Out of our depth

inbigtrouble

I suffer from Bi-Polar affective disorder and over the past few years during my periods of mania went on several spending sprees with credit cards, loans, finance etc...

Now this has all come on top with a total of £83,000 of non priority debts which my wife and I are unable to make even the minimum payments on.

Most of the creditors have now handed the debts over to debt collection agencies who are sending letters on a weekly basis. One of them has sent a county court claim form which we need to fill in and return with 14 days.

I am currently in the depression phase of bi polar, added to that being treated for severe anxiety meaning I can't even leave the house. I am not sleeping, eating and am feeling suicidal as I really can't see a way out of any of this.

We have put an income and expenditure sheet together which I would attach but can't see how to make attachments.

Please help

tigerfeet2006

Hi and welcome to the board. The first thing you need to do is get advice from one or two of the debt charities. If you read the sticky marked Look Here First the links and numbers are in the first post. Also have a good read of the sticky, there is a lot of useful info there.
https://forums.moneysavingexpert.com/discussion/1056083

If you use this calculator you can press the MSE button at the bottom and then copy and paste it into a post.
http://www.stoozing.com/calculator/soa.php

We can not advise whether BR is suitable for you as we don't have all the facts but if the charities advise it (and I don't see why they wouldn't given the limited information you have posted) then we will help and support you through the process.

inbigtrouble

Thanks Tigerfeet,

Here is the information.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 2250
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2250

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 509
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 31
Gas..................................... 28
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 40
Mobile phone............................ 20
TV Licence.............................. 36
Satellite/Cable TV...................... 27
Internet Services....................... 5
Groceries etc. ......................... 425
Clothing................................ 95
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 200
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 30
Holiday................................. 50
Emergency fund.......................... 50
Travel insurance........................ 12
Mother in law rent...................... 300
Total monthly expenses.................. 2069


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................6042......182.......21.9
Credit card....................3471......105.......21.9
Credit card....................2917......88........21.9
Catalogue......................1249......63........0
Catalogue......................521.......50........0
Catalogue......................393.......40........0
Benefit overpayment............2500......0.........0
Finance loan...................2009......101.......0
Finance loan...................1821......92........0
Store card.....................4246......213.......32.4
Overdraft......................613.......31........27.9
Overdraft......................1143......58........27.9
Overdraft......................2817......30........27.9
Personal loan..................25466.....474.......12.9
Credit card....................790.......0.........0
Credit card....................4327......130.......21.9
Credit card....................4084......123.......21.9
Credit card....................6319......190.......21.9
Credit card....................9111......274.......21.9
Credit card....................3354......101.......21.9
Total unsecured debts..........83193.....2345......-


Monthly Budget Summary
Total monthly income.................... 2,250
Expenses (including HP & secured debts). 2,069
Available for debt repayments........... 181
Monthly UNsecured debt repayments....... 2,345
Amount short for making debt repayments. -2,164

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -83,193
Net Assets.............................. -83,193

fatbelly

Can't see a reason here not to go bankrupt.

Stop paying the cards etc. Delay the court claim by acknowledging service. Start saving for the bankruptcy fees.

What's Mother in law rent?

How much is in the holiday fund?

patman99

At a guess, I would assume that they may well be paying the M-in_l's rent. This will have to stop. The M-in_L will have to fend for herself. I know this sounds harsh and probabley not what the op wants to hear, but if they decided to go bankrupt, there is no way the o/r will allow this arrangement to continue.

Bankruptcy does appear to be the best option. Of course, this depends on whether or not this would have any affect on the partner's job (some require that you are not bankrupt).

OP, make sure that you claim every penny in benefits that you can. You might well be able to claim ESA and PIP for your mental health issues.

inbigtrouble

Hi Guys,

Mother in law rent is indeed us paying for her rent. The problem is that my wife is an only child and there is no other family, so if we do not pay the rent she will be made homeless. Surely the courts will not sanction an 80 yr old pensioner being put out on the street?

After we pay bankruptcy fees there will be nothing left in the holiday fund.

I have already looked into benefits and we are not entitled to anything because of my wife's income being so high.

