At a real loss here

NeedToTurnLifeAround

Hello, I’m at a real loss as to what to do for the best and hoping by opening up on this forum there may be some here who can offer me some much needed advice to get me back on track.

I separated from the wife around 2 years ago, the children live with me full time, I only have my mum who is able to help with childcare as the mum lives down south and see the children once every 3 weeks of so. My mum doesn’t drive and is getting old now, I also don’t have any close friends I can reply on either.

Very recently I managed to get a job up north myself which makes dropping off the children at school and picking up on the afternoon much easier. My children attend a private school, I receive 50% bursury, it works better for me as I don’t have anyone to reply on to pick up kids and drop them off and work full time, so its very handy when I can drop the kids off at 8am and pick them up at 5:30. There are no schools locally that provide after school care so would be a loss picking up the kids at 3:15 in the afternoon and would also need to pay for the children before school care and dinners too.

Today after honest discussion with the ex wife she is unable to make her payments to the school which would mean I would have to pick up these payments, im currently behind by about 8k which the school are ok about and understand the situation we are in and happy we make payments monthly with a larger payment when I receive my yearly bonus.

The Ex wife also struggled today to transfer over the 50% of the child benefit and stated she may struggle to make regulat payment of maintenance each week which we agreed informally between our selves.

As you can see from the above and the below im in a right old mess and just really don’t know what to do, so hoping opening up on here would help, thank you



Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax.................. 2440
Partners monthly income after tax................... 0
Benefits............................ 67 (this is child benefit split 50/50 with ex wife)
Other income………………………200 (Ex wife pays 50 per week and does not always pay as she is struggling financially too, agreed this informally)
Total monthly income………………….2707
Monthly Expense Details
Mortgage................................ ………………………………..0
Secured/HP loan repayments.............. ……………………….0
Rent.................................... ………………………………..428 – includes water rates
Management charge (leasehold property).. …………………..0
Council tax............................. ……………………………….90
Electricity............................................................................. 85 – higher due to having 300 balance and agreed to making higher monthly payment
Gas..................................... ………………………………….85 – higher due to having 300 balance and agreed to making higher monthly payment
Oil..................................... …………………………………...0
Water rates............................................................................. 0
Telephone (land line)................... …………………………….0
Mobile phone............................ …………………………….107 – for 2 mobiles, one for me and the other for my daughter.
TV Licence.............................. …………………………...12.37
Satellite/Cable TV...................... 36
Internet Services....................... 25
Groceries etc. ......................... 220
Clothing................................ 50
Petrol/diesel........................... 160
Road tax................................ 1.66 (20 for the year)
Car Insurance........................... 84
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 500 Private School Fees, but currently in arrears by 8,000 which the school are fine about me making a lump payment each year when I receive a bonus.
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 12
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1935
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0
No Secured nor Hire Purchase Debts
Unsecured Debts
Description.............Debt......Monthly.. .APR
HSBC cc.................7000......125.......19.9
Vanqis cc.................500......20.......19.9
Aqua cc.................450......20.......19.9
Cap One cc.................1000......40.......19.9
HSBC Overdraft.................1000......10……1%
Loan (Credit Union).................2000......45.......12.9%
Car Finance HP (Oodle)………13500…..250…..%
Loan (Creation Loans)…..…11500…..220…..%
Loan ………6600…..150…..% (Father took out for me in his name)
Loan (Shop Direct)………700…..70…….%
Old Gym Membership………300…..40…….%
Retail Finance v12……….2750……..80…….% - was to purchase family mountain bikes
Tax Credits Overpayment……….3000……..40…….%
Total……….48500……..1110…….%

Flyright

If you are considering bankruptcy you would not be able to include the loan your father took out and it is highly unlikely than the OR will allow private school fees as a reasonable expense.

sourcrates

Agree with the above, can you not put your kids into mainstream education, as you cannot afford those school fees now.

Also if the car is worth more than £1000 that will go to.

You have approx £500 disposable income to pay your debts with, that will take a long time as it is now, even in debt management with all interest stopped it would be 8 years.

NeedToTurnLifeAround

Thank you.
I could put kids into a local school but there isn!!!8217;t any after school provision meaning they would finish at 3:15 and I don!!!8217;t finish work until around 4:30, plus there is no one I can have to pick up the kids.

The car is on finance.

Would an IVA be best?

sourcrates

NeedToTurnLifeAround wrote: »

Thank you.
I could put kids into a local school but there isn!!!8217;t any after school provision meaning they would finish at 3:15 and I don!!!8217;t finish work until around 4:30, plus there is no one I can have to pick up the kids.

The car is on finance.

Would an IVA be best?

I would not rush into anything just yet, those school fees are a real sticking point, for now, as a temporary measure, why not go into debt management, write to all your creditors explaining your situation, ask them all to stop interest etc, work out what you can pay to each debt and not leave yourself broke, and see how that goes for a while.

Give it 6 months then reevaluate the situation.

Also take some advice from National Debtline or one of the free debt charities, as regards a more permanent solution.

NeedToTurnLifeAround

Would debt management mean the car would have to go back to the finance company?

sourcrates

NeedToTurnLifeAround wrote: »

Would debt management mean the car would have to go back to the finance company?

No you could prioritise the car debt, as an essential payment.

MovingForwards

Correct me if I am wrong but I was under the impression child benefit was payable to the parent that had the kids, so as you have them 100% of the time you should be getting 100% of the benefit to help pay for their upkeep.

How old are the kids? Only asking as your mobile bills seem excessive for two phones.

National_Debtline

Hi there


You've posted on the bankruptcy board, so it seems like this is one option you are considering. However there could be a number of issues with you applying for bankruptcy, including that you may need to hand your HP car back, private school fees are unlikely to be an allowable expense and you'll have to include your father as one of your creditors and stop paying him (although he will remain liable for the loan he took out in his name).


If your car is on hire purchase (HP) and you want to keep it you'll need to list it as an essential outgoing on your SOA, rather than a debt. If the SOA was amended on that basis you should qualify for a free debt management plan (DMP) and I agree with sourcrates that it could be a suitable alternative to bankruptcy. Creditors will still need to consider if private school fees are reasonable but you may be able to justify them by explaining how much it allows you to save on childcare costs.


I'd recommend now getting in touch with one of the free debt advice agencies to look at your options in more detail.


Best wishes


Susie
@natdebtline