Considering Bankruptcy - Feeling so anxious

AMay

Hi all,

My husband and I have a DMP with PayPlan that we pay £110 a month to and it's going to take us approximately 20 years to pay our debts off.

We have been really silly; we've obtained around £10,000 of more credit outside our DMP. I know we've been really silly, and lived above our means, please don't judge us. I am now feeling like a complete fool!

We've got to the point where we want to sort our lives out. We're both in our early 30's with 2 young children.

We're considering going BR, but I'm very frightened about the OR and how they will be with us due to our reckless spending.

In total we have around £60,000 of debt. After we pay our bills, petrol and food shopping, we have approximately £800 a month left over.

If we were to go bankrupt, how much of this will they take from us? And realistically, how are people managing? I'd like to hear from people who have a young family like us and see how you are all coping.

Please don't judge us, we are going to make that change to sort our lives out and I plan NEVER to get in this state again. My biggest fear is dying and feeling like I've had an awful life. I don't want that, I want to enjoy family life etc.

Any advise will be appreciated.
Thank you.

alastairq

Do you 'own' your home? {OK, a mortgage, which really isn't the same thing].

The living expenditure you quote probably isn't in line with what can be expected on a Statement of Affairs...for BAnkruptcy.

By that, I mean, probably a realistic budget given your situation...and not what would be 'allowable ' [for want of a better word]...within an SOA for BR.

With Bankrutpcy, the Bankrupt is allowed sufficient from their income to sustain a reasonable standard of living, for themselves and their whole family.

Thus, your living expenses as a family may well be an awful lot more than you quoted...either in practice [certainly, over a period of time]...or compared with acceptable allowances in an SOA in Bankrutpcy.

So we need to see a good SOA first...sadly I have no access to the link....someone else will be along with it soon, I expect.

We also need to know how the debts are divided, between you and your OH?

In BAnkruptcy, one has to get used to the idea that...if one has a surplus of income, whilst the OR will try to recover it for the BR estate...it is not a debt repayment.

Therefore, if an agreement is initiated. and one's financial circumstances change during the payment period..then the amount can be adjusted either way to suit.

What i have tried to show is, Bankrutpcy is not to be feared....[no more than, Divorce, or changing your name?]

AMay

Hi Alastair,

Thank you so much for getting back to me so quickly!

We don't own our own home, we private rent.

Tomorrow morning, we plan on sitting down and writing down every single debt we owe etc, and then I can come back to you with more accurate figures.

When we both file for BR, will they assess our applications separately or joint?

My husband and I don't have any joint debts, only unsecured ones like credit cards, catalogues etc.

I work in the evening, part time, so my wages are very minimal, my husband works full time and earns more and his debts are higher than mine.

I'm sorry I've not prepared myself before posting. I will come back to you tomorrow.

I really do appreciate your help.

Thanks again.

evenasus

Statment Of Affairs Form.

http://www.stoozing.com/calculator/soa.php

AMay

Thank you Evenasus,

We will fill this in tomorrow.

Just had a quick glance at it, will BR allow us to have holiday and entertainment etc?

evenasus

AMay wrote: »

Thank you Evenasus,

We will fill this in tomorrow.

Just had a quick glance at it, will BR allow us to have holiday and entertainment etc?

I believe they allow a certain amount.
Check out other posts on this board for their SOAs and you'll get an idea.

evenasus

Entertainment - I don't think so. Holiday - yes.

evenasus

Here are a few of recent ones...

https://forums.moneysavingexpert.com/discussion/comment/68942570#Comment_68942570

https://forums.moneysavingexpert.com/discussion/comment/68992504#Comment_68992504

https://forums.moneysavingexpert.com/discussion/comment/68991992#Comment_68991992

AMay

Thank you so much So do we need to do it as a joint application, or will it be treated as 2 different ones?

tigerfeet2006

It will be treated as an Individual BR. You have to do two seperate applications and two sets of fees. But as you are married you can do the same SoA with just the wages switched around.

AMay

Thanks Tigerfeet, so will they take into consideration the surplus jointly or as individuals?