Help writing proposal for partners BTL residual

tnegun

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121
Apologies if this is the wrong forum. I need to write a proposal to deal with the residual debt from my partners BTL >150k. Property was repossesed by EBS, then sold and the residual sold to a vulture. We own our current PDH together and it along with a car 2k are her only assets. I've completed the info below based on her means alone as the debt is in her name only.

Income details
Net monthly
(i.e. after tax) Income self: Child Benefit €560 and Domicallary Care Allowance €309, TRS €75
Income history: Child born in 2008 with CHD and left work to care for her, now 3 more children and no prospect of returning for at least 7-8 years
Net monthly income partner/spouse: nature of income
Income history: N/a I think mine is irrelivant in this instance?

Personal circumstances so we can calculate your reasonable living expenses
The Insolvency Service has published Guidelines for Reasonable Living Expenses based on the family size, whether or not you need a car for work, childcare costs and other exceptional circumstances. By filling in this information, we (or you ) can calculate what your reasonable monthly living expenses should be.
One adult family or two adult family: 2 Adults
Do you need a car for work or do you use public transport? Car
Number of children 0- 2 years old:0
Number of 3 years old children: 0
Number of 4 - 11 years old:4
Number of 12 - 18 years old:0
Monthly childcare costs: €50
Montly spend on special circumstances: None at present but there have been times in the where these were several hundred per month, not recently thank god.


Home loan
Lender: AIB
Amount outstanding: 275k
Value of home: 325k
Interest rate: SVR 2.95%
Monthly repayment: 1335
Amount in arrears: 0

Summary of discussions and agreements with the banke.g. in Marp since Jan 2011 . Have been on interest only since then.

Do you expect any lump sums in the medium term future?

Redundancy, inheritances, injuries awards. None


How important is retaining the family home to you?

Which of the following best describes your situation?

I really want to keep the family home even if it means having a large mortgage and little equity for years to come.


Any other relevant information
I currently support 6 people and meet our current mortgage repayments and other financial commitments from my salary alone, for the first time in a decade we're comfortable and can afford a holiday etc. so have no desire to give that up but am willing to make a fair contribution to resolving this.


What is your preferred realistic outcome?

To have this debt written off to the greatest degree possible. I maintained shortfall on the BTL for several years before it became unsustainable and my partner invested 35k in it at the outset so this has cost our family dearly and I'm keen to draw a line under it and try move on with our lives.
 

Brendan Burgess

Founder
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37,853
She should see a Personal Insolvency Advisor immediately.

I would think that bankruptcy is the answer, if they won't do a deal.

You have €50k of equity in your home, so her half is €25k.

The Official Assignee will be the joint owner of your home and will probably sell you his share for €25k.

So you will personally own the house and be responsible for the full mortgage.

But your partner will be debt free after 12 months.

So put that to the lender and offer them €20k. If they say no, go bankrupt.

As she has no income, I don't think that a PIA would work.

Brendan
 

tnegun

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121
I spoke to one and he was very decent suggested I approach them solo first to save his fees and if they're playing hard ball then he would get formally involved. He did mention that they allow up to 10% for cost of sale and then split the equity remaining 50/50 so it would be a lot of effort for them to go after for 10k. As she has no income was going to offer at most the 10k and advise that bankrupcy was being considered. Is the family home not protected in this instance?
 

Bronte

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13,368
I As she has no income was going to offer at most the 10k and advise that bankrupcy was being considered.
In that case I would offer 5K, play hard ball, and go to 10K eventually as a last resort, do not start at 10K and do not go from 5K to 10K.

I see no hope of a bank going after the family home/equity in your circumstances, just not going to happen. Four kids, wife with no income, and one child with issues. You have them over a barrel.

Do not overpay your mortgage.
 

Bronte

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13,368
Actually I've changed my mind on this. If the OP is the only one paying the mortgage it could be argued he's entitled to all the equity. And that's despite his wife being on the deeds.

Also the child benefit may be paid to the wife, but it's family income in my book. For the children. Might be better to transfer this payment to the husband too.

The TRS is due to the husband making the mortgage payments, so why is that in the income?
 

tnegun

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121
Re the TRS they asked if I was in receipt of it and I think there was a section in the SFS form for it
 

Bronte

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Messages
13,368
But TRS is due to the person who pays the mortgage getting tax relief, that is also the person who pays tax. Not the person who doesn't pay tax?
 

tnegun

Frequent Poster
Messages
121
Submitted the proposal today, laid out the facts and I have here so lets see what they come back with.
 

tnegun

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Messages
121
So no response to the propsal just another threatening letter about going legal if we don't start making payments on the mortgage. Since this changed hands we've had very little communication, no statements(we'd none from the bank for a long time prior to this either) no information on the outstanding balance or repayments except for info I recieved on calls that I instagated. Is this still a mortgage? Is these even legal? How could we make repayments if we've no idea where to send them, how much they are, what the terms are etc.?
 

tnegun

Frequent Poster
Messages
121
Eventually got a reply and they rejected my offer, no suprise there and said that they would now persue the debt legally but then finished by saying thay would consider another lump sum offer too. So I guess this is a tactic and I will increase it. Read here http://www.frielstafford.ie/personal-insolvency/what-happens-the-family-home-in-a-bankruptcy/ that the official assignee will allow credit for any payments made by the other spouce and reduce their claim accordingly. Anyone know is this accurate?
 

Brendan Burgess

Founder
Messages
37,853
Have you gone back to the PIP?

You tried to negotiate a deal yourselves as the PIP suggested. They did not accept that.

You should go back to the PIP and let them try to do a deal.

Brendan
 
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