Hi, I'm a neewby to this :). We are looking for suggestions.

[AdMc27]

Hi
Im a neewby to this

We have a current monthly income of £2300

We have approximately 50k equity in our house.

Our monthly outgoings inc. mortgage = £1400
Priority debt of £17000 paid @ £500 monthly
plus £30000 family debt paid @ £400
Non priority debt of £33000 paid @ 9 x £5

These repayment schedules have been arranged by ourselves and are questioned every 6mnths.

It feels as if we will be paying these debts for a very long time.....

We are looking for suggestions. We have both been offered jobs in UAE on better salarys and are going ahead with the move..

Thanks for your time

[Michael Peoples]

It may be best to avoid a formal insolvency and sell your house. This would clear the non family debt and leave you going to UAE owing only family. The level of earnings there would mean this debt could be cleared relatively quickly so that may be the best option.

Alternatively, if you have no surplus income in UAE due to the high cost of living you could sell and offer the equity to all creditors. This would enatil an IVA and a meeting of creditors but would allow you to move forward.

There are other things to take into account such as what is the 'priority debt' and who owes the most and these questions could be addressed if you speak to an insolvency firm. There are certainly options so you need to know what is best.

[Amy A]

Hi AdMc27,

Have you sought any professional advice? I would certainly recommend you speak to 2 or 3 different companies and explain your circumstances in detail. You will certainly get a better picture to where you stand financially prior to your move and the best solution moving forward.

[MelanieGiles]

I would definitely recommend a financial review by an insolvency practitioner, even if this is just to confirm that what you are doing is sensible. What is your surplus income likely to be when you move abroad, and will you be renting out your property to provide an additional income?

[AdMc27]

Hi
Thanks for your swift replies.
Our move abroad includes all housing inc. bills, medical and school fees.Our incomes also become TAX free[:)]

UAE monthly income = £5500
UAE yearly bonus = £7000
UK rental income after mortgage = £700

Is selling our property a necessity?
The sum of our debts are split fairly evenly between us.They are cc,energy co's and bank loans generated by a failed business.

Our goal is to pay our debts off. We would just like to give the banks and eon as little as possible

Thanks again for any advice

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles

I would definitely recommend a financial review by an insolvency practitioner, even if this is just to confirm that what you are doing is sensible. What is your surplus income likely to be when you move abroad, and will you be renting out your property to provide an additional income?

[Adam Davies]

Hi

A formal solution will involve the family debt so you may want to consider a more informal solution such as a Debt Management Plan. Chat with several companies/experts and explore all options

Regards

[Michael Peoples]

Debt management is certainly something to consider as it does offer a degree of flexibility. You would repay creditors in full but I think would also be the case in an IVA as you will have sufficient income and assets to do this.

If you do enter debt management it is possible that some creditors will accept reduced settlements over time but there is also the danger they may secure their debts against the property.

Finally if you owe HMRC money they can be loathe to accept any long term repayment plans and could move to bankruptcy so unless they can be cleared you may need the protection of an IVA.

[AdMc27]

Hi

It would seem a debt management programme similar to what we have already arranged is the way ahead?
We have no HMRC debt.(Thankfully)

CCJ Natwest (shoosmiths) £13000 @ £315
Enterprise inns (shakespears) £2500 @ £60 pro rata
Mortgage Arrears Court order £6000 @ £50
Family debt £30000 @ £400
Npower £1000 @ £100

Credit cards x 5 = £22000 @ £5 each!
EON £10000 @ £5
Misc £1000 @ £5

As you can see the cc's will never be paid at this rate...
We would like to come to some kind of arrangement with all company's over say 60 months with the possibility of a reduced settlement? We would be happy to have it secured against house if necessary (worst case) and if allowed..

Again, all advice would be gratefully received. Also which kind of professional company should we approach if an IVA is not appropriate?

Thanks again

[Michael Peoples]

There is approximately £80,000 of unsecured debt provided Shoosmiths have not moved to secure the NatWest debt which they often do. To clear this level of debt in five years would require payments in excess of £1300 per month and that assumes no interest or charges are added and you do not use a feeing charging DMP company. It is possible that some creditors would offer an early settlement before the five years are over but if they are due to be repaid in full they may not be so keen to deal.

An IVA may be an option although it is likely that you would be repaying in full. This would however give you full legal protection from creditors which debt management does not.

Finally, ensure that any HMRC schemes such as PAYE or VAT have been cancelled and any outstanding returns have been submitted. Otherwise HMRC could raise assessments against you and make you bankrupt even though there is no debt! This has probably been already done but double check with HMRC just to be safe. Yours is not the only pub to have failed in the last few years and best of luck with your new life in UAE.