Debt Releif Order & Job change - urgent advice please.

Crisp_£_note

Hi

I was just about to apply for a Debt Releif Order after many months of hardship and putting it off but now things are set to change and I feel as though I have been set back to square 1 again so wondered if anyone else could help? We are also recently fallen behind with the Gas & Electricity (which there is a repayment in place) and now the Council Tax and Rent. The council have suspended the claim for housing and council taxs benefit as we have failed to supply the accountants figures for the relevant period as the accountant has not got them sorted and the fact my husband is slightly behind with his books because his business opend in October 2000. I am not entirely pleased with the council as they sent someone out to review our claim a few months back and just before they left they said all was fine and there would be no change with our claim as our income hadnt increased the past year (if anything its gone down). Next thing I know we are getting letters from the council saying we need to supply firther evidence of our income, even though their representative saw all the info they requested (statements, proof of income, rent book etc etc) and was happy with it all enough to tell me not to worry and there would be no further action and no change to benefits!


Basicaly my husband is self employed earning a painfully low income which is now almost non existant as his business has been severely affected by the recent recession and I am not working but on long term incapacity benefit due to a degenerative condition of the spine.

Our combined debts are roughly £13,000 which I am aware is very close to the limit for a DRO application. However I was hoping to apply for 2 individual DRO's to give us each a better lee-way as I am aware of the timescale in application processes and the constant addition of charges and fees by our creditors.

The part I am now concernd about is that my husband is looking at changing his job from a self employed valeter with his own business to a self employed courrier working for a logistics company.

At present we have no idea how much income will be or how it will affect benefits etc. So its put all my plans on hold again until I can be clear in my own mind of whats what. I am positive though that he will start to earn a better income and life will get a bit easier finacially .

What do I do now?

I really need to get this sorted as I want to relax a bit over Christmaas and start the new year on a positive note, plus I am going into hospital 2nd December for a small op and dont need the additional worry or stress.

Any advice please anyone?

Thanks

misspoppy

HI

Whilst this new opportunity sounds good it isnt a guarenteed income each month and so nothing has really changed I would think continuing with the DRO would be a good idea unless your husband gets a permanant job with a set salary.

Crisp_£_note

misspoppy wrote: »

HI

Whilst this new opportunity sounds good it isnt a guarenteed income each month and so nothing has really changed I would think continuing with the DRO would be a good idea unless your husband gets a permanant job with a set salary.

Hi Miss thank you. for the advice I am getting myself so wound up again its not always easy to look at it simply.

Crisp_£_note

:TJust wanting to add Hubby got the job and started this morning:j
after a night of umming and ahhhing if it was the change he wanted! He will remain self employed full time for the courrier company (rather than his own business) but he doesnt know a lot else at the moment. :rolleyes:

Now I have to sort out the change of circumstances and everything else:eek:

misspoppy

HI

nothing has changed, ok he's not running his own business but he is still his own boss.Unless he is employed with a contract of employement his financial circumstances aren't guarenteed be careful all new jobs look rosey when you start but some of these self employed oportunities aren't all they seem but you don't know that until you start.

Crisp_£_note

Hi

An update, sadly MissPoppy was right and the job wasnt for him so he is back to square 1 again Never mind at least he tried and knows now.

However he is still suffering after a crash a few months ago which gave him whiplash and has (no fault of his) filed a claim for compensation as this has meant he has been off work for some time. However as he is the main earner of the housedhold he returned to work and reduced his work to a minimum but is now suffering the consequences. He changed his job to courrier work not only to try and increase his income but also because his boddy isnt getting any younger which he has realised after the last crash. Part of the reason he gave up his notice after a few days with the courrier work was due to the agrivation of pain from the extended hours of driving. Would he be entitled to Incapacity Benefit as he is now stuck for work from the pain and also lack of work?

I am going to sit down with him later today and sort through his Income & Expenditure then we will call National Debtline / CCCS Self Employment helpline and take things from there.

Any advice ?

Thanks again.

misspoppy

HI
I'm sorry it didn't work out. It would be worth speaking to the job centre and CAB for advice about benefits and disability allowance. he will probably have to look at a new career and the job centre might be able to help him with that, but don't hold your breath.

Probably best to get some debt advice because there aren't any quick fixes here

Crisp_£_note

Hi

Please can someone help I am so confused now I dont know the next step foward.

The now is that hubby still hasnt got much work, he lost his main income contract with the garage so at a guestimate is now only bringing in £100 a month!

He is thinking of bankruptsy which would help clear his own debts but he is reluctant and desparately trying to find a loophole around as he would lose his Van which is our only means of transport, (I am certain there isnt one as if he even 'sold' it to a friend and 'rented' it back off them it would invalidate his insurance).

I feel like I am in such a mess and am desparate to get my finances sorted and a Debt Releif Order asap. Trouble is I am finding it hard to understand, even though it has been explained counteless times to me by National Debtline.

The bit thats hard to get my head round is justifying how we can live off the income we do when even before rent we dont have enough coming in to meet whats going out. I fear that my creditors will look at it the same common sense way and laugh at me seeing full well I dont stand a chance.

The hardest part to understand is the income. I rely on my hubbys Working Tax Credits and my Incapacitly Benefit to keep the roof over our heads. That combined with the help we WERE getting from the Housing Benefit and Council Tax Benefit was enough to keep things ballanced. Other than the fact we wernt paying our rent (other than the benefit we received) as the landlord (Mother-in-law) has been aware of our debts so therefore she has been kind enough not to charge us the extra to cover the shortfall and been happy to accept just the benefit for past few months. However now the council has closed our benefits claim completely as they are wanting the accounts for my husband which the accountant is still working on this has been going on since August which is why the counil benefits suspended and now closed our claims. I am now having to find full council tax of £165 a month when the benefit we were receiving got it down to just £90 a month so I am struggling and worried.

Anyway I am so confused as to what to include in my income and expenditure when completing the form for National Debtline. My main concerns are do I include Hubbys Tax Credits and do I show we dont pay any rent (when we should be paying £200 on top of benefits (full rent is £500 monthly)). What should hubby show if his only income is £100 a month (if that) as he 'donates' his Working Tax Credits to me towards the household bills and food? His expenditure wont show anything other than business overheads as its me who pays for everything!

I am in such a mess and getting so worked up about it all I was so hoping to be able to start new year without money worries

SORRY to waffle but I dont know how else to explain.

Thanks for reading.

Tixy

Hi Crisp

Sorry things are not going well for you.

I don't know much about bankruptcy but understand that a vehicle used for business can sometimes be kept and not included in his estate (well thats my understanding from this - http://forums.moneysavingexpert.com/showthread.html?t=1056247 )
Perhaps ask for advice on the bankruptcy forum as there'll be people there who have experienced similar situations.

Crisp_£_note

Thanks I will.

What makes it even more complicated I forgot to add was hubby had a non fault crash in his van back in July which was deemed a 'write off' as the cost of repair apparantly overweighed the price of the van but then the insurers allowed hubby to keep his van and registered it as a write off. Hubby has repaired his van with the help of some friends in the trade which brought the cost down significantly. The van now obviously is roadworthy and legal to drive even though its registered as a write off.

Therefore I am thinking surely the van will not be worth anything to anyone so they wont want to take it away from us anyway? The guestimated price of the van should have been £4,500 max but now I wouldnt say it was worth £1,000 due to it being recently registered as a write off.

If hubby would decide to pluck up the courage and go bankrupt he could surely re-train under some scheme for a new skill and could then go back to self employment eventually? After all he isnt getting any younger and he wont be wanting to do what he does now for many more years I doubt his body would take it.

Thanks