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Jo.hdw
Starting Member
7 Posts |
 Posted - 02 January 2011 : 15:05:54
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Hi,I'm hoping someone can give me some advice on the implications of going bankrupt under these circumstances.
My partner and I are in our 4th year of a dmp.My partner recieved an inheritance of approx 32k in 3 increments over a 2 year period.Things went wrong and we made some bad decisions consequently none of this money was paid of the 30k debt.There is also a charge of 20k on our property with 100k mortgage on it.I believe there is no equity in it as a result.We have met all the payments on the dmp and continue to do so. My partner acquired a credit repair card which has been used but always paid in full.It was not until after we realised he should not of done this whilst on a dmp.We have 2 children and I am struggling to cope with our situation.It is having a negative impact on our relationship. I am looking at the possibility of bankruptcy in the hope it might save me from emotional breakdown and the splitting of our family. However I am scared what would happen because of what we have done!It was not a deliberate act to avoid paying our debts. Would the OR put us in a BRU?
Would our house be sold even though it would not cover the charge and the mortgage?
I would really appreciate some advice so I can get some sleep at night!
Thankyou for reading.
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debtinfo
forum expert
2826 Posts |
Posted - 02 January 2011 : 15:25:00
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| What happened to the money that you received and why can you not afford the DMP now (ie have youad a change of circumstances or could you never afford the DMP in the first place). Would you both be going bankrupt or just you |
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Jo.hdw
Starting Member
7 Posts |
Posted - 03 January 2011 : 10:23:03
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It's a long story including redundancy threat, reduced pay,car problems (lost a lot of money) whole host of bad decisions and the supposed probate value of property sold for 50% less than anticipated. Some money was spent on home improvements and garden with a veiw to sell. House prices dropped we then realised we would not get the price to cover mortgage/charge and costs. We also had a new arrival things are tight as we have not reduced dmp payments due to this,for fear of repurcussions with creditors. we increased the dmp payment but only a little. My OH works 6 days I worry about him doing this long term consequently nor I or the children see him much as I work when he is home due to childcare. I know most of the country is working overtime too! I would like to draw a line and start again but I am worried my OH could get in serious trouble because of what we did. I don't want us spending time behind bars,thinking that would not help!
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debtinfo
forum expert
2826 Posts |
Posted - 03 January 2011 : 10:42:10
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he is not going to go to prison as long as he is honest about wht happened. The worst that would happen is that he may have some restrictions regarding things like taking out credit for a longer time.
Since you first got the money how much have you paid to the debt management plan, how much for your essential living costs, he wont get in trouble for spending that, he would only get in trouble for any money that was spent extravagently |
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Jo.hdw
Starting Member
7 Posts |
Posted - 03 January 2011 : 12:22:12
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We never told dmp company about buying another car so running cost were not on the plan(they were told at last reveiw).We had no choice due to him needing it to work. So then it would be my car it cost approx 8k sold it 5.5k bought another £3700 his was 2k,surplus paid costs incurred with previous car,a new table, home improvements 4k?.We moved money in/out of kids account but put the money back. I guess that looks bad!We used the kids accounts as an overdraft when we had a shortfall! I settled a debt for £400. We were hoping to offer f&f with the rest but there simply is not enough. I'm not sure but think there will be maybe 3.5k left!We had central heating probs/alarm service/replacement appliances (they broke)wii/tv and cheap dvd for ds/replacement tv(it broke)nothing extravagent. If we had not had this money I suspect the creditors would of pursued bankruptcy on our behalf.We would have had to suspend dmp payments.
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Hi,I'm hoping someone can give me some advice
