Getting Desperate

Rubie-blu · 9 September 2008 at 8:17PM

I have previously been to a Debt Adviser, who seemed to think I could go bankrupt easily. I went to CAB yesterday and was told it wasn't my best option. My partner came with me, and the lady we saw was very keen that his income should be taken into account. I don't think this is fair, given that we've only been together just under 3 years (he moved in with me about 18months ago) and up until about 2 months ago, he had no idea I was in financial difficulty. He has 3 children, from his previous relationship, that he supports, he has his own house that he has rented out since he moved in with me which he is now concerned that is at risk because of this. Ultimately he is not prepared for his income to be taken into account and I honestly don't blame him for that.

(Incidentally, my son's father has just stopped paying me maintenance, because he's had a change in circs, which the CSA seem happy to accept and set me to a zero assessment!)

Am I obliged to take CAB's advice when I don't think its fair? The debt is mine and has built up over the last 20 years or so - I've always remortgaged to consolidate it, but the reality is it's never gone away and I'm now in a position where I can't remortgage because I simply can't afford to, even if I could find a lender that could take me on.

My SoA is (monthly):

Income from salary: £1544
Child Benefit: £81.46

Mortgage: £1229.83 (interest only, deal ends Aug 09)
Council Tax: £118.34
Water: £44.50
Electric: £87.00 (includes some arrears)
Gas: £52
Life Ins: £17.64
Inland Rev: £14.08 (overpaid Child Tax Credit, ends Nov 08)

House Insurance would be £21.25
Car Insurance would be £15
Car Tax would be £12
- but I paid the annual premium on credit card.

I worked out my petrol costs to be £98 per month, but CAB adviser says thats too high, given that my place of work isn't too far from my home.

CAB lady said £455 is reasonable to spend on food....

I owe about £46k to credit cards which costs £969 per month in minimum payments. My mum lives with me, she pays for the TV/Broadband/Phone/TV Licence (free I think, because she's registered blind)

My partner currently gives me £700, but CAB want him to use all his income (taking into account his maintenance obligations and life insurance) which gives us the spare money to go towards creditors (£492 to use towards offers of £505????) If we just take into account the £700 he gives me, it calculates as nil - which she said they won't accept. i've tried not to bury my head, but I really don't know what to do...... I've accepted the house has to go because its my largest outgoing, and am happy to go into rented accommodation if i can find a landlord that will accept my pets, (2 dogs and my son's chinchilla! - I'm not giving these up for anyone!) me, my son, my mum and my man if he's stays with me through this!

dalip · 9 September 2008 at 8:30PM

Hi and welcome.

With a DMP whch is what CAB are talking about they do take into account a partners income. With bc thy only take into account your partners CONTRIBUTION to household expenses.

So before we can advise further it may we be worth you while posting your I&E as it stands now with benefits if any,numbers in household and any contributions to household expenses.

BC is a bg decision to make and you need as much knowledge you can get about the process ect.

There are a couple of numbers in my sig that might give you a second opinion.D

debt_doctor · 9 September 2008 at 8:51PM

Hi,

Unless a partner is REALLY new, say a few weeks then a DMP always takes in to account a partners income, essentialy creditors rarely accept otherwise. However a DMP is only one option, and BR is another. A CAB should never TELL you what to do. They should put the options in front of you and assist you with your chosen option.

BR might well be an option for you. What was the reason given for BR not to be a good option ?

DD

Rubie-blu · 9 September 2008 at 9:56PM

Thank you for replying. That is pretty much my income and expenditure. Up until now, day to day living expenses has been on credit cards (i've cut all of them up now, because CAB lady told me I had to and that i have to learn to live within my income - I knew that, jst haven't managed it!). Im not entitled to any benefits. I don't get anything for my mum because I work full time. My mum is over 80 and only gets a lower rate of DLA (i think). My son is 16 and just started college, so i still get child benefit.

I'm not confident about any of it - I really feel like i'm stuck. I'm not yet in arrears with anything, which in a strange way I feel is working against me? CAB woman want me to stop paying immediately so she can get the letters off to creditors, but i worry that will just incir more charges which instantly throws her figures out of sync anyway, even if they already £12 out..... I wasn't given a reason for bankruptcy not being my best option by her - but the guy I saw previously made it sound as if I could just say the word and he'd sort it out.

betterlatethannever · 9 September 2008 at 10:03PM

Hi RB
have a look at this site http://www.cccs.co.uk/ and do the 'debt remedy' and see what comes up.
Then give the CCCS a call (tomorrow) They'll help you reach a decision on whats best for YOU

Stopping paying the creditors is a good idea if your going to go BR as all the extra charges will be included in your BR, but you will get some nasty phone calls and letters in the mean time.

See what the CCCS says first though.
Good luck

debt_doctor · 9 September 2008 at 10:22PM

If you were not given a reason why BR was not an option then you have been poorly advised and I wouldnt feel comfortable with ANY of her advice in that case.

Try someone / somewhere else.

DD

Rubie-blu · 9 September 2008 at 11:26PM

I've done the debt remedy but they say i need immediate help because I have a shortfall in my priority payments and my income. I will try and ring them tomorrow.

I have to ring her by the end of week to let her know if I want to go ahead, but I need to let her know now that my partner will not provide his income - maybe when she's clear on that, she might offer alternative advice?

Getting Desperate

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