Help with property and debt

[jules7777]

Hi I am new to the forum. The problem I have is as follows:
My husband left our property in Jan 07. The house is worth 160K. We have mortgage redemption figure of 156K,the mortgage is with Northern Rock and has unsecured element of 25K

I have personal debt of 25K which is currently covered by DMP. My ex has covered his debt with a loan. Ex wants me to sell and split what we owe to NR and I can put my part under my DMP. I originally wanted IVA but no one seemed to want to represent me.

I dont know whether to sell the house and try and get rented accom. Will I be able to afford to rent and cover DMP that is a big quesion. Or should I just stop paying NR and just wait to be kicked out, my kids are 17 and 15 both doing exams and I dont want them disrupted to much. I was considering bankcrupcy as an option anyway, although I am worried how this will affect my job as an office manager.

My main priority is my children and I want to do what is best for them. My ex claims he is giving me the best advice, but he is only interested in sorting himself and his own money problems.

Thanks in advance for taking the time to help.

[MelanieGiles]

Hi jules and welcome to the forum

I assume that you have the Northern Rock together loan package for the £25k unsecured debt.

It is a shame that you cannot find anyone to represent you with regard to your Northern Rock debt. There are still a lot of IP's who will look at Northern Rock cases, so don't give up, and if your ex-partner is going to pay off half of the balance, then this reduces the exposure to Northern Rock and hence the possibility of rejection.

Could you afford to remain in the property, and offer to pay sometjing to your creditors - you don't say how much you owe to other lenders, or is Northern Rock your only creditor? Please post more details and then I or one of the other experts can possibly help further. Also do bear in mind that given the ages of your children, they may leave home and start working over the next few years, so you will lose child benefit and any maintenance paid by your ex-husband - so you do need to consider that when thinking about the future.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jules7777]

No I do have personal debt with a number of creditors - MBNA, EGG, TSB being the main ones. I think the problem with IVA was the fact that MBNA and Northern Rock are my main creditors and they both have a reputation for saying no to IVAs. Yes the age of my children is a problem in the fact I will be losing a substantial amount of money when they leave education. However, if I did not have the children to consider I have a couple of friends who have said I can lodge with them, so its swings and roundabouts really.

I dont think I can remain in the property because the monthly mortgage payment is very high and I dont think ex would agree to extending it over 25 years again to lower the payments he just wants out. He is renting a property for 650 per month with his new girlfriend while allowing the marital home to fall into arrears with the mortgage, which seems very unfair to me, but there doesnt appear to be anything I can do about it.

[MelanieGiles]

Can you provide a detailed listing of your creditors please?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
I presume that the unsecured NR debt is joint and as such your husbnd is liable for the full amount and not just half of it.So he will have to keep paying it,until you agree a way forward,if he does now want to spoil his credit record.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[jules7777]

List of creditors - already under DMP with Byrom and Keeley:
EGG 3300
Lloyds TSB 11000
MBNA 10000
Skycard 4650
Lloyds TSB overdraft (debt taken over by Buchanen Clark and Wells)800
NEXT (debt taken over by RMA Resolve)300
HFC (accepted rewrite)500

[MelanieGiles]

Jules

Have I understood you correctly, that you have a joint Northern Rock debt as well, and that your partner is going to pay off half of that now from further borrowings he is intending to take out. If this is correct, he will need to get NR's agreement to release him from that debt, otherwise he remains liable for the balance as Andy says under joint and several liability.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jules7777]

My ex has told me that after the house has been sold Northern Rock will split the unsecured amount between the two of us setting up two seperate loans, its called a dual something, I will attempt to find out from NR.

[MelanieGiles]

I have not come across that before, so do post when you have some news. Anyone else experienced this before?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk