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gwen.o
Junior Member
183 Posts |
 Posted - 16 August 2008 : 14:00:25
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| Hello. I have £47,000 unsecured debt. I do not own my own home and have no other assets. I have worked out that I have £700 residual income. I am just looking into a debt management plan. It would take me just over 6 years to pay off the debts. However, I am 58 years old and due to retire in two years time which would mean I would not be able to keep up the repayments. I would to know whether bankruptcy is an option for me at this time. Many thanks. |
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John
New Member
United Kingdom
73 Posts |
Posted - 16 August 2008 : 16:27:53
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Hi
with £47K debt and a disposable income of £700 per month a DMP would last 68 months to repay the debt.
In IVA it may be possible to have to pay around £315 per month over 60 months (£18,960) or £784 per month over 24 months (£18,816)and write off the rest of the debt.
In bankruptcy you would pay £490 per month over 36 months (£17,640) although if you retire at 60 then dependent on your pension income this could reduce to £490 over 24 mths (£11,760).
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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gwen.o
Junior Member
183 Posts |
Posted - 16 August 2008 : 17:52:15
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Thanks John but does that mean that with bankruptcy I will have to pay money back for 60 months? 36 at £490 and 24 mths at £490?
When I retire in 2010 I will have approximately £500 per month pension, hence me not wanting to take out a dmp.
I though bankruptcy was a lesser repayment period than a dmp or iva? (3 years?) |
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John
New Member
United Kingdom
73 Posts |
Posted - 16 August 2008 : 17:56:40
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Hi
no it would be £490 over 24 months until you retire.
You would then notify the official receiver that you have retired and complete a new income and expenditure form. As this would show zero disposable income the IPA would cease.
IPA's cannot last more than 36 months in any event.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Andy Davie
Administrator
192 Posts |
Posted - 16 August 2008 : 17:58:13
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Hi
An income payment order will be for three years in bankruptcy
Regards
Spokesperson and Site Manger IVA.co.uk |
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gwen.o
Junior Member
183 Posts |
Posted - 16 August 2008 : 18:02:00
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Hi John
Thanks. On reading your first reply, I now realise what you meant.
I think my only option is to go for bankruptcy but one more thing.
Currently I live with my partner but he owns the house and we have a joint account for the bills. I only put a contribution in towards the bills each month. Can I go bankrupt without involving him?
Cheers. |
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gwen.o
Junior Member
183 Posts |
Posted - 16 August 2008 : 18:05:22
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Hi Andy
Cheers for your reply.
It's a complete minefield and I'm finding it very confusion.
Thanks again. |
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John
New Member
United Kingdom
73 Posts |
Posted - 16 August 2008 : 18:06:30
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Hi
if you have contributed to mortgage payments, utility bills or even housekeeping there is a case to suggest that despite the property being in your partner's sole name, you have a legal proprietary interest in it.
How much equity in the property?
How long has your partner owned the property?
How long have you lived in the property?
What is the amount of your monthly contribution?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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gwen.o
Junior Member
183 Posts |
Posted - 16 August 2008 : 18:09:03
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Hi John
I have never considered my contribution being part of the mortgage. The mortgage is quite small and the equity large.
My partner has owned the proptery for 10 years. We have lived together for 14 years but my partner has no debt whatsoever and only found out about my debts 4 weeks ago. He was horrified, to say the least.
I only contribute £100 per month.
Thanks. |
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John
New Member
United Kingdom
73 Posts |
Posted - 16 August 2008 : 18:17:58
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Hi
it's possible then that the OR could look at this.
You have both lived in the property for 10 years.
Let's say the equity was initially £40K but it were now £100K an increase of £60K.
If the average sum required to run the household per month over the 10 year period were calculated at £600 then at £100 per month you have been making a contribution equal to one sixth of the average cost.
Therefore in this scenario your proprietary interest would be one sixth of the increased equity = £10,000 which if proven the OR could claim.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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gwen.o
Junior Member
183 Posts |
Posted - 16 August 2008 : 18:21:33
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Hi John
That's not good and it's not fair. It's totally my debt and my partner is completely innocent in this. I wouldn't want my partner to have to pay for my bad money management. Is there any way to get round this?
Thanks. |
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John
New Member
United Kingdom
73 Posts |
Posted - 16 August 2008 : 19:06:10
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Hi
the short answer is if the OR considered that you had an interest he could try to evidence the fact and you would have to co-operate with that investigation.
Can you give me an idea of the increase in equity over the 10 years?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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gwen.o
Junior Member
183 Posts |
Posted - 17 August 2008 : 07:04:06
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Hi John
Thanks for you advice but I don't feel comfortable discussing my partner's finances, i.e. how much his house has increased in value.
I may have to go for a dmp and postpone my retirement.
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John
New Member
United Kingdom
73 Posts |
Posted - 17 August 2008 : 09:07:27
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Ok Gwen, I understand.
Hope everything works out for you.
If you need any other questions answered at any time then I would be only too pleased to help.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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gwen.o
Junior Member
183 Posts |
Posted - 17 August 2008 : 18:19:19
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Thanks John.
I really appreciate your help.
Cheers.
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Topic |
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is bankruptcy an option for me ?
