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  • FIRST POST
    • Lizzylou94
    • By Lizzylou94 21st Nov 19, 2:56 PM
    • 9Posts
    • 2Thanks
    Lizzylou94
    Pregnant and about to declare bankruptcy.
    • #1
    • 21st Nov 19, 2:56 PM
    Pregnant and about to declare bankruptcy. 21st Nov 19 at 2:56 PM
    I am around 8 weeks pregnant (unplanned but I am happy), my partner and I are currently not living together as the plan was for me to sort my debts before we began living together. That maybe change now given the situation, but I am not sure.
    My take home pay each month is £1750. My rent, council tax, utilities & tv licence total around £780 (this will potentially go up as I am using my heating more at home) . Food/cleaning supplies and my pregnancy supplements total around £300-£350 (I am celiac so food is usually a little bit expensive). I spend around £200 a month on travel as I like to visit family who live about 150 miles away and I donít currently own a car. I Spend around £180 on my pet, phone bill, clothes and home internet each month also.
    Then each month I would say I spend around £30 on haircuts, gifts and meals at work.
    This leaves me with around £260.
    I have around 27k of debt including 15k for a loan that my brother had taken out which I am a guarantor for. At the end of the month I hope to go bankrupt. I have struggled with debt for a long time and it has severely affected my mental health.
    My questions are: How much of the £260 would I be allowed to keep towards baby items. I have budgeted about £1200 in 7 months (171 per month) for almost everything I would need.
    Also, how much am I allowed to save each month for emergencies and to be able to still enjoy my life.
    Thanks in advance!
Page 1
    • Flyright
    • By Flyright 21st Nov 19, 4:42 PM
    • 378 Posts
    • 211 Thanks
    Flyright
    • #2
    • 21st Nov 19, 4:42 PM
    • #2
    • 21st Nov 19, 4:42 PM
    You won't be able to include the loan your brother took out as a bankruptcy debt if he took it out in his name.
    • frugalmacdugal
    • By frugalmacdugal 21st Nov 19, 4:54 PM
    • 6,871 Posts
    • 5,851 Thanks
    frugalmacdugal
    • #3
    • 21st Nov 19, 4:54 PM
    • #3
    • 21st Nov 19, 4:54 PM
    Hi,


    why do people do block text, very hard to read, paragraphs please.



    I am around 8 weeks pregnant (unplanned but I am happy), my partner and I are currently not living together as the plan was for me to sort my debts before we began living together.

    That maybe change now given the situation, but I am not sure.



    My take home pay each month is £1750. My rent, council tax, utilities & tv licence total around £780 (this will potentially go up as I am using my heating more at home) .


    Food/cleaning supplies and my pregnancy supplements total around £300-£350 (I am celiac so food is usually a little bit expensive). I spend around £200 a month on travel as I like to visit family who live about 150 miles away and I donít currently own a car.



    I Spend around £180 on my pet, phone bill, clothes and home internet each month also.


    Then each month I would say I spend around £30 on haircuts, gifts and meals at work.


    This leaves me with around £260.



    I have around 27k of debt including 15k for a loan that my brother had taken out which I am a guarantor for. At the end of the month I hope to go bankrupt. I have struggled with debt for a long time and it has severely affected my mental health.



    My questions are: How much of the £260 would I be allowed to keep towards baby items. I have budgeted about £1200 in 7 months (171 per month) for almost everything I would need.



    Also, how much am I allowed to save each month for emergencies and to be able to still enjoy my life.
    Thanks in advance!
    Originally posted by Lizzylou94

    Seems you have time to sort the baby issue, what you must do is sort out the financial situation.


    Good luck.
    Y'all take care now.
    • Lizzylou94
    • By Lizzylou94 21st Nov 19, 5:14 PM
    • 9 Posts
    • 2 Thanks
    Lizzylou94
    • #4
    • 21st Nov 19, 5:14 PM
    • #4
    • 21st Nov 19, 5:14 PM
    Okay but as I am the guarantor for this loan I will no longer be required to make payments towards it. Is that correct?
    • Flyright
    • By Flyright 21st Nov 19, 5:20 PM
    • 378 Posts
    • 211 Thanks
    Flyright
    • #5
    • 21st Nov 19, 5:20 PM
    • #5
    • 21st Nov 19, 5:20 PM
    Yes, you cannot make any payments against a debt that is not yours if you are bankrupt.
    • Minkym00
    • By Minkym00 21st Nov 19, 7:07 PM
    • 242 Posts
    • 101 Thanks
    Minkym00
    • #6
    • 21st Nov 19, 7:07 PM
    • #6
    • 21st Nov 19, 7:07 PM
    You need baby items so the OR will allow you a budget for them. If I were you I would put the £171 amount in as baby items and explain how you have budgeted for it. The OR should allow it for 7 months then they would have to vary the IPA in any case as you will be on a reduced income when on maternity pay.

