Sister's boyfriend's debts? Bankruptcy?

WheatleyMan

Apologies for the length of this but I'm trying to help sort someone's mess out.

It has come to light that my sister's boyfriend has some debts that he has kept quiet about/ignored. It seems that pretty much since he left home around 5-7 years ago he has just thrown bills in the bin (!) but now they are catching up with him. He met my sister about 2 years ago and a year ago they moved into a house which they rent from my parents (formal rental agreement). My parents would rather she just left him but it's up to her.

As of now, my sister is in control of the current finances in terms of paying for current council tax etc but there is the possibility that more debts could come to light - in which case she would definitely kick him out.

Anyway, I just want to know what he should do given his circumstances. He went to see the CAB - but he is not the sharpest tool in the box and I can't really understand from him what came of the meeting.

The total debt that we currently know about is £12k which breaks down as:

£2,000 debt for unpaid council tax currently with bailiffs - letter saying they will be round - unknown interest (see below re no assets)
£4,300 for a car - CAB looking to try and help reduce this apparently - but the debt is not thought to have interest at this time
£600 - water bill - no interest
£3,300 - bank loan - 16% APR
£1,200 - loan from his mother (that she borrowed from somewhere - some interest but not clear)
£600 - Sky debt - no interest but monthly £20 fine for non payment of £50 per month

Now he only earns about £12k a year which is about £800 a month after tax. Realistically these debts are getting on for that a month even witout living costs.

The thing is he has no assets of his own at all - well, other than a digital camera worth £100. The house is owned by my parents and my sister has a car that she owned before she met him and he has no insurance to drive it so never does. My sister owns what little there is in the house of any value and even then you're only talking a cheapish computer, fridge, very cheap TV etc

So I'm wondering whether he can/should go bankrupt as surely he has nothing to lose other than loss of face which he doesn't seem too bothered about. If they stay together they have no need to worry about a mortgage (well in theory anyway) and even if they don't stay together on his wages he will be around 5-6 years paying this debt off anyhow.

I've probably painted a bad picture of this lad but it's more ignorance/stupidity than deception.

Any advice would be really appreciated.

tigerfeet2006

Do you know if the CAB have spoken to him about BR. He needs to get proffesional advice before we can advice on much. Get him to ring CCCS and give them permission to talk to you or sister and sort things out.

http://www.moneysavingexpert.com/loans/debt-help-plan

fermi

Yes I agree. The only ones who can advise on whether BR is his best option is one of the free independent debt advice charities.

If he opted for BR a judge would require that he had sought this advice anyway.

Once this decision has been made we can offer advice about the process.

WheatleyMan

He didn't raise it with CAB and he says they didn't suggest it. Not sure what was said though - it's very hard to talk to him about it as he doesn't have a clue, knows it and so closes up.

But thanks for the advice - I will try and get them to get in touch with one of those groups.