Debts to family?

EllieBelly

Hi all, after completing the debt remedy tool on step change I have been advised to file for bankruptcy. My main concern is that I have a loan in my Mum's name which is £180.89 p/m and I also owe her £1300. I'm assuming these won't be taken into account as the debt isn't in my name? She can't afford to repay these herself and I'm so worried about how to handle it.

Please don't think I've taken advantage of her, these are debts from a long time ago and I obviously never expected to find myself in this situation. The stress of this is making me ill.

Flyright

Your Mum is legally responsible for the loan and you will not be able to include it in your bankruptcy. You will also not be allowed to make any repayments to yur Mum whilst you are an undischarged bankrupt. Have you been repaying her as well as your other creditors up to this point?

EllieBelly

Hi, yes I'm up to date with the loan payments and with the majority of my creditors - I do have a few outstanding debts from gym membership etc. but i don't have any defaults on my main ones. I was managing the debt up until recently, split up with my partner and have had to move house as well as losing my job and there is no way I can possibly maintain it anymore

MEM62

Unfortunately, these factors should have been considered when the loans were taken in your mum's name. I am sure this was done with the best of intentions but now your bankruptcy will have a potential downside for your mum.

Perhaps the best you can do is see what cash you have available post bankruptcy to put towards these payments. One way or another these debts will need to be serviced if you want to prevent a negative impact on your mum.

I hope you manage to work it out.