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| someoneelse |
Posted - 29 May 2008 : 01:01:12
I'm currently going through the monthly grind of trying to find money I don't really have to pay bills etc and despite spending the last 18 months making half decent progress in paying off credit cards etc I'm still in a real mess financially.
My situation is that I don't work. I look after my two young sons full time with their mother (who I live with but am not married to) working full time. Her current salary is in the region of 30k. At the moment her basic wage just about covers our outgoings but I'm starting to wonder if we may have to take one step back to enable ourselves to take two forward.
Until 18 months ago we owned our own house but having experienced bad luck (redundancies) and the birth of two kids, not to mention a particularly horrible drug addict neighbour(!) we decided to cut our losses and start renting. Until the Mrs moved jobs we were doing quite well, paying credit cards off and a few other debts but after she was forced to change jobs in January this year we have gradually started to find her lack of commission a problem.
Last month I somehow had to find £900 to pay off an outstanding debt with Dell computers which had found its way to a particularly nasty and aggressive debt management company. They threatened me with bankruptcy unless I found the outstanding amount within 3 weeks. I somehow found it and paid it but it got me thinking...
Currently I'm paying off a loan (£188 a month) and various credit cards (maybe £200 a month). In addition I have a career development loan which may well catch up with me soon, plus a CCJ situation that developed through a mistake on the part of the tax credits people. I'm constantly battling to find new ways to make ends meet and although we just about manage to do it each month I wonder if my personal situation may be worthy of going bankrupt? I think the total amount I owe is between 10 and 12 thousand, which may not sound like a lot in comparison to some people but when you consider I don't have a regular income it suddenly sounds a lot!
If I disregard the income of my other half I have literally no regular income. I buy and sell the odd item on ebay and often come out with a few quid profit but other than that I have no income. I also have no car or other major asset. The only thing of any value is the pc I'm using to write this message and that's not in my name either.
I have no serious plans to go back to work full time in the next 2 years as my youngest only just turned 2 himself and my plan was always to kickstart myself career wise when he goes to school.
I feel it's a matter of time before someone applies to make me bankrupt and the stress of having to find money every month is putting a strain on family life. My other half works long hours but her job move hasn't quite worked out. She loves the job but her earning potential is a fair bit higher, but then why should I put the pressure on her to leave a job she enjoys so that we can continue to pay debts which may end up sending us under anyway? There is only so long we can keep doing what we've been doing before somebody puts us both in a bad position. I'm wondering if it's wise to head that off and do it on our own terms before we're forced into a corner.
I've researched a little on the internet but I'm in need of some more specific advice relating to my own personal circumstances. Our answer has always been to plough on, be honest and hope for the best and while the being honest and hoping for the best will always be the way we go about things, the ploughing on bit requires a bit of re-evalution IMO.
Can anyone help? |
| 8 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 02 June 2008 : 14:36:55
Pix1,
Great advice as always!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| pix1 |
Posted - 02 June 2008 : 13:53:31
Hello,
Most creditors would not be likely to try to make you bankrupt as they would have no guarantee of getting any more back than they might get through chasing you for monthly payments. Their policy might not be to declare people bankrupt, either. The CCJ for tax credits suggests that the tax credits, though a government agency, have decided against BR, instread going for a CCJ and then to chase the debt monthly. Unles you owe at least £750 money to the Inland Revenue or a private individual I don't think anyone will petition for your BR, so it is down to whether you petition your own BR. As Julian says, 12k, though difficult in terms of making large payments, is not the sort of sum to consider BR, what with the restrictions it places on you. Best to negotiate yourself for lower payments per month. This could mean more defaults if some accounts have not yet defaulted. But you could end up paying £30 or £40 a month instead of £188 or whatever, until your income situation improves and you can pay off more. BR would last 6 years on your credit file. You could probably pay off the 12k in that time by monthly instalments and/or reduced full and final settlements at a later date during the 6 years!
Good luck. |
| JulianDonnelly |
Posted - 30 May 2008 : 08:32:18
Hi,
With £500-£600 in commitments I really do think that a debt management plan would be the most sensible option for you at the moment.
With no fixed income you could reduce your commitments to around £150 per month without taking such drastic measures like bankruptcy.
Have a look at the link below I interviewed the Financial Director for Bankruptcyhelp TV recently and they have a good success rate at freezing interest.
http://www.gemstonefinancial.co.uk/
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| someoneelse |
Posted - 29 May 2008 : 18:41:31
quote:
Originally posted by JulianDonnelly
Hi someoneelse and welcome to the forum.
It strikes me that your situation is likely to change in the next 2-3 years, and £10-12k is a very low amount to consider BR. Perhaps a more prudent course of action at present would be to lookat a debt management plan which is an informal arrangement with your creditors to pay a reduced amount each month based on affordability. You can either arrange this yourself, or there are many companies that can do this for you (a few of which have an excellent record in getting interest frozen during the term on the plan).
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Thanks for the advice. I think it's true that our situation as a family is likely to improve in the next couple of years but my worry is that despite our best intentions, someone, somewhere could take it out of our hands because on paper I'm completely insolvent. I have somewhere between £500 and £600 worth of committments per month and my only way of paying these is via the wage of my partner.
Money is causing us strain after strain and as recently as last month we discussed the wider implications of if everything all fell apart and we split. Things are much better now because we're trying to focus on the really important things but I wonder how long this will last.
To compound things my other half was due £900 commission in July but that fell through today!
You mention companies who could help us manage the debt more effectively. Do you have any more information on this. As I've already stated we've really worked hard in an effort to see ourselves through this hard patch the 'right' way but I'm starting to wonder if that was a wise choice.
I just want happiness and less stress at the end of the day and will do whatever it takes to attain that. |
| JulianDonnelly |
Posted - 29 May 2008 : 09:26:01
Hi someoneelse and welcome to the forum.
It strikes me that your situation is likely to change in the next 2-3 years, and £10-12k is a very low amount to consider BR. Perhaps a more prudent course of action at present would be to lookat a debt management plan which is an informal arrangement with your creditors to pay a reduced amount each month based on affordability. You can either arrange this yourself, or there are many companies that can do this for you (a few of which have an excellent record in getting interest frozen during the term on the plan).
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| m and v |
Posted - 29 May 2008 : 08:06:11
Hi someoneelse
My situation is quite similar.
I had the debts and a low income, my husband had fewer debts but a better income.
I went BR - and this has allowed us to "clear" my debts that were crippling us and then use my husbands income to pay his debts only.
BR is not an easy choice and the BR/IVA experts may suggest a better route for you.
BR allows you to look at the disposable income in your household, and will only look at your wifes contribution to that once she has paid all her commitments.
Hope this helps a little - hold on there for another expert to advise you further.
Vicki x |
| someoneelse |
Posted - 29 May 2008 : 02:46:32
quote:
Originally posted by cozh
I think you probably need advice from one of the experts who will reply to you shortly but to my mind you have made the right move. It sounds like you need a fresh start. best wishes
Thanks. I'm undecided as yet but my worry is that ultimately the pressure brought about by not only my debts but those of my other half could cause us to split up.
The bottom line is that as an individual I'm insolvent. I have no income, no assets apart from a couple of snazzy coats(!) and various debts which are currently being indirectly paid by my other half.
Any money that passes through my fingers comes from her.
Whether that money is relevant in the scheme of things is I suppose the crux of the matter. |
| cozh |
Posted - 29 May 2008 : 02:23:22
I think you probably need advice from one of the experts who will reply to you shortly but to my mind you have made the right move. It sounds like you need a fresh start. best wishes |
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