Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.
Sister's Financial Problems....(4 Posts)
I told my sister I would post this on her behalf....hope somebody can help....
I'm hoping somebody can suggest a realistic way forward...
My problems started back in October 2003 when I was made redundant from a highly paid job which came with company car, mobile phone and other benefits. I was given a tax and national insurance free payment of £12,000.
At this stage I already had impaired credit from small debts I ran up on store cards in my younger days - I decided to go into business with a friend and in order to release equity from my house I sold the property to my business partner rather than borrow again at a higher rate of interest. I realsed approx £30,000 in equity - however the partnership didn't work out. This was in May of last year and the friend agreed that I could keep the mortgage on in their name until I sorted myself out. I then invested £10,000 in a franchise business which I am still running and got myself a job in a restaurant to provide additional income.
I put my house on the market in July of last year and expected it to sell quickly and at which point I was planning to down grade and rent for a while, at this point it was valued at £199,950. This month I have accepted an offer of £172,000 as I am unable to meet the required mortgage payments.
In December of 2004 I was hit by a car and badly damaged by leg and shoulder and it will be 6 weeks before I can walk unaided. So I am getting £66.15 SSP from my job in the restaurant. The business is making approximatley £300 - £400 profit per month.
In January 2004 I got a tax bill from the Inland Revenue for £5000 which has now spiralled to £7000. It may sound naive but my original job I was getting dividends but nobody explained that I would get a tax bill of this size so I have not budgeted for it!
I have a secured loan with a balance of £6500 with Welcome Finance which I pay £184 a month. I have sold the house that this loan was secured on but at the time I expected the solicitor to include in the settlement figure but this wasn't done. And I stupidly let it go and continue to pay the monthly payments!
I owe £4400 on a Credit Card belonging to my sister and owe my other sister £3400 cash.
I am living with my sister at the moment and not paying any rent/ mortgage/ council tax but at some point in the near future I will need to include these figures in my outgoings.
I have tried to get everything down but please ask if I can provide any further info....
Is Bankruptcy the best option?
How will this effect my franchise?
Poor thing - have no suggestions (except go to the CAB and see if they'll help sort out letters to creditors, etc), but had been meaning to ask how she was after her horrible accident last year. Hugs to you both xxxxxx
What about claiming for the personal injuries? When is the house due to be sold? Will this release any equity?
Best thing, for the time being, is to write to every creditor explaining your situation and offering a small repayment each month. That should buy you some time allowing the property sale to go through.
no bankruptcy is always a last resort. First off, speak to IR about tax bill - they do get it wrong sometimes! Next make an appt with your bank (not loan company) and discuss how best to consolidate everything. Did you have sickness/accident insurance with your loan, and if so, claim on it.
Also I know ive said this before but as you have been seriously injured with ongoing repercussions on your health and finances, please consider claiming from the person who hit you. I can recommend an excellent lawyer if you want but I do appreciate not everyone feels happy doing this.
Join the discussion
Registering is free, easy, and means you can join in the discussion, watch threads, get discounts, win prizes and lots more.Register now »
Already registered? Log in with:
Please login first.