Can anyone advise on our situation as we are desperate

my1_2

Dear :money:members

I am hoping someone may be able to advise on the best course of action for us. This could be a lengthy message but I hope someone can take the time to review.

A little background information. My wife and I have been happily married for 7 years. We have one child of 21 months and rent a home in Milton Keynes to a private landlord.

We both were declared bankrupt in 2005. This was a mixture of stupidity and misfortune. We were not careful with money and had too much trust in others, lending money which was never recovered. Also I tried starting a business that failed. A lot of this debt was racked up before we met eachother.

Since then we have tried to be careful with money. Before we would buy what we like, when we like without thinking about the outcome. Now we try to budget everything and rarely go out. My wife gave birth to our lovely son in April 2009. She took maternity leave and wages were ok until 6 months through. We were unaware that wages were going to be cut so consideralbly.

This is where things went bad again. We borrowed from various sources between us.... Payday loans, doorstep credit etc. We started to defult on gas, electric, council tax, car payment...Pretty much everything. Even still, we always tried to ensure the BIG priority payments were paid (even through bankruptcy to date we have never defulted on rent for example) My wife went back to work and full pay resumed. We put everything into clearing our debts. It was unfortunate that many months later after struggling at work she got PND (post natal depression) Her state of mind in the end put me in to my own depression (although I did not admit it for a long time) and I too had to go off work.

We were fortunate enough (due to long service) to get normal pay for a few months. I worked hard to get out of my state and got a new job (starting this month) and resigned from my old job. My wife (who thought she would also go back to work this month) has been told she MUST refrain from work. The doctor has actually written a letter to say she should not attend any work, paid or unpaid until further notice. Her employer has told her full pay has run out and she will go to SSP, which is a HUGE difference between normal pay.

This means taking our boy out of childcare, which we know has to happen. The only reason we kept him there during sickness was because of the amazing progress he was making and it allowed for us to search for new jobs, do voluntary work, sort things out etc. This is the minor part.

The major part is the finances now. My wages start in March which will cover the rent. We are already in massive default with the electric, council tax and of course our unsecured debts. The main worry is the electricity (debt of around £600) and council tax (debt is £700) Both were in up to date payment arrangements which would have cleared the debts in 2 months had my wife gone back to work. Without her income I will not be able to meet these payments. Our other debts (PD loans etc) were in a plan but again, due to her income being reduced by 80% we will not be able to afford that.

Both the electricity company and the council have said they will not allow any further negotiation. The electric company has issued a notice of warrant of execution to disconnect the electricity (they have already done a survey and cannot install a PP meter) abd the council tax will issue a summons if I cannot find £300 by the end of this month.

My wages and the SSP will cover the rent, BASIC council tax, BASIC gas, electric, water, tv licence and essentails JUST.

Basic assumes the amount that should be paid if one does not have arrears. Each month like this our debt will increase by around £200.

I am at a loss. I know we need to now take our boy out of childcare but cannot find a way to stop this debt and get us on track. I know my income as said above will pay the basics, but no debt. At the same time, I know not paying the debt will result in summons, warrants of electricity. We also have a car on HP which has about £800 left on it (again in arrears)

I thought about a DRO but this would almost certinaly lose us the car. When my wife goes back to work hopefully asap when she is better, it would make it impossible. No busses etc. Also, my dad is a guarantor on our house and this will prob impact us too.

I thought about a second bankruptcy. I do not care about having money as long as our little one is cared for (in respect to food, clothes etc) but again, we cannot afford the fees and it will go to the landlord.

I tried DMP companies but our excess income at this stage (with my wifes SSP) cannot contribute enough towards one.

I really do not know what we can do now. We are STUCK. Can anyone offer any advice? Please.:A

mandi

I don't have an instant solution for you I'm afraid , but I would highly recommend that you contact http://www.nationaldebtline.co.uk/

This is a free & confidential service my1.

They can give you all the advice you need

GeorgeUK

Again, can't advise, but would recommend getting an appointment to see citizens advice. They may know of some benefits that you are not getting or may have other suggestions on how to help.

Good luck.

RAS

Hi

Can I check whether you have applied for Working Tax Credits and any other benefits to which you may be entitled? Check www.turn2us.org.uk

And given how ill she can your wife get ESA?

ellesbellesxxx

Is your car worth anything? You could downgrade to free up some cash perhaps?