HELP!!!! Thinking of goin Bankrupt...i owe money to family

lawz_2

Hi there

I have used money saving expert before...to help claim back bank charges...but now im in trouble with my finances and need help......anyone...

I have spoken to cccs today and gone through the financial rundown etc..our debts amount to approx £48.000...over c.cards,loans and catalogues...we are struggling big time to keep up with arrangements...

Cccs have told me that they can put me on a DMP but also mentioned BR...however they did say that because we oay a family member £160.00 per mnth it may be a problem because the courts wont see it as a priority payment(isnt in our name)....so wont be budgeted for.

We really want a fresh start as we have been very foolish with credit....i just want to get out of this mess....but am worried of what will happen if i do become bankrupt....i still have a few years to pay the family member until the loan is paid off.....

Can anyone help or advise me what to do

Thanx agai

Lawz xxx

tigerfeet2006

Officially as the debt is not yours it is your reletives as it in there name but obviously you feel a moral obligation to pay this back. The only way you can do this is to try and get your SOA as high as possibly allowed and then when you are BR cut it to the bone and use the money left from that and your surplus to pay the reletive. Though you may have problems finding £160 extra a month.

If you want to post a SOA then we can look at it.

fiveyearplan

How much is the total debt to your family?

maxmycardagain

take a loan to pay the relatives, that will be covered by BR nicely.....lol

Dez-Titute

Hi LAWZ,

The family member who loaned you the money must be a close relative,advise them of the situation and ask if you can delay payment for a while.

Cheers DEz

lawz_2

sorry but what is a SOA?...

the amount we owe her is approx £9000...im not even sure how the BR all works...do they have control over all our finances once we are BR...please break it down for me....im new at this

Thanx guys x

mysterio_2

SOA (Statement of affairs) a list of your outgoings & income

http://forums.moneysavingexpert.com/showthread.html?t=821791

mysterio_2

some reading about bankruptcy etc here

http://forums.moneysavingexpert.com/showthread.html?t=1056083

fiveyearplan

Hi Lawz, when you list your income and expenditure be sure to state how many people in your family. If you have a husband/wife will they also be going bankrupt? Here is a little start for you

rent/mortgage
council tax
elec, water gas
phone
travelling etc etc.

When you are bankrupt all your debts are wiped clean that would include any debt you owed to family members. Saying that I'm sure you will feel obliged to pay the family member but you cannot claim that on your expenditure sheet or it will look like you are favouring one creditor over another. That is seriously frowned upon and the official receiver has the right to take back the money.

Read as much as you can on this forum to familiarise yourself with how things work and don't be afraid to ask as many questions as you want. There are loads of people on here who can offer good advice.