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Urgent Debt Advice

Callum1510
Callum1510 Posts: 18 Forumite
10 Posts
in Debt-free wannabe
Hi all, new here so thanks for accepting. I am looking for advice please. 

I have around 35k debt and looking for best advice to clear. I am working full time and have no assets (no car I own or house. I live with partner and have a baby. The house is a mortgage in my partners name only and I just contribute towards bills and her mortgage etc. 

My debt consists of unsecured credit cards and loans and payday loans. 

I contacted payplan today and they have directed me down IVA route although I have looked at their reviews and they don’t seem very good :( 

I have considered bankruptcy for a fresh start but they said this would be an issue as I have a beneficial interest in my partners house? Would this be an issue for bankruptcy like would they take my partners house? I would prefer bankruptcy if I knew her house would be okay and not affected

appreciate any support etc and recommendations of companies to help me

thanks 
«1345

Comments

  • sourcrates
    sourcrates Posts: 31,703 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    First off, fill this in, be as accurate as possible:

    SOA Calculator
    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 forumteam@moneysavingexpert.com. 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
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,553 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    First thing you have got to do is not panic, things move slowly in the debt world and nothing needs to be rushed.
    If you go down to the woods today you better not go alone.
  • gwynlas
    gwynlas Posts: 2,302 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    In the world of debt nothing is so urgent that you have not got time to look for good advice.

    Aim to have some plan  in place by the end of August

    Yes it plays on your mind but you have acknowledged the debt here to many others who have tried and tested ways to sort things out.

    Complete the SOA as requested giving answers honestly to all areas and wait to see who responds

    Do not be pushed into a IVA or debt management plan in the short term.


  • Callum1510
    Callum1510 Posts: 18 Forumite
    10 Posts
    [tt][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 0[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2650
    Partners monthly income after tax....... 700
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 3350[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 550
    Management charge (leasehold property).. 0
    Council tax............................. 100
    Electricity............................. 80
    Gas..................................... 60
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 0
    Mobile phone............................ 60
    TV Licence.............................. 12
    Satellite/Cable TV...................... 45
    Internet Services....................... 45
    Groceries etc. ......................... 300
    Clothing................................ 50
    Petrol/diesel........................... 240
    Road tax................................ 18
    Car Insurance........................... 80
    Car maintenance (including MOT)......... 10
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 200
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 18
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 45
    Entertainment........................... 150
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 2093[/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
    Credit card ...................6750......300.......0
    Credit card ...................5020......290.......0
    Credit card ...................2182......140.......0
    HMRC ..........................4400......350.......0
    Loan...........................601.......300.......0
    Loan...........................1916......178.......0
    Loan...........................3165......91........0
    Loan...........................1321......182.......0
    Loan...........................6660......208.......0
    Loan...........................3310......138.......0[b]
    Total unsecured debts..........35325.....2177......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,350
    Expenses (including HP & secured debts). 2,093
    Available for debt repayments........... 1,257
    Monthly UNsecured debt repayments....... 2,177[b]
    Amount short for making debt repayments. -920[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -35,325[b]
    Net Assets.............................. -35,325[/b]


  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,553 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    OK you have the idea of a SOA but you have rushed it, we need full details of debts, who? Interest Rates?

    You mention partner yet you show one adult, the child do you get Child Benefit?

    No contents insurance?
    licence amount is wrong, please take your time and go through everything again.
    If you go down to the woods today you better not go alone.
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,553 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If you read this thread (need to scroll down a little)

    General questions and worries for bankruptcy.. — MoneySavingExpert Forum

    OP is living in his partner's house and the rent is what the pays her monthly, not a proper tenancy.
    If you go down to the woods today you better not go alone.
  • Callum1510
    Callum1510 Posts: 18 Forumite
    10 Posts
    Grumpelstiltskin said:
    If you read this thread (need to scroll down a little)

    General questions and worries for bankruptcy.. — MoneySavingExpert Forum

    OP is living in his partner's house and the rent is what the pays her monthly, not a proper tenancy.
    So it’s probably okay the. For bankruptcy? If I live with partner in her house. Her house will not be affected 
  • kimwp
    kimwp Posts: 3,040 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    Callum1510 said:
    Grumpelstiltskin said:
    If you read this thread (need to scroll down a little)

