Please help Bankruptcy the right option?

mayday78

Good evening

I am in desperate need of advise for my partners currentfinancial situation. I used the sight afew years ago and found the advise on dmp really helpful, so hoping you canhelp again. My partner has been on a dmpfor 18 months but the finances are getting worse and leading to extra stress,and wondering if bankruptcy would be the best way forward.

The incomings are as follows

Wage £1475

Rent£358 (flat on his property which herents out)

Total £1833



Outgoings

Mortgage£560

DMP £25

Tv License£12.12

CSA £205

Mobile £50

CarInsurance £44

Account fee£17

Rent/householdbills £ 358 (lives with me and pays towards rent and bills)

Fuel £480 (This is really high £12 per day getting too and from work, and his childrenlove 200 miles away and he sees them 3 weekends out of 4, with one tripbringing them back to our house, so 800 miles for the weekend)



Total£1751.12



This doesn’tinclude food, car tax, prescriptions, mot and living



In terms ofdebt on the DMP if the following

Credit card1 £8000

Loan £15,000

Credit card2 £4000

Unsecuredloan £9000



Total£36,000



The mortgagehas £77000 remaining (the flat is worth less than £70k)



Also mypartner is really being on the maintenance charges and has £7700outstanding. The company have beeninformed that he cannot pay the arrears and is on a DMP and cannot pay thealmost £200 per month) and he has been given a letter stating they will takehim to court to take the lease hold. This figure is rising due to the interest.



The totaldebt including mortgage is £120,700.



The wholesituation is causing a lot of stress and the mortgage is due this week and withoutenough money to pay it and the maintenance. Should my partner not pay the mortgage and put it towards the bankruptcycosts? Would bankruptcy be the rightmove for a financial mess like this?



Your helpand advice is much appreciated.

IF

Hi mayday78 and welcome to the Bankruptcy (BR) Board. I'm sure you will receive more replies but your first step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can.

If you're not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two/three others for your own piece of mind. Your BR could be refused if you have not sought advice.
Advice on here does not count, this has to be from one of the Debt Charities, an IP, an Accountant or a Solicitor. The Judge just wants to be sure that you can never come back and try and overturn the order on the basis that you were not aware of all the consequences.

* Blue text on MSE usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Debt Advice Foundation
  
• Christians Against Poverty
• Business Debtline
  
• PayPlan
• TaxAid - Help with tax debts.
• Debt Support Trust
  

Please do read these threads and other threads relevant to you, on the BR Board, remember knowledge is power :beer:

For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

Beware of advice via PM.

BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

BR Abbreviations

Reasons for your BR - 6.28

Charities who help with BR Fees

BR friendly home insurance thread.

CABmoney Bankruptcy Payment Order Calculator

Diary of a broken gambler

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes
IF

National_Debtline

Hello there,

Given the information you have provided, bankruptcy *may* be an option worth considering. We have a useful bankruptcy fact sheet which you can find by clicking here. As your property is in negative equity you may be able to keep it. As part of the application process you will need to demonstrate that you have had impartial debt advice, we would urge you to contact ourselves or one of the other debt advice charities. We also have a four-step guide to dealing with your debts and a popular online system which can help you select the most appropriate option, it's called My Money Steps.

I can appreciate the stress that debt causes. For many of our callers, bankruptcy has been able to lift a huge weight of their shoulders. It can allow a fresh start to be made relatively quickly. There are rules and implications too, as such it is vital that you make an informed, objective decision to ensure it's the best route for you.

Very best wishes,

David @natdebtline