selling flat to pay off debts

bray_2

Hi there,

This is the first time I've posted.

My partner and I have c.£85,000 unsecured debts with fifteen different creditors and have been on a DMP with CCCS for about 2years. We both work freelance have a very erratic income and not quite so erratic three year old. Work has been a bit slow recently and we've got behind with payments on just about everything including DMP. We've just completed a review with CCCS and worked out something more manageable. (Not a lot more than token payments). At the same time we've received a summons each this week.

We've decided to sell our flat and then rent which should release just about enough equity to repay debts in full. We do however owe £40,000 to parents which was in the form of several hand outs over the last six years and we're also anticipating the possibility of having to pay six months rent in advance to landlords.

I'm assuming that parents and rental expenses would have to get behind debt collection agencies in the queue if a large amount of equity is released.

I'd appreciate any opinions or similar experiences. It's great being close to being debt free but I want to try and anticipate any problems that I might have overlooked

Many thanks

bray

OberonSH

Don't forget to give yourselves some 'living on' money, to stop the possibility of having to go and run up some more bills straight away.

Could you pay off all the 'official' debts, and leave a bit owing to the parents? I'm sure they'd understand if you tell them you need to leave money for the new place, and to live on for a bit. At least then you'd have a small debt left of (I'm assuming) 0% and a bit more money to get it paid off anyway.

stapeley

hi , and welcome . You must tackle the summons first . How long have you got to return paperwork ? If you enter a defence it will be moved to a local court. If you do not defend you could end up with a very costly Judgement against you. You can request copies of all the credit agreements , check some of the threads ,for details of what this entails.