Sorry long story but bankruptcy or debt management plan?

worriedsinglemom

xx..............................

RAS

Hi

The joint loan will become solely your ex's responsibility if you go bankrupt.

Is £50 what you are paying towards that? What is happening to the rest?

Have you done a full SOA, so we can see the scale of the problem?

Do you have late charges or PPI on any of these?

RAS

Is your income likely to increase substantially in the next few years?

RAS

worriedsinglemom wrote: »

[/b]
Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 730
Partners monthly income after tax....... 0
Benefits................................ 480
Other income............................ 132
Total monthly income.................... 1342
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 560
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 40
Gas..................................... 42
Oil..................................... 0
Water rates............................. 41.22 - a water meter might be cheaper if you are allowed to install one?
Telephone (land line)................... 10.25
Mobile phone............................ 29.5 - you need to reduce this and then go PAYG
TV Licence.............................. 27.9 - this should be quarterly so divide by three.
Satellite/Cable TV...................... 0
Internet Services....................... 7.88
Groceries etc. ......................... 160
Clothing................................ 40 - you need to sign up for https://www.freecycle.org for second hand stuff and restrict new stuff to knickers and shoes.
Petrol/diesel........................... 80
Road tax................................ 16
Car Insurance........................... 38 - this is high - use the comarion sites and then swap via ww.quidco.com.
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 11
Buildings insurance..................... 0
Contents insurance...................... 6.75
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 - reduce
Haircuts................................ 20
Entertainment........................... 40 - reduce
Holiday................................. 0
Emergency fund.......................... 40 - and reduce
Total monthly expenses.................. 1365.5

Assets
Cash.................................... 400
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2400

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Black Horse....................14000.....50........19.9
HSBC...........................1250......83.55.....19.9
HSBC Credit Card...............2300......56........17.9
Littlewoods Catalogue..........1300......28.52.....0
Barclaycard....................5325......56........0

The joint debt would not be included in any bankruptcy.

There are new laws coming in but even with the negative equity, I think the house precludes you.

OH or someone else you nominate will have to buy the BI from the or FOR £1 plus fees (£220 ish)

fatbelly

worriedsinglemom wrote: »

I have contacted CCCS and there adviser says I have 2 choices bankruptcy or payment arrangements and CCJ's. I am confused and unsure of which route to take.

Any advice?

The car could be at risk in bankruptcy. The house is probably OK as RAS pointed out unless the market picks up fast.

CCJs are by no means automatic in a dmp. In fact they're quite rare. You'd be unlucky to get one

I agree that it looks like you should be getting some housing benefit/local housing allowance. There will be some questions about the house you own but post on the benefits board if you have problems.

Is 'benefits' tax credits and 'other income' child benefit? Even so it seems a bit low. Are you working 30 hours per week? Could you? Tax credits pays an additional element at this point.

I'd probably suggest you start with a dmp, sort out benefits, reclaim any charges, check debts are enforceable (many catalogues aren't) and then review the situation when your car has depreciated a bit.

RAS

Hi

I think HB is a gateway benefit, so check what you can get reduced once you are on HB.

stapeley

I really think you need to get advice from a solicitor , it would be well worth it . To go bankrupt would cost in region of £600 .

worriedsinglemom

Thanks for all your replies. I have a solicitors appt on 25th March but just seems an age away.

Didnt think things would be this tough.

skysky69

What about citizens advice? They may be able to point you in the right direction

Nargleblast

At least you will have the support of CCCS, as well as the members of this forum. Take things one day at a time, it will be tough at first but you will get there. Try looking at the Old Style moneysaving forum for ideas on how to make your cash go further. Good luck.

fatbelly

worriedsinglemom wrote: »

Yes the benefits is my wtc and ctc combined and the other is child benefit £132.

I have been to the council office today and they advise me that I am elligible for approx £15 pw housing benefit but thats it. So gotta put forms in now but have gotta wait until Friday to get my new payslip as will be based on my lower salary.

When my 6 month tenancy is up here in June I am going to look for somewhere cheaper and smaller to rent. If I can save £100 on rent a month at least my other bills gas elec water and c tax should all reduce too so hope to save some that way.

Think I am going to stick to making just token payments on everything thru debt management plan. Hopefully the pack should be here from CCCS tomorrow or Wednesday.

Everything is such a mess. Just wanna get everything sorted.

That seems like a sensible plan to me

stapeley wrote: »

I really think you need to get advice from a solicitor , it would be well worth it . To go bankrupt would cost in region of £600 .

£345 plus £150 if you don't qualify for exemption on gross annual income grounds.

As for the solicitor, try asking if they do a first half hour free.


Hey - 2000th post!