More help needed please guys

Munchlet

Hi again

Sorry but I'm def thinking of bankruptcy but wondered if you could just answer a few more questions.

Hubby earns a good salary and is bound to have to pay a percentage due to excess income, problem is I'm a bit concerned about how the OR will view things.

The situation is I work part time, and my wages go towards, my credit card bill, my personal loan, the family car and the endownment.
The car is in my name only and always has been, I'm on a lease plan and upgrade car every three years as I need it for work. I upgraded again in Dec and hubby got rid of his vehicle to reduce his outgoings and I got a bigger family car so he wouldn't need to have one. As I say it's solely in my name and always has been but the fact that it's a new car concerns me slightly, I only get new cars as a family member works there and we get a huge discount off new cars and it's on a lease plan so I just change it every 3 years before MOT becomes due.

The rest of my wages go on my personal loan, credit card and the endownment policy.

The endownment we discovered a month ago is in my name only and this is due to me forgetting to change it over when we got married ( I had the house before hubby came along), so I pay it.
I'm just concerned that the OR will look at my wages and see that I'm just paying my own debts and a car and endownment policy and not contributing towards household bills. Hubby is main breadwinner and we have a small child hence me working part time, but I wondered if anyone knew how this is viewed?

Also mother and father in law have stated that they can raise £20k if we need it, at present house is worth about £130, mortgage is £93 with redemption fee (not sure what), I paid initial £2500 deposit (don't know if they take this into account) so I reckon we have about 35 equity so am I right in thinking hubbys percentage will be about 17.5k and do they always give you the opportunity to buy back the BI, we are not in any mortgage arrears and desperately want to keep the house.

Thanks for any advice, sorry it's so long winded!!

ashellis

Hi there Munchlet,

Sorry if this is going to seem a little rude, but why do you have to go bankrupt if you are managing to pay your bills??

If hubby is paying for the day to day bills, and you are paying yours without any trouble then I would phone CCCS to see what their advice would be.

If your car is of value, you would not be able to keep this, as this debt would go into the bankruptcy pot, or it would be viewed as an asset and sold off to pay the people you owe.

As for the house, if you are sole owner, and you have equity, then I think they would rather you release the equity and pay your bills.

If your parents can raise £20k, then couldnt you borrow this to pay your debts off and repay them at a better rate, and avoid the bankruptcy??

You also say you are not in any mortgage arrears, so again, am wondering if this is truely the best option for you at the moment.

Please get some more advice on this hun, and take all the advice you can from others on here as well.

Sorry if this doesnt help you at the mo, but thought I would make you think of any other options that would help you.
x

debtinfo

hi ashellis, munchlet has come to this decision after considering the other options, they were going to go for an IVA but one of there creditors is being particularly tricky.

hi munchlet, its the hubby going bankrupt isnt it. the OR wont ask you what you spend on your money on but will expect a contribution to the household in line with your respective earnings, which wont be much from you as he earns alot more than you. they normally assume 50:50 split unless there is an obvious reason it should not be, they will offer the equity back first if you can afford it, no point going through all the courts if they have a buyer ready and waiting

Munchlet

Hi Ashellis and Debt info

Sorry having read my post again it's not clear, but thanks for claryfing the situ debt info,

Basically the debts are all due to hubby's failed business. The house is in joint names, it was mine originally but when hubby moved in and we got married had a baby he went on the mortgage because he was the main breadwinner.

We looked at IVA and were hoping to go down this route but Natwest are our main creditor and they aren't interested in negotiating and are forging ahead with a charging order, so on that basis we are thinking what's the point because they will have the majority say in the IVA and it would appear highly likely they are going to say no as they seem to prefer the charging order.

So hubby now is employed and earns a good wage, 4x my wage, so our thinking was if he went bankrupt we could pay back some of our debts because he would obviously have an IPA and then there is the equity in the house.

I was just concerned how the OR would view my situation, I'm not intending to go bankrupt but do have my own debts (all of which are manageable) and I pay for the family car which again is in my name, oh and the endownment which is in my maiden name, purely due to oversight because it wasn't making any money and we swapped mortgage to repayment I just completely forgot about it and never bothered to change it to joint names.

So I'm just wanting to get a complete overview on everything before we decide, our day to day living is very manageable it's just the debts from hubbys failed business we are struggling with.

thanks for your advice it is much appreciated.