Posting this for a family member - grateful for any opinions.
Personal and income details
Income self: €40,000 self-employed caring profession - part-time
Income history: Steady: good demand for service
Income partner/spouse: No income for around three years. Forced to close a professional practice due to mental health issues. Now starting on the long road to re-training at age 46.
Income history:
number of children: 3, aged 12 down
Home loan
Lender: KBC
Amount outstanding: 218,000
Value of home: 170,000
Interest rate: tracker: not sure of rate
Monthly repayment: €350 interest-only
Amount in arrears: Nil
Summary of discussions and agreements with the bank: in Marp since 2012 . Have been on interest only since then.
Investment property (1)
Lender: Bank of Scotland
Amount outstanding: 158,000
Value of home: 75,000
Interest rate: 2.5% (tracker)
Monthly repayment : €330
Amount in arrears : Nil
Monthly rent received : Up to recently: €550; currently NIL
Investment property (2)
Lender: Bank of Scotland
Amount outstanding: 152,000
Value of home: 75,000
Interest rate: 2.5% (tracker)
Monthly repayment : €320
Amount in arrears : Nil
Monthly rent received : Up to recently: €530; currently NIL
Both houses would require money to redecorate before they can be rented again.
Other loans and creditors
Overdraft: Business overdraft €120,000 Ulster Bank - a hangover from husband's former business
Other savings and investments
Nil
How important is retaining the family home to you?
I would like to keep it, but will get rid of it if it means I can get rid of the mortgage associated with it.
Other details:
Husband out of work due to mental health issues. His business had to close down for the same reason, leaving around €120,000 in business debt (usecured). He may or may not work again - not clear at the moment.
Until recently, both investment properties were rented out and generating an income over and above the interest-only repayments. Tenants have now moved on. Have written to Bank of Scotland to advise that repayments cannot be made until new tenants start paying rent. Problem - houses would need money on a bit of redecorating and repairs before they would be let again. Don't have the money to do that.
Wife's income is about enough to cover household expenses for five people including mortgage on family home. Very little excess.
Ulster Bank now starting to chase their €120,000 business debt.
Would be happy to sell investment properties if Bank of Scotland would write off the negative equity. If Bank of Scotland refuse to write off the negative equity but allow the sales, couple would then have €150,000+ unsecured debt to Bank of Scotland + €120,000 to Ulster Bank.
Would bankruptcy or personal insolvency be an option? What would it entail?
Thanks for any and all opinions.
Personal and income details
Income self: €40,000 self-employed caring profession - part-time
Income history: Steady: good demand for service
Income partner/spouse: No income for around three years. Forced to close a professional practice due to mental health issues. Now starting on the long road to re-training at age 46.
Income history:
number of children: 3, aged 12 down
Home loan
Lender: KBC
Amount outstanding: 218,000
Value of home: 170,000
Interest rate: tracker: not sure of rate
Monthly repayment: €350 interest-only
Amount in arrears: Nil
Summary of discussions and agreements with the bank: in Marp since 2012 . Have been on interest only since then.
Investment property (1)
Lender: Bank of Scotland
Amount outstanding: 158,000
Value of home: 75,000
Interest rate: 2.5% (tracker)
Monthly repayment : €330
Amount in arrears : Nil
Monthly rent received : Up to recently: €550; currently NIL
Investment property (2)
Lender: Bank of Scotland
Amount outstanding: 152,000
Value of home: 75,000
Interest rate: 2.5% (tracker)
Monthly repayment : €320
Amount in arrears : Nil
Monthly rent received : Up to recently: €530; currently NIL
Both houses would require money to redecorate before they can be rented again.
Other loans and creditors
Overdraft: Business overdraft €120,000 Ulster Bank - a hangover from husband's former business
Other savings and investments
Nil
How important is retaining the family home to you?
I would like to keep it, but will get rid of it if it means I can get rid of the mortgage associated with it.
Other details:
Husband out of work due to mental health issues. His business had to close down for the same reason, leaving around €120,000 in business debt (usecured). He may or may not work again - not clear at the moment.
Until recently, both investment properties were rented out and generating an income over and above the interest-only repayments. Tenants have now moved on. Have written to Bank of Scotland to advise that repayments cannot be made until new tenants start paying rent. Problem - houses would need money on a bit of redecorating and repairs before they would be let again. Don't have the money to do that.
Wife's income is about enough to cover household expenses for five people including mortgage on family home. Very little excess.
Ulster Bank now starting to chase their €120,000 business debt.
Would be happy to sell investment properties if Bank of Scotland would write off the negative equity. If Bank of Scotland refuse to write off the negative equity but allow the sales, couple would then have €150,000+ unsecured debt to Bank of Scotland + €120,000 to Ulster Bank.
Would bankruptcy or personal insolvency be an option? What would it entail?
Thanks for any and all opinions.