Please help me

[greening2170]

I’m currently living with my ex partner, we have been split up since September 2007. However the house has been up for sale since October and unfortunately isn’t selling. Therefore I’ve got into financial difficultly. Our house is up for sale for 167k we have a mortgage for 160k and an unsecured loan on top with Northern rock for 30k. My mortgage payments and loan is £1,300 per month and my ex partner only pays £200 towards this as this is all she can afford.

I also have the following debts
Halifax credit card 11k
Virgin Card 15k
NatWest Card 5 ½ k
Barclaycard 500 pound

I’m not sure if Bankruptcy or an IVA is the right way to go.

Can someone help or point me in the right direction.

If I could wipe my unsecured things I would be able to manage to run my house with a lodger say.

With the unsecured loan with NR it is in both our names if an IVA took place what would happen with this debt?

Hope anyone can help.

[MelanieGiles]

Hi greening and welcome to the forum

Given that you have no equity in the property, and appear to be looking for a fresh start completely free of debt, it appears that bankruptcy would be a suitable option for you.

I am assuming that you really would like to stay in the property, but are finding it difficult to pay the bills and the mortgage. If your ex-girfriend were to move out then I imagine this would help as you could charge a higher rent. Is there any reason why she is paying such a low proportion of the shared bills?

Your unsecured loan with Northern Rock would be captured under your bankruptcy proceedings, but your girlfriend is jointly liable for that and therefore the lender would pursue her directly for repayment.

As an alternative you might wish to voluntary surrender the property, move into cheaper rented accomodation and see if you could then afford to repay your creditors.

[greening2170]

Melanie thanks for the promt responce.

She doesn’t earn that much to be honest and now we live separate lifestyles she doesn’t pay that much.

If I was successful at an IVA would the entire NR loan be scrapped or just my half? Would I be able to keep my house and can if I went bankrupt? If I could keep up with the mortgage payments?

If she did move out, what would happen with her debt?

If I stop paying the mortgage what would happen, would they chase us for 1/2 each of the balance?

Do you think I could sort things out with an IVA if I found a tenant to rent with me and would NR just take my ex partners name off the mortgage on my wage alone?

[chris.g]

It may be possible to keep your house if you declare br but you will have to buy out your ex's share of the equity.....£7,000/2 = £3,500 plus pay the OR your share, so leaving you paying £7000....assuming that the house value will remain at £167k, given the current housing climate.

[MelanieGiles]

You are both jointly responsible for the Northern Rock loan - so if you declare yourself bankrupt then you will be discharged from all of the debt, but your partner will be responsible to the repayment of the full amount.

An IVA could work if you could afford to pay a reasonable monthly amount, and it might be worth having a chat with an insolvency practitioner to see what options you have.

[greening2170]

Melanie

What is a reasonable ammount?

If i did get an IVA what would happen to the NR loan?

Are you a insolvency practitioner? Or could you assist with an IVA

Thanks for all your help

[chris.g]

You can get in touch with Melanie through her website, the links above on her posting,
Good luck,
xx

[Oliver]

Hi

If you want a fresh start and are not really bothered whether you keep the property or not then bankruptcy is a very good solution, even more so as you have one of the more difficult creditors such as Northern Rock who although will accept IVA's can be very awkward when it comes to handing them out. Any debt you have incured jointly with another person will be recovered in full from them by the creditor, so they may have to look into a solution also.