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| deedeelocks |
Posted - 18 January 2008 : 12:41:12
Hi,
Having recently been in contact with 2 debt advise helplines my partner and I have been told that bankruptcy is our only option. Our debt is too small to be considered for an IVA and we dont have enough left each month to realistically pay into a DMP. I am a housewife and Mother to a 2 year old and my partner commutes 20 miles a day for a measly £12k a year. we recieve housing benefit( which we only discovered we were eligable for 5 months ago), child benefit and child tax credit. We were informed that we pay half the amount we should on groceries, do not save anything for clothes and haircuts and spend the money we put aside for our utility bills on debt, which has resulted in my partners mother paying for our electricity. We were further told that it would be in our best interest to save up the money for court costs and bankruptcy by not paying our creditors, with our basic expenditure it would take 8 months to save up as we would have to become bankrupt separately. What do I do when the creditors start calling asking where their money is? 8 months is a long time to ignore them. We were told that it would be a bad idea to tell them that we were going bankrupt.
We have no assets, we rent our home and have nothing of any value. Will this affect the way we are dealt with in court?
Any help would be appreciated. |
| 4 L A T E S T R E P L I E S (Newest First) |
| deedeelocks |
Posted - 23 January 2008 : 11:49:34
Thank you so much for your help.
One of the debt advise companies has just come through for me and sent my partner and I enough copies of our budget and a letter written to all our cretitors offering £1 a month. There are things included on the budget that I had not allowed for so our disposable is alot less than £55.
At least it will give us some breathing space to decide if pro-rata is right for us in the long run.
Thanks again
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| Johnny Debt |
Posted - 23 January 2008 : 07:39:12
It would be interesting to see what you have listed in your income and expenditure.
Don't forget things such as:
Car Tax
Car Servicing
Christmas Presents
Birthday Presents
Haircut
Clothing
Food @ 150 for first person and 100 each other is legitimate, if not a little on the low side with price increases.
Your main concern is you!! Then what is left can be offered to the creditors.
Don't though think that you will get away with something like £30 a month for Christmas presents 5-10 is a reasonable figure.
If you find the calls a hassle, you can always change your number - I think it is free with BT.
Reply to the letters with your offer - if it is rejected just keep making the offer. If you say have a debt with Lloyds, they will reject a low figure. Once it goes to a collection agency, they are usually keen to accept a token payment. Treat this situation professionally, and you will see results.
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| deedeelocks |
Posted - 22 January 2008 : 16:52:44
I have toyed with the idea of a Pro-rata Distribution, my partner is not too keen on the idea. Even if I enclosed a copy of my budget to each of my creditors showing that I had £55 disposable income, could I still only offer every one of them £1 a month so I could still save for court costs? I have only had letters and phone calls from 2 or 3 of my creditors, It's not too bad at the moment but likely to get worse if I do not act soon.
I am pleased to learn that the court process could be easier due to no assets.
Many thanks for your help.
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| Johnny Debt |
Posted - 22 January 2008 : 11:29:22
I would firstly ask, how much creditor pressure are you getting? You could offer to pay them a £1.00 a month each, this could also be done in writing if you don't like talking to them. This would then help ease the creditor pressure.
I think if you there is a reduced fee form you can use if you qualify. just ring you local court and they will advise.
Not having any assets will be a much swifter process. You will go through the standard interview procedures with the Official Receiver. Proving there are no anomalies you should be discharged in 6 months.
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