I can't afford to go bankrupt - so what now?

exessexmum

Biffa wrote:

It would be ideal for him to get a job in a supermarket, but he has health issues as well, not least being a broken back.

I sympathise, but you said he does all the housework so it can't, if you are being completely honest, be that bad can it? If it is, then he should be on incapacity benefit and you wouldn't be working. It sounds as though he isn't keen to go to work and you are making excuses for him. Sorry if that sounds mean, but you need to get some more income from somewhere.

Addicted2Chocolate

well if you both go bankrupt the husbands car would be realised by the Official Receiver if he is unemployed, it does not mattter what the value is, unemployed people lose their cars in bankruptcy when the OR is their Trustee, irrespective or health or other personal circumstances. The law is very inflexible ( section 283(2) (a) Insolvency Act motor vehicles can only be exempt if neccesary ( ie essential) for work business or vocation. So i have to say sell the husbands car (make sure it is for best price possible and to unkown 3rd party) use sale proceeds towards bankruptcy fees.

Magentasue

I sense Biffa that you haven't had that 'lightbulb moment' when you realise things have to change. I may be wrong but it seems that you want to solve your problems without making any changes - don't think that can happen.

I sympathise - it took me a while.

exessexmum

Magentasue wrote:

I sense Biffa that you haven't had that 'lightbulb moment' when you realise things have to change. I may be wrong but it seems that you want to solve your problems without making any changes - don't think that can happen.

I sympathise - it took me a while.

You are right Magentasue, I was the same, I read this board for a good 6 months before I realised that reading about it wasn't enough and that unless I actually started to cut down on our spending we would get deeper and deeper in debt.

westernpromise

Biffa wrote:

Rent £380
Council Tax £69

Not much you can do to reduce those.

Gas £55
Elec £60

Are you absolutely sure this is the best deal you can get? You are spending nearly £1,400 a year on gas and power. I live in a 3-bedroom house and spend about 2/3rds of that, and that's with Powergen, who are not especially cheap.

Water £26
TV Licence £10

Not much you can do to reduce those either.

Phones £40

Sounds way over the top. Back in the summer, https://www.mobileshop.co.uk were doing a BT Mobile deal where you got free rental and loads of free minutes per year. If that's still available - or something close to it - and you have a handset which is out of contract, your mobile phone costs fall to zero.

A BT landline-only deal costs £11.50 a month, and if you sign up to JustDialSaver and call1899, your calls are either free or capped at 3p each (calls to mobile excepted). There is no need to spend more than £15 a month on the phone (all of them combined).

Car tax/MOT £36

Are you sure? MOTing 2 cars is £88. You can't be spending £344 more a year taxing 2 cars surely.

You need to get rid of one of the cars, because you can't afford two. I don't know what the split of costs is between the two, but if you are spending £300 a year insuring the 2nd car, another £150 or so taxing and MOTing it, and doing 5,000 miles a year in it, it is costing you £1,250 a year to run it - and that's before anything goes wrong with it. You need to flog it and use taxis, or have groceries delivered.

If you think you can't get by without two cars, bear in mind you're going to have to, if you go bankrupt.

Petrol £350

That's around 90 gallons a month; say 25 miles to the gallon - do you really drive 2,250 miles a month? That's 100 miles every working day.

Insurance £57

All of it? I take it you've done the necessary as far as shopping around. Esure are very cheap for contents insurance. Tesco are pretty good for car insurance.

You also can't afford your husband to be a stay at home dad. To be honest, now the kids are in school, it should not be necessary. He must have some skills. can he really not earn more than the cost of child care?

There are really only 3 ways out of where you're at:-

1/ Earn more.
2/ Spend less.
3/ Spend more wisely.

Those are the options. A job which pays you £1,400 a month but which you have to spend £400 a month getting to, while foregoing a second income, may in fact be part of the problem.

Mentalminis_2

Hi Biffa

i am a little worried about your repairs bill, to be putting aside £60 a month just for repairs seems a lot, although doing high milage with your work you shouldn't need to change much other than your tyres and possibly brake pads, i see you mentioned catalitic convertors in your post aswell...... have you had to change the cat since owning the car??
whilst catalitic convertors do eventually degrade it is not very often that it happens this is why they are so expensive to get replaced in the first place, the main reasons that a catalitic convertor will deteriorate is general rotting of the pipework/casing- a very rich mixture causing the cat to become wet with petrol fumes, and reving the engine prior to switching the engine off. all of these things can be prevented by regular maintenance.

as regards to tyres i think you have yourself a pretty cheap supplier of tyres but they should be able to last you 12,000 miles at least, my tyres cost me £89 per corner thankfully i don't have to use my car much these days for day to day stuff.... if you feel your not getting the milage from your tyres or from your petrol tank then try looking at your driving attitude, don't rev the car un-nessesarily, this both soaks the cat and also uses un nessesary fuel, cornering speeds play a huge part in tyre wear as does pulling away and braking sharply, the slower your action on these the better, keep the ride smooth and gentle, if things start sliding on the dash then your going too fast... another thing to bear in mind is, whilst it maybe nice to drive fast and thrash your car when you get annoyed, it's actually doing both you and your car damage and it doesn't actually get you there any faster, it is faster to drive on a motorway only because theres a constant flow of traffic (for the majority) the more time your sat still in traffic the more un nessesary fuel your using.

your food bill also a big killer on your budget, keep your eyes open for bogof offers i come from a family of five and thats all we ever ate as kids, it can save you a lot of money and make good eattin too, another thing to consider is not to go for the brand names...also now might be a good time to look at dietary needs, chocolates and sweets are very expensive, whilst apples are cheaper and much better for you. most places use a points reward system now, don't be afraid to use those points £2 savings here and there make all the diffrence.

Whilst i live on my own, i can do a full shop for myself for £15 a week, and this includes some luxury items from time to time, the very maximum i will ever spend on a shopping trip a week in £30 and thats if treat myself to a dvd or i need to buy dog food.

jcr16

i not sure i can offer much help on much other than the food bill. it does seem alot u are spending. in total 370 including cat. i spend £200 a month that is 2 adults ( with very big appetites ) 2 small children both in nappies and 2 cats. and i always have freezer and cupboards bursting.

if your husband can do cleaning and jobs at home then he should be able to work , i think it is extremly wise he gets a job while kids are at school , as it is very clear u can't afford him to stay at home. has he not thought about a job working from home , like ironing or something. or if he really is too poorly to work then he should be getting benefits for it.