Pregnant with massive bills to meet each month

[bambina]

Hi guys,

Not sure who can help out on this one, if anyone, its messy

I am a director of a company I set up in May with 2 others and am on 50,000 per annum gross. I left a 60,000 gross job in May because this property developer was in financial ruin and has since gone bust. It was a good idea at the time to move

I am the only employee of this new company, the other 2 have their own businesses and are only involved as it's a 'you scratch my back I scratch yours' operation. We got a good bit of business and have survived by paying all overheads and my salary until end of this month.

However, I go on maternity leave in November and the other 2 have just told me that I'll be getting no salary in the meantime and I've to survive on the state benefit of €280 per week as there is no new business coming on stream that we can forsee and I can't chase new business now because its only 6 weeks away til I go on leave.
As we had all put in an initial directors loan of 2,000 each, I assumed we would be either getting this back by now or they would put in some additional funds to pay some part towards my salary- but no.
They also want me back to work within 10 weeks of baby being born and I've been advised by doc that I should be taking the majority of the 6 months off. Even if I go back in 10 weeks, there is nothing to say I will be getting paid by this company as it'll be my job to bring in the new business and there'll be nothing in the pot so to speak.

The big problem is, I hadn't anticipated this, I haven't been saving the last 5 months to put towards my mortgage and loan repayments. Furthermore, my OH and I are moving in together and he has taken serious cuts and this week didn't get paid! His job (family biz) says there's no money there to pay him and he may have to go on social welfare.

Sorry for the long windedness. Here are the monthly payments I have to meet:

I am earning 3122 per month NET right now so meeting my repayments hasn't been a problem. But it will be in about 6 weeks time

Own Mortgage (my name only)
€951 per month over 31 years with INBS,
total mortgage outstanding is €240,000
house worth about €250,000 now (if even)

Investment Site (in both my name and brothers name)
mortgage of €80,000 or monthly repayment of €497 and we've 17 years left to go.
Now its only valued at 15,000 as its agricultural land but has good future potential and don't think selling now is even practical

Personal Loan
€311 per month 18 months left. Total is 5,500 balance

Secret Loan
€250 month to my mum as she topped up her own mortgage to give me the deposit on my house when I bought it 4 years ago. I pay her this each month. I am going to be paying this until her mortgage finishes in 9 years

Credit Card
€3250 is outstanding and I put aboiut 200-300 off this each month depending

I also have some nixers which have brought me in about 500 net per month but this is also going to dry up until Feb/March as I physically won't be able to continue until then
Other Half was going to give me €500 towards the cost of mortgage and split bills ie gas, esb etc but he earns about €1600 net per month and so he can't possibly pay for my mortgage or there won't be anything left to live on. He also has a hefty personal loan of €10,000 also

I don't know what to do, should I go to MABS? I don't know if SW will help with mortgage if OH is working. I have asked building society about refinancing but they would need a house valuation of 280,000 which isn't possible and aren't prepared to go interest only. They suggested a 6 month break option and will rollover the interest onto mortgage after 6 months

Oh god help us, I may just go into early labour if I worry about this any more, can't sleep and I'm afraid to even buy groceries

 

[S.N.Dipity]

Hi bambina,
am in a similar situation to you myself, Director of a company and had a bably last year. I don't have a financial background but from what you've written I'd suggest-
1) Take the 6 month Mortgage break, its a pretty good offer, most banks will only give you 3 and thats after months of begging
2) Re-schedule your personal loan to 5-7 years which would reduce your monthly outgoings
3) Ask your Mum if she could give you a 6 month break from her loan repayments
4) Inquire about going interst only on investment site
5) Ask if Bank will allow you to consolidate your personal loan & credit card debt into one 5-7 year loan.
6) Discuss the possibility of doing a few hours a week in the office with your Partners. I was back at work within 2 weeks of giving birth. Young babies sleep a lot and really don't mind if they are at home on the Sofa or snuggled up to you in a Babybjorn.
I would also recommend MABS, have been myself and they have seen hundreds of people like us over the last few months and know whats do-able with the Banks.
You can also try your local Community Welfare Officer, but be prepared, they treat self-employed people as if we were all working cash in hand, earned 6 figure salaries and never paid taxex in our lives. Not pleasant but you may be eligible for some payments.
Lastly, this is a really special time, it's a cliche but children do grow up so quickly and you will never get to spend these wonderful days with your child again, so treasure them.
Congratulations and good luck!

 

[chlipps]

Your quote ''I am the only employee of this new company, the other 2 have their own businesses and are only involved as it's a 'you scratch my back I scratch yours' operation. ''

I'm not sure what you mean here or your business details.... but why didnt you use your OH as second director and avoid set-up of business with the other 2 to avoid issues ....considering that you are doing all the work?...BTW If they didnt get some of there 2000 deposit back, why should they invest further money into the business?

I think you should contact MABS asap for advise

Also OH will need to try find other work so that you can relax as you dont need the stress at this stage. Could your OH in anyway bring assist in your business whilst you are on leave?