First Time I've Done This

[annied]

Hi

The realisation has recently hit home that we are in a dreadful financial mess and can no longer rob peter to pay paul - we are totally maxxed out and have started missing mortgage payments. This is new to us in 15 years together of perfect credit history etc. The problem is that we have (as many people do)some buy to lets that are no longer being covered by the rent and we kept trying to bridge the gap as they are all now in negative equity so selling is out of the question. We can't do bankruptcy as my husband can't afford his employers to find out or its game over. Also we have a btl which my elderly and infirmed father lives in which we have been paying for. We desperately need to keep our house as it is the right part of the world for my husbands job - and the btl which my father lives in. Both are in nagative equity. We want (well don;t want but feel we must) let the other properties go to repossession and arrange an IVA with the unsecured lenders. Does this sound reasonable? Sorry I'm really scared and don't underdtand how this is going to work.

[Skippy]

Hi Annied and welcome to the forum. You have come to the right place for support and advice - believe me, you're not on your own.

I can't answer your questions as I know very little about property and the buy to let market, but I'm sure Melanie Giles will be along soon to advise you.

Good luck x

[annied]

Thank you - my heart is racing so hard I can hardly keep my hands still to type.

[Viki.W]

Hey annied, you poor thing. You're definitely in the right place here for support from all of us and good advice. I don't understand buy to lets either but someone who can help you will be with you shortly so hang in there. X

[size5]

It is imperative that you talk to a professional as soon as you can.

Please visit www.iva.com and have a look round there at some reviews etc. Take time to speak to 2 or 3 different providers and then make your decision from there.

Regards and good luck.

[MelanieGiles]

With regard to the buy to let properties - if they are in negative equity and absorbing cash then you ought to consider surrendering them to the mortgagees. Without the ongoing mortgage payments, do you feel that you could keep your heads above water, and could your father contribute towards the mortgage on the property he is living in from his pension?

[annied]

Hello - thanks for your reply. Yes we absolutely must surrender all of the buy to lets that we can - but we need to keep a roof over our head and that of my father. He only has a state pension and the cost of the mortgage on his flat has gone up lover the last 3 years from £400 to £880 interest only. Ours is £1450 interest only. If all of our other buy to lets and our unsecured stuff was to go - including the car loan and therefore the car - then it would be very tight but we could just about do it. The thing is - my full time job has been working on the properties - so as of now I am not bringing any income in - but I am now actively trying to get an office manager job in the West End (we are 35 mins train journey from London) where I can get a much higher salary than locally. Once I am earning - we would be able to easily meet our commitments (once we have surrendered everything up to the creditors) and make payments to the IVA. What do you think? Many many thanks

[MelanieGiles]

I think that you should take professional advice directly from an insolvency practitioner as soon as possible in order to undertstand what options there are available to you.

If you would be in a position to pay your creditors under usual contactual terms, including any shortfalls from the sale of your properties, then you may at this stage just need to call them and let them know you have a temporary cashflow problem.

[annied]

Hey annied, you poor thing. You're definitely in the right place here for support from all of us and good advice. I don't understand buy to lets either but someone who can help you will be with you shortly so hang in there. X

[annied]

Hello again

I think I hit the wrong button before! Can I as a question of somebody who might have knowledge of this - but since my posting last week I havn't been able to push finding an urgent solution any further forwards - Melanie Giles is kindly going to speak to me - BUT - now that things are so so urgent - are there any insolvency people who also specialise in debt management programmes - as I think we might be able to find enough money if we were given a couple of months for me to find a job etc - to pay our bills on a regular basis but would need help in getting our unsecured creditors to extend the time we have to pay and reduce the amounts per month and also speak to our mortgage companies we have fallen behind with and try to get something sorted with them. I am just so wary of phoning some of the companies who advertise debt management incase they are those who are just trying to make a quick buck out of it. I can't afford to make a mistake at this stage. I just don;t know where I should go - all the IVA sites seem to just discuss IVA's and I can't find any sites on debt management - can anyone out there help me - I think I'm going to go insane if I have to go another day like this. Thank you to anyone out there who can give me any glimmer of help.

[kallis3]

Annied, if Melanie is to phone you, she will explain ALL your options to you - debt management, IVA or bankruptcy and discuss which would be the best one for you.

You do have to be carefull who you speak to, but if you visit iva.com, there is a link on there with all the Insolvency Practitioners on and reviews for them as well.

[annied]

Thank you Jan - I just want to get a plan together and know somebody is sorting it out with us - the feeling of helplessness is just too great to be honest and if there is any way this dreadful mess can be sorted out - then we really want to pay our bills - albeit over a longer period of time than we originally agreed. Thank you for your reply - it makes me feel a little less lonely......

[kallis3]

We've all been there annied, the guilt and stress are awful, but you are not alone, especially on here.

Any questions, feel free to ask, and you will have all the moral support you need when you are feeling down.

[Julie]

Annied you're never alone now you've found this forum, as you've found out with the support you've already received. Keep posting x

[annied]

Thank you both - it really helps - can't say how much. Did you both think it was the end - I just can't see how we are going to come out of the other end - surely this will stay with us for ever? Have been told I have clinical depression - feel sick and ill all the time - can't see a way forward and see to be able to function on full power right now more than ever. Will this feeling of doom ever end?