Newbie and going bankrupt

Spacekitty35

Hi all, as the title suggests I'm a complete newbie to the forums but in need of some advice. I'm currently in the process of going bankrupt, well started filling in the forms anyways, have yet to find the £705 fees needed. (Although apparently I should be able to waive the £180 fee due to income)
I'm currently just under £20k of debt, and looked into an iva but unfortunately my partner would have lose his job so cannot do a joint one, we've decided for me to go bankrupt and for him to go In a DMP afterwards. I'm just confused about the income part.
My partner just renewed sky (which I was not happy about) and it costs us £60 a month for TV broadband and phone, I'm a bit worried that his outgoings are going to effect my BR! He also is paying back a family member for a washing machine and fridge freezer purchased on a catalogue under her name (3 more £100 payments due) Would these go against me at all?
I'm not currently working (partner is full time) we have 4 boys between 15 and 2 years and live in a housing association property with no arrears. We don't own a car and not planning on purchasing a house in the near future so it seemed the best way to go as HMRC have just decided that we need to start paying back an overpayment (their bloody fault!!!) of £1800 at £60 a week, so we are now behind on a lot of bills 😔 I'm planning on visiting the citizens advice before I go to court to make sure forms are all filled in correctly, but I really need some helpful advice as this is a huge step for us. Many thanks in advance

Cobalt77

As you are under the £20K mark, have you considered a Debt Relief Order? All the benefits of Bankruptcy, but a lot cheaper.

More info here: http://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx

Spacekitty35

Thank you for your quick reply, I did consider the DRO, but as our income goes up and down every month I'm scared we won't get accepted as I'm sure we have more than £50 of excess income (mainly because the debts won't be getting paid anymore ironically) some months we have £300 to spare others could be £20, all depends on what's needed that month! (I say spare, it all gets spent, We don't have money in our pockets other than the days we get paid on) Moved in to a new home last April and we can't even afford to carpet our stairs or bedrooms, looking forward to the day when we can! it's quite depressing hence the bankruptcy route

Cobalt77

Spacekitty, start off by completing your SoA - as you'll need to do one irrespective of whether you go down the DRO or BR route.

Once you've claimed all the things you can, you may not end up with any surplus at all!

Complete it here: http://www.stoozing.com/calculator/soa.php

and then post your results back here - you'll then get some guidance on which items you are being too lean on.

HTH

bloolagoon

Is the HMRC debt for tax credits on a joint claim.

Also are you aware that tax credits will fall in April

ampersand

Saw your post by chance, Spacekitty - welcome to mse.
I'm very glad you found the forum.

Going bankrupt is a big step and I don't believe you have been anywhere near fully and properly advised. Is OH fully on board with this and the necessary changes in which he must be involved? You have those family debts as well.

You bankruptcy sounds more like a tight corner escape route and that isn't enough to take you forward. Your problems are numerous and deep-seated.

4 boys from 2 to 15, plus OH, makes for a lot of chaps in the household.

When you post up an SOA, you'll find that Sky and similar unnecessary things will be among the first to go.

There's a lot of help to be found on the Old-Style Threads, some of which you may not want to accept, but please look there.

The Recipe Index is a great resource and meal-planning is an essential skill you need to have.

Have a look at https://forums.moneysavingexpert.com/discussion/4148389
Feed a family of four for £20 a week challenge

[I know you are 6, but the ideas are good for everyone]

Next, Freecycle can be your friend when looking for ANYTHING, but do ask nicely:-) The sense of entitlement or demand by some freecyclers is a no-no, if ever you've been on the wrong end of it.

What stage is your 15-year old at in school? Subjects? Sports? Plans for future? It's so important that the children absorb budgeting and sensible money-management as part of normal homelife.

This can be as much of a family makeover as a money makeover and you will need to master the income roller-coaster you describe.

Do you have a good Library near?

Please look here: [Martin recommends them, along with Stepchange and others]

https://capuk.org/

CAPUK are brilliant. They understand family life and money through and through. You'll learn how to spread the pain, plan around variable income. They will also ensure you have a budget for treats.

Click 'I want help'. Check out the vids., latest news and blogs.

Post that SOA asap, Spacekitty. Ring CAPUK.

spacekitty31

Thanks for the reply, my partner is fully aware, and I'm currently receiving help from step change, they reckon this is the best route for me. The only joint debts we have are council tax (in agreement to pay back £60 a month) and the water bill which we also have an agreement for. I've not just decided this, it's been a discussion for months due to finding a ccj in my credit report I didn't even know I had (court letters were sent to a previous address) I was finally in a place to start getting our finances sorted at the time and then lost £60 a week in tax credits.
The IVA was the best route after that but my partner would lose his job with the post office so we needed something that would sort my debts out first so we can then make a DMP for him after. as for shopping on a budget, we are currently spending £80 a week without any luxuries (meat only on 2 days a week and lots of value branded food) I also smoke, have tried to give up several times this year but so far not managed to stop, I know I will have to to go bankrupt but all this thinking isn't helping.
The link you supplied about capuk is unfortunately not in my area, I tried them already and they suggested step change, which is how I got to this stage! How do I go down on my package with sky as i thought we was on one of the lowest! (It all included a broadband TV and phone) we don't have an aerial either and can't afford to get one put up (got quoted £140 for supply and installation but not a priority unfortunately) so no freeview to keep us entertained lol
Any help is appreciated, but more worried about the implications of my partners bills than anything else as his family member helped us out of a tight spot and can't afford to pay less otherwise they will get into trouble as they are poorer than we are, just better with money!

spacekitty31

bloolagoon wrote: »

Is the HMRC debt for tax credits on a joint claim.

Also are you aware that tax credits will fall in April

Thanks for the reply, the debt is in my name but taking it out of a joint claim. And I am fully aware that my income is going to drop significantly next year (eldest turns 16 next July and planning on doing an apprenticeship) I am planning on going back to work when my youngest is in school full time, as I have been unable to find cheap enough childcare that makes is worth while (I'm just a retail assistant which needs flexibility which I don't have due to my partners working times, also in retail, but with a post office built in hence the losing job part!) we are in a catch 22 situation at the moment!

spacekitty31

Ps sorry about the change in name, could not remember my password and then it said the email I used wasn't in the system and forgot I had this original account! Lol