Need help with going forward

eggshells

Hi, this is my first thread so bare with me.....I am currently in a massive amount of debt, not only in my own name but my mum took credit cards, hp, catalogues out for me also mounting up to around £17,000. My own debt is from years ago and I am hounded for the money, I am in a very unhappy relationship and don’t know what to do as if I go it alone I won’t be able to pay back my mums debt, I have 2 young children and I’m not working. I’m so frightened about what will happen especially with my mums debt as I promised her I could pay it back, would appreciate any help or advice....

mwarby

Unfortunately I think with pretty much any debt solution (other than perhaps a DMP - debt management program - your debts are frozen and you pay what you can afford until its all paid off) would not allow you to pay your mother back. It may be that you can scrape some form of payment from bits of your income and expenditure that you don't spend, but I don't see it being included in your income and expenditure.

It might help if you could share the amount of debt in your name, and whether you rent or own your home.

Craig1981

the debt with your mum is in her name, so she will be responsible for this debt. this cannot be included in any insolvency you take in your name.

either your mum clears the debt you clear the debt in her name, or she goes insolvent as well

Annie35

Hi, it might help posting a SOA up http://www.stoozing.com/calculator/soa.php try to be as honest as you can with the figures & include debts to your mum as 1 debt (read like it's a personal loan, how she funded this loan doesn't matter right now)

Do you rent or own (is there equity if so)
Do you have assets like a paid off car, savings, shares.

eggshells

Thank you for your advice, I am in rented accommodation and so is my mum but she is 77 so she doesn’t pay for her rent, if she went on an IVA would I still be able to make the payment on that for her, she is extremely worried about what it will do to her.....

Annie35

Any form of insolvency (iva,dmp,dro,bankruptcy etc) would be tailored to the individual.

You can't pay your mum's insolvency program it'll be based on her income if there's to be any payment or not. If she has no income over pension for instance there can be no repayments & the debt will be wiped.

Tbh I would look at your own situation first, maybe a DRO of bankruptcy would be an idea as there are no payments (if you have no spare money & they really won't chase benefits), it could all be over in a year.

Lastly for now, you absolutely don't want to be seen servicing 1 debt over others as if you do decide to go insolvent they can just take back your payments to your mum & make more a mess. Now seems like a good time to get this sorted yes x

mwarby

If your both in rented accommodation and your on benefits an IVA doesn't sound like a good idea really. As others have said in bankruptcy or DRO you could both be clear next year (of course credit file will look bad for 6 years whatever you choose insolvency wise)