    General questions and worries for bankruptcy.. — MoneySavingExpert Forum

    OP is living in his partner's house and the rent is what the pays her monthly, not a proper tenancy.
    So it’s probably okay the. For bankruptcy? If I live with partner in her house. Her house will not be affected 
    Best to get your SOA accurate ahead of making any decisions about the best path.
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • Callum1510
    Callum1510 Posts: 18 Forumite
    10 Posts
    Here is my updated SOA

    I have done the best i can with figures and all the loans and credit cards are accurate. I have total of 9 loans / credit cards in my name as seen below which i am making payments on..

    I also have another loan in partners name where i have to pay 600 per month. I have 8 payments left on this.

    I own no car or house. My car is in partners name but i use this and pay the finance of £330 per month as i have added below. The house is in her name and her name only on mortgage.

    I have no assets or anything of value.

    Appreciate any support on what i should do...IVA, Bankruptcy or any other suggestions. Appreciate if anyone can let me know any companies to help me.

    thanks



    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 0[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2650
    Partners monthly income after tax....... 600
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 3250[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 550
    Management charge (leasehold property).. 0
    Council tax............................. 125
    Electricity............................. 80
    Gas..................................... 60
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 0
    Mobile phone............................ 55
    TV Licence.............................. 14.5
    Satellite/Cable TV...................... 40
    Internet Services....................... 40
    Groceries etc. ......................... 250
    Clothing................................ 50
    Petrol/diesel........................... 240
    Road tax................................ 15
    Car Insurance........................... 69
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 300
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 18
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 25
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 100
    Haircuts................................ 45
    Entertainment........................... 150
    Holiday................................. 100
    Emergency fund.......................... 0
    (Unnamed monthly expense)............... 0
    car finance in partners name............ 330[b]
    Total monthly expenses.................. 2706.5[/b]
    [b]

    Assets[/b]
    Cash.................................... 400
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 400[/b]
    [b]
    No Secured nor Hire Purchase Debts[/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    virgin money loan..............3310......138.......4.2
    fluro loans....................6660......208.......17.9
    loans 2 go.....................1321......182.......815
    marbles credit card............2182......140.......32.9
    aqua credit card...............5020......300.......34.9
    mbna credit card...............6750......300.......20.93
    ondal..........................601.......300.......1299
    drafty.........................1916......178.......65.7
    my community finance...........3165......91........32[b]
    Total unsecured debts..........30925.....1837......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,250
    Expenses (including HP & secured debts). 2,706.5
    Available for debt repayments........... 543.5
    Monthly UNsecured debt repayments....... 1,837[b]
    Amount short for making debt repayments. -1,293.5[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 400
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -30,925[b]
    Net Assets.............................. -30,525[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • RAS
    RAS Posts: 35,798 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    OK we really need to clarify the situation regarding the house and the car. It would be good to have the views of @sourcrates and @fatbelly based on the new information.

    How much mortgage does your partner pay monthly? If it's very high, the situation might be OK, but if it's say £700 and you are paying £550 rent plus a portion of bills then you definitely have a beneficial interest in the house. Not least as your partner's income doesn't even cover the mortgage.

    The fact that you use and pay the loan for the car, although in your partner's name means that you have a beneficial interest. 

    We also need to understand how you have allocated household costs? Since you earn c80% of the income, the normal debt charity household SOA would allocate the same percentage of household costs to you. But with the mortgage, that's more complicated.

    You have to provide evidence of your actual spends for some months, and there's no way you can hide either the loan or the car payments. 

    The ents, holiday and presents budgets are too high and if you claim to pay 80% of the other costs the grocery budget is low, but you've really got to think about your spending priorities.

    Just for reference, you have a credit union debt and you'd be wise to engage with them quickly as they are much more likely to take legal action against you and a CCJ wouldn't allow for debts in your partner's name.
    If you've have not made a mistake, you've made nothing
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