Drowning and starting to panic

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OrangeBubbles
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by OrangeBubbles » Wed Mar 01, 2017 7:13 pm
I will try to keep it brief and I apologise for my first post being asking for help rather than getting to know you all.

I have amassed 40k of debt for nearly 20 years while working two jobs. For last few years I have been robbing to pay Peter to pay Paul and I'm now paying £1100 a month (interest/minimum payments) across two credit cards (approx £18k on each) and now I'm unable to pay the minimum payment on one of them. I wish I could say it was spent on holidays and all the latest gadgets but it has been on surviving and occasionally helping others (which is irrecoverable). I have contact StepChange (is it allowed to mention that on here?) and have an appointment with an IVA specialist next week.

However, about three years ago, I became separated and left what was my home (I lived there approx seven years). Now when I was married, we had remortgaged and my name was put on the house (she had the house before we met). As far as we are concerned, it is her house. I merely paid rent while I was there. I have never, and still don't, entertain the idea that I have any entitlement to it. Foolishly, due to both our financial issues, we didn't pursue that piece of paper stating we were divorced. Now that ball is rolling due to my financial difficulty, we have instigated divorce proceedings and hoping that the judge will rule that I have no entitlement to the house that she bought and lives in with her two children (not mine). However, I've just been informed that it could take 4-6 months and I seriously can't survive that long when I'm already missing my payments.

1) Is there any way the house could be protected sooner? (We are amicable, no assets to split, and want the best solution that doesn't put her house at risk)

2) If I contacted the credit card companies direct and state my position, can they offer any assistance realistically? E.g. Stop adding interest or let me pay a much lower amount for 6-12 months?

3) If 2) was an option, would it prevent me from getting an IVA?

I have a good job, Mon - Fri. My second job I work alternate weekends (sat & sun - 7am to 10pm). Always worked two jobs (one always full time), I've not had a lavish lifestyle, I just need help. Just feels like I'm drowning now. Does anyone have an inflatable ring they can throw me?
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Foggy
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by Foggy » Wed Mar 01, 2017 7:55 pm
Hi. First of all I would recommend chatting to a couple of firms outside of the "charity" firms, as the way they do things will differ, within the legislation. Some firms will try to claim that you have an equitable interest in the property. I do believe Stepchange has actually tried this recently not their call.

As regards your options ... yes, option 2 is a possibility. Here, Stepchange could be of use as they do not charge for Debt Management Plans. There would be nothing stopping you proposing an IVA in the future.
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moira717
Posts: 205
by moira717 » Wed Mar 01, 2017 8:34 pm
Hi yes I am in same boat. All debts are mine and house was my husband's before we got married. Most of it paid for from proceeds of previous property sale and I never contributed to mortgage which is in his name. However step change are still saying creditors will say I have stake in property. I have told them this will not be an option as still drafting proposal stage. Have said I would extend iva if have to. Take you all for previous advice by the way
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Andy.75
Posts: 163
by Andy.75 » Wed Mar 01, 2017 10:19 pm
I really do feel your pain. Reading your post brought everything back. I had 42k debts, paid minimum payment every month so it never reduced the balance.
When i entered my IVA 7 yrs ago i earned 2100 net per month and paid out 1200 in loans / credit cards etc. The rest was swallowed up with mortgage and utility bills. I had to put my food shop and monthly diesel on credit card. No lavish lifestyle. My IVA was agreed at 400 pound per month so i was instantly 800 per month better off plus i had no debts accumulating. Im now free from the IVA and wish i had done it years sooner instead of just burying my head in the sand. Good luck with your journey and im sorry I cant really help with the house with the ex problem
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Michael Peoples
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by Michael Peoples » Thu Mar 02, 2017 10:07 am
Orange Bubbles and Moira.

Get independent advice as the property can be excluded. An IVA is your proposal and you can offer/include or exclude what you want. Your IP's job is to report and comment on your proposal and not tell you what to do.

We have had many proposals accepted in such circumstances with few problems. Creditors may ask for an extra year or in divorce proceedings the judge may need to be informed but this is standard stuff and done daily by most professional firms.
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