# Personal insolvency



## ally_f00 (22 Mar 2013)

Hi i am just looking for advise on the new personal insolvency debt writedown and wondering would i fit the bill?? I recently lost my partner and we have a mortage of circa 350k unfortunately no life assurance to pay off the mortgage! I am self employed earning less then 18k a year so not able to meet the repayments of 1200 a month. Worried sick so ur advice is greatly appreciated


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## goingforgold (22 Mar 2013)

ally_f00 said:


> Hi i am just looking for advise on the new personal insolvency debt writedown and wondering would i fit the bill?? I recently lost my partner and we have a mortage of circa 350k unfortunately no life assurance to pay off the mortgage! I am self employed earning less then 18k a year so not able to meet the repayments of 1200 a month. Worried sick so ur advice is greatly appreciated


You will need to provide a lot more details if you are to get any replies. How long is mortgage term, is it interest only. How much savings do you have. How much is house worth etc.


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## ally_f00 (22 Mar 2013)

sorry wasnt too sure how this worked! no im currently on a motorium and would have been capital and interest on a very low tracker rate! the value of the house is only worth 130k and about 50k savings


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## ally_f00 (22 Mar 2013)

sorry the term is 31 years remaining! i just want to know what my options are as i cannot sustain this mortgage on my income alone with the mortgage being 330k thanks


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## doubledeb (22 Mar 2013)

Firstly I'm sorry for your loss.
I'm probably not the ideal person to be giving advice as I have a post in relation to financial problems here too

Just one option that may be open to you, could you rent out 2 bedrooms in your house for maybe 70 per week each that would generate 560pm income for you?

Have you applied to SW for mortgage interest relief? you maybe entitled to something?

Have you spoken to your bank about interest only?  Keep them informed of your position

Personal insolvency maybe the way to go for you but no doubt it will haunt you for the rest of your life so try and make this the last resort if at all possible.


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## ally_f00 (22 Mar 2013)

i would only have 1 bedroom to rent out as i have a little boy and house is only a 3 bed! You cant get mortgage interest relief until u are in arrears/payment option for a year tried to get it in the beginning! im still on a motorium at the moment as im trying for the bank to come to some sort of arrangement! But to be honest no matter what i cant maintain a 1100 mortgage,even if in 10 years time my circumstances wont have changed! Im hoping my bank will do something for me but im just wondering if all else fails i may need to go down this route! if u were a couple who both lost there jobs you could put ur mortage on interest only for a few years etc but my circumstances definitely wont change!


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## goingforgold (22 Mar 2013)

ally_f00 said:


> i would only have 1 bedroom to rent out as i have a little boy and house is only a 3 bed! You cant get mortgage interest relief until u are in arrears/payment option for a year tried to get it in the beginning! im still on a motorium at the moment as im trying for the bank to come to some sort of arrangement! But to be honest no matter what i cant maintain a 1100 mortgage,even if in 10 years time my circumstances wont have changed! Im hoping my bank will do something for me but im just wondering if all else fails i may need to go down this route! if u were a couple who both lost there jobs you could put ur mortage on interest only for a few years etc but my circumstances definitely wont change!


You have 50K savings that would pay your mortgage for 4 years without touching anything else. I think you need to look at things a little differently...you are not the hardest up case out there by a long way.


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## ally_f00 (22 Mar 2013)

I was actually just looking for advice or suggestions on options! the 50k is a pension fund which i cant just dip into it will be set up as a trust fund and will be for my son! So i dont actually have 50k to put off it! i have a mortgage of 350k as a single parent earning less then 18k a year once i pay all bills childcare etc i have maybe circa 300euros that i can afford to pay off my mortgage and mortgage should be 1100! maybe to u im not the hardest case but losing my partner and having to worry about finances and not seeing a solution abot my mortage is to me!!


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## Luternau (22 Mar 2013)

Can you explain how it come that you have no life assurance/mortgage protection. 
You must have had that in place to draw down the loan. Did you let it lapse? 

Your life company should have been on to lender to say the policy premium was not being paid. The bank may have stepped in and paid that (and added to the amount owing)-not so sure of that though.
If you did let it lapse, you may be in breach of your loan agreement. Has the bank ever said anything about the mortgage protection?


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## ally_f00 (22 Mar 2013)

yes have already gone down those lines we let it lapse stupidly i didnt think ahead we were only 26, i had been paying in full and never copped it was up for renewal and when i switched life assurance companies i was sent a letter from the bank to make them the owners of the policy and resent it to them but they never received it so when it lapsed theywere never approached! bank has it on file that letter was sent to them to make them the owners of the life policy but never received and then 2months after sending me the letter (even though i sent it back) didntgetletters since closed the file! Bank isnt saying too much about the mortgage protection at the moment!


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## wbbs (22 Mar 2013)

I am afraid it is quite common especially these days for life policies to lapse, banks don't even always know as not all banks assign policies and even if they do know they might write to a customer but they will not step in and pay it, it doesn't work like that.

You are in an unfortunate position, have you spoken to MABS about it?   Although I would think you will eventually end up availing of some part of the insolvency regime as it does seem unlikely you will ever be able to repay that loan.  I don't think anyone knows what way writedowns will work if they work at all but in your case the write down would have to be so substantial that is more likely that a sale or repossession of the property might be better.


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## ally_f00 (22 Mar 2013)

yes they cant do much! well that is why i was thinking personal insolvency writedown as i will never be able to remeet the payments! the house wont sell its in a ghost estate and also has pyrite and value is only 130k they would be lucky to get 100k. And i have a mortgage of 350k so sale wont work and definitley dont want repossession! thanks for ur help i will just want and see what will happen with the insolvency!


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## Luternau (23 Mar 2013)

I meant to add my sympathy for your loss. You seem too young to be struck by such a loss.


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## doubledeb (23 Mar 2013)

Have you applied for widowers benefit or one parent family payment.  If your working more than 19 hours per week you may also be entitled to Family Income Supplement?

Is there any family member that would be willing to mind your son when you work?

There are options out there.

Maybe if you gave more information about your income and expenditure people would be able to give better advice.  Have you other debts etc?

You may have already gone down those routes but I get the impression from your posts that you would rather PIA?


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## ally_f00 (23 Mar 2013)

Have already looked into widowers pension we werent married so not entitled to it! just recently applied for lone parents allowance so waiting on that and not entitled tofamily income supplement as self employed you need to be paye

Monthly income €1500 (self employed )
child benefit €130

total income €1630

Electricity €70
gas €100
tv&internet €70
Mobile €130
food €400
petrol €150
house insurannce €40
health ins €60
mortgage protection €30
child care €150

total outgoings 1200

€430 left over to live on and pay mortgage

Currently on a motorium

no its not  that i would prefer PIA but not sure exactly what other choices i have! to be honest i wont sell my house and even if i did i would be left with a mortage of circa 200/230 and paying that and renting somewhere isnt possible and to be honest i dont want to leave the family home as i have too much memories here! I know i cannot commit to a mortage of 1100 a month on a one income as a single parent! So no matter what way u look at it i will never be able to afford 1100 payments each year


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## ClaireM (23 Mar 2013)

If the 50k is yours you will lose it if you go for a Personal Insolvency Arrangement. Putting it in trust for someone else before entering an arrangement will disqualify you.

What do your bank suggest?


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## ally_f00 (23 Mar 2013)

The 50k isnt mine it was a pension and  as he werent married and there was no will so it  belongs to the next of kin my son! What  are the disqualifications for the pia? Banks arent really saying/doing much at moment


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## Bronte (25 Mar 2013)

That's most unfortunate about the life insurance.  And indeed your circumstancs.

If your house has pyrite and is in a ghost estate than even if the bank wanted to repossess you they must know it's very difficult to sell.  In any case you want to stay in the house.  Well you need to talk to the bank and see if they will write down part of your mortgage to an amount that you can afford.  See what they say.  If they are not agreeable then in another few months you will have to see what can be done via the new insolvency regime.


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## doubledeb (25 Mar 2013)

ally_f00 said:


> Have already looked into widowers pension we werent married so not entitled to it! just recently applied for lone parents allowance so waiting on that and not entitled tofamily income supplement as self employed you need to be paye
> 
> Monthly income €1500 (self employed )
> child benefit €130
> ...


 
Your mobile phone bill seems excessive 130 per month?  €20 sim deals are great at the moments.  Saving 110 per month.
I feed a family of 4 and 2 dogs for 125ish a week and there are others on here that are able to do it for a lot less. 400 seems like an awful lot for 2
With your outgoings and expenditure you would qualify for a medical card.  
Is the mortgage protection you have in place a new policy?

Maybe your bank will restructure the mortgage for you so that you can stay where you are.  Have you asked them for this option?


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## Gerry Canning (25 Mar 2013)

ally_f00 said:


> Hi i am just looking for advise on the new personal insolvency debt writedown and wondering would i fit the bill?? I recently lost my partner and we have a mortage of circa 350k unfortunately no life assurance to pay off the mortgage! I am self employed earning less then 18k a year so not able to meet the repayments of 1200 a month. Worried sick so ur advice is greatly appreciated


 Get good advice from a proper practitioner.
I suggest you ring Frost Debt Solutions 0749364000 and talk to them.
the reason I recommend them is that they have operated the UK , pia system so are really up todate with the mechanics of the pia system.


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## ally_f00 (25 Mar 2013)

yes i have asked the bank to write down the mortgage under the circumstances but they declined and said full mortgage was payable 350k. I will keep going back to them! i'm hoping they will write down part of the mortgage to what i can afford but was told banks arent doing personal writedowns (if i was a commercial loan they would).. id rather go down this route but if that fails i need another option! And double deb im self employed and use my phone a lot due to my role (its between 120 and 130) last bill was 138, however i have got it cut with the same provider and hoping it will be in around 80/90 (1 year contract so cant change).. The 400 a month is to feed 2 plus 2 dogs (dog food costs 120 every month (ive tried putting them on cheaper food but the clean up after is gross) so its only 70 a week on grocerys. I have a medical card already and yes its a new mortgage protection i have set up (after).. Im trying for my bank to do a write down of some kind as even if i was to restructure extend the term im still not goin to afford a 350k mortgage on a wage of 18k. You would need a joinet income of 60/70k..


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## wbbs (25 Mar 2013)

As an aside and I know you may not have the funds upfront but it is much cheaper to buy dog food in bulk, you can get it from zooplus.co.uk (not i.e., cheaper on uk site), good brands and will be much cheaper if you can manage it.


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## ally_f00 (25 Mar 2013)

thanks i will have a look atthem


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## glic83 (25 Mar 2013)

amazon can be good too, plus you get a discount when you set up a standing order can be as often as you like


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