Help needed, 1 week away from my baby

josephine1_2

I've been putting this off, hoping for a miracle! In the last 2 years since I started my own business, my partner had a breakdown and our debts went from a manageable £22k to around £50k and I'm 1 week away from giving birth.

My partner is now working, but on a lowish wage of around 18k a year, I get a weekly maternity allowance from paying my NI, as I'm unable to now work. I think because I'm self-employed we can't look into an IVA? So if we applied for bankruptcy, would the only valuable things we have my car/cameras/computer that I use for my job be taken?

We've got to the point that I know we can't pay this months minumum payments on loans and cards, we have no ccjs. A lot of the debt is on 3 lloyds credit cards, and they have the ability to ransack your lloyds bank accounts for money, so I've opened a new abbey bank account and asked my partner to speedily get his wages put in there, rather than his lloyds bank account.

I just don't what to do anymore, please help. I'm terrified of losing my home, we rent, but I just don't know what they can do to us.

Thank you for any advice

**Amy**

Hi

Im not an expert just wanted to say hello and ask if you have contacted the CCCS or National Debtline?

It may be worth doing both of these. The CCCS is a non-profit company who specialise in debt management plans etc. If you go on their website you should be able to fill out the forms and it will tell you the best action for you.

Also the National Debtline is a free advice line.

Hope you get some answers.

x

completelyspent

It might also putting your SOA on here - some of the more experienced people on here might be able to see where you could save some money.

Waspeze

As had already been said, definitely take advice first (cccs, cab or national debtline) but if you are advised to go BR then you can always ask "specific" bankruptcy questions over here http://forums.moneysavingexpert.com/forumdisplay.html?f=136

If you don't have to go BR though then the lovely people here on DFW will help with ways to cut expenditure etc!!

Karmacat

Hello Josephine

Welcome to mse, I'm sorry things have got to this stage. It is *completely* worth putting up your soa on here - your Statement of Affairs, your budget of absolutely everything that you pay out, monthly, weekly, annual, everything. There's a sticky at the top of this board that'll tell you how to do it. Then experienced people can look through it and suggest where you could make savings - they can be hundreds of pounds, literally, its amazing.

As for the effects of bankruptcy, I really don't know - it would be best to post on the bankruptcy sub board about that, I'm sorry. I think, however, that if bailiffs do eventually end up coming, they're not allowed to take anything that you need for your job, and they must leave you the basics to live on (tho that is *very* basic). If this is the first time you're missing payments, tho, I'd say you're quite a way from that, tho.

You were absolutely right to open a fresh bank account, away from the credit cards, good for you.

Definitely talk to the debt charities - there are links at the top of this page. *Only* talk to them - don't talk to any other organisation, they'll make out that they have your interests at heart, but they'll be commercial organisations, out to make a profit.

Thats the most I can think of right now, if I think of anything else, I'll post it right away.

Best of luck, and keep posting.

Oh, I know one thing - start a spending diary, you and your Other Half. Literally, every single penny you spend, write it down - you need to know exactly where your money is going, and quite often we don't actually know, not to the nearest penny, and when the debt is big, you need to know that.

Take care.

LilacPixie

Welcome to the board.

Please try and not worry too much. You are 39 weeks pregnant and need to look after yourself.

Contacting one of the debt charities is a good move and also look at what your exact situation is. Is there any unessential spending that could be cut out or cut down??

josephine1_2

Just wanted to thank you for the replies so far. PLease see below I have pasted to the best of my knowledge our figures. Although from doing this exercise, I know 2 of the 5 year loans only have 2 years left to go so I think we are closer to owing 45k rather than 50k. I went on the ccs website, to go through the form but it said it couldn't help me because of being self-employed and I needed to call and I've been too scared to

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)
Total monthly income 1,685
Monthly expenses (incl. secured loans) 1,483
Available for debt repayments 202
UNsecured debt repayments 861.6
Surplus -659.6
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 800
Total Secured Debt -0
Total Unsecured Debt -49,196.6
Net Assets -48,396.6
Comments on the results

