Absolute Mess

Dave_7

Afternoon people
New here. Myself and my wife are in a horrendous position with debt and looking for suggestions and help if possible, we have high debt 8000 joint and 53k my wifes. 6 months ago we moved back in with my parents to try to get out of this mess, buts its  not going well. Pretty much hell if im being honest. My wife  does not work and is a stay home mum but  i work full time  earning an average of 2200 per month. Any advice would be great.

comeandgo

Can your wife get a part time or evening job when there is someone else in the house to child mind?

Dave_7

Not an option sadly i work  60+ hours  but she suffers with major depression and got our twin girls  who are almost 2 to look after.

Halloweb

Google payplan and give them a call,  they will liaise with your creditors and work out an affordable payment plan, and it doesn't cost a penny and in most cases they get the interest frozen. Good luck

Brie

DebtCamel is a good website for suggestions on how to deal with debt.

Also if you give a  statement of your accounts - all incoming, all outgoings including interest being paid then perhaps people here can make suggestions as well.

ratrace

Hi welcome to the board, can you fill in a soa to show all your incomings and outgoings to see where cut backs can be made is your wife entitled to any benefits due to her issues,

also what has caused the large debt and is there anything of value you can sell in the meantime to help you out.

sourcrates

53k is a lot of money, and your wife has no income.

For the majority of debt solutions you are required to have an income of some sort, so that removes debt management and IVA as options, straight away, she`s also over the threshold for a DRO.

Any reason why she can`t declare bankruptcy ?


Your current situation may be difficult, but it is ideal as far as bankruptcy is concerned, your wife isn`t working, so no IPA, and you both have no assets to realise.


The 8k joint debt can be handled on your £2000 a month income without too much hardship I would imagine.

I would run your situation past National Debtline and/or stepchange, but I suspect we will be reciting from the same verse here, but its good to get an official opinion.

Let us know what they say.

Dave_7

So  basically were at my parents  and we are trying to afford to move out and its unbearable  cramped house had many arguments with my mum etc. Problem is houses are expensive to rent round here  looking at around 750pm. We got told we would need  6-9 months upfront  as we have no guarantor and credit files are just full off recent defaults.  We did contact step change not so long ago  which they recommended bankruptcy for my wife and also a dmp  but it would take a long long long long long time to pay off. 

Its a complete mess  and were both so low especially wife.

Jude57

I agree with @sourcrates again. On the bare facts, OP, bankruptcy looks like a possible solution for your wife. it's a 'one and done' option in that, once she does it, her debts are effectively gone. It's all done online and isn't published in the local paper any more so there's no reason anyone outside the two of you need ever know. If you want to know more about it, just ask as there's always someone here who can answer questions. If you can complete and post a Statement of Affairs (SOA) then that will help to get a good idea of your full situation and therefore get you the best advice.

I also agree with seeking help from StepChange, CAB or National Debtline but beware imitators who will sell you advice. You never need to pay for impartial advice so use the links in sourcrates' signature or in the sticky at the top of this forum page.

sourcrates

Dave_7 said:

So  basically were at my parents  and we are trying to afford to move out and its unbearable  cramped house had many arguments with my mum etc. Problem is houses are expensive to rent round here  looking at around 750pm. We got told we would need  6-9 months upfront  as we have no guarantor and credit files are just full off recent defaults.  We did contact step change not so long ago  which they recommended bankruptcy for my wife and also a dmp  but it would take a long long long long long time to pay off. 

Its a complete mess  and were both so low especially wife.

This is an issue you can no longer avoid, and want`s sorting as soon as possible.

Bankruptcy for your wife would wipe out the 53k in 12 months, and also her liability for the 8k joint debts.

You, could do a DMP, skillfull budgeting would see you set aside a similar amount to your DMP payment each month, thus allowing you to make full and final settlement offers to the creditors, or there agents, as and when you can, further down the line.

There are various ways and means of reducing the time spent in a DMP, money talks so to speak.

Its not impossible for bankrupts to rent.

Dave_7

Unsure on exact how much she owes but its there or there abouts, all have been defaulted bar creation store card. The food is high but its just we live day to day  because of the situation were in
cramped kitchen  cant cook proper.







font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 2

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 2200

Partners monthly income after tax....... 0

Benefits................................ 152

Other income............................ 0[b]

Total monthly income.................... 2352[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 200

Management charge (leasehold property).. 0

Council tax............................. 0

Electricity............................. 0

Gas..................................... 0

Oil..................................... 0

Water rates............................. 0

Telephone (land line)................... 0

Mobile phone............................ 60

TV Licence.............................. 0

Satellite/Cable TV...................... 14

Internet Services....................... 0

Groceries etc. ......................... 700

Clothing................................ 50

Petrol/diesel........................... 180

Road tax................................ 3

Car Insurance........................... 80

Car maintenance (including MOT)......... 40

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 9

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 0

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 50

Haircuts................................ 0

Entertainment........................... 70

Holiday................................. 0

Emergency fund.......................... 0

My car finance.......................... 320[b]

Total monthly expenses.................. 1776[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0[b]

Total Assets............................ 0[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Defaulted joint loan...........8400......0.........0

Defaulted loan.................18000.....0.........0

Defaulted cc...................12000.....0.........0

Creation store card............800.......0.........0

Defaulted cc...................15000.....0.........0[b]

Total unsecured debts..........54200.....0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,352

Expenses (including HP & secured debts). 1,776

Available for debt repayments........... 576

Monthly UNsecured debt repayments....... 0[b]

Amount left after debt repayments....... 576[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0

Total HP & Secured debt................. -0

Total Unsecured debt.................... -54,200[b]

Net Assets.............................. -54,200[/b]