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Not sure where to turn
Starting Member
United Kingdom
7 Posts |
 Posted - 18 August 2011 : 09:36:40
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I have a huge amount of debt, approx £80,000 as a result of my ex husband's mental health problems. I work full time on a low income, have 2 children (one of whom is at University) the other lives at home with me. I am separated from my husband and receive minimal finacial help from him - he does not work. I am currently on a DMP paying £105 a month, I am considering an IVA but have been told the min I should expect to pay is £200 a month. I am so angry that I am left having to pay my husband's debts that I am considering declaring myself bankrupt. As a result of his mentall illness I am left to bring up two children, pay my own way (which I am more than happy to do) but why should I have to pay his debts as well just because we were married.
I suppose my question is ,., is bankruptcy a good option - at the moment it seems very appealing as it will give me a clean slate in a couple of years time. Any advice would be appreciated. Thanks. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 18 August 2011 : 11:02:20
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other questions to consider
home who owns, rented or yours how much equity ?
Car value ?
other assets ?
debt what is his ? what is yours and what is joint ?
please dont be too harsh on EX .. Mental health problems are not planned and can effect any of us
from what you have typed i do not think IVA or DMP are best for you.
i would want further info before suggesting bankruptcy.
Good Luck Richard,
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Not sure where to turn
Starting Member
United Kingdom
7 Posts |
Posted - 18 August 2011 : 11:19:01
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Hi Richard, I rent - the family home was sold in Dec 2010 with no equity and a shortfall of £25,000 which the mortgagees kindly wrote off. Car value is £800 no other assets. Joint debts of £68,000, the balance of the debt was a credit card in my name that we used to live on. Believe me I have every sympathy with anyone who suffers with their MH, I tried to support him but at the end of the day I had to protect myself and my kids. Thanks for getting back to me.
Regards, Bev |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 18 August 2011 : 11:34:23
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think you have answered your initial question yourself
in bankruptcy you exchange your assets for your liabilites. however you are allowed to retain some of your nominal value assets to enable you to work and live.
to be blunt you dont have any "Major assets" which the official receiver will sell to pay your creditors, The OR will compare your income and expenditure to see if the residual cash can form part of an IPA (income payment agreement)
so in effect you could exchange £700 (plus cost if you choose an expert to help but optional) for a debt of £68,000. read the forum and posts for challenges others have faced post / pre & during bankruptcy. plan for those situations
Good Luck Richard,
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Not sure where to turn
Starting Member
United Kingdom
7 Posts |
Posted - 18 August 2011 : 11:50:07
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| Thanks Richard, the company that set up my DMP are suggesting IVA as opposed to bankruptcy, and they say that an IVA is more lenient and allows more flexibility in my monthly outgoings ie allowing me mobile phone for the kids, broadband, school trips etc, whereas with Bankruptcy the Court would be much more restrictive. Is this correct? Having talked things through with them an IVA seems appealing as I would be paying £200 but still able to keep a few nicities like mobile phone, broadband (which you and I know are luxuries but with two teenagers I would like to retain these services as they have been through more than enough trauma seeing their parents break up etc). They also made the point that paying £12,000 over 5 years off of a debt of £80,000 is a pretty good deal - which I am inclined to agree with. I would be interested to know what you think. Thanks. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 18 August 2011 : 12:02:00
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you need to call one of the experts on this forum
the IVA information is wrong, run away from this company they sound like all they are after is the sale not what is best for you. feel my self going off on one
can you realistically afford the minimum £200 for an IVA for the next five years.
If the circumstances dictate pay your creditors through a three year Income payment agreement.
i still think that £700 sounds better than 12,000 or 80,000
hey i am on broadband , have a mobile my son still participates in school trips and I went bankrupt.
Good Luck Richard,
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 18 August 2011 : 12:23:30
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Hi not sure where to turn,
I agree with Richard, you should speak to an expert and have all of your options explained.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 18 August 2011 : 12:26:06
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Hi and welcome to the forum. I don't know which IVA company you spoke to but if you are undecided which route to take I would suggest having a look on www.iva.com and speaking to a couple more companies. They will be able to talk you through all of your options.
Good luck x
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 and I'm now looking forward to getting married in September 2012 - I'm proof that you can go BR and come out the other side. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 18 August 2011 : 12:32:21
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I agree with Tracey - explore all of your options before making a decision and use the link posted above for some free and impartial advice.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 18 August 2011 : 12:49:40
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sorry kallis and Tracey
do we not trust our experts on this forum to give whole of market appraisals.
Our experts Vicki, Mel, Big Al, Blackie, debt info, Glafy and you two guys put a serious amount of time into this forum, all come highly recommended.
use them properly or loose them
if individuals are posting on the bankruptcy forum, then that is what they are thinking about
Good Luck Richard,
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 18 August 2011 : 12:58:13
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There is nothing wrong with phoning companies on iva.com for options, at least two of the companies who are experts on here are on there and posters can look at reviews.
They are all able to decide whether or not to contact companies on here or via iva.com, that is their choice.
This forum should be the same as the sister forum - give advice on all options.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 18 August 2011 : 13:07:15
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Richard, I am in no way criticising any of the current experts on the forum.
I obviously understand that people who post on here are considering BR, but if you actually read the thread the OP is considering all options.
Even though this is predominantly a BR site we must offer posters information about all solutions in the same way that the sister IVA site does.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 and I'm now looking forward to getting married in September 2012 - I'm proof that you can go BR and come out the other side. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 18 August 2011 : 13:11:01
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The sister site has a lot of bankrupt and ex bankrupt posters and we always point them in the direction of either the experts or www.iva.com. That way they get a balanced view of things.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 18 August 2011 : 15:09:36
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HI Bev we seem to have gone off at a tangent back to you and your original thread
think we are all saying is speak to someone, phone consultations are free with all experts
Good Luck Richard,
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Not sure where to turn
Starting Member
United Kingdom
7 Posts |
Posted - 18 August 2011 : 15:16:35
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| Hi Richard, that's OK. Things are getting a little clearer in my head, the anger is disappearing and I just need to get things sorted so I know where I am going with all this. Have spoken to an expert and they have clarified things for me a little bit. I need to keep hold of the fact that its only money, and I did play my part in racking up the debt, hopefully my ex will sort himself out and he can repay his bit, but I need to concentrate on clearing my name, so thanks everyone for your help. Bev |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 18 August 2011 : 15:39:45
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Glad you have sorted yourself out Bev.
Richard - this thread did not go off 'at a tangent' - all posters on either forum should be pointed in the direction of expert advice to see whatever solution is best for them. The IVA site is primarily for an IVA but gives excellent advice for both DMP and BR and this site should do the same if the situation warrents it.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
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Topic |
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Is bankruptcy a good option for me ?
