Hi skipy

Trust me, nobody judges anyone on here. Financially you are in one place and need to get to another and that's the reason for the forum.

In all formal matters ie DAS, Trust Deed & Bankruptcy the very general rule is to weigh any assets up against debts. You appear to have little or nothing in the way of assets and therefore will be a solution to deal with the debts with possibly minimal impact on anything else. Your view on the house probably makes things easier as well.

Could you tell me the extent of the debts in your name, your husband's name and any joint. Also is the car definately HP? Also what do you consider your surplus would be if you did not pay the debts.

With the above, we can hopefully assist further.

Mark

Thank you, I am literally in tears as I am so stressed out. The debts in my name are a personal loan of ?ú6373 (i got a redemption figure today and an overdraft of 2500 (currently sitting at ?ú2000. My husbands personal loan was originally ?ú15000 (he took it out in July 2009) and pays roughly ?ú240 a month to it (over 7yrs) but I don't know the current balance at present but he has requested it to be sent to him. The secured loan was taken out in 2008 and was for ?ú30000 over 25yrs (we have also requested a settlement figure for that) the secured loan is in joint names. The mortgage is in my husbands name only and the outstanding is roughly ?ú167000 (i have requested a settlement figure for this also) The car was financed through the garage with Black Horse finance so I'm sure it is HP. The house valuation I am giving is what it was when we remortgaged in 2008 so I'm not sure what it is definitley worth now. I just wish I could run away and start all over, I am a complete mess.

Sorry I forgot the part regarding surplus income. Do you mean if we didn't pay the personal loans or we didn't pay anything?

Hi skipy,

I just wanted to add my welcome to you. As Mark says there are no judgements made here about the reasons why people find themselves with debts that are becoming harder or impossible to manage.

If you read around the forum you'll find many many examples of visitors who have found the answers to their difficulties through the variety of options that are available to them. I do hope that you find them reassuring at what is clearly a worrying time for you.

You are correct in your understanding of Mark's question about surplus income. Think about all of your essential expenditure other than debt repayments. This will include your mortgages, council tax, utility bills, food, travel etc etc. Subtract this from your total income and you will have an idea of how much might be available to deal with your debts. This will guide Mark and the other experts towards possible solutions that you might consider.

If you can find it I'd suggest that you also dig out the original agreement with Black Horse. They have actually provided both secured (HP) and unsecured loans for cars and this makes a difference to your situation and options in a few different ways. If you cannot find it you could call them to confirm what type of loan that it is.

Hi skipy

TDA is correct, it is always the unknown which is the worst, however when the options are looked at, things are no where as bad as they seem. Even from the information provided there are certainly options available.

There are a couple of options available. If you decided to walk away from the property, then that could certainly be built into a proposal, if you decided to remain there then you would need to look at the equity position (if any)to build that in.

My advice would be to get all the information, sit down and look at ALL the options. Sign nothing at this stage and only decide in your own time on the option which best suits yourselves and nobody else.

Mark

Hi Skipy

Reading your original post is similar to ours with regards to income and expenditure.
My wife and I were in a financial mess 10 years ago and promised ourselves not to go there again. Unfortunately we did.
Until 2 years ago financial institutions were literally throwing money at people even those impaired credit ratings ( us ) and when we struggled we just arranged more credit to service the credit before. 18mths ago they wouldn`t give us any more finance.
So we turned to payday loan companies to help pay the earlier loans ( felt relief for 2 days )then it hit us " how are we going to pay back the payday loan? Easy ! go to another payday loan company and 30 days later go to another one. After 3 months I felt suicidal having to roll over these payday loans.
The phone calls started, the letters started arriving, I ignored them, big mistake. Our 27yrs marriage was at breaking point, every minor issue was my fault or her fault. I couldn`t sleep, went to bed thinking of our debt, awoke thinking of our debt, I just wanted to go to sleep and never wake up. This couldn`t go on.
I had been looking at this website for several months and it always made me feel better for a couple of hours knowing I was not alone. I had read into various solutions i.e DMP, DAS, Trust Deed and Sequestration. Everyone of these solutions is a solution depending on your cicumstances. Our financial position made the Trust Deed the best alternative.
As soon as I signed it I felt such relief, I started answering the phone again, would read the letters instead of just opening them and hiding them from myself!! I`m having such good sleeps now its great.
The hardest thing is the initial phone call to a TDC and basically say " help".
I could go on but I think you get my drift. Good luck on whatever you decide.
S
P.S. If you PM me I will give you more info.

