Seriously considering BR, advice needed.

rhianna99

Hi everyone, my husband and I are considering becoming bankrupt, we are about to have another baby and the debt repayments are just getting too much. We owe in total about £37,700, most of this is my husbands, about £11000 is mine, we have no joint debts. Im currently not working but my husband works full time, I have been looking through our budget and would like advice as to whether it seems ok.

we currently have four children.

Husband wages - £1250pm
WTC (paid to husband) - £12pm

CTC (paid to me) - 936pm
child benefit(paid to me) - 262pm
maintenance - 10pm

Expenses

Rent - 297
Council tax - 93
Housekeeping - 620
travelling - 200 - car is needed for work, but most of this expense is for travelling to visit family who live 80 miles away, would this be allowed?
car insurance and break down - 56
house insurance - 11
tv license - 12
gas - 60
electric - 98
water - 45
clothing - 160
telephone - 50 (including landline and 2 mobiles)
school meals - 120
kids school activities - 20
opticians - 5
hairdressers - 45
emergencys - 50
car repairs and tax - 30

total = 1972

Also, am I correct in thinking I will not have to pay towards an ipa because my only income is benefits, what about the £10 maintenance I receive?

I also dont understand what we should put for income on forms, I was planning on putting hubbys wages and his wtc under his income, and ctc, child benefit and maintenance under my income. is this correct? also we have left housing benefit off, but put the actual amount of rent we pay down is that ok?

sorry for all the questions but im so scared and dont want to do anything wrong, thanks in advance for any help.

IF

Hi rhianna99 and Welcome to the Bankruptcy (BR) Board. First step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two others for your own piece of mind. Your BR could be refused if you have not sought advice.

* Blue text on this forum usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111

Others:

• Business Debtline
  - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

~ Please don’t do anything rash take your time and weigh up your options and read everything you can ~

We often ask you to post your SOA so we can see if you have included what you need to:-
MSE SOA Calculator - Click here
Select the MSE format at the end. Copy and paste onto your thread.

For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

BR friendly home insurance thread.

BR Friendly bank accounts sticky.

BR Abbreviations

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB

If you are new/old to this board and receive/see a comment that is not helpful or insensitive please don’t let it put you off posting, often these comments are made by people who don’t normally contribute to this board and don’t speak for us.

What to do if you get an insensitive or hurtful comment.


And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.


Best wishes
If...x

PippaGirl_2

You do have to put down benefits such as housing benefit and council tax benefit down even if you don't receive them yourself and they pay your rent direct, that counts as income.

JCS1

Hi Rhianna,

if your debts are under £15,000 (and depending on a few other criteria), you may be eligible for a debt relief order, rather than going bankrupt. Be right back with the link.

Link here:

https://forums.moneysavingexpert.com/discussion/1385275

And some more here:

http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/insolvencyprofessionandlegislation/DebtRelief.htm

If you do meet the criteria, the cost is £90, so a lot less than going bankrupt.

rhianna99

PippaGirl wrote: »

You do have to put down benefits such as housing benefit and council tax benefit down even if you don't receive them yourself and they pay your rent direct, that counts as income.

We do receive housing benefit direct to us, but do I put it under my income, or my partners, it is paid into my account but is a joint claim, its so confusing, also on the court fee remision form it says not to include housing benefit as income, thats why i thought i should just put the actual rent we pay after hb has been paid.

JCS1

rhianna99 wrote: »

We do receive housing benefit direct to us, but do I put it under my income, or my partners, it is paid into my account but is a joint claim, its so confusing, also on the court fee remision form it says not to include housing benefit as income, thats why i thought i should just put the actual rent we pay after hb has been paid.

Treat the 2 forms, court remission fee and SOA as seperate. So if it tells you to not include housing benefit on the court remission documents then don't. On the SOA then you will need to include the benefit as income.