In a real bind and need advice.

Great points Kathryn ... there are so many more options than the potentially lose-lose one the OP is suggesting.

Can you rent out the property and move in with your daughter for 6 months to get back on your feet?

Taking in boarders (as suggested) for the spare rooms - include dinner/breakfast/utilities (not phone) and charge $200/wk/room.

What is the option of going back to work for both yourself and your wife - partime - babysitting/home childcare - anything and everything?

These need only be short term solutions to get you back on your feet, so it's not like your going to be bogged down with boarders or sharing with your daughter etc forever more.

Firstmost - talk to your lenders (credit card and mortgage). Surprisingly enough they are usually lenient and accomodating. They would much rather get their money back - albeit slower or with less return - than get nothing back with a bankruptcy.
 
How much are you short each month in making the minimum payments to the credit cards.
*****Now $600 Huge problem is no consistant income. Sell online and both basically too old and infirm to find real jobs*****
Have you considered cutting back in other areas of your budget, such as entertainment, grocery,travel?
***** 3 x $2.00 Tuesday DVD's once a week, last holiday 5+ years ago, groceries minimal *****
Have you considered running a "bed and breakfast", or taking in boarders, even for a few months each year?
****2 bed 1 bath villa with no real character barely room to swing a cat. No cats but 1 x little dog and a largish aviary. I know most of you would probably have a thing about pets but I also can't consider renting elsewhere
if it means mass euthenasia. I know it sounds silly but that's the way of it. *****
Have you asked the credit card company if they are willing to forgo interest or reduce the interest on the card.
Can you get another card with 0% and transfer some of the balance and concentrate on the higher card for a while?
*****I think the main problem is the absolute lack of predictable income. Once it was great and now it is not ( as is the real world of retailing ). Not in a position to make promises by way of payment dates*****

Have you considered renting out your home, and renting somewhere cheaper, or housesitting for awhile ?
*****Anywhere cheaper is simply too far from suppliers for us to maintain
a viable income. We need to physically drive ( our $5,000 car ) to suppliers.
I am on the Central Coast of NSW and have investigated as far as Lithgow*****
 
lizzie said:
Great points Kathryn ... there are so many more options than the potentially lose-lose one the OP is suggesting.

Can you rent out the property and move in with your daughter for 6 months to get back on your feet?

Taking in boarders (as suggested) for the spare rooms - include dinner/breakfast/utilities (not phone) and charge $200/wk/room.

What is the option of going back to work for both yourself and your wife - partime - babysitting/home childcare - anything and everything?

These need only be short term solutions to get you back on your feet, so it's not like your going to be bogged down with boarders or sharing with your daughter etc forever more.

Firstmost - talk to your lenders (credit card and mortgage). Surprisingly enough they are usually lenient and accomodating. They would much rather get their money back - albeit slower or with less return - than get nothing back with a bankruptcy.
Click to expand...

Thanks lizzie,
If the Op lets "the wolves " in , he is going to lose everything.

dollarbill,
Lizzie also made some good suggestions.
If you lose everything, where will you and the pets move to?
Is your daughter willing to look after the birds, while you and the wife and dog, long term care somewhere, and rent out your home.

Many places just want someone to live on their farms, free of charge, or some extended housesitting jobs do not mind having their housesitters bring a dog. Here is a free site http://www.housesitworld.com.au/sitnsw.htm

With your pension money, you could pay down the credit cards, and the rent could pay your mortgage. You can sell online anywhere, all you need is a prepaid internet.

Maybe your daughter would be willing to co-sign when you offer a payment schedule with the credit card company.

How much do you spend a week on groceries (I personally love this question, because what one considers minimal, another thinks is extravagent)
We may be able to offer ways of reducing this, without depriving you of the food you love.
 
Last edited:
dollarbill said:
Now $600 Huge problem is no consistant income. Sell online and both basically too old and infirm to find real jobs
Click to expand...


What age bracket are we talking about? What sort of work have you done in the past?

Could you move the aviary to your daughter's house for a year?

$600 a month is a $150 a week shortfall. The ideas Kathryn and Lizzie put forward have merit. Lots of people looking for housesitters at this time of year. Rent your house out for $200+ a week and you might even make a profit!

It doesn't have to be forever.
 
Thank you very much for your suggestions but mostly
for the fact that no one here was condescending.
I will proceed with my 2 stage plan.
1. Sell home to daughter, end up with nothing, have security of tenure
in a place that has become home.
Go on dole.
Make arrangements with bank to pay off capital from modest
extra allowable income.
Breathe !!
2. Focus on innovative termite control product.
In production for years, modest sales, newly redesigned for
export while eliminating carbon emmissions.
3. Move on well.
( this is NOT an attempted spam so please don't ask
for details ).
 
dollarbill said:
Thank you very much for your suggestions but mostly
for the fact that no one here was condescending.
I will proceed with my 2 stage plan.
1. Sell home to daughter, end up with nothing, have security of tenure
in a place that has become home.
Go on dole.
Make arrangements with bank to pay off capital from modest
extra allowable income.
Breathe !!
2. Focus on innovative termite control product.
In production for years, modest sales, newly redesigned for
export while eliminating carbon emmissions.
3. Move on well.
( this is NOT an attempted spam so please don't ask
for details ).
Click to expand...


Hi dollarbill
Good for you, a plan, considering the pressure you must be experiencing its great that you are not sticking your head in the sand.

