Plan of action??? Help plz

abc11

I'm really looking for some advice on making a plan of action for how to address my debts.

Brief history - back in 2005 I found myself living with a verbally abusive husband, suffering from depression, and with debts of around £26,000 which were costing who knows how much to pay a month. All debts were built up between myself and ex and one loan was actually taken out to get a loan of his at a better APR. Forward to May 2005 verbal abuse become physical and so I left the matrimonial house and moved in with my parents. I was only working a part-time job. Go forward another month and my alcoholic father attacked me - reported to the police but I didn't pursue through court - and so I decided I wasn't safe anywhere as ex was still coming after me and so moved out of the country. I wasn't able to get back into my house to get any account details for the debts and was kind of travelling light as I had a plane ticket but nowhere to stay and no job. I subsequently got divorced but did not have contact with my husband or father whilst I was out of the country.

So to now - I returned to the UK approx 18 months ago with my new husband and children. At the time we moved back my husband struggled to find work and we were borrowing money from relatives to live. We slowly rebuilt our life here and had another baby who unfortunately for the first 7 months of his life wasnot very well. I only give this info to explain why I haven't done anything about my debt until now.

Our life is settled now so I decided I'd buried my head in the sand long enough and applied for my credit report. Lo and behold I have 2 CCJ's and lots of defaults. I contacted the court who told me that one CCJ is now listed on their system as Discontinued as the creditor applied for a warrant and one was issued but then when the went to my parents house were told I was out of the country. The other CCJ was returned to Royal Mail so was not actually delivered. The person I spoke to at the court informed me that I could apply to have the CCJ's set aside as I was living out of the country and so never received the CCJ's or had a chance to defend the claim or try to reach an agreement with the creditor. I've never seen any paperwork for them and didn't know they existed until this week

SO question one - can I apply for the CCJ's to be set aside and what are the chances of succeeding? Don't really understand what set aside means but am assuming it would be a good thing. Also haven't got £150 to waste if have no chance of winning.

Question two - I haven't paid anyone anything since around the beginning of 2006 so should I begin approaching the companies without the CCJ making an monthly offer? I am a stay at home mum so whatever gets paid my new husband will be paying which I feel pretty bad about and it won't be much.

Question three - should I be contacting the companies who the CCJ's are with to make them an offer of payment?

Question four - would I be better off just declaring bankruptcy?

Question five - I read somewhere that after 6 years defaults and CCJ's get taken off your credit file even if you haven't paid them so would I be better off sticking my head back in the sand for the next 18 months and then everything has magically disappeared?

Thanks in advance, your advice is really appreciated and sorry for the long post.:o

talana

Welcome to the board.
The first thing to do is make out a proper budget so you know exactly where you stand financially, how much if any you can afford to pay every month towards debts, and whether you're struggling month to month.
Here you go, post it back here for advice when you're done.
http://www.makesenseofcards.com/soacalc.html

Bankruptcy for example may be an option (one of several), but tough for people to say without the full picture.
Other options may present themselves.
Good luck!

abc11

Thanks talana for your reply. With the budget how would I go about doing it. I am a sray at home mum so have no income. We do get child benefit and child tax credit, possibly working tax credit waiting for renewal notice, and my husband pays everything. The CB and tax credits just go in the bank and my husband adds what is needed to pay the bills, buy food and cover other expenses. His wages get paid into a separate account and he physically adds the money each week for what is needed. I don't want to get my husbands income involved as it doesn't seem right that he should be responsible for debts from a different marriage although he is able to give ne around £50 a month to pay the debts if that's the best option. Thanks.

podperson

Hi abc,

I think it would be quite difficult for people to be able to advise you accurately on the options without including your hubby's income. I appreciate that these debts aren't his but you are a partnership now, something like bankruptcy for example would have an effect on both of you or if he was giving you money each month towards the debts that would obviously effect him so whichever option you go with needs to something you are both comfortable with.

Would suggest contacting one of the debt charities and get some advice on what your options are. Regarding your questions, for 2-3 I would start explore your options and doing your budget before contacting any of the companies as once you get in contact with them again you are likely to get hounded by debt collectors
Bankruptcy is an option but make sure you get as much advice as you can on it and how it will affect you.
Regarding the 6 years it can be a little tricky. If none of the debt companies are in contact with you at the moment then yes it could be an option just to stay hidden, but just be aware that they can contact you in the future. After 6 years they can't take you to court for the debt but they will still try and chase it, pass it to debt collectors, etc. which could affect your credit rating in the future.

abc11

Thats Podperson for your reply but regarding your point that

I appreciate that these debts aren't his but you are a partnership now, something like bankruptcy for example would have an effect on both of you

I was under the understanding that even though we're married because we do not have any joint debts he couldn't be made liable for them or made to pay them and as long as we kept our finances separate my bad credit record wouldn't affect his applications... We have a joint bank account for bills and most utility bills are in both names but we have no joint debt. Am I deluding myself???

