Do you think they will suggest bankruptcy?

gibboking

Hi guys.
We are currently on a dmp with CCCS paying £232pm, and hoping to be debt free in 7 years.
BUT we have had a few changes in circumstances since paying £232.
I am currently on mat leave (baby due in 3 weeks:eek: )
Hubby was working away mon-fri but this was destroying our relationship and my hubby wants to be there for his children which is difficult when you are not there! But this means he will lose quite a bit of money.

Here is our SOA:

Mortgage £810pm can reduce to int only for 6 months whilst on mat leave making payments around £730pm. Balance £143k, house recently valued at £150k.
Debt balance currently at £20k

CTax £89
Secured loan £55 (£4.5k left)
water £16
Gas £40
Elec £40
house ins £24
Phones & int £60 (both on orange contracts so cant get out of them yet although I have tried!)
TV Lic £12
life ins £21
Car ins £70 (2 vehicles)
Food etc £200
Spares/servicing £30 (cccs put this on)
Car tax £16 (cccs
Petrol £40
Pet ins and food £35
Clothing etc £43 (cccs)
hobbies entertainment £30
Emergencies £30 (cccs)
£1581 total

My income £440 reduced from £700, will go back up in march to £700 when mat leave ends.
Hubbys income £970 reduced from £1300
Child benefit £72.40 Will go up to about £120 when 2nd child arrives.
Tax credits now £0 reduced from £130 but may increase with new baby and reduced income, but wont know until baby is here.
With hubby changing jobs we have made some savings.
£1482.40.

Leaves us -£98.6

We no longer pay childminder £75
Petrol has dropped by £50
Food has dropped by £140. As he had to eat out alot whilst working away.

But this still all works out that we dont have enough coming in to pay any debts, but we were more concerned about our family and relationship.
Do you think they will suggest bankruptcy?
We cant sell our house as we won't make enough to pay fees etc and clear mortgage, thats relying on getting 150K.
Would we lose our house?
What happens in BR?
I will contact CCCS as soon as i know if we can get more TC cos that may help a bit.
We currently have a 3year old and 1 on the way.

Thanks for any advice

tigerfeet2006

Go on to www.entitledto.co.uk and put in all your new details and it will tell you what you should be entitled to tax credit and benefit wise and give you a better idea what you are working with.

gibboking

Thanks I have been on there and it says I should get TCs of about £50, but according to TC office we have overpaid by nearly £1500 so that means we wont get anything until next april, I am waiting til baby comes along to tell them about changes in income etc as if I ring too many times they seem to get confused and mess my payments up.
I may also be entitled to the sure start mat grant and funeral grant and Im not ready to die just yet!

RAS

Hi

Can you go to the entitledto site and put in the details of your reduced income so that you have a better idea what you entitlements will be once you have the baby, as tiger suggested.

gibboking

I did put in the reduced income and a fictional birth date for baby 2.
I am just not holding my breath thats all as we have been messed around since we first started claiming.
We have had lump sums paid in, ive then gone to the tax office cheque book in hand to apy it straight back only to be told that the payment is correct, then the next year to have it taken off me, it is so confusing it gives me a headache!

gibboking

Anyone please?

tigerfeet2006

It is a possibility they will suggest BR. We are not the ones to tell you weather they will or not, they are the professionals and deal with this sort of thing everyday. What we can do is help and support you with any quesions or problems you have with the process of going BR ie: filling out the forms, housing etc. when or if CCCS suggest you should go BR.

backontheup

Hi There

I am afraid that you will have to seek professional advise on this one.

Given that there seems to be no equity in your house, if you personally go bankrupt for your half of the house, you may be able to sell the beneficial interest for £1.

Get some professional advice from the Citizens Advice Bureaux (NOT someone like Debt Free Direct - they are in the business of selling IVA's not giving 'free' advice)

Good luck :-)