Hi, need help with Bankruptcy/DRO Advice?

[Gemzy]

Hi

[Gemzy]

Hi, need help with Bankruptcy/DRO Advice?

Hi, need help with Bankruptcy/DRO Advice?

Hi,
Not sure if anyone can help!
Recently having financial difficulties that seem to be getting out of hand ie we have more money going out than coming in.
I don't work and have 2x young children,married and husband works (only brings home £1200 per month)
I have been looking at my credit report account and its now showing just over 10,000 worth of defaulted accounts and about 5,000 in current accounts ie catalouges that im up to date with as struggle to pay them and a 3000 overdraft that im in that we pay slightly when my husband gets paid then back to being maxed out just to pay the rent /bills (we rent privately)
I have stumbled on debt websites and seen options such as bankruptcy and Debt relief orders, is this something i could do, i am so scared of getting the ball rolling so to speak and possibly becoming bankrupt,even though i have nothing to lose i am scared of how it will effect me such as my husbands job,will they tell us to move into a flat or something.
Any help would be appreciated

[nemesis45]

Re: Hi, need help with Bankruptcy/DRO Advice?

Hi, need help with Bankruptcy/DRO Advice?

Hi,
Not sure if anyone can help!
Recently having financial difficulties that seem to be getting out of hand ie we have more money going out than coming in.
I don't work and have 2x young children,married and husband works (only brings home £1200 per month)
I have been looking at my credit report account and its now showing just over 10,000 worth of defaulted accounts and about 5,000 in current accounts ie catalouges that im up to date with as struggle to pay them and a 3000 overdraft that im in that we pay slightly when my husband gets paid then back to being maxed out just to pay the rent /bills (we rent privately)
I have stumbled on debt websites and seen options such as bankruptcy and Debt relief orders, is this something i could do, i am so scared of getting the ball rolling so to speak and possibly becoming bankrupt,even though i have nothing to lose i am scared of how it will effect me such as my husbands job,will they tell us to move into a flat or something.
Any help would be appreciated

Good evening, welcome to LB,

It is a big step facing up to a mountain of debt like this, but advice is plentiful here.


With £15K + the OD I don't think an DRO is likely to be
possible.

Are you being chased for the defaulted accounts, by the creditors or debt agencies?

nem

[Gemzy]

Re: Hi, need help with Bankruptcy/DRO Advice?

I have been trying to read up to find information out but my head is all over trying to take it all in. I read that a DRO the debt had to be under 20,000 which i am but then you have to have a small amount of income left just getting confused and feeling bankruptcy is my option.
I do get the occasional letter for the defaulted debts from debt agencies such as lowell and cabot but to be honest i have been burying my head in the sand a bit, my bank charges me roughly £60 a month just for being in the overdraft so after paying that,usual utility bill,rent and then the accounts such as catalouges i have up to date its a struggle.

[Kati]

Re: Hi, need help with Bankruptcy/DRO Advice?

Hi [MENTION=78695]Gemzy[/MENTION] ... if you can give us a bit more info on the advice you need, I'll tag [MENTION=48934]Debt Camel[/MENTION] so that she can help xx

- - - Updated - - -

Hi

Hi @Gemzy ... if you can give us a bit more info on the advice you need, I'll tag @Debt Camel so that she can help xx

OK ... I've merged your threads (for ease) to LB xx

[mattty]

Re: Hi, need help with Bankruptcy/DRO Advice?

sorry wrote on wrong post here,ignore me lol

[Gemzy]

Re: Hi, need help with Bankruptcy/DRO Advice?

Thanks [MENTION=55034]nemesis45[/MENTION] and [MENTION=49370]Kati[/MENTION]

[Debt Camel]

Re: Hi, need help with Bankruptcy/DRO Advice?

Hi @Gemzy,

first your debts, you said they are defaulted except for the o/d and catalogues. When did you last make any payments to the defaulted debts?

I assume as a household you are getting child benefit, child tax credit, housing benefit, council tax reduction?

You are right that the DRO limit is £20,000 ( @nemesis45 it was increased from 15k in October.)

There are a lot of conditions attached to a DRO, it's less flexible than any other debt solution, but if your debts are impossible and this isn't likely to improve soon, then it may well be the best debt option for you. I've written a Guide to it here http://debtcamel.co.uk/debt-options/...relief-orders/. Can i suggest that you read that together with your husband, any form of insolvency really needs to be a joint decision. NB Your DRO won't have any effect on his job.

Apart from being less than 20k in debt, the other main conditions are:
- renting not buying (tick)
- less than £1000 in savings or assets (that would be the second hand value of any things you own, but usual clothes, furniture, white goods etc are ignored)
- a car worth less than £1000 or no car
- disposable income of less than £50 a month (which if you have no income apart from benefits will be a tick)

I wouldn't worry too much about having to have a small amount of income left over - this is rarely a problem.

If you meet the DRO criteria there is no reason to go for bankruptcy, it is more complicated, the fees are a lot more and it has no extra benefits.

What is your husband's situation? Does he have debts too?

You will need a new bank account. And your credit rating will be wrecked for 6 years.

Come back with any queries or worries....

[Gemzy]

Re: Hi, need help with Bankruptcy/DRO Advice?

@Debt Camel
Thankyou so much, im sure the link for your site was the site i was originally looking through to get some advice but i will look through with fresh eyes tomorrow with my husband but he does know my situation and have discussed with him what i am looking into.
All the defaulted debts go back a few years,not more than 6 years though as i checked that first by for the first time looking at my credit report.I think most are from around 2012 time. obviously i am not struggling to pay them as i havent made any payments on them in years but stuggling to pay the ones i keep up to date with and just can't get out of my £3000 overdraft My husband gets paid which then clears a third of it then we have to go back into that to pay for bills,rent,food ect.
The conditions you mentiones:
- renting not buying (tick)
- less than £1000 in savings or assets (that would be the second hand value of any things you own, but usual clothes, furniture, white goods etc are ignored)..not sure what this would include,yes we have tv's white goods the usual things found in a family home,but i dont have any expensive jewellery (my wedding ring is not that expensive) or any antiques or anything??
- a car worth less than £1000 ....My husband has a car in his name but its worth around £800 ( a 03 plate ford mondeo)
- disposable income of less than £50 a month (which if you have no income apart from benefits will be a tick) I DONT work so i receive child benefit, child tax credit, housing benefit (about 1/3 of what our rent it) council tax reduction although i got behind with this so my monthly payments are high.Is my husbands wages taken into account?

My husband has debts too but nowhere as much as me,which is why we thought if i did something about mine we maybe able to tackle his!
I have a cardcash account, my current account (that has my overdraft)and a savings account that has 4.00 in
As mad as sounds having my credit rating wrecked for 6 years does not bother me too much as i never want credit again as dont want to feel like this anymore.
Gem

p.s also i have sat down and worked out what we have coming in a month (with husbands wages plus the few benefits i get) minus rent,utility bills,other bills and the bills we are paying ie catalouges. and it works out we have roughly £220 a month left but that is obviously without food However some of the things we pay are not in my name ie car insurance,a credit card ect,but as a family that is our incoming and outgoing if that makes sense.

[Debt Camel]

Re: Hi, need help with Bankruptcy/DRO Advice?

A car owned by your husband doesn't count.

It sounds as though you would pass the less than £1000 in assets condition - it sounds strict but most people do as second hand values are so low.

You mention council tax arrears - these would also be wiped out by a DRO but they are probably "joint" with your husband, so he would then be responsible for them - they also count towards the 20k limit. You have to set up a DRO through an approved advisor and they will talk you through everything including this. They wont let your application go forward unless it is going to be accepted..

It is your income that counts for the £50 surplus limit, not your husband's. And if it is all benefits you automatically pass this one.

I suggest also talking to the debt advisor about your husband's situation. It may be that without your debts the family situation is improved enough so that he can afford his. But £220 a month left is VERY low for a family so I think his situation also needs to be checked.

[Gemzy]

Re: Hi, need help with Bankruptcy/DRO Advice?

Thankyou @Debt Camel, feel slightly hopeful just talking about it.
The assests condition does worry me,only because i have images in my head of people coming into mu home and taking everything but we don't have anything that a normal family would not have.Also we rent a 3 bed home from a private landlord, would they contact him, could we lose our home?
I have council tax arrears due to an overpayment in my own name (that i pay Bristow and sutor for as they took it to Baliff without informing me and then said there was nothing that they could do, i pay 30.50 a month and that now has a balance of around 800) But then i fell behind with last years council tax bill (this is in my husbands name too)as my husband changed jobs so they recalculated how much discount we were entitled too and it wasnt as much so they added to the bill making our council tax payments now 170 a month, they said they could not lower them as then i wouldnt be up to date when the new bill starts in March/April.So i persume i will be up to date then and no in arrears. Would this include my overdraft in the DRO even though im not in arrears as such with it,i just can't get out if it??

