Bancruptcy and Income

twinkle75

Can anyone help.

After a long period of trying to do the right thing (ie paying off debts) it has become clear that my DH is not getting anywhere in clearing his debts. He is currently with a debt management company and paying them just 100.00 a month. They only seem interested that he keeps paying something to them and not worried in the slightest about when the debt will be cleared.

I will be returning to work after the birth of my son and we have agreed that it makes sense for him to stay home with him as I earn more money.... not great money.... and we could not afford child care anyway.

Therefore his income has now stopped. I literaturally earn enough for the rent and other living expenses and will not be in a position to pay off his debts too.

I believe that bancruptcy must be the only way to go for him. Does anyone have any experience of this and tell us what we do and whats involved.

Many thanks in anticipation

CLAPTON

how much are the debts
are they all in OH name
are you property owners? if so how much is the property worth and how much is he mortgage..it is in joint names

twinkle75

We rent privately and debts are in region of 15000. They are all in his name, they are debts run up after his divorce prior to our meeting.

fermi

Hi twinkle75,

There are several things to do to start sorting this out.

1) Prepare a 'Statement of Affairs' according to the sticky here: http://forums.moneysavingexpert.com/showthread.html?t=107280

and post it on this forum. Also include the info that CLAPTON requested.

This will allow everyone on DFW to get a full picture of your/his position, which will let them/us give you the most useful advice possible.

2) Get some free independent advice from one of the charitable debt advice organisations.

You should either:

• Get an appointment to see a 'money advisor' at your local 'Citizens Advice' office.
• Call the Consumer Credit Counselling Service. Tel: 0800 138 1111 http://www.cccs.co.uk/
• Call National Debtline. Tel: 0808 808 4000 http://www.nationaldebtline.co.uk/
• Call Payplan.Tel: 0800 917 7823 http://www.payplan.com/

They will advise you both as to the best option to deal with your situation.

If the DMP is with a company that charges you a fee then you should consider switching to one run by CCCS or Payplan, where all the money goes to the creditors.

3) If you wish to ask any further/detailed questions about bankruptcy, then there is a sub forum on DFW called 'Bankruptcy and Living with it'.

http://forums.moneysavingexpert.com/forumdisplay.html?f=136

However, should you decide to post there, then continue to post on this forum as well so that people can look at and help with your situation from all perspectives and with the maximum amount of practical advice.

EDIT: Forgot. There is also a DMP mutual support thread on this board.

chevalier

Is your OH paying his debt repayment money to a company that take a fee? If this is the case then his creditors are quite likely not seeing much of his monthly payment.

If he is with this type of company, then it may be a good idea talk to one of the free companies - CCCS or Payplan, as they do not charge a fee.

Ref the bankruptcy - Claptons points are very valid. If the house is jointly owned, then the Official Receiver may want the house sold to pay for the debt. Another thing to ask CCCS or Payplan.

As only you are working are you getting all the benefits - like working tax credit to which you may be entitled?

chev