Advice and Help

exlews · 20 April 2018 at 3:53PM

Finally admitting I can no longer service my debts. Feel so worried. Just really looking for peoples thoughts and advice. I currenty owe £45k (nothing to show for it but bad money management, living costs, easy access to credit and some stupid gambling debts) I am fully up to date with all payments apart from one. I am a single Mum who works part time and is in receipt of HB and tax credits. My huge worry is I am still on the mortgage with my ex boyfriend (father of my child) We bought a property together in December 2007, by July 2008 I had left. I never once put any money into the house and can prove this. I have not paid a penny since into the house. In 2010 I signed an Affidavit to confirm I have no financial interest in the property at all. I am now looking at trying to do an IVA or go bankrupt but am worried that they may see the house as an asset. My ex is now married and lives there with his new children. Just don't know what to do..I have about £160 a month I can pay into an IVA which I would rather do but don't know if the creditors will accept that? Anybody have this amount of debt and been accepted for an iva with such little to pay?

sourcrates · 20 April 2018 at 4:13PM

Hi,

Yes it is possible, but why bother, if you do not have a property to protect, then you may as well go bankrupt, I should add you may need legal advice on the house situation before doing anything.

IVA`s are designed mainly, but not exclusively, for homeowners, to placate the need to go bankrupt, you do not have that shackle, (hopefully) so why choose that option.

With a more concise budget, you would maybe get an IPA of less than £100 per month for 3 years with bankruptcy, if your work will not be affected by it, then its pointless struggling on for maybe 5 years with an IVA, when Bankruptcy will end in 12 months.

I suggest getting some advice from one of the free debt charities or National Debtline, links are in my signature, before embarking on anything, get to know the pro`s an cons of each.

exlews · 20 April 2018 at 9:25PM

Thanks. Bankruptcy just seems a really scary thing to do. I don't know why an IVA feels any different.

exlews · 18 July 2018 at 12:19AM

I am still no further forward with this and feel crippled with worry. Just too worried to do anything because of my ex's house. He doesn't really like me as it is. As it happens he wants me off the mortgage and is trying to arrange that but don't know if he can do that because the last mortgage was a self cert and you can no longer get them. Worried that even if he can get a mortgage the OR would see this as dishonest on my part. (he knows nothing of my situation) Iam due nothing from it. Any thoughts?

srg0916 · 18 July 2018 at 7:41AM

First thing is first as I see it. You have taken the right start, you realise that your situation needs sorting out. Well done for this. Do not burry your head with it. I know BR sounds scary and that an IVA seems better but like others have said if you have no property that the OR would be interested in then I would go BR if you can afford the costs. It's easy to do this online. Best thing I did was go BR i'm only a few months into my BR but I can tell you once you make the decision and do it then a weight will be lifted. As for the house you are on a mortgage with, seek legal advice about this, this doesn't need to be costly, there's alot of free advice available. I would think that because you have signed a legal document stating that you have no interest in the property that this means even if it was sold you'd get nothing. So I doubt the OR would be able to use any of this money towards your BR but even if that was the case, it's you that you should be concerned about. Best of luck with whatever you decidde

silvercar · 18 July 2018 at 9:11AM

In 2010 I signed an Affidavit to confirm I have no financial interest in the property at all.

Says it all really. You signed away any rights a long time ago, well before bankruptcy was on the horizon.

Nothing is ever 100% guaranteed, but I don't see how you have any financial interest in the house.
The OR wouldn't allow your budget to include payments for a mortgage on a property you don't live in, but it sounds like this isn't an issue.
The only issue I can see is that you have a financial link with your ex, through the joint mortgage. If he tries to remortgage elsewhere after your bankruptcy, this financial link could effect him. So from his point of view he needs to sort out taking over the mortgage before your bankruptcy and sever any financial ties. Depending on your relationship with him, you may want to encourage him to sort it.

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