Pregnant and about to declare bankruptcy.

magicgirl

I was 8w pg when I went bankrupt. I found the staff were really lovely and they will accept baby costs as necessary expenditure if budgeted correctly on your forms. Do you have contractual maternity available or will you be getting just the statutory amount? this may impact what they expect you to pay later but be as realistic with costs as possible and you'll be fine.

Potbellypig

JCS1 wrote: »

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

As the brother is jointly liable, he'll be the one that is chased for payment. It won't be accepted in the bankruptcy.

Lizzylou94

magicgirl wrote: »

I was 8w pg when I went bankrupt. I found the staff were really lovely and they will accept baby costs as necessary expenditure if budgeted correctly on your forms. Do you have contractual maternity available or will you be getting just the statutory amount? this may impact what they expect you to pay later but be as realistic with costs as possible and you'll be fine.

How would I budget it? I have budgeted £170.
I will only be getting the statutory amount for maternity.

JCS1

Potbellypig wrote: »

As the brother is jointly liable, he'll be the one that is chased for payment. It won't be accepted in the bankruptcy.

The brother has defaulted, therefore the guarantor becomes fully liable - and it is a provable debt in her bankruptcy.

From CAB website:

Guarantor debts
If someone is a guarantor for a loan you’ve taken out it will be included in your bankruptcy but the other person will still have to pay the debt.

If you are the guarantor and the other person fails to pay, it will be included in your bankruptcy and the creditor won’t be able to chase you for it.

https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/bankruptcy-explained/debts-that-bankruptcy-covers/

c_e_l

The trigger figures represent pre-agreed levels for certain areas of discretionary household expenditure. The trigger figures help identify levels of monthly expenditure deemed reasonable when completing the CFS. You will not need to explain the financial statement to creditors unless the trigger figures are exceeded.

Baby items fall under the category of housekeeping. The expected figure for the category of housekeeping is £683 per month with two adults and one child.

c_e_l

Visit your local citizens advice, their free, no hassle, and will tell you exactly how bankruptcy will bite you in the bum.

Lizzylou94

c_e_l wrote: »

The trigger figures represent pre-agreed levels for certain areas of discretionary household expenditure. The trigger figures help identify levels of monthly expenditure deemed reasonable when completing the CFS. You will not need to explain the financial statement to creditors unless the trigger figures are exceeded.

Baby items fall under the category of housekeeping. The expected figure for the category of housekeeping is £683 per month with two adults and one child.

When having a child I assume they will allow money for the initial "set-up" costs. Once the baby arrives I won't need £170 a month to care for the baby day to day.

I am doing this alone and I am not one to want expensive baby items but I will still need to buy everything needed to look after a child.

I don't think 1000 total would be deemed too much? do you?

fatbelly

c_e_l wrote: »

The trigger figures represent pre-agreed levels for certain areas of discretionary household expenditure. The trigger figures help identify levels of monthly expenditure deemed reasonable when completing the CFS. You will not need to explain the financial statement to creditors unless the trigger figures are exceeded.

Baby items fall under the category of housekeeping. The expected figure for the category of housekeeping is £683 per month with two adults and one child.

It's SFS now. The CFS has gone. I checked that figure - and it is now £683.

So I think you do have access to the SFS!

fatbelly

MalMonroe wrote: »

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.

Too much debt; too much surplus income