a way of finding 20 grand?any advice would be good

[aaron.m]

hi would an iva be right for me ? i owe around 6grand on credit cards around 5 on a car 3 on another agreement plus a few other bits much lower. my house is worth around 73 grand but the mortgage would cost 90 to pay off my house is on the market as i can no longer afford the mortgage so iam gona have to find a way of finding 20 grand for them any advice would be good

[Jo Rolland]

Hi Aaron,

Overall after the sale of your house your debts will be 34K including the shortfall from the sale of the property. Who is the mortgage with? Is it costing 90K to settle as it is with NR? (Together Loan)If it is, how much is outstanding on the mortgage and how much on the loan?

Is the car on hire purchase or an unsecured loan? Which company is the agreement with?

Which creditors make up the remaining debts and approx how much do you owe to each one?

[aaron.m]

mortgage is with nr and yes its 90 to settle i do believe its a togeather loan but some of that around 4000 is just because i would be ending the mortgage early the mortgage i think i have 3 loans running along side it 1 or 2 may be secured i dont remember which is why i owe more than what the house is worth not sure of the details there iam waiting for them to send me a statement.

credit cards 3500 give or take lloyds tsb 1800 alliance and leciester 400 mint card 1000 virgin media the car iam not sure if its a loan or hp its with carlyle finance though i owe about 5000 on that, 800 on a catolog, 500 on a dfs sofa, 300 on a pc both hp with HFC, around 3000 on a hitatch capital loan

then things like my mobile and my internet which i really need to keep because of my job especially the internet

[Jo Rolland]

Thanks Aaron,

I thought that would be the case with the mortgage due to the figure you said to settle it. If the property were sold and shortfall would then become unsecured and if NR were to refuse the sale, I would be inclined to hand the keys to them if it became a neccesity to sell the property, however lets look at the other debts just now.

Firstly, HFC and DFS are not HP they are store credit and people are always led to believe otherwise. Therefore no one will be coming to repossess your sofa or PC. What does the agreement state at the top for Carlyle Finance and are there any references to repossession and your rights about halfway down?

Can you post your current income and expenditure excluding any payments to creditors so I can see your current situation.

[aaron.m]

i have just started a new job and have not been paid as of yet but its 16500 a year. I had to leave my last job mid jan as they had ran out of work at the begining of december and kept me hanging untill mid jan which was not helpful to this siuation i took quite a pay cut

so for aguments sake say 1200 a month

£560 on my mortgage
£100 council tax
£70 min payment on 1 credit card
£70 on another
£20ish on another
£20 on the other
£156 on the 3000 hitatch
£70 car insurance
£138 on the car
£30 phone and internet
£30-60 mobile phone
£0 catolog dont have to start paying yet
£10 water rates
missis pays the gas and electric and tv lience
£20 sofa
£20 pc
£30 various insurances that are a waste of time as it happens
cant think if theres any more

car finance all i can make out bad print out

if you do not keep your side of the agreement but have paid at least one third of the total amount payable under this agrement that is £2806.27 you cannot take back the goods against your wishesunless we get a court order

thats about all i can make out the car finance was for more than the car is worth too maybe its about level now though

[Adam Davies]

Hi
Well the car sounds like a HP agreement.
I really think,looking at your figures,that bankruptcy may be your best bet
Regards


Regards

[aaron.m]

figured that may be the case especially after my house is sold i will end up with yet another huge bill with bankcrupcy do all my debts get wiped i mean i dont know how it all works do i still end up paying just over a long time ?

[Jo Rolland]

I make your household expenditure that you pay for from that list £998. Does your wife work and pay the remaining expenditure (incl food/clothing)?

An overall picture would be better.

[aaron.m]

yeah she works and pays a few bills and all of the childcare which leaves her with notthing we would both be better off getting a council house and claiming benifits the very people i get so mad at when iam paying my tax but hey i think that they might have the right idea

[Jo Rolland]

If your wifes income covers the remaining household bills including childcare, between you, if your new wage will be approx £1200, you then have a surplus income of £200.

The total of your unsecured debts are under 10k without the car as this appears to be HP and is therefore accounted for in your overall expeenditure.

If there are no debts outstanding in your wifes name, you could set up a DMP with your creditors based on the £200 surplus.

Obviously the decision is yours, but I think it would be a shame to lose everything.

I can work out a DMP for you if you want me to for you to send to your creditors.

[aaron.m]

so i will pay eveything back that i owe which will work out at around 36k will this not take forever ?

[rachellxx39]

Hi, sorry to hear of your situation. Can i just say that not everyone in a council property is claiming and scrounging benefits.We have an iva and live in council property pay full rent and council tax and my hubby works 50-60 hours a week. We cant afford a mortgage even with him working that many hours. We get angry as well, my next door neighbour ,given a two bedroom house ,no intention of getting a job but has a daughter and girlfriend to support and claims everything.I know how upset people can be and living on a council estate is not always a bed of roses.

[Rainbow]

But the new Housing Minster is just about to put a spanner in the works for those that do sit around all day and claim all the benefits - She wants to bring in legislation to make social housing tenancy conditional on seeking work otherwise they will have their benefits cut including housing benefit. As someone who worked in social housing for over 20 years I can see who this is aimed at like the tenant who once said to me "who's the mug me or you" as I looked round her home with the latest of everything!? Part of my job was to tell people what benefits they were entitled to she told me all that I could tell her plus a few I didn't know! My response I have my own self respect and I pay towards your lifestyle if it wasn't for me and others like me you wouldn't have anythhing to live off at this point I left!

[vickir]

If your car is on an HP agreement and with the wording about the third it definately will be - it is extremely likely that if you are bankrupt the finance company would take the car back

[Jo Rolland]

Aaron, is the £560 you have put down for the mortgage for all the accounts with NR?