72,000 in debt split between me and my ex

Breanach

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Hi

So I owe 71k to BOI after a house I purchased jointly in 2008 with my ex was sold at a loss

I need help on choosing the road to go down, me and my ex don’t speak and I’d like to know what to do and get advice.

So as I said above the debt is split my share would be 36k I don’t have the cash to pay it off and I’ve just had a son so money isn’t exactly flush but I’d like to put this behind me, if I was to speak to a pip practitioner what would my options be? Can you do a short pip and maybe pay a lump sum? Get it over and finalised with? Would Mabs be an option for me?

If I was to offer a lump some what is the likely amount I’d have to offer for the bank to close it? seen as money is tight what would I be asked to pay should I go into a long term pip?

What help is Available?

Info: gross 2450 pm
Loan : 400 pm
Childcare 900 pm
Rent 650pm
Bills 200 pm

I know a guesstimate is what ye would be offering but a rough idea would be great

Sorry about all the questions

Thanks Advance
 
Unless you did a special deal with the bank, you and your ex owe this jointly and severally. What this means is that you are both on the hook for all of it. If she does not pay her share, you must pay the full €72k and vice versa.

It seems clear to me that you are insolvent.

You should contact a Personal Insolvency Practitioner and apply for Debt Settlement Arrangement which will wipe out your debt. In discussions with the lender the PIP might be able to do a deal and settle it for a small amount of money.

I don't know if the Bank can agree not to pursue you but pursue just your ex.

Brendan
 
Hi Brendan,


Thanks for the reply it’s very much appreciated, I know it’s difficult to give a figure but when you say a “small amount of money” what would that be?

Thank

Steve
 
If you have €10k in savings that will go into the pot and most of it will go on the PIP's expenses.
So the bank would be better off taking the €10k in full and final settlement.

If you have no money and the bank is not going to get anything, and you can get a gift/loan of €5k , then I would offer them that.

But if they want any more, go for a Debt Settlement Arrangement. But take advice from a PIP on your individual circumstances.

Brendan
 
Yes seen as I have nothing really,but I could possibly get a loan of say 5k would I be better off approaching the bank directly and offering them this or go through a pip use this money to pay them and the bank get zero? I probably can’t afford to pay a pip and the bank. It’s either one or the other!
 
I suggest that you use MABS to negotiate a settlement.

Whatever you do, do not commit to a never ending payment plan (which some MABS offices tend to negotiate.) Insist on either a lump sum, or a payment plan over 3/4 years.

Jim Stafford
 
Are BOI staying in contact with you ? You cannot pay anything at the moment so they may just let it sit and eventually write it off.
 
Are BOI staying in contact with you ? You cannot pay anything at the moment so they may just let it sit and eventually write it off.

I’ve not had any formal contact (in writing) with them in probably 3 yrs,I’ve also never in writing admitted to liability for the short fall.

That’s the other option do I sit on it and let it play out? Or if I let it run and they go to court this can run for 12 yrs

Thanks
 
I would sit it out. Do they have correct details for you ? My belief is 6 years to get in touch and that means they have to get a response off you. They could have held off on the sale maybe and collected everything so don't feel too guilty about it.
 
OP - i'm not sure on your aspirations for a mortgage in the future. But while the debt may not be legally owed after 6 years, my understanding is that each year this debt will technically still be owed and therefore will not disappear from your credit record - which may mean getting a mortgage in the future will be unlikely when it shows you are continually defaulting on debts owed already. Something to investigate.

Also as a previous poster said, the debt is most likely joint and several. So I'm not sure it makes sense for the bank to accept a small lump sum just from you to write off the debt when for all they know, your ex may be loaded with cash.

Best go to MABS in the first instance as they are free.
 
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OP - i'm not sure on your aspirations for a mortgage in the future. But while the debt may not be legally owed after 6 years, my understanding is that each year this debt will technically still be owed and therefore will not disappear from your credit record - which may mean getting a mortgage in the future will be unlikely when it shows you are continually defaulting on debts owed already. Something to investigate.

Also as a previous poster said, the debt is most likely joint and several. So I'm not sure it makes sense for the bank to accept a small lump sum just from you to write off the debt when for all they know, your ex may be loaded with cash.

If I’m showing that I cannot afford to pay it back they’ll pursue her for the money, and write me off?
 
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If I’m showing that I cannot afford to pay it back they’ll pursue her for the money, and write me off?

I am not sure they will write you off so quickly. In fact - i'm not even sure they could legally lump the entirety of the debt at your ex's feet? Maybe they can. But if I owed a joint debt I wouldn't be too happy if legally it all fell to me and me only.

I am only guessing here though. It really is best to meet someone to set you straight.
 
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