More advice needed for a newbie.

daleyboy

Hi this is my first post so please be gentle :shocked:

Here are a few details, i owe £20k to various lenders and debt collectors all for unsecured loans credit cards and an overdraft. I have owed this money for about 5 years. I have the interest frozen on the accounts and i am paying £90 a month off the debt split between the lenders . I am paying this so i don't get taken to court and have an attachment of earnings or have the bailiffs knocking on the door.

The wife and i want to buy our own house, but have been turned down, because of my debts. I have talked to CAB and told them i wanted to declare myself bankrupt, and they said ohhh no don't do that, it will affect you getting a mortgage, but the way i see it i cant get one now, and the £90 would come in handy to pay other bills.

What all these money lenders and debt collectors don't seem to understand, is i have 3 dependants, but they live in Thailand. They say these don't count towards dependants. They are my mother and father in law and my step daughter. Can i count these as dependents? as well as having our 8 month old son in this country.

I also owe my mum £6k, and they don't like the idea that i pay her a lot more than i give any of them.

Basically all i want to know is, would bankruptcy be a good option to take? When i spoke to CAB they told me an Iva would be better, but i would have to pay more money, which i don't have.

Thanks for taking the time to read this, and i hope you can find the time to respond.

lynzpower

Hi there

I really dont know about the age of dependants, I suspect children are, but in laws arnt.

have you ever done an SOA before southern scousers sticky "first time posters" tells you what you need to know.

It sounds like you are struggling budgeting, if the 90 quid you need for other bills? is this righT?

mophead

Hi and Welcome Daleyboy,

have you havd a look through the Bancruptcy Supporters Club thread http://forums.moneysavingexpert.com/showthread.html?t=273844

it is a long thread but i'm sure it would be of interest to you.

I don't really have any experience with bankruptcy apart from the fact i was considereing it about 6 years ago but i think the laws were different then i.e. 1 year discharge. One thing i do know like you say you credit score is shot to pieces anyway and will be upto six years after you have finished paying these debts.

Claire

daleyboy

Thanks for the replies, i will check out the thread you suggested.

To answer lynz, we are not doing too badly budgeting, but like anyone that little bit extra would certainly help.

All i can see is me paying the £90 for years to come and never paying the debt off, which is why i am considering bankruptcy.

sandralovescats

You would most probably be best off in a professionally arranged DMP. Whilst it is still an informal arrangement you would have more back-up on your own individual circumstance.

The £6000 debt to family is not recognised either in IVA or Bankruptcy.

If you send money to help out a family member(s) overseas then it would have to be included in any calculation - certainly for bankruptcy.

On the insolvencyservice.gov.uk website it does mention adults and others whom are dependent on you for whatever reason ARE included.
You would be able to give proof that money is sent to Thailand to help out financially so that should be alright.

Do take professional advice on this one.