Advice Please

Grendel51

Hi, first post and a question regarding going bankrupt and the effect it could have -

A little background, following my son's birth 10 years ago, due to postnatal depression and no family support, out of desperation I started to pay for child care on credit card cheques to give my wife and our son a break for each other - unfortunately over the years it built up to the point I couldn't afford living expenses and the credit card payments so it spiralled - I am even after all this time living with around £30K of debts including two CCJ. I am currently paying my debts from private pension which I took as soon as I reached 50 -effectively stripping out my old age pension. I do work, after two spells of redundancy - but with rising fuel costs etc find very little excess cash at the end of the month - I also help my wife cleaning caravans at the local holiday park at weekends and during the school holidays. We moved into a very small bungalow a few years back to downsize but it is far to small for us - particularly my son who is now 10 - due to bedroom size I tend to end up on the floor sleeping in the kitchen in an old sleeping bag.

My wife has now been on anti depressants for 10 years.

We can't sell the bungalow as we have a mortgage of approx £80k on it and it was valued at approx £61,000 (I am currently paying interest only as my salary, even after 4 years in my job is still less than I was earning pre redundancy - Someone suggested I could go bankrupt and start a fresh - there are three concerns with that - would be lose the property (it is in joint names but the debts are all in my name) how could I afford to go bankrupt when the I couldn't afford the fees to do so and three I have a car which is essential for work - and worth about £3,000 - would that be seized as an asset.

Help would be appreciated

tigerfeet2006

Grendel51 wrote: »

Hi, first post and a question regarding going bankrupt and the effect it could have -

A little background, following my son's birth 10 years ago, due to postnatal depression and no family support, out of desperation I started to pay for child care on credit card cheques to give my wife and our son a break for each other - unfortunately over the years it built up to the point I couldn't afford living expenses and the credit card payments so it spiralled - I am even after all this time living with around £30K of debts including two CCJ. I am currently paying my debts from private pension which I took as soon as I reached 50 -effectively stripping out my old age pension. I do work, after two spells of redundancy - but with rising fuel costs etc find very little excess cash at the end of the month - I also help my wife cleaning caravans at the local holiday park at weekends and during the school holidays. We moved into a very small bungalow a few years back to downsize but it is far to small for us - particularly my son who is now 10 - due to bedroom size I tend to end up on the floor sleeping in the kitchen in an old sleeping bag.

My wife has now been on anti depressants for 10 years.

We can't sell the bungalow as we have a mortgage of approx £80k on it and it was valued at approx £61,000 (I am currently paying interest only as my salary, even after 4 years in my job is still less than I was earning pre redundancy - Someone suggested I could go bankrupt and start a fresh - there are three concerns with that - would be lose the property (it is in joint names but the debts are all in my name) how could I afford to go bankrupt when the I couldn't afford the fees to do so and three I have a car which is essential for work - and worth about £3,000 - would that be seized as an asset.

Help would be appreciated

If you can afford the mortgage payment and the payment is not excessive then you won't lose your house.

The OR would seize the car as the limit on cars is £1k if it is essential for work, not a convenience but essential for getting to work. BUT having said that if you were to sell it before going BR and use £1k or so to buy a car and some for the BR fees then that would be fine.

Please read the Look Here First sticky and contact the debt charities mentioned for some free impartial advice and also read the rest f that thread. Read as much on here as you can and ask any questions you need.

https://forums.moneysavingexpert.com/discussion/1056083