Pregnant and about to declare bankruptcy.

Lizzylou94

I am around 8 weeks pregnant (unplanned but I am happy), my partner and I are currently not living together as the plan was for me to sort my debts before we began living together. That maybe change now given the situation, but I am not sure.
My take home pay each month is £1750. My rent, council tax, utilities & tv licence total around £780 (this will potentially go up as I am using my heating more at home) . Food/cleaning supplies and my pregnancy supplements total around £300-£350 (I am celiac so food is usually a little bit expensive). I spend around £200 a month on travel as I like to visit family who live about 150 miles away and I don’t currently own a car. I Spend around £180 on my pet, phone bill, clothes and home internet each month also.
Then each month I would say I spend around £30 on haircuts, gifts and meals at work.
This leaves me with around £260.
I have around 27k of debt including 15k for a loan that my brother had taken out which I am a guarantor for. At the end of the month I hope to go bankrupt. I have struggled with debt for a long time and it has severely affected my mental health.
My questions are: How much of the £260 would I be allowed to keep towards baby items. I have budgeted about £1200 in 7 months (171 per month) for almost everything I would need.
Also, how much am I allowed to save each month for emergencies and to be able to still enjoy my life.
Thanks in advance!

Flyright

You won't be able to include the loan your brother took out as a bankruptcy debt if he took it out in his name.

[Deleted User]

Hi,


why do people do block text, very hard to read, paragraphs please.

Lizzylou94 wrote: »

I am around 8 weeks pregnant (unplanned but I am happy), my partner and I are currently not living together as the plan was for me to sort my debts before we began living together.

That maybe change now given the situation, but I am not sure.



My take home pay each month is £1750. My rent, council tax, utilities & tv licence total around £780 (this will potentially go up as I am using my heating more at home) .


Food/cleaning supplies and my pregnancy supplements total around £300-£350 (I am celiac so food is usually a little bit expensive). I spend around £200 a month on travel as I like to visit family who live about 150 miles away and I don’t currently own a car.



I Spend around £180 on my pet, phone bill, clothes and home internet each month also.


Then each month I would say I spend around £30 on haircuts, gifts and meals at work.


This leaves me with around £260.



I have around 27k of debt including 15k for a loan that my brother had taken out which I am a guarantor for. At the end of the month I hope to go bankrupt. I have struggled with debt for a long time and it has severely affected my mental health.



My questions are: How much of the £260 would I be allowed to keep towards baby items. I have budgeted about £1200 in 7 months (171 per month) for almost everything I would need.



Also, how much am I allowed to save each month for emergencies and to be able to still enjoy my life.
Thanks in advance!

Seems you have time to sort the baby issue, what you must do is sort out the financial situation.


Good luck.

Lizzylou94

Okay but as I am the guarantor for this loan I will no longer be required to make payments towards it. Is that correct?

Flyright

Yes, you cannot make any payments against a debt that is not yours if you are bankrupt.

Minkym00

You need baby items so the OR will allow you a budget for them. If I were you I would put the £171 amount in as baby items and explain how you have budgeted for it. The OR should allow it for 7 months then they would have to vary the IPA in any case as you will be on a reduced income when on maternity pay.

You’re allowed £10 a month for emergencies.

Lizzylou94

[Deleted User] wrote:

Hi,


why do people do block text, very hard to read, paragraphs please.






Seems you have time to sort the baby issue, what you must do is sort out the financial situation.


Good luck.

Sorry I did this on my phone to the formatting went to whack!

MalMonroe

Hi, and congratulations on your baby. Have you been in contact with one of the debt support agencies? StepChange or something like that? They are really helpful and give expert advice. And they also help with preparing bankruptcies, etc. You can phone them free, and the advice they give on the phone is brilliant. I was helped so much when I was struggling and was advised to apply for a Debt Relief Order, similar to a bankruptcy. Given that you would not be responsible for your brother's debt, you may be more eligible for a DRO than bankruptcy but one of the debt agencies could go through that with you. StepChange number is 0800 138 1111. It costs nothing to find out what help you can get. I recommend them 100 percent. Good luck!

JCS1

The loan that you are guarantor for, what is the status of this? Is the person still paying the loan or have they defaulted and you are now paying?

Lizzylou94

JCS1 wrote: »

The loan that you are guarantor for, what is the status of this? Is the person still paying the loan or have they defaulted and you are now paying?

The loan has not been paid for a long time, I moved house and had fallen behind on my debt so was unable to make payment!

JCS1

Lizzylou94 wrote: »

The loan has not been paid for a long time, I moved house and had fallen behind on my debt so was unable to make payment!

In which case you should include this on the BR paperwork, the loan is in default, so you as guarantor are liable.