Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I may be missing something here - but once the house is sold then don't you free up sufficient income to repay your debts under normal contractual terms, assuming that you clear a chunk of it by using the lump sum? If this is correct, why do you need to make them an offer of short settlement?
Yes my husband can return to normal contractual terms but as I don't work then I can't as I don't now have sufficient income to do so.
Our total repayments between us comes to around £1100 per month. Without my debt my husbands repayments are around £400 so easily managable with the new lower mortgage payments.
Does that make sense or am I getting even more confused now?
I see - so you will be left with insufficient pooled family income to cover the contractual repayments on your debts, even if they are substantially reduced by using the equity in your house?
From doing my calculations I think we would be about the same monthly as we are now in the DMP (tight but managable) but paying back my husbands debt as per original agreement.
We live in accordance with the DMP and are managing but I wanted to repay as much as I could of my debt due to not working at present because of the reasons stated in my earlier post.
Can you see any other options for us Melanie? This is all theoretical at the moment because we haven't yet sold our house and I guess there would have to be a Plan B at some stage in the near future.
It is difficult to advise on case specific matters when I only have a very brief snapshot of your circumstances. I do think that you would benefit from a direct chat with an insolvency practitioner to explore all of the options available to you - and there do seem to be a few.
