Debt Advice - help needed

ChocksterNo1

Hi

My wife lost her job awhile back, and I've taken on paying the debts for the household. We're starting to incur charges from the bank for going over the overdraft and we basically can't afford to pay the charges as we have no money left after all bills paid. I realised we couldn't go on much longer like this so phoned National Debtline for advice. They suggested a DAS agreement may be best, but other options would be TD or banruptcy.

We are council tenants and have no assets apart from our car (only 2 years old) - however, my Father in law paid for the car in cash and we were to pay him back, he has stated that until my wife gets a job, we don't have to pay him anything back.

I was wondering what options we have if we want to keep the car.

Was wondering if my wife could declare herself bankrupt - her debt comes to roughly £15k, my debt is around £16k. How would this affect us? Would her debt be discharged and I could continue to just pay my debt off?

Any advice would be much appreciated?

Tinytim

Hi ChocksterNo1

We would need a little more detail to be able to offer considered opinions. For instance, is the debt completely separate, or is some of it in joint names? What is the value of the car, and whose name is it registered in. Is there any proof that your father paid for it, such as a garage receipt in his name etc.

ChocksterNo1

Hi Thanks

We've no joint debt, it's all either in my wife's name or in mine.

My father in law paid £12k for the car, and now it's 2 yrs old. We've paid less than £1k before my wife lost her job and my Father in law postponing the repayments to him.

The car is registered under my wife's name. My father in law has the receipt that he paid for the car.

Thanks

So_Sad_Angel

Hi ChocksterNo1

Firstly I see you are Scotland so here is a useful link to the CAB in Scotland & info on TD/DAS etc...a few factsheets too.

http://www.adviceguide.org.uk/scotland/life/debt_scotland/help_with_debt_scotland.htm

Scottish system is different to England & I don`t want to give incorrect info but did`nt want to read & run.

Angiexx

coolcait

Hiya chockster

It's quite hard to say one way or another without knowing a bit more about the numbers - the level of debt, and how much you can afford to pay towards them each month.

If you'd be managing to deal with the debt if it wasn't for the interest and charges, then DAS might be a good option, as your creditors would have to freeze all interest, fees and charges on your debts. If/when you completed your DAS, the interest etc would be written off. So the money you paid each month would actually go towards your debts, not just servicing the interest and charges.

There's a 10% fee for the payments distributor, but that's taken off the money that goes to your creditors, and is part of the legally binding arrangement. It also means that they'll get back 90% of their debt, which isn't a bad return for them compared to what they might get if you went for bankruptcy or a trust deed.

If you think that DAS might be an option for you, there's more info on www.moneyscotland.gov.uk. You can also search the Register of DAS approved money advisers on that site, and try to speak to a local DAS adviser, who will be better placed to tell you if it might be a good option for you.

HTH

instaunt

It really is tough to get good advice these days. I contacted 11 "debt help" companies ... each one jumped straight in to pressure tactics into signing something as soon as possible with them without explaining the processes involved at all. It seems as though they are only willing to be "helpful" and discuss the best route after you've signed up to a route ... seems the wrong way round to me ...

ChocksterNo1

hi, thanks for help.

I had a ponecall from a DAS advisor at a local CAB office, he said that there is some good news on the horizon for people in situations like me. Around xmas there is something going to be announced that would be aof great help, but that he couldn't say much about until it's been decided???

Does anyone know what this might be?

Spoke to advisor at work who suggested a protected TD may be better for us as DAS agreements may last years, whereas a TD is only for 3 yrs.

Our monthly figures are:

Income - 1990
Debts/bills - 1463
Disposable Income - 527 (for food, petrol, pets food, wife smokes as well, so have to put aside £200 for fags).

Each month we're down to nothing, and if we get an emergency payment for something, we're struggling.

Was thinking if my wife could go into a TD or BR, her debt comes to around £450 a month, but her income is only £258 per month. This could help??? Not sure if my wages would be taken into account??