Help please - do I go Bankrupt?

K-lo

Hi All

I owe £47k with 75% of my debt with Lloyds TSB, and I am currently on a joint DMP with my husband as a couple we owe £90k. I am going to seperate from a joint DMP and form my own one.

We dont own a house as we live in rented accomodation.

I am on statuatory maternity pay of £480 p/m which runs out at the end of October plus get child benefit of £125 p/m.

We have sperated out our outgoings and I have £75 per month to pay into my own DMP. Cleraly paying £75 per month on my debt of £47k will take forever to clear plus I am not planning to return to work.

1) Is bankcruptcy the best option
2) What what happen to my car worth £3k
3) What would happen to the pocessions in our house, could it be deemed that they are my husbands and nothing to do with me.

ANy help most appreciated

Thanks

FeelingLow

HI
firstly you need to contact one of the free debt charites they will help you decide if BR is the right route for you, if it is you will get lots of help & support on here

tigerfeet2006

As FL has said the first thing you need to do is talk to a debt charity (numbers and links in my signature.) They will go through all you options with you and if bankruptcy is suggested then we can help with any questions you have and support youthrough the process.

fermi

K-lo wrote: »

1) Is bankcruptcy the best option

As others have said, that is a decision you need professional advice on.

K-lo wrote: »

2) What what happen to my car worth £3k

You would need to make a case to the Official Receiver that use of the car is necessary for your reasonable domestic needs, NOT just convenient.

Even if you were allowed to keep a car (which is not guaranteed), if it is worth much more than £2,000 - 2,500 then the Official Receiver might still want to claim it and provide funds for a cheaper replacement.

K-lo wrote: »

3) What would happen to the pocessions in our house, could it be deemed that they are my husbands and nothing to do with me.

Virtually all household possessions are safe anyway. They are either legally exempt because they are necessary for you domestic needs, while most others are not worth anything to the OR. Unless you have non-essential items worth literally £1,000's they should be safe.

dodecanese

Hi K-lo,
Hope this is of some help to you-
1.Speak to debt charities- how many years will it take to clear off your debt via DMP? How tight is your budget?- compare that against bankruptcy and see what the debt charities think.
2.Not too good with cars- think anything over £1k could be sold but I dont have a car so not too sure.
3.Only possessions the OR is interested in is antiques and expensive electricals- big plasma screen TVs etc- they are not interested in bog standard household stuff.
Are any of the debts joint? if so- and you go bankrupt- your husband ( if he dosnt go bankrupt) will be liable still.
Also check your tenancy agreement and see if BR could be a problem with your letting agent/landlord.
All the best with making your decision.

K-lo

What about if my husband financed the car i.e took out a loan for it but the car is registered in my name.

Could he transfer the car into his name?

thank you for your contributions on this

fermi

The "registered keeper" on the V5 (logbook) is not the same as the legal owner of the vehicle. It even says so on the V5 or the notes that come with it.

If your husband can prove that the car was bought with his money or finance raised solely in his name then there shouldn't be a problem.

Whether you change the "registered keeper" is up to you, but it won't stop the car coming to the attention of the OR since they check DVLA records.

K-lo

thanks fermi, he has proof that finance was taken out in his name against the car.

I have no other assets...:money:

fermi

In that case, if you should decide on BR then when you are filling in the forms don't list the car as an asset.

There is a separate question that asks you "Do you have use of a vehicle that you do not own?"

It can go there instead.

K-lo

can I choose the court where I file the BR papers?

Scarlett.1974

Hi K-lo

I don't think you can 'choose' as such, I'm sure you have to attend the court that is local to your home address