www.iva.co.uk

Hi all

Its been quite a while since I posted and I'm pleased to say that 18 months on from my full and final, I'm getting by okay. I wouldn't say its been easy. Not having a credit card to pay unexpected bills makes budgeting a delicate art. For example at the end of this month I have to find £230 for my professional membership fees. But I did manage a holiday last year (1st for 3 years)and I can socialise more than before. All the same I still find myself scraping the bottom of my bank account in the week up to payday.

Anyway the reason I'm here today is on behalf of a friend. Her marriage broke up middle of last year and she is currently going for a divorce. She has a child from a previous relationship and the father makes a monthly contribution. Her husband lived with her approx 7 years but the house has always been in her name only. He didn't even pay rent but paid for holidays and home improvements. However about 4 months before he walked out he persuaded her to remortgage and used approx £30K to pay off his debts.

Consequently she has been left with higher mortgage payments (2 yrs to run on fixed rate so not even benefitting from lower interest rates)and now finds she may be losing her job.

I don't think she has much other debt, maybe 1 credit card and a small overdraft but she's not sure what to do if she can't keep up the mortgage repayments. The property was valued in August last year and at that time had approx £20K equity though I'm sure that would be less now as both the estate agents who came to value it told her people were dropping prices all the time.

I'm looking for possible answers to her situation. In the 1st instance I guess she could ask for a payment break on her mortgage. But if she struggled to get another job in her area of expertise (professionally qualified but doesn't drive and can't be away from home) what options could she then explore.

If she has no other debts would BR be an option if she is in negative equity. Could a relative then buy the beneficial interest and she remain in the house? Even if there was say £10K equity in the property as she has a 12 yr old would she be allowed to remain in the house for a set period.

As I mentioned its been a while since I was on here and obviously things are very different now. People were still talking about 4th year equity release and using lump sum equity releases for full and finals. The property market is somewhat different I guess now and makes for changes in the proposal of IVAs.

It is possible that my friend wouldn't even qualify for BR and would only have the option of repossession then finding somewhere to rent but thats why I need the advice.

Any help much appreciated

Dave.

p.s. Hi to Melanie and Skippy. Quite certain neither of you will be on this afternoon as there's 6 Nations and Man Utd on tv.

I am glued to my set as we speak, and kick off is in 15 mins. Nice to see you back by the way!

In bankruptcy, if your friend's property is in negative equity it will be possible for a friend or family member to purchase the beneficial interest for a nominal sum - but if she only has small other debts, I am not sure how this would necessarily help her as she would still need to pay the mortgage.

Considering she only has the mortgage to pay not really a help if went the BR route. Ask for a payment break or to pay interest only on the mortgage. That might help. The cost of breaking the fixed time could possibly be added on the the mortgage debt.

See I told you I was rusty. Should have realised she'd still have to make mortgage payments. D'oh!!
Will need to see what her other credit commitments are. But I'm sure a payment break would give her sufficient time to find a job.

Thanks for prompt replies and thanks for welcome back Melanie.

Welcome back Dave! I've often wondered how you've been getting on since your F & F.

I'm sitting here waiting for West Ham v Man Utd and hoping we can beat them so we can go above Liverpool - I can't believe they won last night!

Take care, and I hope you 'drop in' now and then!

Just popped in to say

Hi Dave

I am glad youre Ok and I hope your friend finds a way through her difficulties.

Good luck with the future (and the prof fees, its robbery for what you get).

Its good to see the same people on here offering advice. But Lily and Skippy go back to the start for me so good to see you both replying. Is Ang still on here too?

I read my blog again for first time in ages. Time is great for blurring the bad memories. I'd forgotten what a tough time that period of my life was. Well, not forgotten but maybe filtered out.

Well the Reds won in style in a hard competative game. Brilliant right foot goal by Ryan Giigs. Well worth watching.

Are you a Red as well David?

Dave
Great to see you back. I am still around, reading more rather than posting.
I still see Lily and we often remember meeting you many moons ago in brum.

I hope your friend gets sorted with a solution soon and dont stay away too long.

all the best

Ang xxx

Skippy

There's a lot of us about. Shame about Chelski but watching West Ham yesterday I would say that their problems are not only down to Scolari but the fact that Steve Clarke left. You can see him and Zola have had a positive effect.

Great to see you back Mr Bear xxx

Yes Skippy13 have been for over 55 years. I am friends with the directors and sometimes I go with them on the European Trips (I have to contribute to the costs though). My dad when I was 8 said to me that you are the United supporter and to my brother (who was 6 at the time) you are the City supporter. My brother certainly drew the short straw!

Rather him than me supporting City!

I've supported United for 23 years this year, although I will admit to being an armchair supporter! Not a glory hunter though, as there wasn't much glory back then!

I agree about Chelski Bear - they miss Steve Clarke. I do have to smile about it though - they sacked Avram Grant for 'only' finishing as runners up in the league and Champions League (oh what a night!) and now they look as though they are going backwards!