Bankcruptcy - not me but him

OhnoJoJo

my husband has loads of debt, ie credit cards and loans etc,and its started to make us both ill, he cant see a way out and i have helped all i can and now i have exceeded the spending on 2 crdit cards to help the bank accounts out, his and the joint one...
if he goes bankcrupt..to clear all of his, its the only way out as i can see, would we have to move or sell the house, co's i dont want to. and we have a small bit of equaty (i think, not to sure as all the house prices have gone down now, so maybe we havnt??).
anyway,more going out than going into bank accounts, so in comes the credit cards to save........the day, yes the day and then each month it starts allover again and we have come to the end of robbing peter to pay paul........stress levels are high..
I ahve been reading these forums now for the past 2 hours and i have decided to log in and join in now as i really need some help and i need to know what road to go down.
the house is in both names, can it be moved to just my name (like you can sign cars over etc) and as we need somewhere to live does that get taken into account or would we 'have' to use what small amount of equarty we have in the house.?????
please if anyone out there can help, i know you can, as you guys seem very knowledgable to everyone else that has these problems, i await to hear.

Mips

My husband has recently gone bankrupt too - I know you can't just move the house into your name because that is disposing of assets or something... if done within 5 years of going bankrupt.

Just like to say, you are facing it now and I wish you good luck, I know how ill it makes people

fiveyearplan

OhnoJoJo wrote: »

my husband has loads of debt, ie credit cards and loans etc,and its started to make us both ill, he cant see a way out and i have helped all i can and now i have exceeded the spending on 2 crdit cards to help the bank accounts out, his and the joint one...
if he goes bankcrupt..to clear all of his, its the only way out as i can see, would we have to move or sell the house, co's i dont want to. and we have a small bit of equaty (i think, not to sure as all the house prices have gone down now, so maybe we havnt??). No, you wouldn't have to sell. Are there any secured loans on the property? Is your mortgage up to date?

anyway,more going out than going into bank accounts, so in comes the credit cards to save........the day, yes the day and then each month it starts allover again and we have come to the end of robbing peter to pay paul........stress levels are high..
I ahve been reading these forums now for the past 2 hours and i have decided to log in and join in now as i really need some help and i need to know what road to go down. Thats the first step - well done!
the house is in both names, can it be moved to just my name (like you can sign cars over etc) and as we need somewhere to live does that get taken into account or would we 'have' to use what small amount of equarty we have in the house.????? No, you can't sign over the house.
please if anyone out there can help, i know you can, as you guys seem very knowledgable to everyone else that has these problems, i await to hear.

If most of the debt is in his name STOP using your credit cards to pay his debt (that way you get into more debt and if he's going BR it won't matter anyway how much he owes). You don't want to get lumbered with it.

Why don't you post up how much debt (rough estimate will do) he has, how much you have, what is in joint names, then post how much you have coming in each month and what your living expenses are. I know that sounds a lot to do but you probably have it all in your head anyway.

ex.
mortgage
council tax
elec & gas
water
phone
etc etc etc.

OhnoJoJo

thanx dippychick and fiveyearplan,
nice to know i can get the answers i need from you.
i think there maybe just 1 loan which is attached, all up to date just the intrest is high, and yes the mortgage is up todate..
thanx
JO

RichOneday_2

Your house is definitely at risk if he goes BR, you need more advice on that one. It's not clear cut either way but, strangely, it may be an advantage if you have no equity as the OR might not be interested in it.

However, although I think they've been mis-used and abused in recent years, I think a CVA is worthy of serious consideration in your circumstances. You definitely will keep your house and will definitely only pay an affordable amount to clear all your debts. Basically, you pay one payment per month for 60 months and, as long as the total of the 60 payments comes to about 30% of total debts, you will be debt clear at the end.

You will seriously feel a lot better with one phone call to CCCS though on 0800 975 9557. They are a debt counselling charity - completely free and impartial.

fiveyearplan

BE sure you do get some advice but I think with negative equity (or little equity) bankruptcy is the best option. You would be able to buy the beneficial interest in the house for as little as £1.00 if it is in negative equity. Once you post your income and expenditure we will be see if an IPA is likely in which case if it is, it is only for 3 years, not the 5 years of an IVA. You would end up paying far less and the living 'allowance' is much better in bankruptcy than an IVA.

