FInd a cheaper place to live, sell your house to get out from under it, contact debtors and work out a reasonable payment schedule, apply for hardship programs, all credit card companies have this program, which will allow u to go 6 mo to a year without any late fees (as long as u pay on time), reduced monthly payment, stops interest, no overlimit fees. Trust me I've been through this before. That one year saved me and allowed me to get on my feet. NOT calling them is more damaging to your financial situation. Good luck!Do they give the house up? Of course.

The best course of action is that when you are buying a house with another another person with which you have no legal relationship you see an Atty BEFORE signing any contracts to buy and have in writing what happens when the relationship breaks up. To late for you but hopefully someone else will read this before making the mistake.Firstly, each party would be responsible for their own personal debts, and for any joint debts.

The household bills are usually in one name only, and that person is responsible for them. A car would normally be in one person's name, and that person would be entirely responsible for it. They all need dealing with in a particular way.

First, each one needs to assess what they can afford. She seems to have taken steps to do this, but it isn't enough if she still can't afford to live.

I would get rid of of any unnecessary outgoings first. The car is going anyway. That's no bad thing. The repayments are not the only expense with a car – there is the insurance being constantly paid out, which is dead money, fuel, repairs and maintenance, not to mention high depreciation on a new or nearly new car. It has to go.

Household bills are unavoidable. Phones, internet, and cable and satellite television are unnecessary and should be cancelled. Necessary bills like electricity, gas and water need to be taken care of. Try changing to a budget plan to repay any debt, or change to a pre-payment meter to collect anything outstanding.

The biggest debt is the joint debt – the mortgage. If neither party wants to live in the house, the answer is simple. Sell it, as quickly as possible. Even if the price isn't quite right, it cuts your losses immediately. Lenders are often prepared to negotiate outstanding balances left if the property was sold at a low price. I remember my mother was once forced to sell at a £14,000 shortfall. They offered to accept 10% of the balance in "full and final settlement" – this doesn't affect any credit rating, since the debt is settled.

Ask any credit card lenders to suspend the account and stop applying interest. This may be best dealt with via a solicitor or debt advisor (not a commercial debt management agency, out to make money.)

Try to avoid IVAs or bankruptcy. The effects of both of these options can last for many years.

 

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