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Bankruptcy advise

HI all, myself & partner have a combined debt of £39,000. My partner earns a good wage £32,000 a year but i am a SAHM with a 1 year old little boy & i am 5 months pregnant. We are on a DMP with payplan and pay them £319 a month so far our debt has gone up due to creditors not freezing interest but i know its only early days but due to my hormonal state i am finding it a very stressfull time :(

We have seriously considered bancruptcy. We live in a rented house, have no savings, car is worth maybe £1500 but has a lot of problems and im thinkings that with our Debt free date over 11 years away im thinking that going bankrupt may be the best way.

I have no idea what it entails in terms of what happens after, and am concerned they will take all of our money off us & obviously with a baby on the way we need help :(

Can anyone advise? obviously i will answer any questions as i know this is a bit vague x
"Knowledge is knowing that a tomato is a fruit, but Wisdom is knowing not to put it in a fruit salad."

Comments

  • fiveyearplan
    fiveyearplan Posts: 10,143 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Is any of the debt in your name only, if so how much? It might be worth you going BR and not your OH.

    :j :j


  • HI there, my partner is in £29,000 & i am in £10,000 but we live off his income. I have no income as i am a SAHM x
    "Knowledge is knowing that a tomato is a fruit, but Wisdom is knowing not to put it in a fruit salad."
  • sizzler
    sizzler Posts: 5,094 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi there and welcome.

    Firstly speak to one of the debt charitys as soon as posssible its free and they will help you with which option is best for you.

    try this link and it explains all about Bankruptcy

    http://www.insolvency.gov.uk/bankruptcy/whatisbankruptcy.htm

    Any questions ask away.

    To go Bankrupt you must of taken advice and be insolvent.

    Regards sizzler:)
  • Thank you sizzler i will have a read. Do you think that as my partners wage is high, they are likely to make us pay something back for 3 years? do you have any idea how much this is roughly likely to be? x
    "Knowledge is knowing that a tomato is a fruit, but Wisdom is knowing not to put it in a fruit salad."
  • IF
    IF Posts: 34,349 Forumite
    10,000 Posts Combo Breaker
    Hello FF, After taking your expenses off The OR takes the following.

    The percentage the OR can take for an IPA depends upon the excess:

    Between £100 and £249 = 50%
    Between £250 and £349 = 60%
    Between £350 and £499 = 66%
    £500 or more = 70%

    70% is the max the OR can take so even if you have £2000 DI the OR can only take 70%.


    Hope this helps

    If...x
    "If wishes were horses, then beggars would ride"
  • sizzler
    sizzler Posts: 5,094 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    The Official Receiver who looks after your affairs after bankruptcy will ask you to Fill in a statement of affairs. Any surplus you have left is collected and called an IPA which will last for three years. If your circumstances change during this time you can redo your SOA for the new situation.

    You are allowed a very reasonable budget for the household which I think is very fair.

    If you have a car and need it for work you can ussually keep it up to the value of 2k.

    Regards sizzler:)
  • Thank you so much for your advice! My biggest fear is not being left enough to live on it terrifies me. Like if my son needs new shoes or an unexpected bill etc I would worry that we couldn't afford it. At least now I could lower the dmp amount. Granted it defeats my whole aim of becoming debt free.

    As effectivly I don't earn and live off my partners wage, how would that work ? Would we both need to go bankcrupt? How would I 'pay' the OR as surely my pArtners wage will be taken up on his IPA x
    "Knowledge is knowing that a tomato is a fruit, but Wisdom is knowing not to put it in a fruit salad."
  • sizzler
    sizzler Posts: 5,094 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    it would depend on how much debts are in your name and his can you clarify please:)
  • Hey I am in 10,000 Soley in my name & he is in £29,000 in his. We have no joint debt x
    "Knowledge is knowing that a tomato is a fruit, but Wisdom is knowing not to put it in a fruit salad."
  • IF
    IF Posts: 34,349 Forumite
    10,000 Posts Combo Breaker
    Hi FF, you would have enough money, they take all expenses into account.
    But please talk to one of the debt charities tomorrow to allay your fears.
    Make a list of all outgoings and income, and they will talk you through what they think is best for you x
    "If wishes were horses, then beggars would ride"
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