New baby and facing bankruptcy please help

pw2989

Sorry this is going to be a long one

I have a 17 week old daughter and suffered the most traumatic birth which triggered quite severe post natal depression. Along with this my daughter has various health issues which has added to the stress, to the point Im struggling to eat and sleep.

Prior to having my daughter I was self employed for the majority of my income and employed on a small basic wage.

The plan was to return to work once the baby was 12 weeks old. Ive tried returning to work but due to my mental state of health I am very much struggling. Along with the fact my baby is unwell and original childcare provisions (grandparents) havent worked out because they are struggling to handle her, it feels physically impossible to return back to work. I struggle slurring words together or even doing basic things and making sense of anything. I dont know what day it is half the time and my job is very demanding and requires a lot of brain power. Like I say Ive tried a couple of days and struggled even forming sentences together correctly.

I have various debts, if including HMRC self assessment tax bills due amounts to about £30k.

If I don;t return back to work, which seems physically impossible, I would have no choice but to go bankrupt.

I currently live with my partner, he owns this property by way of mortgage and im not on the mortgage.

I lease my car which is due to go back next month.

If I go bankrupt, I would lose my job because #1 I wouldnt have a car to travel to work and #2 I cant be in my role if bankrupt.

My partner is self employed and earns about £25k PA. To my understanding if Im not working I wouldnt be entitled to any help in terms of benefit income because of his income level?

What scares me is that my partner has his own commitments. Currently I buy the food and basic baby things. His income would not support the mortgage, food, baby stuff etc.

What also scares me is post bankruptcy I won;t have access to a car. He has his works van but the baby cant go in here. With her health issues we have various hospital appointments and Im fearful how I could even get to these appointments with no car.

The biggest chunk of my debt is a loan with about £18,000 outstanding. This loan was taken out mainly for home improvements - we renovated the house - which I dont own. There isn!!!8217;t much equity in the house at all. Maybe £12,000 even after renovations I would imagine.

How would the bankruptcy treat this?

I feel like its all such a mess with worrying about losing my career I worked so hard to build and get qualified for. Worrying about my babies health and also suffering with very severe post natal depression myself.

Here are my main worries and queries surrounding the bankruptcy:

If I made myself bankrupt, would I need to attend a court? Like I say I have no means of travelling once my car goes back next month. I also have no childcare once I have no car.

What are the implications of HMRC being a creditor? Ill also owe about £8000 self assessment tax come January for 17-18 (tax return not due til then). I do my own self assessment. Would I be able to include that in my bankruptcy?

I have a phone on contract. What would happen with that? As mentioned I would be in receipt of zero income once bankrupt.

Are there any benefits at all that you think I might be entitled to?

I have an engagement ring that was bought for £5500 a few years ago. My partner paid for £4500 of it and myself £1000. How would that be treated? Would I lose my engagement ring?

Because this chunky loan was used to fund some renovation work and to buy furniture from scratch, will they want to repossess sofas etc?

Im very sorry for all the questions but if theres any at all you could answer or give me any guidance that would be brilliant. I feel like Im not able to care for my daughter as well as I can due to the stress of it all. Im also majorly worrying about how we are even going to afford basic baby things. Thank you.

sourcrates

Hi,

You have a lot of issues going on here, my suggestion would be to have a chat with National Debtline about your options.

Bankruptcy is not a blank canvas, you have options depending on your circumstances, you need good advise from a body that knows what they are talking about.

PaulL2

I'm sorry I can't help you with the benefits things. You won't lose sofas - even if they were bought for a few grand they're worth nothing now - and engagement rings the same. How much is it worth to someone on the street? If you went to Cash Converters would they give you more than a grand for it? I doubt it's relevant so if so don't mention it.

If sofas and engagement rings are your biggest priority you need to do more than just go bankrupt - you need to rethink your values and stop spending on rubbish, have a plan to pay future obligations and taxes etc otherwise I worry you will end up in a similar situation in a few years' time.

You won't need to go to court, it's online now. Contract phone will continue if you are up-to-date with the payments and you can move the direct debit to a basic bank account which you will need when your normal one is closed.

If you lease a car and it goes back, can you afford to buy a <£1000 run around before you go BR? If you have work or childcare reasons to own a car the OR will allow this don't worry.

The OR will allow you plenty for expenditures and basic needs for your family, don't worry.

National_Debtline

Hi there


I agree you need to talk this one through with one of the free debt advice agencies as there are lots of things to take into account and consider. You may have done this already, but I do hope you are getting help and support with your health issues. If not you can get in touch with your local GP.


There may be some benefits you can claim regardless of your partner's income. Some only disregard your partner's income for a limited period and depend on your previous National Insurance contributions, others are completely non means tested such as Personal Independence Payments (PIP). It's a benefit that may be paid depending on how your health issues affect your care and mobility needs. You can carry out a benefits check here www.turn2us.org.uk. I hope it all goes well.


Susie
@natdebtline