our new jobs means wife can't pay a penny to her debts

stu12345_2
stu12345_2 Posts: 797
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edited 4 January at 1:51PM in Debt-free wannabe
been here a while, things were going ok. we both have unsecured debts in separate names,£10000 each. 
( £5400 each have stated temporarily unenforceable, but I fear that may change soon)
almost all defaulted. 95%have.
we rent from council

both of us are running self managed DMP. we did CCA requests in October.
we only pay those that replied stating enforceable , won't pay those that didn't even respond to our CCA requests. or those that stated temporarily unenforceable 

 the problem now is my wife now has a part time job from.a full-time. I have went to a higher paying full-time job from current lower paying full-time job. we start very soon 29th January 

on paper we still earn the same TOTAL into the household. but she earns way less than she used to.

what do we do now. should my wife write to the creditors stating I can't afford anything as my outgoings goings based on household bills being shared 50 50 with husband means I can't afford one penny. not a penny

we did refuse to do any SAO to creditors 3 months ago  when we started our self managed  dmp and they were happy to accept., probably cos they are getting payments but now our  earnings will change.

she has considered a DRO, she seems eligible on paper as she seems to fit, as the outgoings would be split say 75 25 as I earn much more than her.rather than generic split  50 50 on a dmp.

the 5050 split on the dmp means she can't even pay £1 and the 7525 split on a DRO would still means she can't even do a £1 

but as she has failed to pay some creditors for  3 months eg, those that stated debt temporarily unenforceable or creditors that have ignored her CCA requests, is this preferential treatment?

plus when can she apply DRO ? cos she only got the new job this week. starts on January 29. thus is it only march 29 she can apply DRO.
monthly pay, and thus doesn't have 2 months of wage slips or bank statements showing  2 months of greatly reduced income?even though things change for the worse for her in Jan 29


Im obviously not expected to pay  towards her debts amount per month, even though technically i could, cos total income into household is approx the same,  we could not contact creditors and carry on as things are, cos of my higher wages. helping pay her monthly repayment.

and thus  pay wife's debts off, and mines. take about 5 yrs but the correct way isn't doing that method 


What's her next move.

pay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.
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  • stu12345_2
    stu12345_2 Posts: 797
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    so is Sao for creditors go 50 50 or is it 75 25.
    please read my full post.
    pay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.
  • EssexHebridean
    EssexHebridean Posts: 20,795
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    edited 5 January at 3:53PM
    If it suits you best to continue with the DMPs then it sounds like your household income situation has not changed overall, so you could just carry on as you are?

    You also need to take into account the mental aspects of the situation too - would she be comfortable with a DRO, or would she always feel that the debts were “unfinished business” - there is no right or wrong answer but some folk feel that way, others wouldn’t, and only she knows how it would affect her.
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  • sourcrates
    sourcrates Posts: 28,512
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    Stu, 

    Treat her debts as hers, yours as yours, preferential treatment only exists in insolvency, she should not pay anything if no income, write and tell the creditors that, think I said that on a previous thread, but my mind tends to wander lol.

    Don`t overthink things, keep it simple, if she wants to do a DRO, speak to an intermediary and run her situation past them, they will say yea or nay.

    Good luck both.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • stu12345_2
    stu12345_2 Posts: 797
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    edited 5 January at 3:45PM
    Stu, 

    Treat her debts as hers, yours as yours, preferential treatment only exists in insolvency, she should not pay anything if no income, write and tell the creditors that, think I said that on a previous thread, but my mind tends to wander lol.

    Don`t overthink things, keep it simple, if she wants to do a DRO, speak to an intermediary and run her situation past them, they will say yea or nay.

    Good luck both.
    yes, the total income into household is the same, maybe more. .with our new jobs
    our initial plan was to keep up with payments for both, sharing total income with me helping her, cos of my higher new wages.thus avoiding a formal route for her.

    but the official route would be her to tell creditors her new lower income means she can't afford anything. then that means dro or bankruptcy for her.

    as if she does a SAO to creditors now , showing a 50 50 split which is the norm for a couple.. it will mean she can't even pay £1 to them.

