Hello MrsAandBaby.

Do you expect to sell your current home for a profit?

If so, how much do you expect that to be?

If there will be money, were you intending to hand this money over to your mum to help buy the new home?

Hi

Yes all the profit needs to go down as a deposit to purchase the new house as the mortgage can only be 14 years due to my mums retirement age. So need around a 25% deposit. At the moment me my husband and our 2 children live in a one bedroom property hitch is extremely stressful never mind depressing.

🙁

Hi MrsAandBaby.

I'm afraid that I think there is a problem with the plan here.

Before insolvency (trust deed or bankruptcy) you cannot give away money without running the serious risk that the trustee will seek to recover it to help repay your creditors. That could cause you and your mum all sorts of problems.

If you didn't give it away it would probably have to be realised (by you) as part of the trust deed to help repay your creditors.

Ok, I wasn't sure if there would be an issue. I think I'll stick to the original plan of remortgaging in a few years to settle all my debts. And then slowly start to rebuild my credit rating so the house can eventually be transferred into our name. I know this will take some time but hopefully 6 years down the line we will be financially secure. I have definitely learned my lesson where credit is concerned.

Thanks for the advice.

Have you considered using the proceeds of the house sale to settle your debts and just renting instead?

If you do it Kevin's way, your interest would stop right away, hich would be good. You could also ask creditors to go for a full and final settlement, which would mean you could repay about 65-70% of the debt, in full and final settlement of your debts. That way you get to keep some money for the deposit.