Is a LILA sequestration the best way forward?

[vivienne1]

Hi

 

First can I say that this forum has been a godsend. To be able to see that you are not the only one struggling helps deal with emotional side of debt problems.

 

Basically I'm looking for some advice as to what people think may be my best way forward. I have around £25000 unsecured debt. All of it is in my name except an overdraft of around £2000 on what was a joint account with my husband. We now both have basic bank accounts at the Co-op. I have suffered ill health over the last three years, culminating in losing my job through ill health in March. It is unlikely I will be fit enough to work for around another year.

 

I spoke to a money adviser at the CAB by phone and have an appointment in around two weeks but they indicated a DAS wouldn't be possible as I'm on benefits and suggested the LILA scheme.

 

The house is owned by my husband and always has been, I am not named on the deeds. He bought it around 15 years ago and I moved in about 5 years ago. The debts were incurred before I met him and were being paid through a debt management plan with Paypal til I lost my job. I'm told by the CAB that under Scottish law the AIB wont consider the house as an asset of mine in these circumstances. Is that right?

 

I'm terrified he will lose his house through something I did before we even met. It could spell the end of our relationshipas I've already attempted suicide and he has been very understanding so far but I'm not sure how much further I can ask him to go. He is not working through ill health and recent surgery although the bank has frozen his mortgage payments til he goes back to work so at least there is no arrears there. Apart from the joint overdraft I mentioned he is debt free.

 

So my question is in peoples general experience is it better to struggle on and try to come to an arrangement where I can make token payments until things get better or bite the bullet and go for the sequestration.

 

The other question is, if it is the case that I'm sequestrated do I have to tell my life and home insurers if the policy has been up and running or does the question only apply to new policies?

 

Many thanks

[blueda]

Hi vivienne and welcome to CAG, take things one step at a time,as you will get all the help and advice here, please do not consider suicide again. You and your husband will not lose the house because of your unsecured debt, i dont have all the answers that you are looking for, however others will be along and advise you further, in the meantime get keep your chin up.

[Arwen]

The CAB will go through all this with you, but if the house is not in your name,title deeds or mortgage wise,then going for LILA will not affect the house. It is £100 fee for LILA but you can save that up,but you need to have done that before you can make the application.

 

Obviously I can only go on what you have said here,but LILA does seem the best option. The only tiny problem is that the bank that you have the joint overdraft with, can pursue your husband. Some will just write it off though, cos it may just not be worth the hassle for them.

 

Please do NOT consider killing yourself.It is ONLY money, and you will get through this.

 

And remember, even rich people can't take their cash to the next world, so we all end up the same way,potless.:D