Shared living expenses

liquidbutindebt

I live with my elderly mother whose only income is the state pension, she owns the house.  As part of the agreement to live there, I share the household bills.  I am on Universal Credit, and not working.  I have sold all my assets just to pay for food and other essentials, all I have left is my laptop and computer equipment that is essential to the business I'm trying to start. I now have nothing left to sell and my outgoings exceed my UC payment.

I really want to declare bankruptcy, but I can't afford to do that. So far I am defending my first CCJ by requesting a true copy of the agreement, a full statement of account, copies of any notices of assignment showing the claimant has a right to collect the debt, and any correspondence or notices sent to me.  Assuming they come up with all of that, the CCJ will be granted, as I have no other defence.  Not sure how long this might take.

I would rather my 85 year old mother isn't faced with a court bailiff at her door.  What is my best way forward?

GavCB

get a job?

liquidbutindebt

GavCB said:

get a job?

Unfortunately, self employment is my only option moving forward for reasons I don't need to go into.

elsien

Has your mother checked she is getting everything she is entitled to - Pension credit, council tax benefit, attendance allowance if she has any care and support needs? 

Baillifs will only turn if if you don’t pay an agreed repayment plan so you need to check when you do that that it’s clear you can’t afford to pay more than a token amount.

Otherwise, post a statement of affairs, because even if you went bankrupt if you’re still living outside of your means you’re going end up in the same position again. 

liquidbutindebt

elsien said:

Has your mother checked she is getting everything she is entitled to - Pension credit, council tax benefit, attendance allowance if she has any care and support needs?

My mother is getting pension credit and we are not paying council tax at the moment.  She is well enough to move about the house and do her shopping, so she doesn't have care needs that would justify attendance allowance.

Thank you for the reassurance regarding bailiffs.  I am confident I will be able to earn again soon, and the Director restrictions would be a massive pain in bankruptcy, so I know it's not my best option.

ManyWays

How large are your debts? 

Will you inherit the house when your mum dies? This possibility makes bankruptcy a risky process as if she dies before you are discharged the house would have to be sold and the bankruptcy costs if that happens are extremely high. 

liquidbutindebt

Over 65k, precipitated by a life changing event leading to the loss of almost everything I have (my wife and daughter, my job and my father, all within a month or so).  Up until that time I was managing my debt burden fine.