If we walk away from the property, would that totally ruin our chances of ever owning a house again? Would we be black listed?

Thanks

Skipy

quote:

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Originally posted by Mark McFadyen

Hi skipy

TDA is correct, it is always the unknown which is the worst, however when the options are looked at, things are no where as bad as they seem. Even from the information provided there are certainly options available.

There are a couple of options available. If you decided to walk away from the property, then that could certainly be built into a proposal, if you decided to remain there then you would need to look at the equity position (if any)to build that in.

My advice would be to get all the information, sit down and look at ALL the options. Sign nothing at this stage and only decide in your own time on the option which best suits yourselves and nobody else.

Mark

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Thank you Sherbo for taking the time to reply to me. I feel at my wits end and at the moment I can't see how anything could get better. I really appreciate you sharing your story as it gives me some hope.

Hi Skipy
Not a problem. I also thought about handing my keys back to the mortgage company and walking away. After seeking advice from several sources I decided against it. You would be worse off and no home.
The mortgage lender would reposess your house, sell it at a reduced rate and would pursue for mortgage payments, equity defecit, added interest and their legal fees plus extras probably. You would not be entitled to local authority housing as you made yourself homeless. If you stayed in your present home and were repossesed then the local council has an obligation to re-house you. With regards to being `blacklisted` then any form of a repayment plan will affect your Credit Rating for 6 years or even more as I found out to be the case but thats another story. I would stay put Skipy.
I strongly think my advice is correct but if I`m wrong then I apologise in advance.
Sherbo

Hi skipy,

Sounds like you have done the hard part already in facing up to the problem and looking for help. Sherbo's post really echoes the stories I hear from clients regularly and is typical in that the stress seems to fall away quickly once the right solution is put in place.

As Mark says, it may be possible to find a solution whereby you can hang on to your home. However, it sounds as though you might prefer to leave all of the secured debt behind too and give the property up, which is understandable. The point is, you may have the choice depending on how your budget stacks up with the unsecured debts taken out of the equation.

There is no reason you would never be able to own a house again. Certainly your credit rating would be affected for 6 years, but even within that time you may well be able to get another mortgage - half the battle these days is saving enough of a deposit but presumably that would be easier if the debts are off your back.

It will take me a while to go through all the finances to work out the surplus income but from what I have already told you, would we be able to do a trust deed?

Hi skipy,

That's really difficult to say without a full understanding of your circumstances including the amount you can afford to pay towards your debts after your essential expenditure has been allowed for.

What I can say is that there will be an option or options open to you. There always is.

Please let us know your estimate of how much is left over as and when you have had the opportunity to have a look through everything.

My circumstances have changed some and I need advice please. My husband was basically being pushed out of his job and so he has been looking for another for quite a while. He has managed to get a new job but it's in England. He has to accept it as our only other alternative is that he will be out of a job within the next 6 months (and he really wants to accept it too). As you can see in my previous posts we are up to our eyes in debt and it is unlikely that we will find a buyer for our home as it has proven very difficult to sell (even in better times). So I need some advice on how to deal with our debt and be able to move for my husband to take his new job. I'm thinking we will need to go bankrupt but can we do this and still move? Please help

Hi skipy,

Would it be possible to rent your house out and then rent a home in the new location?

Have you been able to look into the things I mentioned in an earlier post? We really need some more information on those subjects to be able to get closer to suggesting some alternatives to you.