Generali

inbigtrouble wrote: »

Hi Guys,

Mother in law rent is indeed us paying for her rent. The problem is that my wife is an only child and there is no other family, so if we do not pay the rent she will be made homeless. Surely the courts will not sanction an 80 yr old pensioner being put out on the street?

After we pay bankruptcy fees there will be nothing left in the holiday fund.

I have already looked into benefits and we are not entitled to anything because of my wife's income being so high.

Sorry to hear of your situation, especially given your illness. Banks shouldn't be allowed to lend like this to people who are unable to cope with debt IMHO.

Wouldn't welfare pay MiL's rent if she can't? I don't see why you have to do that.

You are insolvent. Your minimum payment is more than your income. The advice, from people much better placed to give it than I, will be to go bankrupt I am sure.

Good luck inbigtrouble. Go bankrupt and put the whole thing behind you. That has the added advantage that you will find it hard to borrow in future.

inbigtrouble

Thanks Generali,

This has certainly been a huge learning curve and whatever action we take to deal with it, I will always be saying no to credit facilities in the future.

My mother in law lives abroad and unfortunately there is no welfare system there. Her pension is the equivalent of about £100 per month and that's it.

I have spoken to 1 of the debt charities suggested twice now and they keep trying to push us down the route of a DMP which is totally unrealistic, but they are also saying we will not be allowed to continue paying mother in law's rent.

This is all stressing me out no end, I can't sleep, not eating and there just does not seem to be a solution to the whole thing.

Generali

inbigtrouble wrote: »

Thanks Generali,

No worries!

inbigtrouble wrote: »

This has certainly been a huge learning curve and whatever action we take to deal with it, I will always be saying no to credit facilities in the future.

My mother in law lives abroad and unfortunately there is no welfare system there. Her pension is the equivalent of about £100 per month and that's it.

I have spoken to 1 of the debt charities suggested twice now and they keep trying to push us down the route of a DMP which is totally unrealistic, but they are also saying we will not be allowed to continue paying mother in law's rent.

This is all stressing me out no end, I can't sleep, not eating and there just does not seem to be a solution to the whole thing.

The solution is bankruptcy I suspect. You are insolvent and don't have any other realistic alternative that I can see. I am really not an expert here and just wanted to offer someone some support who is clearly struggling in their life.

The problem that remains is MiL's rent. You won't be able to pay that if you declare bankruptcy I suspect. I guess it will come down to the technicality of who has the debt (you or Mrs ibt) and who has the income (Mrs ibt from what you say).

I can't be much help, others on this board can be much more helpful. All I can write is that I wish you the very best and I hope you find a way to put your illness behind you. Your debts are meaningless compared to your health.

inbigtrouble

Is really nice of you to come online at this hour of the night offer support Generali.

My wife is the only 1 working and some of our debts are in my name, some in hers and some in joint names.

There is no way we would go bankrupt if it meant MIL being made homeless. My wife only gets to see her mum once a year and whatever route we take to deal with our debts she won't get to see her for at least the next 3 years.

I hate this bloody illness.......(bi-polar)

Generali

inbigtrouble wrote: »

Is really nice of you to come online at this hour of the night offer support Generali.

It would be if I lived in the UK. However I live in Australia and it's just before 4pm over here. I look out on MSE now and again for people that just seem to need a bit of geeing up.

inbigtrouble wrote: »

My wife is the only 1 working and some of our debts are in my name, some in hers and some in joint names.

Hmm. I suspect that if you go bust then only the debts in your name only will be discharged. Experts will put you straight though.

inbigtrouble wrote: »

There is no way we would go bankrupt if it meant MIL being made homeless. My wife only gets to see her mum once a year and whatever route we take to deal with our debts she won't get to see her for at least the next 3 years.

You may have no choice. Other people will give you better advice. If continuing to pay MiL's rent is a must then you'll need to find a way through. Can you earn some money by working? I hate to be harsh but life is hard and sometimes you need to do what needs to be done rather than what has to be done. I write as someone who worked through cancer treatment last year (and got sacked for taking too much time off sick!).

inbigtrouble wrote: »

I hate this bloody illness.......(bi-polar)

Of course you do. It's f#$%ing horrible.