    You’re allowed £10 a month for emergencies.
    • Lizzylou94
    • By Lizzylou94 22nd Nov 19, 9:34 AM
    • 9 Posts
    • 2 Thanks
    Lizzylou94
    • #7
    • 22nd Nov 19, 9:34 AM
    • #7
    • 22nd Nov 19, 9:34 AM
    Hi,


    why do people do block text, very hard to read, paragraphs please.






    Seems you have time to sort the baby issue, what you must do is sort out the financial situation.


    Good luck.
    Originally posted by frugalmacdugal
    Sorry I did this on my phone to the formatting went to whack!
    • MalMonroe
    • By MalMonroe 23rd Nov 19, 12:52 AM
    • 119 Posts
    • 97 Thanks
    MalMonroe
    • #8
    • 23rd Nov 19, 12:52 AM
    • #8
    • 23rd Nov 19, 12:52 AM
    Hi, and congratulations on your baby. Have you been in contact with one of the debt support agencies? StepChange or something like that? They are really helpful and give expert advice. And they also help with preparing bankruptcies, etc. You can phone them free, and the advice they give on the phone is brilliant. I was helped so much when I was struggling and was advised to apply for a Debt Relief Order, similar to a bankruptcy. Given that you would not be responsible for your brother's debt, you may be more eligible for a DRO than bankruptcy but one of the debt agencies could go through that with you. StepChange number is 0800 138 1111. It costs nothing to find out what help you can get. I recommend them 100 percent. Good luck!
    • JCS1
    • By JCS1 23rd Nov 19, 12:20 PM
    • 3,963 Posts
    • 7,965 Thanks
    JCS1
    • #9
    • 23rd Nov 19, 12:20 PM
    • #9
    • 23rd Nov 19, 12:20 PM
    The loan that you are guarantor for, what is the status of this? Is the person still paying the loan or have they defaulted and you are now paying?
    • Lizzylou94
    • By Lizzylou94 25th Nov 19, 8:37 AM
    • 9 Posts
    • 2 Thanks
    Lizzylou94
    The loan that you are guarantor for, what is the status of this? Is the person still paying the loan or have they defaulted and you are now paying?
    Originally posted by JCS1
    The loan has not been paid for a long time, I moved house and had fallen behind on my debt so was unable to make payment!
    • JCS1
    • By JCS1 25th Nov 19, 12:23 PM
    • 3,963 Posts
    • 7,965 Thanks
    JCS1
    The loan has not been paid for a long time, I moved house and had fallen behind on my debt so was unable to make payment!
    Originally posted by Lizzylou94
    In which case you should include this on the BR paperwork, the loan is in default, so you as guarantor are liable.
    • magicgirl
    • By magicgirl 3rd Dec 19, 12:35 AM
    • 596 Posts
    • 2,217 Thanks
    magicgirl
    I was 8w pg when I went bankrupt. I found the staff were really lovely and they will accept baby costs as necessary expenditure if budgeted correctly on your forms. Do you have contractual maternity available or will you be getting just the statutory amount? this may impact what they expect you to pay later but be as realistic with costs as possible and you'll be fine.
    Proud to be Member of BSC #92

    Hoping to get debt free again

    working hard to make my daughters proud
    • Potbellypig
    • By Potbellypig 3rd Dec 19, 1:28 PM
    • 555 Posts
    • 407 Thanks
    Potbellypig
    In which case you should include this on the BR paperwork, the loan is in default, so you as guarantor are liable.
    Originally posted by JCS1
    As the brother is jointly liable, he'll be the one that is chased for payment. It won't be accepted in the bankruptcy.
    • Lizzylou94
    • By Lizzylou94 3rd Dec 19, 2:44 PM
    • 9 Posts
    • 2 Thanks
    Lizzylou94
    I was 8w pg when I went bankrupt. I found the staff were really lovely and they will accept baby costs as necessary expenditure if budgeted correctly on your forms. Do you have contractual maternity available or will you be getting just the statutory amount? this may impact what they expect you to pay later but be as realistic with costs as possible and you'll be fine.
    Originally posted by magicgirl
    How would I budget it? I have budgeted £170.
    I will only be getting the statutory amount for maternity.
    • JCS1
    • By JCS1 3rd Dec 19, 7:31 PM
    • 3,963 Posts
    • 7,965 Thanks
    JCS1
    As the brother is jointly liable, he'll be the one that is chased for payment. It won't be accepted in the bankruptcy.
    Originally posted by Potbellypig
    The brother has defaulted, therefore the guarantor becomes fully liable - and it is a provable debt in her bankruptcy.

    From CAB website:

    Guarantor debts
    If someone is a guarantor for a loan youíve taken out it will be included in your bankruptcy but the other person will still have to pay the debt.

    If you are the guarantor and the other person fails to pay, it will be included in your bankruptcy and the creditor wonít be able to chase you for it.


    https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/bankruptcy-explained/debts-that-bankruptcy-covers/
    • c_e_l
    • By c_e_l 3rd Dec 19, 8:10 PM
    • 4 Posts
    • 1 Thanks
    c_e_l
    Trigger Figure
    The trigger figures represent pre-agreed levels for certain areas of discretionary household expenditure. The trigger figures help identify levels of monthly expenditure deemed reasonable when completing the CFS. You will not need to explain the financial statement to creditors unless the trigger figures are exceeded.

    Baby items fall under the category of housekeeping. The expected figure for the category of housekeeping is £683 per month with two adults and one child.
    • c_e_l
    • By c_e_l 3rd Dec 19, 8:14 PM
    • 4 Posts
    • 1 Thanks
    c_e_l
    Visit your local citizens advice, their free, no hassle, and will tell you exactly how bankruptcy will bite you in the bum.
    • Lizzylou94
    • By Lizzylou94 4th Dec 19, 3:34 PM
    • 9 Posts
    • 2 Thanks
    Lizzylou94
    The trigger figures represent pre-agreed levels for certain areas of discretionary household expenditure. The trigger figures help identify levels of monthly expenditure deemed reasonable when completing the CFS. You will not need to explain the financial statement to creditors unless the trigger figures are exceeded.

    Baby items fall under the category of housekeeping. The expected figure for the category of housekeeping is £683 per month with two adults and one child.
    Originally posted by c_e_l
    When having a child I assume they will allow money for the initial "set-up" costs. Once the baby arrives I won't need £170 a month to care for the baby day to day.

    I am doing this alone and I am not one to want expensive baby items but I will still need to buy everything needed to look after a child.

    I don't think 1000 total would be deemed too much? do you?
    • fatbelly
    • By fatbelly 4th Dec 19, 5:30 PM
    • 14,419 Posts
    • 11,471 Thanks
    fatbelly
    The trigger figures represent pre-agreed levels for certain areas of discretionary household expenditure. The trigger figures help identify levels of monthly expenditure deemed reasonable when completing the CFS. You will not need to explain the financial statement to creditors unless the trigger figures are exceeded.

    Baby items fall under the category of housekeeping. The expected figure for the category of housekeeping is £683 per month with two adults and one child.
    Originally posted by c_e_l
    It's SFS now. The CFS has gone. I checked that figure - and it is now £683.

    So I think you do have access to the SFS!
    • fatbelly
    • By fatbelly 4th Dec 19, 5:32 PM
    • 14,419 Posts
    • 11,471 Thanks
    fatbelly
    Hi, and congratulations on your baby. Have you been in contact with one of the debt support agencies? StepChange or something like that? They are really helpful and give expert advice. And they also help with preparing bankruptcies, etc. You can phone them free, and the advice they give on the phone is brilliant. I was helped so much when I was struggling and was advised to apply for a Debt Relief Order, similar to a bankruptcy. Given that you would not be responsible for your brother's debt, you may be more eligible for a DRO than bankruptcy but one of the debt agencies could go through that with you.
    Originally posted by MalMonroe
    Too much debt; too much surplus income
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