OhnoJoJo

Joint
mortgage......990.00
gas& electric....120.00
water................12.00
house insurance.......40.55
council tax.............131.00
life assurance.........198.91
tv licence................11.61
first plus (windows)...53.26
bt..........................38.50
total outgoings of joint account (HOUSE)....£1,486.38

I have now one credit card of £2,500.00
and another of.....................£500.00
which i didnt have before and also i have just had a bank loan of £8,000.00 which £6,000.00 has just paid off 2 previous loans so now they are clear and i just have one interest payment, the remainder of the loan went to pay off over £2,000.00 we were in arreas on the joint account...
well, i had to do something.

he owes mastercard..................£2,000.00...£6.15 a month
marks and sparks credit card.......£2,500.00...£48.17 a month but this is going up as just had to use it again.
halifax credit card.....................£11,000.00..£238.68 a month
loans direct.............................£126.95 a month
a few other direct debits, he does have a small amount left each month out of his wages but now with the fuel costs the petrol is costing £80.00 a week and he only has £160.00 for the month.(if nothing else comes in, and food!!)
as you can see, he is £160.00 lite at least each month for petrol (now looking for a job in own area) literally appying for anything that fits the bill..
and not telling me until it was toooooo late and the s***t had hit the fan and the dd's didnt get paid.
thats why i had to act quick, but now i'm gonna be in the s**t arnt i !!
Jo

fiveyearplan

Okay, so you are in £11,000 of debt and he's in £15,000+. If he went BR do you think your debt would be manageable?

What are your (and his) earnings?
Is any of the debt secured?
If the First Plus is a joint loan then it will fall to you to pay if he goes BR and you don't.

fiveyearplan

OhnoJoJo wrote: »

Joint
mortgage......990.00
gas& electric....120.00
water................12.00
house insurance.......40.55
council tax.............131.00
life assurance.........198.91 not really sure if this is allowed
tv licence................11.61 £12.00
first plus (windows)...53.26
bt..........................38.50
total outgoings of joint account (HOUSE)....£1,486.38
For the purposes of bankruptcy he will need to add the following to his I&E
food
petrol/travelling exp
dentist
hairdressing
..... everything he needs to spend money on

I have now one credit card of £2,500.00
and another of.....................£500.00
which i didnt have before and also i have just had a bank loan of £8,000.00 which £6,000.00 has just paid off 2 previous loans so now they are clear and i just have one interest payment, the remainder of the loan went to pay off over £2,000.00 we were in arreas on the joint account...
well, i had to do something.

he owes mastercard..................£2,000.00...£6.15 a month
marks and sparks credit card.......£2,500.00...£48.17 a month but this is going up as just had to use it again.
halifax credit card.....................£11,000.00..£238.68 a month
loans direct.............................£126.95 a month
a few other direct debits, he does have a small amount left each month out of his wages but now with the fuel costs the petrol is costing £80.00 a week and he only has £160.00 for the month.(if nothing else comes in, and food!!)
as you can see, he is £160.00 lite at least each month for petrol (now looking for a job in own area) literally appying for anything that fits the bill..
and not telling me until it was toooooo late and the s***t had hit the fan and the dd's didnt get paid.
thats why i had to act quick, but now i'm gonna be in the s**t arnt i !!
Jo

Once you put the income we will get a clearer picture of where he stands re an IPA etc.

fiveyearplan

OhnoJoJo wrote: »

Joint
mortgage......990.00
gas& electric....120.00
water................12.00
house insurance.......40.55
council tax.............131.00
life assurance.........198.91 not really sure if this is allowed
tv licence................11.61 £12.00
first plus (windows)...53.26
bt..........................38.50
total outgoings of joint account (HOUSE)....£1,486.38
For the purposes of bankruptcy he will need to add the following to his I&E
food
petrol/travelling exp
dentist
hairdressing
..... everything he needs to spend money on


and not telling me until it was toooooo late and the s***t had hit the fan and the dd's didnt get paid.
thats why i had to act quick, but now i'm gonna be in the s**t arnt i !! Jo

I'm glad you are being supportive - it does no one any good to apportion blame!

RichOneday_2

Fiveyearplan is giving good advice here.

Another thing that stands out like a sore thumb is that most of the debt is credit cards.

It is highly likely that if the credit cards were taken out before April 2007 (I think ) that they can be deemed unenforceable in law. There are threads on here that will take you through the process. Basically, the agreements were worded incorrectly and therefore fell foul of some sort of legalities.

They can still chase the debt but ultimately can't do anything about it other than affect your credit file, but bankruptcy is going to do that anyway.

What would your budget look like if you weren't paying his credit cards?