Considering Bankruptcy

millie84

I am seriously considering bankruptcy as an option. Currently have a DMP with Stepchange which will take around 11 years to pay off all my debts (around £15K). I am 30 now and have been paying the DMP for 3 years, I just feel like I will never pay my debts off.
I am getting along OK with the DMP at the moment, but I still feel like I struggle to get by and I don't want to carry on like this all my working life.
My debts are due to a relationship breakdown.
Would bankruptcy affect my share in a house jointly owned with my ex partner? I am trying to get my name off the mortgage but he is being unco-operative at the moment. I have given him a cut off date by which I am going to obtain an Order of Sale and sell it from under him (he has had 7 months already and no movement), but hopefully it won't come to that.
I don't have any assets, I can't even afford to drive at the moment.
What implications would a bankruptcy have for me?

battyboimatt

Yes it would affect a share of a house you jointly owened, but it would also depend if it had any equity in it, if it does then yes they sell your share or ask you if anyone wants to buy your share out, this would go into your bankrupty to pay towards you debts. Some allownaces in bankrupty are less than what DMP allow and if you have spare cash you would pay an IPA for 3 years. Hope this helps

TheGardener

battyboimatt wrote: »

Some allownaces in bankrupty are less than what DMP allow and if you have spare cash you would pay an IPA for 3 years. Hope this helps

sorry - I would have to disagree with this statement. It seems most BR's find the guideline amounts (they are not allowances) are more flexible with BR and are the subject of negotiation with the OR. Obviously the longer term impact of BR can be more significant, particularly if there are assets like houses involved.

battyboimatt

I'm sorry but I would have to disagree with your statement also, for example in a DMP they will allow you money for entertainment in bankrupy they would not allow this. Also as I have said many times before people who ask what allowances they can get in bakrupty really annoys me, there is no allowance you put down what you actually spend and the OR will say its too high or allow room for more. It annoys me when people try and just put the highest allowance so they get less of a chance getting a IPA, but thats another subject.

TheGardener

I actually think we are singing from the same hymn sheet on 'allowances' - as I said in my post - they are not allowances, they are guidelines.
The fact so many DMP's fail and end in eventual BR suggests the model is flawed except for a very few people for BR is not an option. Few people have the stamina to pay off debts will more or less all their surplus income for decades to come. BR is not the easy choice but it is effective.

My experience of this board is that many prospective BR's are given advice on their SOA's that highlight items they have genuinely missed - parking and opticians charges are classics - and I have rarely seen posters advised to 'pad' their SOA's. It is important that as part of the BR financial rehabilitation, people really look hard at what their expenditure is and don't overlook hidden costs.