Is bankrupcy the best way forward for me?

Malkin157

Bankruptcy is really an option for those with no other options.

I feel there are plently of unexplored options for you, and although a couple of them might be a little painful they will be certainly less painful than the destructioin that bankrupcy causes.

- Have you considered renting a cheaper property for yourself and your family?

- Although you still owe 105,000 to NR, are you repaying any of the capital of that mortgage?

- What mortgage rate are you on and can you get cheaper?

- Your eldest child will be eligible for some free childcare, furthermore he/she will be starting school (ish) by the time you come off maternity leave which wil lreduce childcare costs.

- You might have to consider coming off maternity leave earlier to increase your earning (even if that is part-time).

- You say not claqiming any benefits but you should be getting child tax credit? approx £20 a week I think.

- Any other assets, that could be sold? Have you looked at your whole budget and trimmed unneccesary expenses back. i.e. sky, mobile contracts, cars/petrol, checked energy tariffs, applied fo council tax reduction (if applicable) on the 1 bed house.

- Good Luck.

Sandgrownun

Malkin157 wrote: »

Bankruptcy is really an option for those with no other options.

I feel there are plently of unexplored options for you, and although a couple of them might be a little painful they will be certainly less painful than the destructioin that bankrupcy causes.

- Have you considered renting a cheaper property for yourself and your family?
We rent off a friend and its approx £200 cheaper than comparably properties, even ones with less bedrooms.

- Although you still owe 105,000 to NR, are you repaying any of the capital of that mortgage?
No I've had no spare cash.

- What mortgage rate are you on and can you get cheaper?
4.49% can't change due to neg eq

- Your eldest child will be eligible for some free childcare, furthermore he/she will be starting school (ish) by the time you come off maternity leave which wil lreduce childcare costs.
Very true, but will be child care for new baby.

- You might have to consider coming off maternity leave earlier to increase your earning (even if that is part-time).
Very true

- You say not claqiming any benefits but you should be getting child tax credit? approx £20 a week I think.
We claimed once, it was a nightmare. We kept them fully informed of changes and they still managed to overpay us by £350! Paying that back now.

- Any other assets, that could be sold? Have you looked at your whole budget and trimmed unneccesary expenses back. i.e. sky, mobile contracts, cars/petrol, checked energy tariffs, applied fo council tax reduction (if applicable) on the 1 bed house.
Not got sky, not paying council tax ATM got exemption. Could def trim elsewhere.

- Good Luck.

I've added my answers below, but on phone so can't bold.

Malkin157

If that SOA is monthly then you have some obvious cutbacks:

Firstly Holiday - get rid or seriously reduce, holiday in the UK, the kids won't even notice or care at that age,

Presents - halve.

Grocery - try to reduce by 25%, bulk buy, cook and freeze there's a board on here for that sort of thing.

Swimming - you can't afford that at the moment.

Hair - reduce or get rid of.

Petrol - try and reduce non-essential journeys.

In my opinion - £250 of savings to be made.

Sandgrownun

Malkin157 wrote: »

If that SOA is monthly then you have some obvious cutbacks:

Firstly Holiday - get rid or seriously reduce, holiday in the UK, the kids won't even notice or care at that age,

Presents - halve.

Grocery - try to reduce by 25%, bulk buy, cook and freeze there's a board on here for that sort of thing.

Swimming - you can't afford that at the moment.

Hair - reduce or get rid of.

Petrol - try and reduce non-essential journeys.

In my opinion - £250 of savings to be made.

Thank you. Definitely but even with that saving, paying the mortgage and rent I still won't break even I don't think? I'm sure I worked out over a £300 shortfall?

Also - totally agree about holiday, I've booked a caravan hol in April. And that will be all. We usually go camping but stupidly last year we went abroad, so I was doing the SOA realistically on the past years outgoings.

Sandgrownun

Also, please don't think I'm just recklessly reproducing. I got pg when the pill failed due to me being ill. I considered termination but I can't do that, and to me a life is more important than money worries.

Malkin157

I just want to say that I am genuinely wishing you the best for your situation. I have a little one myself and I know that things can get stressful with them, plus additional financial worries.

Here are some additional thoughts -

- Does your or your partners work offer any sort of childcare voucher scheme, I use one and it saves at least £60 a month. Check though that it won't affect your SMP.

- In April - I think personal tax allowance is rising that will give you some more £s in your pay.

- you should get more cb with the extra child.

- Can your partner find more work? Part-time perhaps.

- Could he look after the kids whilst you went back full-time, perhaps not what you want, but might make financial sense.

- If you sold the house what would your debt repayments be? Factor in the removal of bills associated with that house from the equation.

I genuinely believe you can dig yourself out of this quicker than you think (a couple of years - unless you have more children), remember bankruptcy affects you for a long time.

Sandgrownun

Malkin157 wrote: »

I just want to say that I am genuinely wishing you the best for your situation. I have a little one myself and I know that things can get stressful with them, plus additional financial worries.

Here are some additional thoughts -

- Does your or your partners work offer any sort of childcare voucher scheme, I use one and it saves at least £60 a week. Check though that it won't affect your SMP.

- In April - I think personal tax allowance is rising that will give you some more £s in your pay.

- you should get more cb with the extra child.

- Can your partner find more work? Part-time perhaps.

- Could he look after the kids whilst you went back full-time, perhaps not what you want, but might make financial sense.

- If you sold the house what would your debt repayments be? Factor in the removal of bills associated with that house from the equation.

I genuinely believe you can dig yourself out of this quicker than you think (a couple of years - unless you have more children), remember bankruptcy affects you for a long time.

Thanks so much, it means a lot. That would be amazing as I can't see a way forward so far. Re partner leaving work, his job is one with career progression so it wouldn't be advantageous. Mine I could leave or work pt. I could leave my job and come back on the same level and pay.
He could get extra work but its my debt so is feel bad about him doing that, he's debt free you see and good with money.

exarmydreamer

Nobody here judges anyone on this thread, let's just get that one out of the way. You may want to use the SOA, at the top of the page to show your income/outgoings, it's the one most commonly used on here and it is a lot easier to read and has more info/breakdown on it.

It's on a sticky at the top of the page, again, no one is suggesting that you are reckless. We are or have been in holes of debt ourselves on this board, I myself paid off 30K in debt and I can tell you there is always a way around a problem. I'm sure more posters will be along shortly, but it would help if you could post details using the sticky. Good Luck.

Sandgrownun

Ok thanks I will do. Just read my first post and actually I have decided to give the house back to nram. If I do this will I be able to set up a payment plan with them? I don't have issue with repaying the money. But they will put my interest up to 13% ish if the loan is without the house. Thanks so much for everyone's support. I will do the suggested SOA when I get a bit more time later.

Malkin157

Looking at your posts again I suggest you consider everything carefully before making a decision such as handing the keys back, from what I understand if you hand the keys back then they will sell the house (possibly at below market value) and then chase you for the shortfall.

Have a look at this link:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls