Crisis!

LegacyUser

This is critical. I lost my job early this year. I am in debt up to my eyes. I managed all year as I tried searching for another job. I wasn't too worried all summer as I figured I would get something. I've done interviews everywhere, and rejected by all, many never replied to me. Everyone says they are not recruiting at this time. I have searched all the job websites, sent of reams of cvs.

I cannot pay next month's mortgage. I have missed credit union repayments already, and cancelled all my direct debits, so that the bank won't charge me for unpaid bills. I am right up the very deep end of the creek.

I cannot sell my apartment, I have been on to the estate agents, and a similar home to my own has been on the market for the past year, and the price has dropped and dropped, and only one viewer in all that time! I've been told professionally I won't get a buyer, at almost any price.

I cannot rent it out, as the rent will not quite cover the mortgage itself, and definitely not all my other debts. If I had a job, I might struggle through that way, but without a job, I will still be up the creek. I already let out the spare room, and face kicking my lodger out if I have to go.

I went into the bank, asked to defer my mortgage payments, and was told I am unlikely to be considered, as I have a credit history, due to previous business problems.

If I got a job tomorrow, I would still be in trouble, as I owe so much now that the salary would never enable me to catch up on the unpaid debts.

I could move home if I could sell the apartment. I'd happily do that. I'm single, 35, male, and the only jobs I might qualify for do not pay HALF the salary I would need to clear my debts. I made a lot of mistakes in the past, always trying to better myself, but in hindsight, really only digging myself deeper. I never drank or gambled, but ploughed everything into trying to get my own place. Now I cannot afford it, I am willing to sell up, but cannot do so. And the banks do not want to know me.

This is a nightmare, and I don't know what to do. I went to MABS a long time ago, and they were no help at all. Told me I didn't qualify for help. That is why I struggled on trying to solve things, but things only got worse instead of better.

If I miss next month's mortgage, and the next, and the next, and the demanding letters pile up from the credit union and the other bills, and I have no money, and no prospects of getting any, what do I do? I had my own small business up to recently, but it was not a success, and is partly what left me in debt. It is also the reason why I do not qualify for assistance, or MABS.

At this stage, I need more than a job. I need a massive digout to pay for debts accrued. I never believed it would be so hard to find work. I have cut my outgoings to the minimum, and they are still over €2,500 a month. That's before I eat! If I could sell my house, I'd be able to bank a bit, and be rid of all the bills. But I cannot even do that!

Everyone says, oh, you'll get a job, you'll get a job. They have to be in this situation to believe it.

Nevyn

I suggest you get in touch with mabs

http://www.mabs.ie/contact_us/contact_us.html

free phone 1890 283438

mikemac

As suggested, talk to MABS.
Edit, you've been to MABS already but go back again.

And go back to the bank. They didn't go for your suggestion so ask them what they suggest. They'd much prefer you talk to them now then letting letters pile up over the next few months.

And it's nearly always suggested but have you a spare room you can rent to a lodger?

LegacyUser

If you are not working, then I suggest you go to your local welfare officer and ask for some help in relation to your mortgage, I have heard of others in difficulty getting help from them. They are located in your local health centre/cllinic only sit certain days of the week so best to ring before going and be prepared for a long wait, there are always huge ques. Also have you checked your mortgage protection policy, take a look and see if there is a claus in relation to job loss!!
Good luck.

I wholeheartedly recommend MABS also. Even if you didn't have much luck last time with them, try again. They cannot magic away the debt but they can intervene and act on your behalf to arrange new payment plans etc.

Also, it may be worth your while visiting www.askaboutmoney.com

mumhaabu

Scrape everything you have together sell any assets you can and leave Ireland, the Bank can then repossess your negative equity apartment. Get as much as you can here and run for it. My advice is to go to Australia, behave yourself, take the crap jobs and apply for residency if you qualify. After a set moratorium of years you will be able to return to Ireland.

Get your act together now but it looks like you are on the road to ruin as it stands. I also suggest you try MABS but they are under savage pressure as the economy is collapsing like a house of cards. I'd run if it was me and forge a new life in a climate where the sun shines and where they have some prospects.

MagicMarker

mumhaabu wrote: »

Scrape everything you have together sell any assets you can and leave Ireland, the Bank can then repossess your negative equity apartment. Get as much as you can here and run for it. My advice is to go to Australia, behave yourself, take the crap jobs and apply for residency if you qualify. After a set moratorium of years you will be able to return to Ireland.

Get your act together now but it looks like you are on the road to ruin as it stands. I also suggest you try MABS but they are under savage pressure as the economy is collapsing like a house of cards. I'd run if it was me and forge a new life in a climate where the sun shines and where they have some prospects.

Post reported! :rolleyes:

Redpunto

MagicMarker wrote: »

Post reported! :rolleyes:

WHy?

