Not sure of my options

[Notsure]

Hi there,
I am at the start of looking at options to my situation. I will try to explain in brief numbers and hopefully someone can offer some advice. I am a property investor and have 5 properties with about 30K equity if I sold them all(which will take about 6 months I suppose). From these I have a negative cash flow of about £1500 a month. I have unsecured debts from credit cards etc totalling about 60000. I am a director of a company with the business breaking about square. From the business I receive about £1500 a month. I have a car on HP which I need as we have a small baby. Its worth about 10k and my loan is about that. My fiance and I own our home with a mortgage but all the equity is hers as she put in the deposit.
My question is how can I write off all my debt over the next few years as I cannot continue to cover my losses of about £3000 a month for too much longer? How would the end result affect my fiance and her credit rating etc?
There are a few other things but thats a start. Thanks in advance

[Notsure]

Sorry, One extra bit that I didn't add is that at the moment my credit rating is very good. I don't miss payments or anything...yet. Perhaps that may help me a bit.

[MelanieGiles]

Hi notsure and welcome to the forum

I guess your question is therefore how do I deal with my debt over the next few years, rather than write it off?

Firstly, you cannot afford to continue to fund a negative cashflow of £1,500 per month, so the sooner those investment properties are placed on the market and sold the better.

Secondly, you ought to take professional advice from an insolvency practitioner as to your options, as you clearly cannot afford to service your debts on your current income. You ought to be able to keep the car, so long as you can afford to continue with the HP payments, and insolvency proceedings are unlikely to affect your fiance's property, assuming that you have developed no interest in this asset.

[Notsure]

Melanie,
Thanks for your prompt reply. After searching through the forum it seems that the best I can hope for through an IVA is to reduce my payments by about half with some form of agreement. Is my searching for my debts to be written off not an option, perhaps through something else. I think I am willing to ruin my credit rating to lose my debt. Currently the house is in both names but we have a written agreement when we purchased that all capital growth would be hers. I am happy to speak to someone as my situaion is quite complex.
As my investment properties are secured debt do they fit into a different pot??

[AlanO]

Hi notsosure,

Suggest you have a face to face meeting with one of the experts so that you can work through the best options for you and your fiance.

The key considerations will include your ability to generate income ( or what impact any actions would have on your business/directorship) How robust is the equity trust agreement on the residential property and how best could the disposal of the investment properties be handled ( what is the spread of equity? and are there common lenders?)

All the best alan

www.debtdr.co.uk

[Notsure]

Alan,
Thanks for your reply.
Would you suggest that I can speak to yourself or perhpas Melanie who does quite a lot on the site.
All my mortgages are through Northern Rock but I have quite a few lenders on the unsecured credit side of things.
I don't really have an income but I can pay for the minimum payments( they suggest need to be a minimum of £200 but mine may need to be higher than that), I should qualify shouldnt I.

[MelanieGiles]

If you want to write your debts off as quickly as possible, and do not mind that your creditors may not receive any form of repayment, the bankruptcy proceedings are probably the best way forward for you.

[AlanO]

Hi Notsure,

There are many capable posters and experts on the on the forum all of which I am sure will point you in the right direction. Really down to you to contact the party that you would feel comfortable working with to get the best solution for you.

Is the mortgage with your fiance also with Northern Rock?? - if so that could have a bearing on the approach taken.

All the best alan

www.debtdr.co.uk

[Notsure]

Alan,
No, the mortgage the fiance and I have is with Abbey. I am considering taking my name off the mortgage and effectively renting from her. Not sure how legit this is though.
I am confident I can get through until the investment properties are sold and that will take out all secured debts.(leaving about 60K in unsecured borrowing). I have read a bit about the ability to sell on a bit of debt from house sales and so forth. Can anyone explain what this means. I think I may have a bit of secured borrowing left over from one of the properties. I don't know if Northern Rock would let me sell it in that case as I thought I would have to clear all the debt assoicaited with the charging on the house?

[MelanieGiles]

If you sell your properties, the secured lenders will be repaid out of the proceeds and any spare monies left over ought to be used to repay your debts.

From your posts, it is difficult to tell what is motivating you - leaving behind your debt or repaying it? Could you please clarify exactly what it is you are trying to do, so that we can understand the sort of advice you are looking for.

[AlanO]

Hi Notsure,

That simplifies matters

Suggest you contact an expert to plan for the future.

All the best alan

www.debtdr.co.uk

[Notsure]

Melanie,
I suppose I am trying to find the best way round my problem. My fiance has a fair bit of money and I don't want that to be affected and I will be selling all my properties so the debt is what will be left over. I will try and clear as many of the debts as possible with any cash left over but they would have to sell in a particular order for that to happen. I think it is time I contact one of the professionals as my case it quite complex. You seem particularly busy. If I contact your office do I speak to you or just anyone that works in your ofice.

[MelanieGiles]

If you ring my office, you will either get to speak to Tina or Melanie who are my Client Services Managers, and if they cannot deal with your queries then I will speak to you.

Your case is not really that complex at all - you simply need time to sell the properties and this can be done within the realms of an IVA. We will need full valuations of all of the properties in due course, together with redemption statements in order to proceed.