    I did read on debt camel site preferential treatment before a dro could mean only paying some creditors, which she is doing , due to the CCA responses she got.

    another solution is for her to get a new full-time jobs or 2 part-time jobs 
     instead of one part time job.

    pay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.
  • Floss
    Floss Posts: 8,113
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    Stu, when my income changed I told my creditors (total of £31k) what they would get. Nobody raised any questions and nobody suggested any other debt solutions.
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  • stu12345_2
    stu12345_2 Posts: 797
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    edited 5 January at 6:24PM
    Floss said:
    Stu, when my income changed I told my creditors (total of £31k) what they would get. Nobody raised any questions and nobody suggested any other debt solutions.
     floss, what if you could not offer them anything.what happens then .how long would they hold out for zero payments.

    this is the first time in our dmp that my wife's wages has halved, whilst mines has doubled.
    things were simple until.that point .it was running smoothly for 2 years.

    now we enter the unknown what to do. as my wife is trying hard to increase her wages again. but she's only got one part time job offer.
    pay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.
  • sourcrates
    sourcrates Posts: 28,512
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    Floss said:
    Stu, when my income changed I told my creditors (total of £31k) what they would get. Nobody raised any questions and nobody suggested any other debt solutions.
    floss, what if you could not offer them anything. What happens then.
    How long would they hold out for zero payments.

    They can`t take what you don`t have stu, its pretty much a case of them putting the accounts on hold for a period of time, and if things don`t improve, they may write them off, or make a commercial decision and just choose not to chase them.

    No point in them taking legal action if there is no money available, courts won`t agree to payments that are not affordable to the client, if that was your worry.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • stu12345_2
    stu12345_2 Posts: 797
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    Floss said:
    Stu, when my income changed I told my creditors (total of £31k) what they would get. Nobody raised any questions and nobody suggested any other debt solutions.
    floss, what if you could not offer them anything. What happens then.
    How long would they hold out for zero payments.

    They can`t take what you don`t have stu, its pretty much a case of them putting the accounts on hold for a period of time, and if things don`t improve, they may write them off, or make a commercial decision and just choose not to chase them.

    No point in them taking legal action if there is no money available, courts won`t agree to payments that are not affordable to the client, if that was your worry.
    thanks, it was either they write them off or she does dro
    pay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.
  • Floss
    Floss Posts: 8,113
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    Floss said:
    Stu, when my income changed I told my creditors (total of £31k) what they would get. Nobody raised any questions and nobody suggested any other debt solutions.
     floss, what if you could not offer them anything.what happens then .how long would they hold out for zero payments.
    Well 3 of mine are not getting anything until I'm back in work full-time (been off long-term sick) and I'm in a position to pay.

    If there is no money, they don't get anything - you hold the control not them.
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  • stu12345_2
    stu12345_2 Posts: 797
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    edited 5 January at 10:36PM
    Floss said:
    Floss said:
    Stu, when my income changed I told my creditors (total of £31k) what they would get. Nobody raised any questions and nobody suggested any other debt solutions.
     floss, what if you could not offer them anything.what happens then .how long would they hold out for zero payments.
    Well 3 of mine are not getting anything until I'm back in work full-time (been off long-term sick) and I'm in a position to pay.

    If there is no money, they don't get anything - you hold the control not them.
    Floss, did you have to fill in their SAO on their websites, cos at the moment they took our word of our wages and we set up standing orders 

    did they want to see proof of your new income .
    as long as they realise the household bills are being split 5050 cos that's the rules I believe.

    it doesn't go that I have to pay the most.
    I believe sourcrates stated that on a separate thread., that is how she  can't pay  anything cos of the 5050 split 

    eg my wages say£2000 a month, her wages say £500 a month.
    expenses eg say £1900
    means she can' never meet the £950 running costs of the bills in her contribution.

    thus she can't even offer £1

    one creditor site asks list all your debts, balances and how much you pay per month.
     at moment 2 huge debts are deemed temporarily unenforceable, so we pay nothing to them.

    and some debts we owe the same company but separate accounts, and I haven't stated or told these companies anything about not paying some temporarily unenforceable debts, hence if they  knew that they would want extra money from me going to these companies 
    pay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.
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