The only suggestion I can give you is prior to lodging bankruptcy if this is what you decided to do make sure you contact an accountant/company that specialises in this area. It is very important to understand what you can and can not do and the consequences/impact. There are some companies that will give free advice over the phone, I am not suggesting you use these companies, however they can provide answers to some of the important questions that should be addressed before moving forward.

Cheers, MTR
 
"Hard work never killed anyone, but why take a chance".
Thanks for the laugh MTR.

I most certainly wish to avoid bankruptcy and can't
see the banks going down that path if there
is no gain for them. I could however have a Personal
Insolvency application lodged and this of itself would
become a real bargaining chip.

Little steps. First to my daughter and then
maybe a change of plan while still focussing on
ultimate goal.

Wishing you all a great life.
 
BTW I actually feel so very fortunate.
Can you imagine the living horror some are going
through, when an innocent child asks why there is nothing to eat.
As hard as things are, we have no young dependents.
 
I really suggest giving the Consumer Credit Legal Centre a call, check out their website, they deal in consumer credit card debt, hardship and bankruptcy etc and have lawyers who are able to assist you with free legal advice.
 
Can I ask why you think you can't work/get a job??

My advice is turn the debt into a loan at home loan interest rates (or negotiate a low rate), sell the house at a small discount to your daughter, or if she can't afford to buy it sell it on the normal market, and with the profit pay down most of the debt, get a job (going on the dole like you stated means you're not that old or disabled), rent, and pay down the remainder of the debt.

If your business isn't going to turn around, and if you can't work out any options to raise more funds, even with the advice given here, then you probably don't have any other choice.

There is no need to declare bankrupcy on potentially such a small outstanding debt.
 
It's Plan C time.
Sell and rent from new owner.
Value $250k
Sell for $220k - $230k
West Gosford NSW
Villa
2b, 1bth, LU garage
Council rates & strata fees $62 pw
Willing to pay rent of $350 - $380 pw
After settlement sort out the 2 credit cards
( $30k & $35k ). They should settle for better
than their debt collector onsell rate.

Anyone looking for a bargain ???
 
dollarbill said:
It's Plan C time.
Sell and rent from new owner.
Value $250k
Sell for $220k - $230k
West Gosford NSW
Villa
2b, 1bth, LU garage
Council rates & strata fees $62 pw
Willing to pay rent of $350 - $380 pw
After settlement sort out the 2 credit cards
( $30k & $35k ). They should settle for better
than their debt collector onsell rate.

Anyone looking for a bargain ???
Click to expand...

After you discharge the mortgage from your sale of 220k, you don't have enough to settle the credit card debt. So how is plan c going to work? I would have thought that your original plan of selling to your daughter is better because you can pay less rent.

Lets say you pay 350/wk and have a sale price of 220k, that is an amazing 8% return. Is the market rent really that high? Looking at realestate.com.au, you can rent a 2,1,1 for about 270 /wk
 
They should settle for better
than their debt collector onsell rate.
What I meant is that debt collection mobs routinely buy
blocks of bad debt from financial institutions and they
usually pay around 5-7 cents in the dollar. I 'may' be
able to offer 12-15 cents and have it accepted.

$350.00 pw was a guess based on a recollection
from a conversation with a resident in my complex.
Sounds even better to me if it's less.
We are currently paying $409 pw mortgage.
 
dollarbill said:
They should settle for better
than their debt collector onsell rate.
What I meant is that debt collection mobs routinely buy
blocks of bad debt from financial institutions and they
usually pay around 5-7 cents in the dollar. I 'may' be
able to offer 12-15 cents and have it accepted.

$350.00 pw was a guess based on a recollection
from a conversation with a resident in my complex.
Sounds even better to me if it's less.
We are currently paying $409 pw mortgage.
Click to expand...

Why is the mortgage payment so high? On a 200k mortgage over 30 years at 6.5%, the weekly payment should only be about $294 - similar to the rent.

This sounds like a reasonable deal for the buyer. When is the listing coming on?
 
I think I saw something on the TV the other day about if you have unsecured debt of more than $10000 then you can get an interest freeze deal to help people get out of debt. I can't recall who was offering it. Not sure if this would help you either?


I see you are now thinking option C. This may be a good thing becasue buying your house, even if you are willing to sell to your daughter at below market may not be the best thing for her. Did she want to buy it becasue it was a good investment or was she going to buy it out of a sense of duty? What happens if down the track you find yourself in more difficulty and can't pay her the rent? What if her personal circumstances change?


I hope you find a win/win situation.
 
dollarbill said:
It's Plan C time.
Sell and rent from new owner.
Value $250k
Sell for $220k - $230k
West Gosford NSW
Villa
2b, 1bth, LU garage
Council rates & strata fees $62 pw
Willing to pay rent of $350 - $380 pw
After settlement sort out the 2 credit cards
( $30k & $35k ). They should settle for better
than their debt collector onsell rate.

Anyone looking for a bargain ???
Click to expand...

Did you have a valuation for the $250k value?

I'm curious as to whether it's worth more or less than this unit
http://www.realestate.com.au/property-villa-nsw-west+gosford-111698219

If your mortgage repayment is that high I fear you might be on a fixed rate loan in which case you might also have early exit fees which can amount to a lot depending on how many years you are in.

Selling and renting from new owner would be ideal for you if you can get as much as possible and rent for as low as possible
 
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