Debt has finally got unmanageable...help!

[SXGuy]

Re: Debt has finally got unmanageable...help!

Ok then, they will huff and puff, demand all sorts. They will more than likely set the amount to repay each month. You will need to argue with them as to whether its affordable or not. HMRC dont like to set monthly repayments, but they will give in you just have to be strong.

Ive had them tell my clients to sell their TV and all sorts, which is blatantly not right or fair. Dont fall for it, stick to your guns, and offer to repay it at an amount you can afford. Thats the only thing you can do really.

Oh and also, they are likely to add interest to the payments, sadly this cant be avoided.

[GlobalC]

Re: Debt has finally got unmanageable...help!

I can relate to that.

But you cannot transfer your tenants' deposits to the new owner that easily (if at all). You may have a legal duty to return those deposits to the tenants and the new owner will have to take new deposit money and re-insure it. You can transfer the ASTs to a new owner (only if that has been stated in the AST) but it's not that simple.

The good news is this will all be part of the sales transaction. In other words the buyer may well pay off your current tenants' deposit issues.

Although you are correct, I will just pay back their deposits - its only £500 per flat but this is the least of my worries right now! I need to sell my house first then worry about the flats

[PlanB]

Re: Debt has finally got unmanageable...help!

If anyone's interested they make 6% yield so not a bad investment !

^^^^ in which case I would say you'd be mad to even think about selling them




You're 36. These investments will double and treble in value as the years go by. At least have a go at sorting out your unsecured debts before you throw in the towel. As my mother used to say (annoyingly) tomorrow is another day. Have a rethink on your financial strategy. It was prompted by a scary letter from HMRC. Look at sorting out that issue first.

[odetter]

Re: Debt has finally got unmanageable...help!

Just set up a £5 per month s/o on each unsecured debt and get someone to open your post.

[PlanB]

Re: Debt has finally got unmanageable...help!

I need to sell my house

Do you really ? Maybe sleep on it for a few days eh?

[GlobalC]

Re: Debt has finally got unmanageable...help!

^^^^ in which case I would say you'd be mad to even think about selling them




You're 36. These investments will double and treble in value as the years go by. At least have a go at sorting out your unsecured debts before you throw in the towel. As my mother used to say (annoyingly) tomorrow is another day. Have a rethink on your financial strategy. It was prompted by a scary letter from HMRC. Look at sorting out that issue first.

I can see your point, but really there not mine anyway although i would get to keep any increase in value from the initial deposit's on one of them anyway. But my family ( mum ) doesn't want the hassle of it and they will need a fair amount of money spending on doing up sooner or later not to mention a new roof! I'm not sure i can deal with this whilst i'm away. However i will chew on this for awhile and look at the situation in a few months when hopefully i've sold my house - which defo has to go otherwise im never going to be able to pay hmrc in any reasonable time

[SXGuy]

Re: Debt has finally got unmanageable...help!

Can i ask, are you sure that you have claimed everything you could have on the rentals when completing your self assessment? do you use an accountant? The reason i ask is, there is often than not, a loss on most rental accounts. 6k tax bill on 2 rental properties seems quite high if im honest.

Do you claim a rent collection fee? mortgage interest? do you claim for repairs and renewals? gas checks?

If there is something you have missed which could either lower or remove your tax liability, you do have the option to submit an amended return before 31st.

[GlobalC]

Re: Debt has finally got unmanageable...help!

Do you really ? Maybe sleep on it for a few days eh?

I will, but i can't see anyway to get out the pickle i'm in I could rent it out but i still won't be able to pay off HMRC in any reasonable time and if they make me BR im going to lose the flats or my house- which is why i think somethings go to give. Unless anyone's got any bright ideas

[GlobalC]

Re: Debt has finally got unmanageable...help!

Can i ask, are you sure that you have claimed everything you could have on the rentals when completing your self assessment? do you use an accountant? The reason i ask is, there is often than not, a loss on most rental accounts. 6k tax bill on 2 rental properties seems quite high if im honest.

Do you claim a rent collection fee? mortgage interest? do you claim for repairs and renewals? gas checks?

If there is something you have missed which could either lower or remove your tax liability, you do have the option to submit an amended return before 31st.

yes i do have an accountant, this sum is also for my own self employment also not just the flats.

[SXGuy]

Re: Debt has finally got unmanageable...help!

ah ok, well it was worth a shot!

[GlobalC]

Re: Debt has finally got unmanageable...help!

Well i've been considering my options again today and I will be selling my house, not decided on the flats yet, although a bit of advice i need is once i've sold and im sofa hopping for lets say a year before i disappear should I continue to make payments towards the unsecured crap or should I just stop? Once my house is sold I don't really want to be giving a forwarding address to the cruditors like my family's house as I dont want them getting hassled once im gone, so ideally i just wont tell them and either stop paying altogether or continue to pay minimal amounts although i obviously won't be receiving any correspondence from them as they wont have an address for me.

My aim is to see out another year without getting the court's involved if possible

[SXGuy]

Re: Debt has finally got unmanageable...help!

not sure on what to do regarding payments, others will comment on that, but you can set up a mail forwarding address with royal mail, this can be set up for 6 months to a year, so you could still receive the letters without them knowing where you actually are.

[PlanB]

Re: Debt has finally got unmanageable...help!

i've been considering my options again today and I will be selling my house, not decided on the flats yet . . . . . Once my house is sold I don't really want to be giving a forwarding address to the cruditors like my family's house as I dont want them getting hassled once im gone, so ideally i just wont tell them and either stop paying altogether or continue to pay minimal amounts although i obviously won't be receiving any correspondence from them as they wont have an address for me.

I'll leave it to the debt specialists to respond to the big picture and I'll only comment on property stuff.

If you have BLT mortgages in your name on those properties the addresses may be linked to your CRA files because I presume the lenders report on your mortgages to your home address. The worse case scenario is that any debtor may search and find you have property elsewhere (i.e. not just your official home). I don't think I've explained that very well

Have you considered becoming a Tenant in one of your BLTs instead of sofa hopping once you've sold your home? Depending on your capital situation (leftovers from the sale) you may be able to claim housing benefit for your rent if you grant yourself a tenancy agreement. It's not straightforward but there are ways of doing this lawfully

[PlanB]

Re: Debt has finally got unmanageable...help!

you can set up a mail forwarding address with royal mail, this can be set up for 6 months to a year, so you could still receive the letters without them knowing where you actually are.

I agree. In fact you can set up Royal Mail Redirection for a maximum of two years and your creditors will never know The only thing to be aware of is that SDs can be hand delivered

[Never-In-Doubt]

Re: Debt has finally got unmanageable...help!

I agree. In fact you can set up Royal Mail Redirection for a maximum of two years and your creditors will never know The only thing to be aware of is that SDs can be hand delivered

Our eAddress service - coming soon, will alleviate this as we guarantee that all letters will be received including personal service letters, ie claims etc..... Unlike a PO Box or mail forwarding, where letters can get refused we won't have that issue.

I'm working on price at the minute but from starting in the region of £10pm (£120pa) I've managed to get it down to around £1.50 (£18 per annum) which is a lot cheaper than most equivalent services of its kind. Yes that's right, we will soon offer a unique address that you can offer your creditors for as little as £18 per year.

It'll be live February sometime......