DMP / House Sale query

bintie22

I'm in a DMP (21k), purely my debts - from before my partner and I got together. Would Payplan expect me to use the equity of the house sale to clear my debts (not that they would cover all of it)?

Thing is, the in laws paid the deposit (10k), and my partner has paid the mortgage out of his wages since we moved in as we had a baby and I stayed at home with him.

We would get about 22k out of selling and had hoped to put that into savings so that we could get back on the ladder in a cpl of years when we could verify my income from my new self-employed business.

Now i'm worried - I know some people would say pay off your debts with it - but, although we're partners and as good as married, I really don't feel it's mine to use like that! Especially the 10k deposit! Eek, Help Please!

loopylu36

bintie22 wrote: »

I'm in a DMP (21k), purely my debts - from before my partner and I got together. Would Payplan expect me to use the equity of the house sale to clear my debts (not that they would cover all of it)?

Thing is, the in laws paid the deposit (10k), and my partner has paid the mortgage out of his wages since we moved in as we had a baby and I stayed at home with him.

We would get about 22k out of selling and had hoped to put that into savings so that we could get back on the ladder in a cpl of years when we could verify my income from my new self-employed business.

Now i'm worried - I know some people would say pay off your debts with it - but, although we're partners and as good as married, I really don't feel it's mine to use like that! Especially the 10k deposit! Eek, Help Please!

Who's name is the house in? Even if it is joint (rather in partners sole name), you are only entitled to half of the equity so they could not ask your partner to use his equity to repay your debts. Also if 10k is owed to his parents, that knocks your equity down to £5.5k. Was a Declaration of Trust drawn up to protect your in-law;s 10K? This would obvioulsy be proof that they had paid the deposit (or you could ask the sols who acted for you to confirm it ir they are able to) You could consider offering your share of the equity (5.5k) as full and final settlements to your creditors. If they accepted you could get rid of the debt but still have most of the equity left to save .

Hope this of some help

bintie22

Hi Loopylu

Thanks for reply, much appreciated! Do you really think creditors would accept an offer that low as full and final settlement? Definitely food for thought! Cheers x

loopylu36

bintie22 wrote: »

Hi Loopylu

Thanks for reply, much appreciated! Do you really think creditors would accept an offer that low as full and final settlement? Definitely food for thought! Cheers x

Who knows? I think it depends on how old the debt is and how likely it is reaslistically that you can pay it back at a set amount before the end of your life! Some at least may accept - as said before on this site, if you don't ask you don't get and there's no harm in trying!:D