You do not have enough monthly income to meet your expenses and your minimum monthly debt repayments. Seek ways to increase your income and/or reduce your expenditure by £659.6. Whatever your results show, it always pays to seek advice or comments from others. Why not post your SOA details on our Debt Management discussion board or on your preferred discussion forum elsewhere. Thankyou for using the SOA Calculator at https://www.makesenseofcards.com.
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 498
Partners monthly income 1187
Benefits 0
Other income 0
Total monthly income 1685
Expenses Amount(£)
Mortgage 0
Secured loan payments 0
Rent 570
Management charge (leasehold property) 0
Council tax 143
Electricity 22
Gas 100
Oil 0
Water Rates 10
Telephone (land line) 30
Mobile phone 15
TV Licence 11
Satellite/Cable TV 0
Internet services 14
Groceries etc. 350
Clothing 15
Petrol/diesel 40
Road tax 20
Car Insurance 37
Car maintenenance (including MOT) 10
Car Parking 0
Other travel 76
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 0
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 0
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 20
Haircuts 0
Entertainment 0
Holiday 0
Emergency Fund 0
Total monthly expenses 1483
Secured Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 0 (0) 0
Secured Debt totals 0 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Intelligent finance 7500 136.6 6.4
Capital one card 400 12 29
Natwest 2697 60 0
career develop loan 3500 80 14
post office credit ca 2800 70 0
Texaco/lloyds card 1743.92 35 0
Lloyds student overdr 1500 16 0
Lloyds student overdr 3500 26 0
Student loan him 4000 0 0
Student loan me 2783 0 0
Partners lloyds credi 5189.68 130 0
My lloyds credit card 7797 156 0
Virgin credit card 5786 140 0
Unsecured Debt totals 49196.6 861.6 -
Asset Description Value (£)
Cash 0
House Value (Gross) 0
Shares and bonds 0
Car(s) 800
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 800

LilacPixie

well first thing that jumps out is the groceries. £350 is very high for 2 adults. second thing is your utility bills.

Also when baby arrives you will get some tax credits and child benefit too. have a look at entitledto.co.uk and see what you will get.

bintie22

Hi Josephine, please don't be scared of phoning one of the professional debt charities that have been mentioned above. They really, really are understanding, approachable and non-judgemental. They've seen it all before and probably far worse than any of us have wracked up!

I was 7 months pregnant with my baby when I confronted my debts, there's nothing like something major to focus the brain!!

My situation was slightly different from yours, I owed about £25k on various unsecured debts and knew once i'd had the baby i wouldn't be able to keep up repayments. I started a Debt Management Plan with Payplan, to which I currently pay £120.00 per month. I know it'll take a long time to clear, but my boy is now 18 months old and the pressure was taken off us immensely so that we could get back in control.

I really recommend getting professional advice, you'll be so pleased you did. Instead of feeling like you're being swept along on a massive wave of debt that you have no control over, you'll know where you are and what you're doing.

Good luck with your exciting new arrival. xx

space_rider

Hi Josephine, 8 years ago I had a baby and I won`t go into why at the moment, but I was unable to return back to work after my paid maternity leave was up. At the time I had over £15,000 worth of debt which I knew I couldn`t pay. I carried on paying the right amount of my mortgage but contacted a debt helpline about the rest. They sent a letter to my creditors detailing what I could afford. This was the best thing that happened to me as it meant I could no longer get credit as everything was in default. Now 8 years later, apart from my mortgage I am debt free. Some of the creditors cancelled the debt if it was just few hundreds and the big ones were reduced by at least a half. I cleared it all last year and I know that I will never ever live beyond my means again.

Make that phone call and you will feel so much lighter and will be able to concentrate on the hard job of giving birth and parenthood. xx

josephine1_2

Thanks again for taking the time to respond and making me feel less like such a failure. I agree our utility bills are high, when the boiler man came for the annual check he said that the landlords had the least efficient boiler system/old possible. Plus there are that many holes in the place, but it has it's pluses because I've started growing my own salads and we have the space to do more once I'm not heavily pregnant. I think my food estimate was an overestimate, but I think it probably is around £300 a month. I'm one of 8 and I'm always having family visit me, so I'm not just feeing 2 people most of the time. I know I need to make that call. I grew up in a debt environment and I'm so ashamed that I have ended up in the same situation