Insolvent soon. Time to go BR?

Goodvibes

I was just going through my income expenditure sheet. If I didn't have all the benefits I do have then there is no way that we would be able to afford all the debt we have.

If my husband was to go bankrupt then would the benefits I get (maternity Allowance) get taken into consideration?
In Febuary I lose my Maternity Allowance and therefore will be £450 worse off per month and will not be able to afford all the debts we have.
Also my husband gets 4 bonuses each year from his job - anything upto £1000 each time. Would the OR take this if he went bankrupt?
As I have said in a previous post an IVA and a consolidation loan are not options.
Because we are near bankruptcy it has been suggested to us that we do a family arrangment which is the same as DMP but you make the offer for less years so the creditors accept something instead of nothing during bankruptcy.

I have so many questions. I feel so confused about it all.

Any help welcome

debt_doctor

Hi, you keep mentioning" if my husband went bankrupt" so I assume all the debts are in his name, and that neither of you are homeowners ??

Your husbands bonuses should be calculated over the year as a possible contribution to an IPA along with his other income. It is assumed that if possible you contribute half towards h/k gas, elec etc from any income you have, but your surplus is not taken in to account for an IPA.

You need full advice from one of the debt charities before you make any decision.

Cheers

DD

Goodvibes

Hi DD

Thanks for the advice. You'll have to excuse my ignorance but what is an IPA?
All the debts are in hubbys name.
We dont own a house.
I've just had a baby and am therefore on Mat leave. 2 days after I had the baby I was made redundant so do not have a job to return to. I am currently receiving maternity allowance but that will stop in feb.
We have 3 kids 11, 3 and the 12 weeks.

I just don't know what to do for the best. We can currently "just" afford everything but when any sudden bills come in or when my money stops we won't be able to.

Thanks Again GV

fermi

Hi Goodvibes.

IPA = Income Payments Agreement.

If you go bankrupt and have surplus income of £100 or over per month after your living expenses are deducted you may be asked to make payments to the Official Receiver under an IPA. If you get an IPA then you normally have to pay between 50-70% of the surplus for up to 3 years.

There is much more info on IPA's here: http://bankruptcy.informe.com/income-payment-agreements-ipas-dt18.html or http://www.debtquestions.co.uk/debt_forum/viewtopic.php?t=9679

As said by DD, you should really seek some advice from one of the free advice organisations.

[SIZE=-1] You can contact:
[/SIZE]

• [SIZE=-1] Your local CAB Office and ask to speak to a 'money advisor'.[/SIZE]
• [SIZE=-1]The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111 [/SIZE]
• [SIZE=-1]National Debtline - Tel: 0808 808 4000 [/SIZE]
• [SIZE=-1]Payplan - Tel: 0800 917 7823.[/SIZE]

They will be able to go through your full situation and help you find a way forward that suits you best.

In the meantime keep asking us questions about anything you are not sure of.

debt_doctor

Thanks Fermi for the IPA explanation, ( I get 'over jargon'd ' sometimes !! )

We know your family circumstances so if you post your husbands nett ( take home ) income on here, including his bonuses we can make an assessment of the possibility of an IPA.

Also we need to know how much debt, what type of debts, and occupations you both have.

Best,

DD

Goodvibes

Ok here it goes. I am currently recieving other benefits but they go soon so I've left them out of my Inc/Ex -

Income
Child tax 91
Child ben 169
Maintenance 130
OH Salary 1,631.00
Total 2,021.00

Quarterly Commission average 525
525
525
525
Bonus 1950
Total per year 4050
Divided by 12 337.50
Total monthly Income 2358.50

Outgoings
Rent 330
Council Tax 100
House Keeping 700
Water 35
Gas 44
Electric 46
BT phone 65
Petrol 400
O/D 30
Car Tax 18
MOT 10
Car Ins 50
House Ins 25
Sky 38
TV License 12
Lunch money 40
School bus 100
Clothes 50
Playscheme/playgroup 55
Mobile 30
Life !!! 46
loan 300
Credit Cards 220
Littlewoods 40
Medical Ex 40
Training Course 100
Total 2924


Total monthly Income 2358.50
Total monthly Outgoings 2924.00
Balance -565.50

What now???

Just to clarify the commission payments and bonuses are not gauranteed.
Again any help welcome:D

Thanks GV

NekoZombie

I'm approaching this SOA from a bankruptcy point of view...

Income
Child tax 91
Child ben 169
Maintenance 130
OH Salary 1,631.00
Total 2,021.00

Quarterly Commission average 525
525
525
525
Bonus 1950
Total per year 4050
Divided by 12 337.50
Total monthly Income 2358.50

Outgoings
Rent 330
Council Tax 100
House Keeping 700 (how big is your family - this amount will definitely not be allowed by the OR if you go bankrupt)
Water 35
Gas 44
Electric 46
BT phone 65
Petrol 400
Car Tax 18
MOT 10
Car Ins 50
House Ins 25
Sky 38 (usually isn't accepted by OR)
TV License 12
Lunch money 40(unlikely to be accepted as your housekeeping is so high)
School bus 100
Clothes 50
Playscheme/playgroup 55
Mobile 30 (as you have phones at £65, not sure the OR will allow mobiles too...)
Life !!! 46 (not allowed by OR)
loan 300
Credit Cards 220
Littlewoods 40
Medical Ex 40 (what is this?)
Training Course 100 (you are usually allowed some money for training, but I don't think this much. I was only allowed £25)
Total 2924


Total monthly Income 2358.50
Total monthly Outgoings 2924.00
Balance -565.50

What now???

Just to clarify the commission payments and bonuses are not gauranteed. The OR usually will ask for payslips for the last three months - including bonuses - and average it out. In addition, I notice you haven't got dental costs or prescription costs, or any money towards an annual holiday.
V

fiveyearplan

I thought £60 was the highest for telephone. Also, if you going BR you wouldn't still be paying your loan and credit cards etc.