Bankruptcy or Not?

LOUISE22_2

Thanks mummytofour, I know its a mess. I dont want to get a divorce yet, I am just desperate to get our of our flat and away from him because I am so depressed with it, and just feel dead. I think if I could sort myself out then I would maybe be able to get it together to sort us out and him. I am completely honest with him, he knows what I am thinking. It was only last night where I had my bags packed and he was begging me not too go, its been going on for about a year. Just feel so trapped with it all. Its a one bedroom flat, so the rent could be £500 a month max, but it wouldnt cover our mortgage payments? I have been looking at houseshares, you know when you rent a room in someones house, the cheapest I have seen is 200 a month, including elec, water and gas. But I dont see how I can afford this and him still be in the flat as I will still have to keep up with all the payments with him. So I have to stay put...thanks for all your advice x

LOUISE22_2

Mortgage £856.00
Secured Loans (2nd Mortgage)£278.00 - is this the £16000 secured loan? - Yes this is the £16000 we have with Welcome.
Friends loan £278 a month
Council Tax£154.50
Mortgage Arrears£144.00
Ground rent & Service Charge£35.00
Gas£30.00
Electricity£40.00
Water£50.00 per month
Hire Purchase (1)£102.00 what does this relate to? My car. Looked up how much its worth it came to £2000. I use it for work.
TV Licence£11.61
Telephone(s)£40.00 - you can probably cut this down? This is landline, internet, and 2 pay as you go mobs, pp gave us this amount for budget.
Work£40.00 per month - what does this relate to? No idea really, PP put it down. Dont spend £40 a month at work.
Road Tax/MOT £20.00 per month
Insurance £25.00 per month
Petrol/Oil/Diesel £86.67 per month
Maintenance £30.00 per month
Food £320.00 per month - you are obviously not spending this - what is the realastic sum ? On a good month when we can afford weekly shopping, its max £120 a month, use that my supermaket to make sure i am gettting the cheapest!!
Clothing/Footwear£40.00 per month - this has to go towards the debt a the mo.
Dentist/Prescriptions/Glasses£ 15.00 per month
Pets£25.00 per month
Hairdressing£16.00 per month - this has to go towards the debt a the mo.
TotalAmountAvailable Surplus (A minus £391.32

Not bought shoes.clothes or had my hair done for yonks.

How much are you paying to PAyplan? we pay 391.32 then £278.00 goes to friends loan.

ncome (A)£2750.10Expenditure (B)£2358.78 plus £278?


pay day loans that we keep refinancing which I have one for £300 and my husband one for £100 so this keeps messing us up everymonth and not only that its costing £40 quid a go everytime we do this.

What have you got that can go on e-bay, amazon or to a car boot sale? Aim to clear your loan this month and cut into OH's if possible.

I have sold anything we had on ebay, this has gone to paying off Payday loans - we have reduced them a lot since a few months ago. Running out of things to sell now. But I am still trying.


it doesnt seem to bother my husband (generally if he has a beer in his hand he is happy) - how much is he spending on booze per month, Its hard to say, when we go food shopping we will buy beer for him but when we cant we dont. I just meant, our life situation doesnt seem to get him down like me.

RAS

Thanks

What are the APRs on those secured laons?

How long will you be overpayig the mortgage to cover the arreers?

What is the value of the car HP and have you made half the payments yet?

How much can you make from the second jobs?

And have you taken serious advice from any of the debt charities re bankruptcy.

If you do go BK, then both of you will have to do it or the other one cops for all the joint loans.

And your friend's loan will be not included in the BK, but your debt to them will be.

You may get an IPA - have to pay monthly for the next three years on the basis of the curent , although if you are in rented and on your own, then it is possible this will be low.

However, if you want to pay off the friend that would have to come out of the surplus in you income and I cannot see that you would have enough to keep up the payments.

LOUISE22_2

Thanks for this. I will have to check the APRS when I get home, dont know off hand. I will get back to you. The car HP was for £3000 and I think I have made half the payments by now. We are on max for the 2nd jobs, I work 7 days a week and hubby works 3 nights and a saturday and we can barely keep that up, so cant increase hours really. I have had a pack to read from a the consumer credit charity and read through it, and had a talk on the phone. This was about 6 mnths ago and I didnt want to do it. Mainly because ff this money I owe to my friend, as I cant not pay it. Its not her fault we have completely messed everything up. And I have thought that too, if I did rent on my own - and I know I would have to pay an IPA because of my income, how on earth would I find the money to pay back my friends monthly instalments. :(:(:(

LOUISE22_2

Oh and I think were about £2000 in arrears with mortgage, so another 6 months or so. I need to check my statement at home.

LOUISE22_2

Sorry to be thick but what do you mean by

"And your friend's loan will be not included in the BK, but your debt to them will be." ??

Thanks, again.

Waspeze

I think RAS means that your friend will still have to pay off the loan but the fact that they then lent you the money means that portion will be included in BR .. i.e your friend will lose out! (correct me if i'm wrong RAS?!)

How does your friends loan appear on your statements? Is it a recent one lump sum deposit or was it a while ago?

Officially all debts should be included in BR but I know I owe my folks some which wasn't mentioned (there is nothing in writing or anything) and I just pay them off a bit a month out of my surplus ... would your friend accept reduced payments? (i'm not towing the "legal" line here by the way!!)

LOUISE22_2

It was a few years back now, I guess it was just in one lump sum. I dont think she will. I say she is a friend, she is not anymore. She actaully hates my guts, and she wants me to pay it off, but I keep saying I cant, so I am scared of what she will do. I work with her as well and I know she will tell everyone at work if I was to go BK and leave her in the lurch. Oh god, seeing all this in writing is making me feel worse!!!!

LOUISE22_2

Just having a think, and my husband would still have to pay half of the payment to my friend. So it would be half of £278 I would pay. Maybe I could keep up with that from what I would get left from BK payments. Then after 3 years I could save enough up to pay it all off? Or is this just wishfull thinking. Do they take all of your disposable income when your BK and do they check how you use your disposable income? thanks x

Waspeze

If you have over £99 surplus after all reasonable living expenses are taken into account then you pay a percentage (from 50-70%) of that surplus into an IPA (income payments agreement) ... just to give you an example .. i have about £360 surplus and pay £238 IPA. .. the allowances are generally pretty good in bankruptcy .. for example you're allowed around £170 per month (for a single person) for housekeeping.

Specific Bankruptcy questions may be better asked on the Bankruptcy and Living with it sub forum at the top of this one (above the stickys)?