# Bad debts, money owed etc etc etc



## layla (21 Apr 2009)

Hi,

Im looking for a bit of advice. My husband started a small business about 3 yrs ago and to make a long story short he is now roughly 100,000 in debt.
 As we had more than one baby recently we are now under huge pressure. I cant go back to work as I need to be with the babies and he is now unemployed. For the past year we have been getting letters and now he has two judgements against him plus letters coming each day. It is awful and am even afraid to answer door or phone anymore. He hid alot of it from me as I was pregnant at the time and spent months in hospital. Had I known about him getting big overdrafts etc then I would have put a stop to it as I am not one for huge loans anyway and always pay back. He could not work then either as he spent a lot of time up and down to me. We have been to Mabs but there is only so much they can do. The payments they have come up with are still high and we cannot see a way out of this.
Previous to his business not working out we always payed our loans and I am up to date on my own two small loans but because we are now in arrears in our mortgage Im sure this has affected my credit. We have reduced outgoings where we could and I gave my car back to bank so presume my credit history is now shot. It would not worry us so much except for the little ones. We are really stuck now and dont know what to do and are just getting deeper and deeper as arrears are building.
What we would love to do is consolidate loans for a lesser amount each month but obviously another loan to cover that is not the answer to such an amount of debt and plus we would have no hope of getting it anyway.
We really dont know what to do now. I dont know if anyone will have answer and I know heaps of people are in the same boat.


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## Ghodadaba (21 Apr 2009)

Hi there. Sorry to hear about your current difficult situation. You might need to give some more info to get some proper advice.

So do you have any income? Are you both unemployed or are you on maternity leave with a job to go back to?


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## layla (21 Apr 2009)

Hi,

My maternity leave is up but job is no longer there because of the recession. Hopefully after the summer but not looking good. I was only on about 25000 anyway so not a high way. We are both registered as unemployed now. Cant believe it as we both worked all day almost every day in the past. Its a huge change and I really couldnt even go back if it was there as it wouldnt pay me as I have multiple babies. My husband was only trying his best to make a good future for us but because people did not pay him we could not pay our loans and so on and so on. Now we are in an awful situation. I know there is really no answer but I suppose I was hoping for a miracle. It is causing us awful stress and we would be under stress anyway with the babies. I cant really explain that side of things as I know its awful but its a case of what will the neighbours think.
Our only chance is I now have the chance of setting up my own business-grant approved but stuck again as I need a minimum of 9000 to set it up but no hope of getting that and its a pity as its a huge oppotunity and would work out. I have had heaps of advice on it as its a really good business venture but just cant get the money to start it. We would be able to pay back loans etc then but now its a non runner.
Together we get about 450 a week now. We get money for the babies but obviously that is spent on them. Our mortgage is 700 a month. We give a sherriff 200 a month to keep him away. I have loans which I pay each month totalling 270. We bought a cheap car but our insurance is another 100 or so a month and then regular bills esb, phone, food and all the little things.Then there is money to mabs which doesnt cover all debtors of about 200 a month also etc etc


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## UptheDeise (21 Apr 2009)

Hi there,

Very sorry to hear about your current situation. 

I would make sure that you are receiving all the social welfare that you are entitled too. Maybe ring your local SW office and arrangement an appointment.

You could also try and get in touch with St Vincent DePaul. They might be able to help you with the food bill each month. The amount they give you will be small but at least it's something.

What about family? Could they help in some small way? Are you sure you've made all the necessary cutbacks? Do you really need a car? Could you ditch the phone? You could switch from ESB to another supplier to save some more money.

Is there anyway your could get a job even it is working in the local chippy? You could work for a maximum of twenty hours a week without losing any entitlements as far as I know.

I do hope everything will work out for you.


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## layla (21 Apr 2009)

Hi,

My maternity leave is up but job is no longer there because of the recession. Hopefully after the summer but not looking good. I was only on about 25000 anyway so not a high way. We are both registered as unemployed now. Cant believe it as we both worked all day almost every day in the past. Its a huge change and I really couldnt even go back if it was there as it wouldnt pay me as I have multiple babies. My husband was only trying his best to make a good future for us but because people did not pay him we could not pay our loans and so on and so on. Now we are in an awful situation. I know there is really no answer but I suppose I was hoping for a miracle. It is causing us awful stress and we would be under stress anyway with the babies. I cant really explain that side of things as I know its awful but its a case of what will the neighbours think.
Our only chance is I now have the chance of setting up my own business-grant approved but stuck again as I need a minimum of 9000 to set it up but no hope of getting that and its a pity as its a huge oppotunity and would work out. I have had heaps of advice on it as its a really good business venture but just cant get the money to start it. We would be able to pay back loans etc then but now its a non runner.
Together we get about 450 a week now. We get money for the babies but obviously that is spent on them. Our mortgage is 700 a month. We give a sherriff 200 a month to keep him away. I have loans which I pay each month totalling 270. We bought a cheap car but our insurance is another 100 or so a month and then regular bills esb, phone, food and all the little things.Then there is money to mabs which doesnt cover all debtors of about 200 a month also etc etc


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## Bob_tg (21 Apr 2009)

layla said:


> Our mortgage is 700 a month. We give a sherriff 200 a month to keep him away.



