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Mark.cr
Starting Member
6 Posts |
 Posted - 09 November 2009 : 15:20:04
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Thank you so much Richard. Here are my details in full:
[quote]Originally posted by Housing
Hello Mark
First, welcome to the forum
As Richard P has said, the forum has experts that wil assist you and there are enough of ius that are BR that will share experiences.
We have all stressed and many of us (I include myself) are on medication for depression/stress
You have a lot going on and I wish you well - I am an ex estate agent - if you need some suggestions about your house.renting post back with some more detail about the mortgage/any arrears for example etc - I will be happy to try to give good cyber advice,
My best regards, Richard
"There are no problems - only solutions..."
Thanks Richard. Here's my full predicament in detail:
Context:
I have recently separated with my ex partner. We have a six year old son who we share care and residency of. He lives with me half of the week in the family home.
I have serious debt problems (details below) resulting in large amounts of negative equity and secured debt against the family home. My mortgage and secured loan are in joint names with my ex partner. She lives with her father and does not contribute financially to the mortgage and loan despite it being in her name also. She also works, has no overheads, receives child benefit and tax credits and has recently applied for CSA for which I am being asked to pay her £200 per month.
I no longer wish to live in the home for a variety of reasons. Firstly the emotional side of living in it after the separation is too painful. Secondly, I never wanted to live in the town and this ultimately led to our separation. Furthermore, it is too large for me to afford to run on my own in terms of heating etc and it has become run down and very depressing due to no funds to maintain it.
I have recently been receiving NHS counselling for depression triggered by the separation and money worries.
I just want to get rid of the house and debts and make a fresh start. Ever since leaving University with student loans I have never got out of debt. I would like to eventually buy a much smaller house in a town or village where my family and friends live that will be more suitable to bringing up my son without financial worries. Alternatively rent a similar property and save until I can get back on the property ladder again as I would like to be able to own a house as an investment in my child’s future.
Worse still I have had numerous consultations with advisers ranging from online law experts, mortgage advisors, credit counselling services and the citizens advice bureau and each party appear to offer conflicting advice. Each choice is obviously a negative one and I just cannot make a decision as to what to do. This is making me feel even more trapped, frustrated, anxious and unhappy while adding to my depression.
Breakdown of financial debts:
Income £2200 per month Monthly payments
Value of house 155000 - 165000
Mortgage remaining 140608 780
Secured loan remaining 33614 270
Arrears on utilities & council tax 500 250
Credit and store cards 5902 100 (most payments now arranged at temporary reduced amount)
TOTAL 180624 1400
The £600 pounds a month left is not enough to pay council tax, bills, child maintenance and leave enough money to pay for food, travel costs to work and my son’s needs.
Advice I have been given to date:
Advice given and Issues with advice
Avoid bankruptcy.
Pay the bills by offering lower payments to creditors and take in a lodger I have begun to make payment offers to creditors but it is not enough to ever get me out of debt. I do not wish to take on a lodger while my son is still young and further confuse him so soon after the separation
Sell the house and take on the shortfall debts
My ex has said she will not and does not have to pay the remaining debts if we sell the house after consulting her solicitor. I cannot see how I could ever repay them alone and get back on to the property ladder one day.
Rent out the property
Rental value is £600 per month – a rental mortgage is £680 interest only. Letting agents fees are 12% on top of this. I would be even worse off.
Furthermore my ex will not take her name off the mortgage and I do not feel it fair that I should invest time and money alone in what would basically become a business.
Stay living in the house until the market prices rise Even if property prices increase dramatically I will still have negative equity for many years and I am not sure if mentally I can do it without becoming even more ill. I can’t see how I can afford it anyway.
Ex partner contributes to mortgage
The mortgage lender and secured loan company will not ask her for payments, she has insisted she cannot afford to contribute. I believe her but have not seen her finances.
Part exchange the property and downsize to a lower mortgage or better rental return
Mortgage lenders are unlikely to deal with due to the debts I have
[b]Bankruptcy Would I qualify? Will I ever be able to find a property for my son and I to live after this. Will I ever get on the property ladder again. I am 37 years old?
My final meeting for advice was last week with a citizens’ advice lawyer. She suggested bankruptcy is the most realistic solution on a financial and emotional level.
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RHB
Senior Member
1159 Posts |
Posted - 09 November 2009 : 16:00:59
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| Re other post, if your ex partner is on the mortgage she will have to go bankrupt also if she can't pay the mortgage & secured loan. |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 09 November 2009 : 20:49:22
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Mark
Hello again and thank you for setting out your situation.
I am not a financial adviser - my area of knowledge is property law and estate agency generally with a lettings background in the public and private sectors. I was an estate agent, director of housing for a local authority and almost a lawyer - but I did not take my finals and it was years ago..!!
I am not qualified to give advice to this extent as I no longer practice, as I am part way through my BR and at the moment do not hold the necessary insurance/indemnity cover now to enable me to give such advice.
What I can do is make suggestions, based upon my professional experience. However, in your situation, I see that you have already sought advice from a wide range of professionals and sadly, you have had a degree of conflicting solutions passed down to you.
It appears that with your mortgage and secured loan that you are in a negative value situation. I see you have credit cards that are in arreas and other bills such as utility bills and the like.
I could not see if there are mortgage arrears - sorry if I missed that - I have read your posting a few times now.
I feel that you need to speak to a once and for all specialist - an Insolvency Practitioner - all due respect to CAB, (I am doing their training course at the moment as an adviser volunteer) - they are a wonderful organisation and I see the last advice given by them is BR.
You have also seen or spoken to debt counsellors, mortgage IFAs - it appears they have all come from differing perspectives - It must make your head want to explode, coupled with your domestic/relationship difficulties.
On this site are amongst the best in Insolvency experts in the UK - I have not met any of them, but have exchanged cyber advice and through emails have had some outstanding words of real help and guidance from them - although I did my BR myself, it seems to me that with all of your situations, you need advice from one discipline.
I suggest that you email either Melanie or Paul on their email addresses which you will find on this site and they will, I am sure, come up with a solution for you.
You need to look at your global position and that includes the joint and several liabilities of yourself and your estranged partner - then you may be able to move forward.
I see you are receiving treatment for depression - I empathise - I too am receiving this as I had a breakdown in April following the loss of my businesses - I hope that you are making the most of this and believe me, things will improve - it takes time my friend - use the primary care service - they are there to help you.
I really do feel you need to seek the one expert you have not yet seen - an IP - do send Melanie and/or Paul and email and one of them will take you to the next step.
I do wish you well and I would like to help more - I am happy to help with any specific questions around re-possession if that happens - I do know what to do there - but lets get you the global advice first and to ensure that your partner meets her obligations too.
My best regards, Richard
"There are no problems - only solutions..." |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 09 November 2009 : 21:49:12
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Mark
I agree with Richard speak to the experts very soon, i too went through the turmoil and obtaining advice from numerous different sources.
I got so confused.
I am 41 and should it be appropriate you do qualify for BR
I take it from the above text that you have so far maintained all of your payments, if that is so that means more options are available for you.
BR may or may not be the correct measure for you and until you have spoken to people about all of the options you can not make an informed decision |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 10 November 2009 : 12:39:59
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Hi Mark - I have responded direct to your email - Melanie
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
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Full details of my conundrum!
