A few questions - can anyone help?

[steve1976]

Hi. I'm newly registered here although I've trawled this forum on one or two occasions.

I have reached a point where I have four credit cards I can no longer afford to pay the minimum payment on. I also have two 'consolidation loans' that have about 6 years to run, and I've been making direct debit payments to these. For a couple of months now I've been liquidising what I could in order to make the repayments on the cards, but now has come the time that all I have left is the family car (worth only £3k ish). I have a shared ownership mortgage and I only own 50% (or rather the mortgage company does). I've not defaulted on any of my payments. I have a £4.7k overdraft with my bank and I occasionally exceed this although only for a day or so. I had a phone call from them a few days ago saying that as I did this and because I had £4k on a credit card with them, they wanted to talk to me but I refused as I was worried they would just offer me another consolidation loan that would push me even further in to debt.

I've been thinking that an IVA seems my best / only solution but have an issue that I think may affect my success in getting approved for one. Four years ago my father remortgaged his house so that I could pay off outstanding debt in order to get onto the property ladder. The remortgage was over 8 years, and I've been making large payments to him on a monthly basis (about £700 / month). The thing is no matter what happens, I must continue to make these payments as I'm not prepared to see my father in financial difficulty becasue of my cock-ups.

I feel such a fool. I've told my wife everything (we have separate accounts / debts) and she's pretty appalled but accepting. I've been bottling everything up and I've started to get quite depressed - loosing sleep, worrying all the time etc...

The questions I have: 1. Will I be able to have the payments I make my father regarded as essential expenses. 2. Will the minimal equity I have in the house (£25k) be considered when I can't remortgage due to only owning 50% of my house.

Thanks for reading.

Steve

[johnh]

Welcome to the forum, Steve. I'm sure you are at the right place to get good advice, though I'm not the right one to give it! Hang around for a while and I'm sure one of the experts will give you a reply (though they may have to ask a few further questions on the amount of debt and your income levels)

Best of luck

[Til]

Hi and welcome to forum! [:)] I think the best advice you will get on here is to call Melanie Gile's team to speak to her about the details of your debt problems. Melanie come highly recommended or alternatively visit www.iva.com to check out other IP's.

As with all of us - each persons circumstances are unique so getting an IP to go through it all with you will ensure you get accurate advice about possible ways forward. The best step we ever made was seeking personal professional advice - you will not be judged by the professionals - they are there to assist you out of debt and in the meantime we are all here to support you on the way [:D]

[freelili]

First of all Steve youre in the right place. I am not an expert in the finacial field just someone who has picked up knowledge having been in debt.

Every problem has its solution, there will be an answer somewhere. I do know that family creditors are asked to stand aside for the benefit of companies but if this is a second mortgae in your name then it could be included I think, no expert on Mortgages. I am sure someone will be able to help take the next step in dealing with all of this.

You have obviously been under a great deal of pressure and you have already taken the hardest step. We all feel a little bit lost at the statt, like we are the only ones in this mess, we are not, there are many more out there yet to come. Well done for telling your partner, its a tough time for both of you right now.

Try speaking to Melanie who posts on here and comes highly recommended by other users.

Just wanted to say, welcome, really and that youre not alone in this dark place anymore. It does get better.

Good luck for now

[steve1976]

First of all Steve youre in the right place. I am not an expert in the finacial field just someone who has picked up knowledge having been in debt.

Every problem has its solution, there will be an answer somewhere. I do know that family creditors are asked to stand aside for the benefit of companies but if this is a second mortgae in your name then it could be included I think, no expert on Mortgages. I am sure someone will be able to help take the next step in dealing with all of this.

You have obviously been under a great deal of pressure and you have already taken the hardest step. We all feel a little bit lost at the statt, like we are the only ones in this mess, we are not, there are many more out there yet to come. Well done for telling your partner, its a tough time for both of you right now.

Try speaking to Melanie who posts on here and comes highly recommended by other users.

Just wanted to say, welcome, really and that youre not alone in this dark place anymore. It does get better.

Good luck for now

Thanks everyone. The debt I owe my father is an informal one. It's not documented in any way and the mortgage is his, on his own property. He did it out of the kindness o his heart. I know all the debt is my own fault, 100% of it. It's been suggested I have a OCD, and I must admit most of my problems have arisen since a certain well know auction site came on line a few years back. I think the biggest thing I'm looking to get from an IVA (whether it's the right reason or not), is someone to take a hold and keep control - I'm not convinced I've ever been capable (and neither does my wife!)

[freelili]

Steve, there may still be an answer.

I do undertand OCD.... its a difficult thing to live with. My son half starved himself because of this thing. The debt stops here, a new life can come out of this for both of you. Please dont be too hard on yourself, whats done is done. There is an answer to every problem, I am sure your father would have to stand aside in a formal IVA, have you thought about BR or a DMP? Having said that I am still sure its worth talking to Melanie.

[MelanieGiles]

An IVA will not work for you if you want to continue paying your father, as that money ought to be available to all creditors. You may be able to find a DMP company who would put an offer forward for you, but professionally I have to advise you that you ought to be paying equal amounts to all creditors - including your Dad.