We have huge credit card debts totalling 200k between myself, my partner and my father all living at the same address. Monthly payments are now up to 4k a month and proving hard to find! The debts are from a project we undertook last year converting two properties into 4 flats. We now can't sell the flats and are trying to remortgage but it is proving dfficult. I cannot cope with the stress involved any more! Would we lose our properties if we can no longer pay minimum payments to credit cards? Our income is covering our monthly outgoings other than cards. We have budgeted to the best of our ability I don't know what to do for the best any more.
There will be someone along very soon to give a full and knowledgeable answer on here, you can rest assured. My only input would be, having gone through a very similar experience is firstly go see your accountant and get him to recommend an insolvency advisor locally just to advise on your very particular situation. Then get the papers filed asap, you can do it yourself remember if cash is tight, plenty of help on here. Properties with secured loans are protected and as long as you can keep up payments and can get someone to purchase any equity they seem pretty safe, can't say that about your flats though probably, if investment property. Anyway, with you arriving on this forum can virtually guarantee, you'll be safe and sound for top notch help and totally comprehensive advice.. All the very best.
All three of us owe about 65-70k each on credit cards.
We do not live in the flats.
We cannot separate the leases on the new flats until we pay back existing mortgage. So I'm not sure what exactly the equity on these would be. As individual flats they were valued in July at 120-125K each by 3 agents. We had another valuation in Nov and they were still quoting 120-125k (but I'm not convinced!) but that is at individual prices. As two flats on one title I guess it will be less anyway. The ironic thing is the mortgage we secured on the properties Dec 07 was .74% less than base for 24 months so our monthly payments are now about £85 per house! The current rental is £600pcm per flat but we only have two let at the moment. Our main home is actually two properties knocked into one. One cottage is owned by myself and my partner with equity of about £40k at best. The other cottage is owned by my father and my partner. Again the equity is difficult to estimate as along with that cottage there is a detached barn which we converted into an annex (for my dad) back in 2001. We have just been given a certificate of lawful use which enables us to sell the barn individually but it is still currently under one title. We have just had a valuation for remortgage co on this still as one title (but the surveyor said he would "add some aggregate value" for the searation of the barn) at 475k (mortgage is 322k) Before the downturn the value on the barn was 350k if separated and the cottage was 275k.
The problem is how do you put a valuation on anything when nothing is selling no matter the cost?!
I know we still have equity I just can't stand the pressure and worry of how to pay these minimum payments!
quite a complicated case so would really suggest you get offline advice from either the helpline of a bankruptcy expert as the whole matter needs to be gone over carefully.
There is however a way through this - there always is
Paul Johns Assisted Bankruptcy Specialists Reviva UK
It helps to hear someone sound remotely positive because we are all getting very despondent!
We currently have a mortgage advisor trying to remortgage flats and cottage with barn.
Do you think we should get advice now or wait to see what they come up with? (she seems to be getting further than anyone else who has tried since september!)
I would suggest you speak to someone else as well to get plan B and plan C organised so at least ytou know there is some control if you can't arrange a remortgage.
Paul Johns Assisted Bankruptcy Specialists Reviva UK
We have huge credit card debts
Posted - 16 January 2009 : 18:00:21
