Author Topic: How much in debt am I??  (Read 1828 times)

Bill22

  • *
  • Posts: 7
How much in debt am I??
« on: Apr 26, 2010, 01:23:58 PM »
Please could anybody offer the way to go for me or any help.  I would be happy to sell and rent for a while, but I don't think I have equity in my house to cover the motgage and secured loan, nevermind my unsecured debt.

I have £27,000 unsecured debt and also a mortgage and secured loan against my property.

Sovereign

  • Sr. Member
  • ****
  • Posts: 81
Re: How much in debt am I??
« Reply #1 on: Apr 26, 2010, 02:34:33 PM »
Hello Bill,
 
It is a little difficult to give you advice when there is so little information. If you have no equity in your home that would clear the secured loans then you cannot sell it without the consent of your secured creditors. Would be good to get it valued and get redemption statements from your secured lenders before going any further. If you are having difficulty paying your debts and are happy to give up your home then you could consider bankruptcy but this is an extreme move and you should take as much advice as you can before making the decision. There are other solutions out there which could help but more detailed information is needed.
 
Post again with more info Bill or [** sorry, no personal contact invitations allowed **] and We will see what you have to do next.
 
Best wishes.
 
Steve
Sovereign Consulting

Bill22

  • *
  • Posts: 7
Re: How much in debt am I??
« Reply #2 on: Apr 26, 2010, 03:06:23 PM »
This is probably where it gets difficult.

I have negative equity to the tune of £20,000
And unsecured loans of £27,000

My ex-wife is still on the mortgage and secure loan, but we agreed that I would keep the house repayments on and this is what I want to keep too, as she left 3 years ago.

Also is there a way to remove my ex-wife from the mortgage or secured loan.

Sorry if Im being vague, I would rather not go the bankrupt route, but am open to other options

cheers

Sovereign

  • Sr. Member
  • ****
  • Posts: 81
Re: How much in debt am I??
« Reply #3 on: Apr 26, 2010, 04:16:01 PM »
Hi Bill,
 
Bankruptcy would jeapordise your wife's position in that any shortfall in the mortgage or secured loan situation following bankruptcy would become her sole liability. You cannot remove her from the mortgage without the lenders consent which is unlikely to be forthcoming if you are in financial difficultiess.
 
You could consider an IVA if you can afford the secured loan repayments and make a realistic monthly contribution towards your debts. This would result in the unsecured debt being cleared interest free over a 5 year period and you would retain your home. There will be clauses asking you to try to remortgage the property in year 3/4 of the IVA. The chances of you being able to do this in the present mortgage climate are nil.
 
All of the above assumes that you are not substantially in arrears with the secured loans.
 
Hope this helps.
 
Steve
Sovereign Consulting

Bill22

  • *
  • Posts: 7
Re: How much in debt am I??
« Reply #4 on: Apr 27, 2010, 08:22:37 AM »
Hi Steve,
Thats a big help, instead of an IVA what about a debt management plan, would this be suitable too?  Does a DMP go on your credit record?
Thanks

Sovereign

  • Sr. Member
  • ****
  • Posts: 81
Re: How much in debt am I??
« Reply #5 on: Apr 27, 2010, 03:10:55 PM »
Hi Bill,


A DMP may help you but these agreements are informal and you will need a DMP Company to administer this for you where there fee will be between 15 and 20% of each monthly payment that you make. Look at payplan or CCCS or even give them a call and they will talk you through the process involved. They both have .co.uk websites and are both charities.


Every debt solution will adversely affect your credit rating.


Good luck.


Steve
Sovereign Consulting

Bill22

  • *
  • Posts: 7
Re: How much in debt am I??
« Reply #6 on: Apr 27, 2010, 04:26:57 PM »
Thanks for the advice, I have been in touch with Payplan and they think they can help, great advice.
cheers

AshleyPark

  • Sr. Member
  • ****
  • Posts: 63
Re: How much in debt am I??
« Reply #7 on: Apr 27, 2010, 04:28:45 PM »
Hi Bill22,
 
As Sovereign has already mentioned both an IVA and  a Debt Management plan would affect your credit rating.
 
An IVA would result in your unsecured debts being cleared in 5 years. A debt management plan would be less formal and you can make smaller monthly contributions than you would be required to with an IVA.
 
However a debt management plan does not always result in all charges and interest being stopped and this coupled with your smaller payments could mean that you are paying the debts back over a longer period of time.
 
I would always recommend speaking to at least two companies as well as using a budget planner these can be found on most Debt Solutions companies websites.
You may find that this helps give you a clearer understanding of where your money goes each month and any potential areas you can save.
 
A key point to an IVA or DMP is that you only payback your creditors at a rate that you know you can afford.
 
Lee
 
 
 
Ashley Park Debt Solutions Ltd
 http://www.ashleypa