them.

Requirements for an IVA. The debt must be more then £15,000. You must be employed. You must be able to pay back a minimum of 45% (it could be less but I think that is unlikely) of you total debt over a five-year period. Six if you would like to keep the property. There is one snag, if one of your creditors has more then 25% of you total debt they can reject your IVA and it will fail.

At first I did this including the Mortgage but that cannot be right (fermi). So I have done it excluding the mortgage. That still does not mean I have got the figures correct.

Your total debt excluding the mortgage is £73,485 and 45% of that would be £33,068. That divided by 72 is £459.29 a month. You are currently paying your creditors £731 a month, which makes a difference of £271. That would be too big a difference and that means you will have to pay 55% or even more of the total debt.

However, in six years time you would be free of debt and have a property that will have gone up in value. (we all hope)

Toon_Dave

Robflh wrote: »

Hi fermi

Thank you for the info.

Hi Toon_Dave

The house has been valued but you have not said how much it is worth, so how much is it worth and how many bedrooms does it have? £85,000 3 bed maisonette.

Your ex is willing to sign the property over to you, with no money involved. The mortgage is £460 a month and her half would have been £230. That would mean she paid £2,760 towards the mortgage each year. Eight and a half years would make a total of £23,460. Owned together since jan 2004, 4 years now. she was signed off sick and on incapacity benefit since 2006 but couldnt claim for her under insurance protection as her intital pay wasnt high enough and i was the main 'bread winner'. There is also the joint secured loan which is £21,000. Mortgage £61,000 to clear so just enough to cover costs etc with sale. also another loan in my name which may have now been secured agaisnt house too, which is another £35,000. which would mean massive negative equity in the house.

That is a lot less then the debts she has left you with but if you keep the property, you could call it her contribution towards them. She knows she has done wrong and has said she will sign mortgage and house to solely mine anytime when required.

Requirements for an IVA. The debt must be more then £15,000. You must be employed. You must be able to pay back a minimum of 45% (it could be less but I think that is unlikely) of you total debt over a five-year period. Six if you would like to keep the property. There is one snag, if one of your creditors has more then 25% of you total debt they can reject your IVA and it will fail.

At first I did this including the Mortgage but that cannot be right (fermi). So I have done it excluding the mortgage. That still does not mean I have got the figures correct.

Your total debt excluding the mortgage is £73,485 and 45% of that would be £33,068. That divided by 72 is £459.29 a month. You are currently paying your creditors £731 a month, which makes a difference of £271. That would be too big a difference and that means you will have to pay 55% or even more of the total debt.

However, in six years time you would be free of debt and have a property that will have gone up in value. (we all hope)

Thanks again Rob.