AlmightyCushion

When you say you have done interviews everywhere do you really mean everywhere. You could probably be able to get a job paying minimum wage or a bit better for the christmas. I know it's not ideal but surely any money is better than no money. Then in your spare time you can look for a job more suited to you.

Nevyn

mumhaabu do not advocate illegal acts on this forum.

LightningBolt

Thaedydal wrote: »

I suggest you get in touch with mabs

http://www.mabs.ie/contact_us/contact_us.html

free phone 1890 283438

You did read all of his post right?

Nevyn

LightningBolt wrote: »

You did read all of his post right?

His situation has changed they maybe able to help him now.

Glowing

I think you should rent out your place anyway and move home. No, the mortgage won't be covered 100% but better you pay a couple of hundred quid a month, rather than a couple of grand. Your bills would be covered too.

Caoimhín

OP, if it really gets bad you can actually have yourself declared bankrupt. Im not fully sure how it works for an individual and you would be unable to get credit for a long time.

It might be worth looking into as a last resort, it certainly beats skipping the country.

The_Conductor

Caoimhín wrote: »

OP, if it really gets bad you can actually have yourself declared bankrupt. Im not fully sure how it works for an individual and you would be unable to get credit for a long time.

It might be worth looking into as a last resort, it certainly beats skipping the country.

If you declare personal bankruptcy in Ireland, as opposed to a commercial bankruptcy, the debt is not in fact extinguished, and a persons earnings and pension contributions, can be purloined in perpetuity, until such time as the debt is satisfied. Its disgraceful to be honest- our bankruptcy laws are stuck back in Victorian Times. There was an attempt to introduce "Individual Voluntary Arrangements", similar to those in the UK, in 2004, but it fell at Committee Stage. Talk of reforming the bankruptcy laws is a biennual occurence- and particularly pertinent at the moment.

The Irish Court Service have a general brochure bankruptcy and Mortgage Suits here and here

b3t4

I know people might not agree with me on this one but thought I'd put it out there.

Can your parents help? Could they give you a loan that would cover the next 2-3 months?

If they can then I would do the following:
1) Use the loan to pay everything for the next two/three months.
2) Move out
3) Rent the accomodation
4) If you are not on the dole, go on the dole
5) Try and get a job/any job paying minimum wage
6) Save everything.
7) Concider whether leaving the country is a option. Do not leave the country without some form of job on offer.

Best of luck,
A

Caoimhín

smccarrick wrote: »

Its disgraceful to be honest- our bankruptcy laws are stuck back in Victorian Times.

It is disgraceful, the Yanks have a much more enlightened view of bankruptcy, more like an opportunity for a second chance.

It is a measure of last resort but, however difficult, i feel it is better than having to go on the run like some have suggested.

Toots

AlmightyCushion wrote: »

When you say you have done interviews everywhere do you really mean everywhere. You could probably be able to get a job paying minimum wage or a bit better for the christmas. I know it's not ideal but surely any money is better than no money. Then in your spare time you can look for a job more suited to you.

This is a good idea, you'd probably pick up work in a shop over christmas, as lots of them take on temps to cover the busy season. As, AC said, there's nothing to stop you looking for work while you're doing that.

Like a lot of others have said, it'd be worth giving MABS another shot, the worst they can do is say they can't help you. You never know, since your situation has changed there may be something they can do for you now.

I can't really see the point of leaving the country, as pretty much everywhere is in the same boat, there's a global financial/economic crisis at the moment, so regardless of where you go, it's likely you'll encounter the same difficulty in getting a job. At least here you have your family.

It'd also be worth considering moving home and renting out the house. OK, so the rent wouldn't quite meet the mortgage payments, but at least you wouldn't have the electricicy, gas etc to pay, as that would be up to your tennants.

How long ago did you buy your house, and are you in negative equity? If you are, then there's really no point trying to sell it, as all you'll be left with is debt. Renting it out would be the best solution for you until you get back on your feet or until the property market picks up enough for you to sell it on and either make a profit or break even. As regards the property being unsellable, did you go to just one estate agent or did you ask around a few for their opinions? I wouldn't take just one person's word on that regardless of whether or not they're a professional.

Lastly I'd go back to the bank, and sit down with a financial advisor or someone like that, who knows what they're doing. Explain to them the situation you're in and ask what the story is with working out a payment plan. A bank is more likely to agree to a reduced payment rather than stopping payments altogether. If you have rental income coming in, then you could make some sort of payment to them. As for the loans, see would you be able to amalgamate them into one loan at a lower monthly payment starting off, although you might not be able do that if you've got loans out with different institutions, because most places aren't really keen to take on other banks debts at the moment. MABS may be able to suggest something to you, or any financial advisor worth his salt should be able to at least give you some pointers on where to go next. I hope everything works out for you OP, if you're a registered user, feel free to PM me if there's any more advice you need, and I'll do my best.

