please could someone advise us please.

waterboy2

we are currently in a dmp with payplan but bankruptsy is forever on our minds.
we are two adults,two children ages 13/10,we live in a mortgaged house.
we have been with payplan for over 5 years and i cannot see light at the end of the tunnel.
assets
house £74000
car £800
we are currently in arrears with our mortgage about 3 months as i lost my job in november,our current arrangement runs out next month.so from next month our outgoings will be
£336 mortgage
£361 secured loan
£104 council tax
£80 gas
£40 electricity
£36 water
£50 phone/broadband/youview
£30 dinner money
£35 car tax
£18 life insurance
£10 hmrc
£80 payplan dmp
£11 pet insurance
£12 tv licence
this is paid out before we have eaten or general things.
income is wife £750 month
me £500 self employed
obviously our wages are not enough to cover our outgoings.have recently spoke to payplan but have given no indication for us to go bankrupt although i think this could be the only way.our house is currently up for sale with about £3000 equity in it so would be enough to pay estate agents ,solicitors etc.
i have no idea forward with this so any advise would be greatly appreciated.

debt_doctor

Hi,

How much debt do you have?

I pressume you have decided to give up on the property, how much would a suitable private rent be in your area?

If you decide to go BR then you should be thinking about stopping all payments to mortgage / secured loan to go towards rental deposit.

Do you claim tax credits?

DD

waterboy2

we have £40,000 to 19 creditors.we have been to court once when northern rock applied for a charging order this was delied.
we have given up on the property after being in here 15 years
rentals vary from £400-£500 a month
tax credits we receive £90 a month but this is based on the current years earnings.(SO WOULD IMPROVE IN MAY)
i resigned from my job in november although i would have been fired for gross misconduct so had to to save my pension etc.

debt_doctor

What do you do as self employed, and what does your partner do for a living - any issues with BR and your employment(s)?

Any other assets other than those mentioned, or soon to be assets?

Does one partner owe the bulk of the money? How is the debt split?

DD

waterboy2

no issues with work i dont think.self employed parcel courier.wife shop assistant so no high flyers here.
got no assests apart from mentioned above.
debt is about 50/50
thanks for commenting

debt_doctor

Well I reckon that you could have around £1700pm net income before an IPA might raise its head (allowing £500pm rent, ignoring Payplan payment and further car costs)

Can the car owner prove a need for the car rather than a want?

DD

waterboy2

re car owner i need it to deliver my parcels or i wouldnt have a job.
sorry to be a pain whats an ipa

waterboy2

ok thanx for your help .what would you advise under these circumstances as i havent got a clue.sorry to be vague.

debt_doctor

An IPA is an Income Payments Agreement. In BR, if you are deemed to have excess income above your reasonable domestic needs, then they (the Insolvency Service) will want that surplus income in monthly payments foor 3 years towards your BR.
I estimate no IPA for your family makeup unless income is above £1700 pm.
- and you're not a pain!

DD

debt_doctor

From what I know so far I feel that you are idealy suited to BR, as it would appear that neither your income or assets are at risk.

What I would say though is getting your family re housed is far more important than going BR. Get re housed first, then go BR.
You are fairly untouchable from your creditors, realistically, and your DMP would take such a ridiculous amount of time to pay off then I agree that it is not / possibly never was a right option.

DD

waterboy2

so how would we stand with the mortgage and secure loan i guess they would auction it if repossed and if there was any shortfall would we have to pay that to them.mortgage is with halifax,secure loan is with webb associates(re picture finance)halifax have been quite good with us but webb have been a nightmare since they took over the account.