First of all, could you elaborate a little more on this sherriff?  Why are you paying 200 per month?  Is this against writing down a debt or is protection money of some sort?

Secondly, your mortage is relatively low - but that depends where you live, I suppose.  Here is a possible cash-injection idea: rent out the house and rent somewhere else for yourself which would give you a surplus.....alternatively, take in lodgers.

Otherwise, have you any equity in the house?  Is selling up an option?


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## Bronte (22 Apr 2009)

Layla would you be able to do the money makeover section or tell us more on who you owe what to and as previous poster said more details on the 200 to the sheriff.  Are you getting mortgage interest supplement from the HSE?  
It's a sad situation to be in.  Very very stressful with young kids, does your partner need to see a doctor or yourself.  Men tend to bottle things up which is not good.  Have you talked to a family member.  Try not to take it out on each other, focus on being a team and remember there is always always light at the end of the tunnel.  Forget about the neighbours, you'd be surprised how many people are financially stretched currently.   Apart from a miracle what would be the ideal situation that would bring some relief to you right now.


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## North Star (22 Apr 2009)

Layla, you mention that your partner couldnt repay the loans because people didnt pay him. If there are monies owed to your partner make sure you include them when/if you look at the money makeover section. Maybe some of the sums owed could be recovered?


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## jhegarty (22 Apr 2009)

Do you have equity in your house ?


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## Gus2008 (22 Apr 2009)

Could you consider declaring yourself bankrupt?


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## jhegarty (22 Apr 2009)

Gus2008 said:


> Could you consider declaring yourself bankrupt?




I would almost never agree. But if the house is in negative equity I think it makes sense to consider it in this case.


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## cazmayo (22 Apr 2009)

Hi Layla,

I really know how you feel!!!!  Hubbie also self employed last year, and due to work drying up, unable to get paid!!! and hubbie putting head in sand, we have struggled.  Customer bounced a 10,000 cheque and put us in the S***, so I pushed my hubbie out the door and sent him to a company that he had sub contracted for, and they gave him a PAYE job.  At least that keeps us fed, mortgage paid etc, and until this month the business loan paid.  Now he has had a massive paycut and we are back struggling.

What I am doing is:
Asked to put mortgage on interest only to clear smaller loans - waiting reply  
(you may be able to take a 6 month payment break as you are both not working) please ask your bank!!  My bank allowed this last year, as I was in hospital sick after having a baby.  You should be entitlted to the mortgage interest supplement benefit.  They assist in the interest part of your mortgage.

Contacted each loan provider and asked to reduce monthly outgoing, and show your present income.  You can only give what you have!

Contacted each creditor, and explained our financial circumstances and offered what we could afford.  Dont over commit.  If you cant at the moment, say so, and that once you clear some of your other debts, you will contact them and arrange a payment plan.  They dont want to take you to court, but want to see you are trying to make payment.

Chase your debtors!!!!  My husband gives out he didnt get paid, but doesnt chase them, nag them, turn up to their houses in the evenings - you've done work, the money is yours!!!!  If not, get a debt collector on the job, but dont let them away with it.  This makes me very angry!

The bank cleared out my personal account a few weeks ago for a late business loan payment of 2 weeks and left me with 1 euro.  I really do know how you feel.

My husband also kept it from me, as I was very sick.  Im also pregnant and all this stress is not doing me any good.  My husband is in denial which is driving me crazy and Im struggling trying to sort out the mess.

We are going to counselling, before we end up divorced.
Like you, I have never missed a payment or owed anyone any money, it just goes against my nature.

Trying to sell my car at the moment after months of asking my hubbie to do it.  Feck the neighbours, you dont know whose shoe is hurting. 

Mind yourself and pm me if you wish.

Kind Regards
Caz


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## Gus2008 (23 Apr 2009)

jhegarty said:


> I would almost never agree. But if the house is in negative equity I think it makes sense to consider it in this case.


 
Exactly. No one would want to lose their home, but the opportunity to start afresh seems to be the best option for the OP.


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## in_bad_debt (23 Apr 2009)

Hi there! I am on the same boat for the same reasons, husbands business closed down last year with huge losses, made redundant at same time while 8 months pregnant!...after one year keeping up agreements with BOI, they finaly gave me this week a final waring to close all my accounts in 21 days and pay off balances...about 70.000!...i don't have the money, never missed a payment in my life and can't even sleep at night anymore. they are now telling me that they are going to take me to court to force the sale of my house even though the house was never used to secure any of the loans and i never missed a payment on te mortgage....i am completely lost....life is living hell at the moment.


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## AlbacoreA (23 Apr 2009)

layla said:


> ....We bought a cheap car but our insurance is another 100 or so a month....



Sorry to hear you're trouble. But once you're all ok, all it takes is time and eventually you'll be on your feet again. 

