Please help

fatbelly

An IPA only happens if the surplus income is over £20, and that's on his portion of the soa, not the joint figures.

For a DRO you are ok up to £50 per month, that's on your split of the soa, and it MAY be going up to £100.

As I said before your soa is fine for both solutions. People are just a bit worried that you may have been living by accessing further credit and you won't be able to do that once you (even one of you because you have a joint financial product) go for insolvency. So in practice your budget needs to balance.

Bankruptcy is nothing to be worried about. Most people feel a huge sense of release once they take the plunge, and it's all web and phone based now, the courts are no longer involved.

Shame they haven't reduced the fee unfortunately - we are lobbying for that.

Post on the bankruptcy board if you feel more comfortable there.

Steph8821

Thank you so much
makes us feel a tad better x

NeverendingDMP

Just to say I lurk on the forums on and off. Dont feel nervous of bankruptcy
If its right for you then get some advice here and places like stepchange and then just go for it and what has been said before is you should get a decent nights sleep because of it. Financially the world is in a funny place. Do what is right for you and move forward. Best of luck. X

Steph8821

That you for the lovely comment

BlueJ94

Hi, after a quick read I’ve been in your situation of over spending and racking up some debt. Although mine is only 6K total I would advise to do what’s best for you. No one is here to judge you we are here to help. I went onto a DMP to see if they would benefit me but I came off it pretty quickly, you need to cut down on stuff where you can and only purchase things you need (harder than it sounds) 

Make a budget plan and stick to it, you won’t be spot on for the first few times but at least you can see where you’re over spending and buying things you probably don’t need. I wish you the best of luck! 

Steph8821

@fatbelly if we sold the car and left 1000 in the bank would this be taken of me by the OR x

fatbelly

In bankruptcy, yes (but the fee is £680)

In a DRO, no - you are allowed up to £1000 in 'assets' on entering a DRO, and this is likely to rise in May.

You've asked a couple of questions that show you haven't really grasped how a DRO works.

I quite like the government explanation here:

https://www.gov.uk/government/publications/getting-a-debt-relief-order/getting-a-debt-relief-order

Steph8821

Thank you
in terms of assets is it accumulative of items like tv  couch etc
after reading the link  my partner in the past as paid parents instead of credits
as he owes 8k ish to is mum
could this be an issue
thanks x

sourcrates

Steph8821 said:

Thank you
in terms of assets is it accumulative of items like tv  couch etc
after reading the link  my partner in the past as paid parents instead of credits
as he owes 8k ish to is mum
could this be an issue
thanks x

Mum would either have to wait a while, or become one of his creditors in the DRO, assets are usually things such as cash, or money in the bank, not household goods, that`s a bit of an old wife`s tale.

Unless you happen to have an old Picasso hanging on the wall, or a Ming vase on your sideboard, no one will be interested in your stuff.

fatbelly

Yes, household items are not counted as assets in bankruptcy or DRO.

He should list his mum as a creditor in his bankruptcy if he genuinely owes her money. He can't schedule an amount in payment to her. As sourcrates says, she would have to wait till he is out  of this to get anything back. 

Sometimes I find relatives in situations like this say 'I never expected it back anyway'. If that's the case she's not a creditor.

Edit: I think you were asking  if past payments to his mum counted as 'preferential' payments - don't take DRO rules and apply them to bankruptcy. They would not stop the bankruptcy going through and in most cases there would be no problem. In bankruptcy if you've committed any offence you get a restriction order, but they are relatively rare and just used in serious cases.