www.iva.co.uk

Hello,

Have been reading these forums for a while now and have finally plucked up the courage to post on here for advise so here goes.....

I am £46500 [:(] in debt!! 2 loans and 3 credit cards. I currently earn £21500 a year and take home £1219 a month, my monthly outgoings are £900.
I owe the tax man £3000 due to a mess up with my car tax and will have to start paying £240 extra tax a month come april (although i am trying to spread this over 2 years)

I am currently living back with my parents after splitting up with my girlfriend of 10 years and am curretly still on the mortage with her but will be coming off in the next few weeks. I am not paying any rent at the moment at my parents and have to move out soon which i will (with my current girlfriend) but i am going to have to start paying her £400 a month to live with her.
Now i am left with about £300 a month to live on but have got to move out soon and £300 is not going to get me a place to live & eat etc etc so am looking for some advise on what to do.

Have filled in Melaine's form on her site but do not really know what to do.

Sorry for the essay

thanks neil

Hiya Neil, just wanted to say hello and welcome to the forum. Is there any equity in the house that you and your ex girlfriend had?

Your outgoings of £900, does that include any payments you are making towards credit cards or loans

No chris.

£900 is what i pay out for the 2 loans and 3 credit cards (including £55 for my mobile)

Hi Neil and welcome to the forum

What are your outgoings each month before taking into account credit card and loan repayments. And how much more do you think they will be when you move into your own place?

so you are paying £900 to your creditors? Looks like you might qualify for an IVA, although I'm not an expert. Have you been in touch with any of your creditors?

Apart from the tax which i am not 100% sure what it will be it would just be my phone bill £55, £400 to my girlfriend (rent) + food (??)

The tax office said if i keep the car my tax would be £780 a month!!!!! which i find hard to beieve. Its all a little bit confusing as i may have to give my car back (which will mean i will have to get a new job) and im not sure what i will earn.

Hi
Interested in a little more information so that the forum can provide some advice.

What do you do for a job
The house/ mortgage with X girlfirend - please elaborate on this - i.e. did you contribute to mortgage / deposit/ is there any equity in it etc. This is vitally important because your creditors could make a claim against her if it is seen that you have given away an asset at "under market value".

this could cause your X some problems as the creditors could pursue her for your half of the house. Potentially you may be entitled to funds from the house which may be sufficient for Melanie ( she posts on here ) to set up a 1 payment IVA.

Would be good if you put all your expenses on line for us to help with as not sure where your £900pm goes without accomodation

again the solutions to debt are ( i my view)

1. Debt Management
2. IVA
3. Bankruptcy
4. Lump sum / 1 off payment in an IVA or negotiated 1 at a time
5. Refinance ( not usually recommended)

I replied to a post earlier today where I suggested they take a radical approach and actually work out which solutions they can't opt for because of circumstance or monthly cost. The one left is usually the right one.

If you haven't decided what to do over the next week I suggest you write to all of your creditors and advise them of a "change of circumstance" and let them know you are trying to sort out a plan of action. Then offer them £5 pm each this month so that they don't give you too much aggrevation while you work out what is right for you.

ok, i pay out each month -

hsbc loan - £373
halifax loan - £210
baclaycard - £30
capital one credit card - £156
egg - £60
GE capital £15
vodafone £60

I used to pay my girlfriend £250 a month towards our flat which was a shared ownership property.

Contacting your creditors may buy you a bit breathing space but their charges usually increase the level of debt significantly due to charges etc, it's a bit of a double edged sword. Your ex's house may be at risk as Reviva UK mentions, are the loans unsecured?

I know the hsbc loan is unsecured and that is £25k!!! I think our flat was worth £168k when we bought it and its now about £180k and we only had a 40% mortage on it

How much equity is in the property and did you buy it together? Could it be that you would be entitled to a share of the house as you have contributed? If so, you could pay some of the debts with the cash.....

It certainly sounds as if there is an interest in that former property, but will talk to you more about this during the week. I would prefer to give advice to you directly, with the full benefit of your circumstances, rather than across the forum where I only have a brief snapshot - but there are bound to be more than one solution.

It was bought together on a joint mortage. I suppose 40% of 12000 is the equity although she payed alot more than i did a month towards it. I suppose there is about £5k in equity. Would that not be halved between us? I was just going to give her the flat and not take any money as after fees and what not for me coming of the mortgage (and me finishing with her) i felt a bot bad.

Sounds like it may be a solution Neil, good luck