Maybe a minor point but I noted the above. How is your insurance 100 a month? This is Car insurance?


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## cazmayo (24 Apr 2009)

Hi In Bad Debt,
I would go and get legal advice.  They are just big bullies.
I would keep payments up, so if it goes to court the judge can see you have been cooperating.  I would write to them informing them of intention to pay and that you are not in the position to pay in full.

I dont see any judge siding with them, when your trying to pay.
I dont think they can make you sell your house, but they can get a lean of it.

Why did they all of a sudden ask you to close up accounts?

Please go and get some professional advise and know that you are not the only one the bank are bullying!!!

You cant give what you dont have.
Look after yourself.

Kind Regards
Caz


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## carjo (25 Apr 2009)

Hi - I'm currently in a very poor financial situation as well , and have been for the last year or so, but i'm working through it.The main thing to remember that so many people seem to forget is no matter what your creditors tell you there is very little chance that any judge in this country will put a family who is willing to pay their bills out of their family home.Yes they will put a lean against your home but all this means is that if you sell your home your creditors must be paid along with your mortgage company.So long as you accept your debts and agree to pay the money over a period of time , no matter how small an amount ,you can work through it.If you owe x amount to a creditor offer them a realistic amount per wk , if they don't agree , go to court and tell the judge the offer you made , once it is a fair amount based on your  available funds the judge will not go against you . No judge expects you to leave your children hungry , homeless and unclothed just because you owe a creditor money.

You have mentioned that you are paying the sheriff an amount per month , the revenue sheriff is the only person that can remove your personnel goods without a court order, and even at this they are limited to your luxury goods , such as fancy tv computers etc.The revenue are the major creditor to worry about , everyone else needs to go through the courts and again if you are being honest with the courts you don't have anything to fear.

I would agree with cazmayo ,if you are owed money and are not getting paid go and make your creditors life pure hell.It is degrading having to beg for your own money but it is your family's money so do whatever you have to do.Failing that ask the revenue to serve a notice of attachment to your creditors.That means that the revenue will force them to pay your money direct to revenue and thus reducing your tax liability.

The single most important thing and I have mentioned this on previous posts is do not let debt affect your family life.When your in debt it feels like you life is ending , if debt ruins your family you will feel much much worse.Our country does not have a record for jailing people over debts, in simple terms bad debts is financial game over it is not life over.


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## layla (25 Apr 2009)

Hi Guys,

Sorry I have not replied. I dont really know all the figures off hand Im only going by the amounts my husband says. Yes our car insurance is €100 per month. Im still on a provisional but husband has full licence-only since Fed though. This is the best we have been quoted if we pay by direct debit. It seems high but he made the calls.
Im trying to figure out how to reduce outgoings. We are cutting a few areas. Im checking out airtricity for electricity etc.
As regards the sherriff. It is an agreement my husband came up with after showing the letter to MABS. I told him €200 per month is too high. It is for one of the smaller debts to a small business for around 5k. I wouldnt mind but my husband had a great realationship with them and put a lot of business there way every month. They got a few big contracts through him just by word of mouth. They forgot this fast though.
Debts to my knowledge are roughly as follows:

50000  2 BOI overdrafts-one personal one business (crazy as I never knew about one of these and both business and personal merged and you can guess the rest)ie one was used to fund the other. Husband is a great business person but useless with money management and figures although thinking about it now that would make him a very bad business person......

10000 approx citifinancial Huge interest rates but werent worried about that initally as was making great money

10000 approx Ge money same as above

6000 credit card 1

3000 credit card 2

20000 approx various suppliers

As regards our mortgage we had agreed interest only but that was ages ago and now banks are pushing us for full amount. We were getting the mortgage supplement from social welfare officer but they stopped it. We dont know why suspect it was due to my maternity leave payment and are now trying to get that back and possibly get them to pay some arrears. I dont know about this but going to try.

Cutting costs is hard as there is only so much we can cut back on. I cannot go back to work as much as Id love to as I have no one to mind my small babies. They are a full time job and are all the same age without going into too much detail.

We have considered bankruptcy as a fresh start of sorts but getting your name in a local newspaper is probably a tiny thing but I hate the thought of people finding out. 
We have tried to rent out our house and find somewhere else to rent ourselves but no one is interested even though it is nicely decorated etc.

Grrrr its all so annoying. Myself and my husband are strong and will get through it as we would never ever break up over anything however I have and always will be a very emotional person and cry at the drop of a hat. I find it hard to not think about it all the time. It must be worse for him as he has us to consider also.

Its sad to hear that so many others are in this situation but a comfort of sorts.

Does anyone think we should re consider the bankruptcy option.

By the way our house is only selling for the amount we bought it for which was a good price. It may go into negative equity. We are trying to sell at the moment. MY husband wanted to sell ages ago when we would have made about 60k on it and I said no. Stupid mistake. As I said earlier he has two judgements against him so anything we would make would be taken anyway.......


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## Hybrid Boss (26 May 2009)

If its a Limited (Ltd.) company, he can walk away from the debt.


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