Some advice needed

geordie90

Hi all first post here.
Due to a marital breakdown and the other half refusing to take any responsibility for her side of the joint debts I am left in a situation whereby once I have paid all the debts (as I am trying not to default or miss any payments) I am left with approx 100 quid a month.
The only way I am surviving is due to my new gf supporting me fully.
My question is:-
1. Should I go bankrupt( if I can due to my job)
2. Should I try to arrange a more sensible payment arrangement with my cc companies and loan companies?
3. What other options have I?
Can anyone give me some suggestions on how to approach this and deal with it?
I have been well and truly stitched up but it is not fair on my new gf to have to do this.
Any assistance or advice would be really appreciated
Craig

double_mummy

call stepchange 08001381111 or go on their website https://www.stepchange.org
and see what they advise

have you gone through the divorce and drawn up the financial order yet? if not make sure that the debts are included.

Lensman_2

Double Mummy is right. You need to sort a formal debt management plan (DMP) that will see your repayments at least leave you with something to live on.

More urgent might be joint accounts though. Do you have any with the ex? If you do you need to make sure that any withdrawals require both of you to authorise. Otherwise "joint and several liability" on those accounts could see her max them out while leaving you to pay them off.

geordie90

No she won't divorce me!!!!
I stupidly signed house over to her to 'do the right thing!' I regret that now, there are no joint debts that are active so that's a bonus. What does a DMP do.
Feel very naive ATM

Lensman_2

A DMP will work out your legitimate outgoings and what you have left over each month for debt repayments. It then allocates the repayments on a pro rata basis to each creditor. Yiu can do it yourself but charities like Stepchange will negotiate with your creditors and administer the plan for you. You just need to reliably pay them a set amount each month once the plan is in place.

Have a look at this website to get an idea of how to work out your legitimate spend. It will build your Statement of Affairs (SOA) which is the standard format to use when setting up a DMP.
http://www.stoozing.com/calculator/soa.php

Other threads here (usually "help with my SOA" type titles) are worth a read to see what is allowed and what is not.

The DMP is a double edged sword. It will protect you from greedy creditors who would see you living on rice and beans. On the other hand, it does just leave you with the basic allowances for legitimate bills. Don't expect £200 a month to spend on Sky and mobile phones for example.

double_mummy

you need to get a financial order done asap did you legally sign over the house to her or just do it verbally?

lensman as always is fab

have you looked into something like a DRO?

geordie90

Thanks for replies guys I'm going to look at bankruptcy option initially but not sure if I can due to my job but I'm going to ask my line manager to find out discretely. If not then I will consider all the options but until that time comes I'm in limbo

dancingfairy

Your ex may not be in the clear with the house. Obviously with any joint debts if you go bankrupt they fall to her to pay. Similarly if you go bankrupt I would expect the Official receiver to go after your share of any equity in the house. Obviously it depends on how long ago it was signed over but it is definitely worth thinking about. The OR can investigate and can overturn things like houses being signed over if needs be.
See what stepchange of one of the other debt charities advise. You do need to prove to a judge that you have sought advice if you wish to go bankrupt. You will also find the people on the bankruptcy forum on here really helpful with any questions you may have.
df
edit: it's mainly finance and law where you are likely to have problems with your job, particularly if you are in some sort of regulated role. Obviously different companies have different internal rules and procedures though. You can always try and contact HR annoymously or your union.

Lensman_2

If you are an Approved Person as far as the FCA goes, you will be very unlikely to be able to continue your career if you go bankrupt.

If you are not and want to explore bankruptcy then I recommend you pop over to the Bankruptcy & Living With It forum.
http://forums.moneysavingexpert.com/forumdisplay.php?f=136
Read a diary or two.

Bankruptcy in any case is really a last resort. It seems to be an emotionally debilitating thing to do and the public record of it lasts forever, unlike defaults which drop off after 6 years.

Lensman_2

Good advice from Dancingfairy to seek advice.

National Debtline were pretty good with me when I was looking bankruptcy in the face. CAB however gave me really accurate and very good advice.

You will have to join a long queue to get CAB advice but a few weeks wait versus a lifetime of consequence is worth it IMO.

[Deleted User]

When you refer to "joint debts", do you mean debts you are both signatories to, or merely debts you both benefited from?