Bankruptcy or full & final settlement

leighblue

I am after the thoughts of members on which is the best course of action for my wife.

I went bankrupt in 2012, and am now discharged. Virtually all of the debts were in my name, but two were in joint names with my wife and one in her sole name.

My wife doesn't work, she used to receive DLA but that has been stopped, so now she receives no income. I pay all the household bills.

The debts are a CC for about £3.5k, which a DCA started taking payment for 6 months ago - £1 a month token payment, £2.5k to Natwest from a joint bank account, which they have never asked for payment towards since my bankruptcy, and a joint loan for £7k which went to CCJ in 2011, but they have never tried to enforce or collect any kind of payment against.

We would like to settle the debts once and for all to give us a clean slate.

We have been saving up for the bankruptcy fees which we now have. I am also due a bonus next week, and could actually make a payment of about £1300 towards the debts.

My question is, would it be possible to get a full and final settlement of 10p in the pound, especially against the CCJ debt, or would we be wasting our time? Or would it be simpler to just go for bankruptcy?

Also, on a slightly different angle, my wife has a car, which she only really needs to take the children to school. It is worth about £1600 - £1700 (stopping us going down the DRO route), any thoughts on if the OR would let her keep it. The school is over 3 miles away, and the children are 8 & 9. There are nearer schools but the children are very settled and we wouldn't want to move them. There is no direct bus service.

Many thanks in advance for any advice you can offer.

egrescrimp

Who actually bought the car? It doesn't matter who's name the car is registered in, if you paid for it - it's your assest so she could still go for a DRO.

I'd be surprised if they accepted 10p in the £1, if you were closer to 50p you may stand more chance of reaching a settlement/agreement.

DorisTrousers

There is no such thing as a joint credit card, only the first named is liable. On that basis, either it was wiped by your BR and the DCA are collecting money that is not owed, or it is solely your wifes debt.

With a car, and because a DRO has been mentioned, it is always best to get as accurate a picture on value as is possible, cars are often worth less than you may think.

leighblue

Thanks for the replies

The CC is in my wife's name - all mine were wiped in the bankruptcy

With the car, I paid for it but put it into my wife's name - her name is on the V5, its her insurance etc (although I pay these from my bank account). Could I claim I own it as I paid for it ( I also own my own car which I need for work)

Many thanks

alastairq

I paid for it but put it into my wife's name - her name is on the V5, its her insurance

Assuming you can prove you paid for the car...ie, receipt from purchase, bank statements, etc.....then there ought to be no issues regarding who owns the car.


Not sure how you could put the car into your wife's name..ie make it her asset, unless you have documentation to show you gifted her the car?

As a gift, this would make the car her asset.


The name on the V5c is that of the Registered Keeper.

As displayed right across the front of the V5c, the Registered Keeper is not necessarily the owner.

The Registered keeper is the person responsible for the car..ie the person to whom all initial legal documentation is referred.[This does not absolve the driver from their legal responsibilities with regards to the car, either]

The only time an OR defers to the V5c is where it is unclear as to who the owner is....ie insufficient proof.

MAke sure you find the proof you made the purchase.....and it's yours.