HELP NEEDED PLEASE

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Amageeee78
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by Amageeee78 » Tue Aug 21, 2018 6:07 pm
HELP NEEDED PLEASE
Married couple
Husband has debts of nearly 50k made up of credit cards, overdraft and catalogues
Equity in-house off 200k
Cannot keep up repayments of debts (up to now know missed payments but have been using credit to pay credit)
Have been refused a remortgage
Have been accepted (in principle) for a joint secured loan of 50k but it’s over 25 years at £411 per month (paying back 130k) and I’m worried if we can realistically manage these payments.
After mortgage, household bills, food, petrol etc we are left with approx £200-£250 per month - maybe £300 at an absolute push.
We are literally up to our necks and cannot see a way out.
Any advice appreciated please....
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Chappie
Posts: 128
by Chappie » Tue Aug 21, 2018 6:14 pm
Hi

I would seriously consider an iva, it certainly will stop you worrying please don't borrow any more money. I did that and list my job.

There are a lot of good people on here that will offer you good advice and help you along the way. I wish you all the best x
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kallis3
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by kallis3 » Tue Aug 21, 2018 6:23 pm
Speak to one or two companies for some free advice.
Amageeee78
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by Amageeee78 » Tue Aug 21, 2018 6:23 pm
Yes, we are just worried about being accepted because of the level of equity we have. If we could remortgage we would.
It’s such a mess and we cannot see a way out.
Thank you for your reply. X

Chappie wrote:
Hi

I would seriously consider an iva, it certainly will stop you worrying please don't borrow any more money. I did that and list my job.

There are a lot of good people on here that will offer you good advice and help you along the way. I wish you all the best x
Amageeee78
Posts: 5
by Amageeee78 » Tue Aug 21, 2018 6:24 pm
kallis3 wrote:
Speak to one or two companies for some free advice.


Who would you recommend?
I’ve sent a contact request to Melanie Giles....
Stepchange?
Payplan?

My husband is self employed if that makes a difference.

Thanks for your time.
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Foggy
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by Foggy » Tue Aug 21, 2018 6:34 pm
An IVA sounds plausible -- I would avoid the larger "factory" firms like Payplan and Stepchange, especially being self employed and go for a smaller firm who will see you as individuals. The amount of equity might be a sticking point, but this has to be considered along with everything else in the picture.

A look around the forum will give you an insight into who's who and what the pitfalls can be.
Amageeee78
Posts: 5
by Amageeee78 » Tue Aug 21, 2018 8:17 pm
Foggy wrote:
An IVA sounds plausible -- I would avoid the larger "factory" firms like Payplan and Stepchange, especially being self employed and go for a smaller firm who will see you as individuals. The amount of equity might be a sticking point, but this has to be considered along with everything else in the picture.

A look around the forum will give you an insight into who's who and what the pitfalls can be.


Thank you
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Chappie
Posts: 128
by Chappie » Tue Aug 21, 2018 8:49 pm
Hi

I know it's probably not an option you would want to consider but could you not sell your house and buy something cheaper and pay off your debts with some of the equity. This. Will still allow you to sleep worry free. Even in an iva they usually put a clause in to ask you to. Release equity in the 4th year. Mine did, but I. Unfortunately gave mine up due to circumstances.

Good luck in whatever path is right for you. X
Amageeee78
Posts: 5
by Amageeee78 » Tue Aug 21, 2018 8:57 pm
Chappie wrote:
Hi

I know it's probably not an option you would want to consider but could you not sell your house and buy something cheaper and pay off your debts with some of the equity. This. Will still allow you to sleep worry free. Even in an iva they usually put a clause in to ask you to. Release equity in the 4th year. Mine did, but I. Unfortunately gave mine up due to circumstances.

Good luck in whatever path is right for you. X

We have 4 children (1 disabled) and wouldn’t be able to get another mortgage on our current earnings, our equity (once debts paid) wouldn’t even buy us a 1 bed flat (currently have 5 bed house) it’s just such a mess.
My husband is leaning towards a debt management plan over an IVA, my head is so fuzzled from searching the net that I actually don’t know what to do for the best!
Had a brief chat with Keith White over email and he thinks that due to equity we may struggle to get an IVA anyway.
We are going to call stepchange tomorrow and have a chat.
X
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Ryan
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by Ryan » Wed Aug 22, 2018 7:40 am
With regards to possible re-mortgages some Lenders are better than others when it comes to re-mortgaging to consolidate debts. Depending on income it may be that with the equity you have available there may be someone willing to lend.


Regards
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Lisa Thomas
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by Lisa Thomas » Wed Aug 22, 2018 8:41 am
As you have identified your issue, unfortunately, is going to be the level of equity in the house.

Creditors will want the same or better than what they would receive if he were to go Bankrupt. Based on the figures it is highly likely they would be paid back in full within 1-2 years in BKY so any IVA you offer would need to be equally, or more, attractive.

Unfortunate it seems you have no other assets to offer as an alternative. I presume a loan from family/friends is not an option.

If you could get the secured loan this would deal with the unsecured creditors, but you will have then converted an unsecured debt to a secured debt.

If you cannot maintain the payments you will therefore be at risk of losing the house.

The alternative could be to consider downsizing and using his share of the equity from the sale to pay the creditors off. You may then also have a smaller, manageable mortgage.
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Lisa Thomas
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by Lisa Thomas » Wed Aug 22, 2018 8:42 am
Also, I recommend you speak to Ryan about his comments, he may be able to help you with a loan/remortgage.
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ginger3242
Posts: 17
by ginger3242 » Wed Aug 22, 2018 4:25 pm
In your post you mentioned your husbands overdraft !! - is this attached to an joint account ?? - if so - you will be both liable for this and you may need to make alternative payments.

What every decision you make - take time out to think about it, Dont feel pressured by any company to make a decision.

PS - start to think about an alternative bank account - which is unrelated to exsisting creditors
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