need a little advice please

candycream35

Hi all, I'm a newbie here and really need some advice.
me and my partner live together, he works, i do not at the moment due to childcare issues. my credit file is starting to look a lot better recently (just been accepted for a new credit card so i can start climbing) but we both want to be debt free.
I've just found out my partner has taken out 4 payday loans with lending stream to help cover costs for the past 5 months! I have forgiven him for this, but we have no spare money at the end of the month now, so we need to find a way to tackle this. We cannot afford it at all, he has debts of around 12k and at the beginning of the year we was both going to enter an IVA, but my credits improving slowly so don't want to risk it myself.
Would my partner be able to enter one on his own? and what can we do about the payday loans as the have CPA and I'm worried about the repercussions from the company (lending stream) as he said to them we could afford them and we clearly cannot! The latest payday loan was only taken out last Wednesday, so its still quite fresh.
We don't own our home or even a car, so no problems with entering an IVA in that sense! Do I bite the bullet and both of us go into an IVA together (i'm in about 7k of debt, was trying to get out with letter templates and 4 more years of waiting) or does he go it alone as he has more (newer) debts to worry about?

many thanks in advance

mwarby

Would your partner be eligible for a DRO instead ?

£19k of joint debts does seem a rather low amount to go for a formal insolvency, have you worked out your income and expenditure, as a DMP might work better

If a DMP wont work out (becuase you don't have any disposable income from budget, or not enough to pay back in a sensible time scale say 5/10 years) I'd look at bankruptcy instead. With no assets you have little to lose and it will be over in 3 years instead of 5(and your IVA could fail), depending on your budget it may even be over in 1

mwarby

If you have debts with your bank, it would also be an idea to get a new basic account with someone you don't owe money to. A new bank account would stop offsetting of debts withdrawal of overdraft and the payday loan CPA

I would not use the switch service for this though, as it forwards and credits and debits, and you'd want to avoid the latter

Jamie46

Can I please ask help my self I don't know how to start a new thread sorry. My wife is coming to the end of her dro in the next few weeks but we was also involved in an car accident and in the middle of a personal injury claim with she may receive a cheque for if we was to cash a cheque after the 12 month order would there be any come back as she is panicking having herd there is also a 3 month probation period thanks

mwarby

Jamie46 wrote: »

Can I please ask help my self I don't know how to start a new thread sorry. My wife is coming to the end of her dro in the next few weeks but we was also involved in an car accident and in the middle of a personal injury claim with she may receive a cheque for if we was to cash a cheque after the 12 month order would there be any come back as she is panicking having herd there is also a 3 month probation period thanks

if you google for "dro personal injury claim site:forums.moneysavingexpert.com" you can find previous discussions. From what I've read it does impact on the DRO and may lead to it being revoked. Sounds like you need to discuss with intermediary. Worse case scenario she'd have to go insolvent by another route such as bankruptcy

Attempting to conceal the asset (the cheque) is a bad idea and would be illegal.