Once little one is asleep I'll have a bash at the budget including his details. He is self-employed and doesn't have a steady income so would I just take his yearly earnings from last year and divide that by 12? Also he sends quite a bit of his money abroad to support his family and without that money they wouldn't be able to live so can I include that?

Thanks

podperson

Hi abc,

As far as I am aware any joint finances will link your credit together, including things like joint bank accounts. I'm not an expert on the subject so hopefully someone more knowledgeable will post soon or try asking on the bankruptcy boards but would suggest that if you did end up having to go down the bankruptcy route then take your name off the joint account first and try and get everything into single names. Like I said though am not an expert so make sure you get advice on it first, eg from one of the debt charities, in case the fact that you have been linked in the past could affect his credit.
For the budget, yes I would just put a monthly average - always hard with self-employed and just put his money sent to family down as an expense.

Ames

If you have a joint bank account then you are financially linked and so his credit rating would be affected. But I'm sure you could easily close that and open a new one of your own and have him transfer money into that one.

spursfan14

I would say bankruptcy is a final final option. It is very expensive and seriously harms your credit rating. Have you explored debt management? If you haven't already, have a chat with the Citizen's Advice bureau or National debtline. This won't cost you anything and they will give you good impartial advice. If you are looking for a paid debt management service Debt Line are good and will negotiate with your creditors on your behalf. I would suggest that Citizen's Advice would be a very good place to start.

Best of luck.

abc11

Had a go at the SoA and this is what it comes up with......_pale_


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1 I am the registered keeper on log book but husband is the main driver and paid for the car. Because of his work he wouldn't be able to work without transport and he also has health issues so we have to travel into London regularly for hospital appointments..... He doesn't have the money to buy a new car to put in his name unless we sold this one.

Monthly Income Details
Monthly income after tax................ 146 Child Benefit
Partners monthly income after tax....... 1595
Benefits................................ 300 Approximate Child Tax Benefit waiting on this years notice
Other income............................ 0
Total monthly income.................... 2041

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 365
Management charge (leasehold property).. 0
Council tax............................. 127
Electricity............................. 25
Gas..................................... 75
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 25
Mobile phone............................ 65 About 20 is me the rest husband for work
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 6 Used for husband for work and both for college
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 150 Husband travels for work so sometimes more sometimes less
Road tax................................ 11
Car Insurance........................... 53
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 40
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 50 We both have a couple of prescriptions a month and wear glasses. I also wear contacts. Don't think we get exemptions with just Child Tax Credit, last year was getting working tax credit as well.
Pet insurance/vet bills................. 25
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 44 Expensive coz of husbands health issues
Other insurance......................... 8 Washing machine breakdown and repair cover
Presents (birthday, christmas etc)...... 0
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 100 Husbands family lives abroad so need to have funds incase of emergency
Emergency fund.......................... 0
Pet food................................ 15
Visa.................................... 80
Toiletries - inc baby................... 40
Formula and nappies..................... 90 Toddler not yet potty trained and 7 month old - what am I doing to the environment!!!!!
Husband college......................... 40
Me college.............................. 15
Family maintenance...................... 100 Husbands sends money to help support his family
Total monthly expenses.................. 2038


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 1200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card 1..................10435.....0.........0
Credit card 2..................1185......0.........0
Credit card 3..................2604......0.........0
Overdraft......................276.......0.........0 On a joint account with EX husband no idea where he is - and don't want to know!
Loan...........................10200.....0.........0
Over draft.....................1153......0.........0
Old Phone bill.................159.......0.........0
Store card.....................350.......0.........0
Total unsecured debts..........26362.....0.........-


Monthly Budget Summary
Total monthly income.................... 2,041
Expenses (including HP & secured debts). 2,038
Available for debt repayments........... 3
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 3

Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -26,362
Net Assets.............................. -25,162

The income figures are based on my husbands net profit from 2009 - 2010 divided by 12. Last year we were getting working tax credit as his income the year before was a lot lower but from doing the online calculator only looks like we'll get CTC this year and will possibly have to pay back some overpayments. Until we have the renewal notice the CTC figure is just a guess really..... If the CTC is less than expected then we would cut back on the holidays money and keep fingers crossed he doesn't need to visit his country.

abc11

Also have got an appointment with CCCS next week but am just trying to get my head around some options first......

dancingfairy

Have you looked into prescription pre payment certificates - they can work out cheaper if you need several prescriptions - you can pay monthly by Direct Debit as well which helps with the finances.
df