Is bankruptcy the only option?

Cameron1590_2

All,

Supporting a close friend st the moment, they have around £30k worth of debt. They are currently up to date with all payments however this is because they have been borrowing money from their partner.

Their partner has now refused to lend any more money as its slow dragging them down also.

They have no assets (rent, car is leased and would be included in the bankruptcy).

My friend self employed and their buisness has no assets either. They don’t really have anything of any significant value.

Please can someone let me know if a bankruptcy order would be agreed under these circumstances?

My friend has just had a new born and is on maternity. She is getting £500 per month statoury pay until feb next year with £80 a month child benefits. Unfortunately she doesn’t foresee herself returning to work as child care costs would exceed her income. She will live off her partners income but under the current situation her partner is paying to service her debt which is causing him to start going into debt.

Any advice please? We know she is in a mess and just won’t to help her out. The effect that this is having on her mental health is really worrying.

Thanks

es5595

Sorry, I didn’t want to read and run!

I’m sure people who know a lot more about this will be along soon, but on the face of it, it seems like the right option, especially if she has no income and isn’t planning to return to work anytime soon as she’s a stay-at-home Mum.

Could you ask her to do a SOA and post it up here? You’ll need to include her “income” and half of all household bills, regardless of who currently pays them.
http://www.stoozing.com/calculator/soa.php

sourcrates

Hi,


30k of debt, no assets, little disposable income, Bankruptcy sounds like the right option here, can they get the fee together ?


Its currently £680, once paid, as long as nothing untoward is flagged up, its more or less a done deal.


New basic bank account will be essential, with a bank with whom they have no debt, keep as much cash at home as you can, as access to banking facilities will be restricted at first.

debt_doctor

Hi,
I agree, it sounds like no assets to lose, no IPA to be bound by and a gain of fresh start and better mental health.

DD

Cameron1590_2

Thanks for the replies all.

I think we are going to go with the bankruptcy. Hopefully the adjudicator agrees.

Here’s to a fresh start for my friend. thanks again.

KeepOnKnitting

I just want to say well done to your friend's partner for taking the hard decision to not try to prop up your friend's credit record. By doing this, the partner can actually help your friend in a real way, rather than throwing themselves under the bus of that debt as well. Good luck to them both.

TimeToRebuild

Hope all goes well for your friend, i would suggest bankruptcy as well, the key point being no assets.

Its a big step deciding to go bankrupt so keep being a good friend and support her through this.