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Hi there,
My brother in law's parents are currently going through a divorce, and he currently lives with his mum.
The problem is as follows:
He has a high amount of debt (around 20k) and no income. He left his job due to his mental health (he suffers from depression and a gambling addiction, though the latter is undiagnosed). As he has no income, he has no money in order to pay back his debts. The main issue with this is his car, which is on financing for around £13k. He has £9k of this still to pay back.
He has accepted that he is likely to default and have to give the car back, but, what would be his best option? He has a small child (18 months old), and needs a vehicle in order to look after him, and find work again.
I have told him to speak to his creditors to explain his current situation, but I don't know whether bankruptcy would be better. He said that when he purchased the car, he thought it was for less than he signed (I'm getting him to send me the paperwork to look through for this), but this is hardly likely to stand up to any contractual challenge.
Thanks,
K.
My brother in law's parents are currently going through a divorce, and he currently lives with his mum.
The problem is as follows:
He has a high amount of debt (around 20k) and no income. He left his job due to his mental health (he suffers from depression and a gambling addiction, though the latter is undiagnosed). As he has no income, he has no money in order to pay back his debts. The main issue with this is his car, which is on financing for around £13k. He has £9k of this still to pay back.
He has accepted that he is likely to default and have to give the car back, but, what would be his best option? He has a small child (18 months old), and needs a vehicle in order to look after him, and find work again.
I have told him to speak to his creditors to explain his current situation, but I don't know whether bankruptcy would be better. He said that when he purchased the car, he thought it was for less than he signed (I'm getting him to send me the paperwork to look through for this), but this is hardly likely to stand up to any contractual challenge.
Thanks,
K.
