Advice

Overstretched

Me and my husband have come the end and are now seriously considering bankruptcy. This has taken much soul searching and we are both feeling guilty and embarrassed about our situation. The straw that has broken the camels back, so to speak is a new unplanned baby. As a result we are no longer able to manage our outgoings. Step change have recommended bankruptcy and whilst I know this is the only option I am scared about the three year IPA and how this will impact on my older children who are not responsible for my situation. My eldest daughter is planning to go to uni next year and I know I am not going to be in a position to help her and she will
Now start her life in considerable debt.

At the moment I am without a tumble drier, dishwasher and microwave as all have broken. I am due to return to work full time in a week and clearly whilst these may be viewed as a luxury, they make a working mums life possible!

I have a moral dilemma, do I buy these things now before BR as know I will never be able to buy them on an IPA or is this wrong and also will the OR question this?

I am a very honest person by nature and hate conflict and authority but know that three years without these items with four children is going to be hard

What are people's thoughts?!

By the way this forum is great and so informative. I have been having sleepless nights and many tears in recent weeks but having read some of these posts I feel so much
better.

I have worked Since the age of 13 and never thought I would have found myself in this position

Thanks in advance

debt_doctor

Hi,

Buy them.

DD

Overstretched

Will the OR question this though, as don't want her to think I have been dishonest or do I just explain my reasons. I feel very intimidated about the OR interview and don't want to give her reason to judge me more than she or he already are!

debt_doctor

I assume that you are buying these items from your own funds as you mentioned getting back to full time work.
If that is the case then there is no reason you should not purchase standard domestic appliances, which is what they are - not luxuries.
They wouldnt count as assets in BR either - unless of extreme value.

DD

Overstretched

Would be on credit as have no disposable income left at the moment due to all our loans and credit cards. Are you saying i would be better to default on paying my creditors and buy them out of my own funds? We have just about managed to keep up payments to our crediybut this will end once my daughter starts nursery, hence why now considering BR.

debt_doctor

Yes, if BR is unavoidable, then defaulting and buying essentials from your own funds is far safer for you as it could be looked at as borrowing money with no reasonable prospect of repayment.
I'll take a guess that if it were not for the contractual debt payments you would have a fair bit of disposable income, hence the IPA worry.
IPAs are agreed not imposed, you should fight your corner to retain monies for your reasonable domestic needs.

DD