Bankruptcy - can it give me a new start?

lifeonhold

Hi,

My story (short version) - last year my wife abducted my daughter from the UK and put her in a private school in another country. She left me with £20,000 worth of joint debt. Recently, my wife has decided to return my daughter to me back here in the UK because she has run out of money, can't afford to pay the school fees and has met another bloke.

I now have my daughter with me in the UK and we are currently living with my parents who are both retired. The debts are with 4 credit cards and 2 personal loans with one bank, all in my name. Up to now I have just been paying the minimum payments every month.

My wife refuses to give me any money towards the joint debts even though she now works full time, lives with her parents, and is saving up loads each month for her own personal use. She takes no repsponsibilty for her actions of her debts while we were together. Suffice to say, we are now separated with no intention of getting back together.

I can not stay living with my parents any more so will have to move out into private rented accommodation with my daughter. When I do this my salary will only cover our rent, basic living expenses, minimum payments on the debts every month with little else to spare

To cut a long story short, I feel trapped by my debts with no hope of clearing them for many many years. I have no savings or pension or assets.

Is bankruptcy a good option for me as I can see that it will free me from being trapped with these debts and allow me to start again with my life and my daughter?

I have looked into Debt Management but feel that Bankruptcy is a quick solution that could give me a fresh start.

Thanks for any advice.

dollparts

lifeonhold wrote: »

Hi,

My story (short version) - last year my wife abducted my daughter from the UK and put her in a private school in another country. She left me with £20,000 worth of joint debt. Recently, my wife has decided to return my daughter to me back here in the UK because she has run out of money, can't afford to pay the school fees and has met another bloke.
you say this is joint debt but further on in the post say the debts are in your sole name only?

I now have my daughter with me in the UK we are currently living with my parents who are both retired. The debts are with 4 credit cards and 2 personal loans with one bank, all in my name. Up to now I have just been paying the minimum payments every month.

My wife refuses to give me any money towards the joint debts even though she now works full time, lives with her parents, and is saving up loads each month for her own personal use. She takes no repsponsibilty for her actions of her debts while we were together. Suffice to say, we are now separated with no intention of getting back together.

I can not stay living with my parents any more so will have to move out into private rented accommodation with my daughter. When I do this my salary will only cover our rent, basic living expenses, minimum payments on the debts every month with little else to spare Depending on the age of your daughter and your income you may be entitled to some help towards rent and perhaps tax credits. See entitledto.co.uk

To cut a long story short, I feel trapped by my debts with no hope of clearing them for many many years. I have no savings or pension or assets.

Is bankruptcy a good option for me as I can see that it will free me from being trapped with these debts and allow me to start again with my life and my daughter?

I have looked into Debt Management but feel that Bankruptcy is a quick solution that could give me a fresh start.

Thanks for any advice.

Hi Life on hold, welcome to the board.

I am no expert but I can safely suggest the following based upon my experience.

If the debts are in your name solely you will be completely responsible regardless of your partners contribution to the debt.

Debt management could be a solution, it could take a long time but is always worth looking into. Your creditors may be able to come to some arrangement with you allowing you to pay the debt off at a rate that will allow you to cover your living expenses at the same time.

Bankruptcy would allow you to start again. However I cannot impress upon you enough that it is neither quick nor easy and will affect you in many ways for years to come.

I would strongly recommend you get in touch with one of the debt charities-National debtline, CCCS or CAB. They will be able to advise you the best course of action specific to your situation.

Best of luck.
DP

dalip

DOLLPARTS has given excellent advice:T to which i can add nothing other than follow her advice.Dx

lifeonhold

DP,

The debts are joint debts as in they were accrued jointly while we were together. However, they are all in my name.

Do you know what would happen if I left my job and put myself and my daughter on the bread line? Drastic I know but I really do not want to spend my time trying to earn a living, having no time to spend with my daughter, an ex wife on my back looking out for her needs and no one elses, and scraping by just to pay off debts that are not all mine. It is an option I am considering as a way of declaring poverty to my creditors.

I will put myself and my daughter into emergency housing if needs be.

Thanks.

tigerfeet2006

Unfortunatly although they were accrued jointly as they are in your name you are the only one responsible.

If you were to give up your job all that would happen is the companies would carry on chasing you for the amounts and making your life a misery.

Speak to National Debtline or CCCS and get some free advice. If they advise BR then go for it. It will give you a fresh start and a way to move forward, but make sure you take advice before going BR or the court may send you away until you have done so.

Have a look at social housing, you may have to get a letter from your parents saying they are kicking you out, but it is a good option.

Don't worry about your ex-wife, forget her and get on with your life and sorting it out. You are better off, you have your daughter and that is worth the world. Have you approached the CSA to get maintenance from her?

But most of all get on the phone ring National Debtline, keep ringing constantly until you get through to an advisor, you may have to redial for up to half an hour but be patient and you will get some advice tailored to your sitution. If they advise BR then we will help and support you all we can through the process.

desperatetobedebtfree

From a benefits point of view can I ask how old your Child is? The reason I ask is because Income Support as a lone parent is changing and the age of your child matters now. Its currently 12, changing in October to 9 and then in Oct 2010 to 7. See here http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_175842

Also do you receive Child Benefit (CHB) for her? Its £20 per week. Income Support would only be payable if you receive the CHB not your ex wife. The same applys for Child Tax credits.

If you are considering leaving your job you need to be aware of this. JSA may also not be available if you voluntarily leave a job.

I would highly recommend you speak to CCCS or similar about your debts.