LegacyUser

b3t4 wrote: »

Can your parents help? Could they give you a loan that would cover the next 2-3 months?

If they can then I would do the following:
1) Use the loan to pay everything for the next two/three months.
2) Move out
3) Rent the accomodation
4) If you are not on the dole, go on the dole
5) Try and get a job/any job paying minimum wage
6) Save everything.
7) Concider whether leaving the country is a option. Do not leave the country without some form of job on offer.

Mother living alone on a widow's pension, no loans there, except a roof to live under, thank God for that. No entitlement to dole of any description, due to self employed status.

Many thanks, everyone, for your suggestions and support. I worked hard for the past ten years or more, to get to where I am, or at least where I hoped I should be. I have made many mistakes of judgement, and have had lots of bad luck to boot. I am very bitter at the loss of ten years of my life, and to be honest I feel my spirit is completely broken. I am sorry I ever tried to better myself. If I could go back, I'd get the most menial 9 to 5 job possible, and stay there.

Like I say, if I could simply sell my apartment, I would give it up now, and be happy with a menial existence, without all the stress. But that get-out clause has just closed before me. Would I be mad to drop the price from €275,000 to €225,000? €200,000??? Would it even sell at that price? Probably not, if the banks are not giving out mortgages easily at the moment.

I'm sick of it all, sick of this country. My spirit is broken. I can feel it inside. I used to try to make the best of things. I just don't care what happens now. Let them take everything. I thank God for the gift of life, and reasonable health, and a very beautiful country, but screw all the narrow, materialistic people that corrupt it.

Sleepy

OP - you never clarified if you were in a position of negative equity or not. If so, I suggest you take a trip back to the bank and point out the following to them:

1. You can't meet your current repayment schedule.
2. The house is unsellable.
3. If you hand them the keys they'll be left with an asset which they'll have a very hard time selling which won't cover your outstanding debt with them.

I'm sure they'll come up with something in order to help themselves you out...

Victor

badfinances wrote: »

I'm sick of it all, sick of this country. My spirit is broken. I can feel it inside. I used to try to make the best of things. I just don't care what happens now. Let them take everything. I thank God for the gift of life, and reasonable health, and a very beautiful country, but screw all the narrow, materialistic people that corrupt it.

While I'm not in anyway suggesting the situation isn't serious, its only money. It comes, it goes.

You say you have been self employed - you may still be entitled to something if you are living in poverty. Go along to you local community welfare officer in the morning. You might be entitled to Supplementary Welfare Allowance and / or Mortgage Interest Supplements

Glowing

Victor wrote: »

While I'm not in anyway suggesting the situation isn't serious, its only money. It comes, it goes.

That's worth listening to.

All the experience of trying to better yourself will stand to you in the future ... you have to take risks in life, but sometimes they just don't work out.

It's just a rut you're in ... give it 12 months and you'll probably wonder what all the worry was about

Snowie

you could rent your apartment to the councill which would mean that if the rent in your area is 1200 they'le give you 1000 or something. granted you can't decide who moves in but its an alternitive....

Bottle_of_Smoke

If you're healthy you might get a bit of a dig out here.

It's completely legal, potentially somewhat risky but hey, desperate times, desperate measures

If I wasn't in college I'd be doing this.

http://mdsni.org/healthy18_45.html

ninty9er

Talk to the bank again, as already mentioned, they'll more likely take smaller as opposed to deferred payments. They will however be slightly pissed off that you came to defer previously and dd not suggest lower repayments. Did you tell them how much money you had at that time?? they won't want to repossess as it's worthless to them. Even if you make interest only payments it may satisfy them for the moment.

I know you've probably got all this covered at this stage, but you have cancelled all credit cards, cable/sky subs etc...

What sort of Credit Union debt do you have?

There is SOME level of assistance available to you as you will have made PRSI contributions as a self employed person, the downside is they won't be as large as the employer contributions made for PAYE workers.

Take in a lodger to cover basic bills.

There are jobs out there, but steady jobs are few and far between at the moment. Beggars can't be choosers and if you have to clean toilets, then you'll just have to get on with it and join the migrant architects and doctors that have been doing it for 10 years.

InReality

You've probably gone through a lot of senarios as to what to do by now.
I'd suggest talking the whole thing through with a friend , or your mum , if you think she would be up to it.
Might be some way out.
Also I'd really see and think how much of a loss on the apt you can mentally take.
There has to be a price where someone is willing to buy.
someplace between 275,000 and 0 that will at least give you some money.

towel401

Thaedydal wrote: »

mumhaabu do not advocate illegal acts on this forum.

whats illegal about it? i suppose the proper thing to do is file for bankrupcy and then run for it

but the problem with this plan is that the recession is nearly everywhere. if you can't get a job in your own country finding one somewhere else is probably harder. far away hills