Only Option Bankruptcy? Views Please

Jaelor

Hi all - I know some people have a very dim view of filing for bankruptcy, but I feel it may be my only option.

I earn £24500 per year, my hubby £16000 - our total debts, excluding our mortgage of £157k, are £65k. I am currently on maternity leave, and will be returning full time in May. I know I have a responsibility to pay this money back, but it was accumulated years ago when hubby and I were young and set up home together - these days we are so frugal its unreal, but we're finding it hard to live due to this.

Our SOA is;

In
Me £1545
DH £1000
Child benefit £68
Tax Credit £88
TOTAL £2701

Out
Mortgage £930
Secured Loan £661
C Tax £114
Electricity £34
NTL £100
Virgin Card £40
Cahoot £58
Pet Ins £13
Car Ins £35
Building & Content £27
Life Ins £57
Car £175 (this is through hubby's work & we can't cancel til April)
TV Lic £11
Sofa £36
TOTAL £2291

£410 per month for food, petrol, clothes, nappies, etc, etc.

At the moment, when I return to work, our parents will be looking after our little boy, but should this change and I have to pay for childcare then we will sink completely.

I just don't know what to do - there is no end to it. Our secured loan was our biggest error and its over 20 years, so its not as if we've got something to look forward to in a few years

There is probably stuff I've left out, but can you please post your opinions and if you have been down the bankruptcy road, then can you let me know how this worked out for you and if you feel it was the right decision? I know it will probably !!!!!! us up forever, but more so than we are now? I'm just not sure I want to lay on my death bed and say "I'm so glad I worked for 30 years just to repay all my creditors, have no quality of life and spend hardly any time with my son". I know I'm probably in line for some flack here, but I guess having my little boy has made me see life in a different light.

Don't be to harsh on me!

Jaelor

sparkle84

Hi nobody will be harsh with you here - people in glass houses etc etc - I am not qualified to give advice about bankrupcy but there are other options DMP or an IVA if you want to save your house - have you talked to payplan or CCCS yet? Someone with much more experience will be along shortly with advice I am sure

One thing I did notice on your SOA was NTL £100 is that right? I have cable, broadband, and telephone with them for £40 a month you might want to look at that

Chin up remember you are not alone

Quasar

Jaelor, I for one won't certainly be harsh on you, and I'm sure nobody else will either, because it's plain to see you are not posing this question lightly and have given thought to your responsibilities.

It seems to me your debt is a largish one taking into account the mortgage, but please hold your horses for now. Very knowledgeable mse members will be along soon and advise you properly as to the best course of action.

However, I wanted to post this reply by way of encouragement.

Warmest wishes and good luck.

joseph_2

Hi there,

Ive just posted a thread on the radio 5live report "bankrupt britain" i suggest having a listen to this as it contains some informative points to think about, and good luck

Joseph

jcr16

will u be enititled to any help with child care cost when u shall return to work ?

if u explain to your parents ur situation and how much your need there help i sure they will understand and not leave u up the swanny and make u pay for child care. parents can be amazing rocks of support when they know the full story , and are only to pleased to help where they can.

also can u cut down on your food , petrol , nappies clothing budget. it does seem alot. try looking on the moneysaving old style forum. i spend under £200 a month of food and tolietrees for the family. and our family is 2 adults , 2 children . both in nappies and one on formula milk.also clothes try looking on ebay , babies grow so fast, also maybe sell your little boys outgrown clothes to generate money to buy more. nappies , maybe use a cheaper brand ( not sure what u buy ) or re-usuable ones. i buy tesco own nappies. ( purple pack) as kids didn't get on with huggies or pampers and i have found these nappies amazing. and they half price of others. also instead of wipes use cotton wool for bottoms and a flannel for face and hands then this can be washed and re-used.

also can u cut down on petrol. i used to fill up once a month £35. and i refused to put any more in until one months time. ( unless an emergancy) we did this to make us think about how much we used a car. and now, i put £20 petrol in my car in november and still got half a tank. i try to walk to as many places as possible. not only to save on petrol but i can walk to town and on way take kids to feed ducks, it good excerise and fresh air is good for kids. helps them sleep.

HTH

magentadreamer

No one here is going to be harsh on you at all! Your NTL package can be trimmed down tho'! Are you out of the 12 month contract for the broadband? Not too sure how they work their digital TV packages so not too sure if they have 12 mnoths min contracts as well. Ring NTL - I got my broadband for half price plus unlimited phonecalls - no 0845 numbers etc obviously. I also ditched the add on's like call minder. I did notice on their website they do a broadband,phone and TV package for £32.99. Check to make sure your gas/electric is the cheapest -if not switch now. I rang my household insurance and suprisingly enough they matched a quote I had - worth ago! Also have a look at your life insurance stuff -you might find just as good cover for a bit cheaper.

fatbelly

Hi

Can you post some more details of your secured loan?

661 per month for 20 years sounds like a huge amount. How much did you borrow and what's the interest rate?