In a mess after separation

jenijen27

Hi
I don't know if anyone can offer any advice regarding my situation which is quite messy.
I separated from my husband in Oct/Nov last year and I am now living in a house-share.
My Ex ran up quite a huge amount of debt whilst we were together (Some I knew about, some I didn't, some in joint names and some in individual names, you get the picture).
Altogether it amounted to approximately £30k secured (first plus loan) and approx £50k unsecured.
As I have left the marital home, my husband has kept the secured loan and half of the unsecured debt, I have been left with debts mounting £26,000.
My ex has taken a DMP to pay off the £25k (as soon as this was approved he spent another few thousand on clothes, furniture and holidays, knowing he wouldn't have to pay for any of it :mad:
I have choosen to repay my share of the debt, in the old fashoined way.
With the way the £50k of debt was split, one of the loans he has taken responsibility for (through the dmp) was in my sole name only, therefore this appears on my credit report, as me having the dmp. I have asked cccs if I can ask for it to be removed from my record but they say not (which is understandable) but they have also said that the dmp company my ex has gone with have broken data protection laws as this loan was nothing to do with him. They suggest I inform them, but then I will be liable to pay for this debt (It is about £11000 I think) along with the arrears. I am already paying more than my far share (my ex earns £15k more than myself) and I don't know where to go from here.

I have pasted my SOA below, if anyone has any suggestions on how I can improve this situation.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 20
Petrol/diesel........................... 30
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 770

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
hsbc...........................1500......50........0
first plus.....................26000.....260.......0
next...........................500.......50........0
Total unsecured debts..........28000.....360.......-

Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including HP & secured debts). 770
Available for debt repayments........... 430
Monthly UNsecured debt repayments....... 360
Amount left after debt repayments....... 70
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -28,000
Net Assets.............................. -28,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

stapeley

I would consider bankrupcy . Make a fresh start .

Lensman_2

On your current SOA you have about 6.5 years of payments.

Bankruptcy would wipe your debts but you would pay an IPA based on your surplus of a similar amount per month. Only for 3 years though. The price you would pay for it is that a permanent record of it remains and becomes part of a mortgage application decision. Ex BRs still get mortgages, but you may forever be seen as higher risk.

I would sit tight if you can. Your income may increase and you may beat the 6.5 years.

jenijen27

Thanks both. I'd really rather not go bankrupt if I can help it, as it would reflect badly on my new partner too when we move in together (in his house).

There are 8 years left on the £26k loan.....

angelflower_2

jenijen27 wrote: »

Hi

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2 who is the other adult and why is their no income/expenses for them included in the budget?
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 0 no council tax?
Electricity............................. 0 no bills?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0 no water
Telephone (land line)................... 0
Mobile phone............................ 40 you should be able to get this cheaper. I have a payg and only spend £10 a month
TV Licence.............................. 0 seriously no tv? Should be at least £12 a month here
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150 for one person this is a lot - if for two, why aren't they contributing?
Clothing................................ 20 you will have to reduce this to £10 a month
Petrol/diesel........................... 30
Road tax................................ 0 you have petrol costs so you must have tax
Car Insurance........................... 0 you must have insurance
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10 what is this for?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 770

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
hsbc...........................1500......50........0
first plus.....................26000.....260.......0
next...........................500.......50........0
Total unsecured debts..........28000.....360.......-

Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including HP & secured debts). 770
Available for debt repayments........... 430
Monthly UNsecured debt repayments....... 360
Amount left after debt repayments....... 70 you dont have this I am sure of that given the points above
Personal Balance Sheet Summary
Total assets (things you own)........... 0 do you not have a share in the shared home or what about your car?
Total HP & Secured debt................. -0
Total Unsecured debt.................... -28,000
Net Assets.............................. -28,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Hi

Now, I am gathering because of the fact you are living in a house share that you only pay one lump sum and most of the things I mentioned above are included?

You have stated you pay petrol but have no outgoings for a car.....

I too agree that there is no way you should be paying for anything that does not have your name on it and your husband should not be paying for anything that only has your name on it. Joint debts I believe can be chased through either party. I take it your ex has gone through a fee paying DMP? My worry for you in this is that they will still pursue you for any debt outstanding even at the same time your ex may be paying.

I would recommend that you start this process again. You will have to work out exactly what has your name attached to it and as you are legally responsible for this debt, then you will have to assume you can be chased for it, no matter what your ex has in his dmp.

I wonder if when you take this into account that you may actually have a larger amount hanging over your head and bankrupcy is a more attractive option (although I understand your worries, pop on over to the bankrupcy thread as there are some great people over there)

What have CCCS recommended in terms of dealing with your debt? Are they taking you on as a dmp client?

RAS

jen

What amount of debt is in your name, his name and joint names?

And do you realise that by taking out more credit when he is in on a DMP, he has broken the terms of his agreement with the creditors.

doodledo_2

Hey Jen just wanted to pop on and say I am in the same situation as you having recently split.

My ex is still paying half of all our joint debts and those in our own names we took with us.

Good luck with your journey and keep posting

jenijen27

Hi
Thanks for your replies

Angelflower - I have a company car so the only travel related expense I have is fuel for private travel, which is usually between £20 and £40 per month. The money I pay for rent includes all other bills. I'm aware my mobile bill is a little on the high side but I will be getting rid of it when my contract expires in a couple of months.

RAS - I am unsure of the exact figures, but I'll do my best:

In Joint names
Secured loan £34,000
Loan 1 £26,000
Overdraft £1,000

In Ex H name only
Loan 2 £7500
Credit card £2000
He also has other bits like HP and student loan (which he paid off in full on credit cards when he knew the DMP had been finalised in Nov).

In my name only
Loan 3 £10,300
Next £500
Credit card £1500 (Both next and the credit card were run up after I had left, as I left with nothing and had to survive!)

Thanks again

RAS

Thanks

Are you in the process of divorcing? Is there any equity? HAve you talked to any of the debt charities?

jenijen27

I have seen a solicitor and got the divorce petition to complete (but I haven't done anything with it yet as I am concerned about the cost - but on the other had I want to divorce him as quickly as possible)
The outstanding mortgage is approx £65k and the property is worth about £100k at the moment, so when the secured loan is taken into account there is no equity.
The First Plus secured loan is a cash back loan and is due to pay out £7000 in approx 2.5 years, which H has said I can have as he is keeping the house and contents. I don't have this in writing yet though (and I assume if he misses a payment then they won't pay out, which is another worry)

RAS

Hi

Which is the first plus secured loan? £34,000 or £26,000?

You need to get the liability for various debts written into the divorce settlement.

Unfortuantely if your OH went BR for any reason now, then you will find yourself legally liable for the whole of the joint debt. I am not sure what you can do to protect yourself from this as part of the settlement but you need to do it.

And in 2.5 years time, there may be some equity in the house. YOu need to prevent him taking all of that if possible.

With respect to the joint OD, have you ensured that the bank only allow further withdrawals with both signatures, otherw ise he can try and add to it.