Yes my husband has a few up to date catalouge accounts too that we currently pay and also a few defaulted ones from years ago but as said we were hoping that with me applying for a DRO that we would be on top of ourselves to then be able to tackle them. I think it's pride more than anything on my husbands behalf , he does not want to be thought of as if we are being greedy and asking for help for both of us,does that sound mad?
Do you think that the DRO is something i can really do?, You mentioned an approved advisor,how do i find one?
Sorry for all the questions but thankyou so much for all the advice

[Debt Camel]

Re: Hi, need help with Bankruptcy/DRO Advice?

The assests condition does worry me,only because i have images in my head of people coming into mu home and taking everything but we don't have anything that a normal family would not have.

Nobody comes to your home and inspects it in bankruptcy or a DRO.

Also we rent a 3 bed home from a private landlord, would they contact him, could we lose our home?

I don't think your landlord is informed - check this with the person setting up your DRO. Your tenancy may contain an "insolvency clause" allowing the landlord to terminate if you become insolvent. But few landlords choose to do this unless you have rent arrears. After all, if you have kept paying the rent even when you have money problems, it's likely that you will continue to do so!

Would this include my overdraft in the DRO even though im not in arrears as such with it,i just can't get out if it??

yes an overdraft would be included in a DRO

he does not want to be thought of as if we are being greedy and asking for help for both of us,does that sound mad?

Not mad, completely natural. Most people would rather repay their debts. BUT I think this is the point his situation should be looked at as well as yours. It may well be that he can continue to repay the debt, I'm not going to guess. But if he can't this is the time to face up to it rather than struggle on.

Do you think that the DRO is something i can really do?,

Nothing you have said suggests that it can't. But your total debts may be getting towards 20k, so I suggest finding out sooner rather than later when they might have gone over that.

You mentioned an approved advisor,how do i find one?

The biggest arranger of DROs is Citizens Advice. National Debtline also do a lot if you would prefer to do it over the phone.

[Gemzy]

Re: Hi, need help with Bankruptcy/DRO Advice?

[MENTION=48934]Debt Camel[/MENTION] THANKYOU really appreciate your help, actually feel overwhelmed by it.
I think its time to face it and make an appointment with Citizens Advice.
Is there anything i should be doing or put in place ready for talking with them or ready for DRO. You mentioned bank accounts, should i change utility bills ect that are in my name over to my husband and from his bank account things like that?
Thanks again
Gem:_tighthug__by_darkm

[Debt Camel]

Re: Hi, need help with Bankruptcy/DRO Advice?

I suggest one step at a time. If you could take a list of your debts and your husbands debts and incomes (wages, benefits) that would be a help at the appointment. Setting up a DRO isn't instant and the adviser will talk though what you should do.

[Gemzy]

Re: Hi, need help with Bankruptcy/DRO Advice?

Thanks again [MENTION=48934]Debt Camel[/MENTION]
We have however gone through everything today (working out every debt we have and whose name it is under ect and even discussed with my mum (which haven't before as have kept this all to ourselves)
We have managed to forgot one debt of mine though which is a Housing benefit overpayment from 2012 that we still pay by having taken from our housing benefit we get now.
(To cut a very long story short, my husband and i separated in 2011-2012 (14months) in that time i received income support and more help with housing benefit.When we got back together and he moved back in i informed housing benefit who then 6 months later decided to take me to court for fruad/saying he was still living with me in this time frame.After nearly 2 years of paperwork/solicitors/appeals ect i went to court last year and before i even got in the court room i was apologised to and was told the case had been thrown our of court due to no evidence on their behalf.Anyway trying not to go off the point,but the housing benefit said i still need to pay the overpayment back and they have been taking it from my benefit since i first got the letter to say taking me to court.I am however currently waiting for them to reduce the debt as they have charged me an overpayment for full amount of HB when they have said that if i been charged with an overpayment it should be at the amount as i would of got if he was living with me. I dont really understand why i have to pay it but have been told i have no choice and it comes out of Hb payment before i receive it anyway.)
So taking this debt/overpayment into account it take me over the 20,000 limit,once they reduce the date to what they said it should be it will take me about 2000 over the 20,000.
My question is do i have to count this in with my debts,as im sure this is a debt that can't be written off??
Also if it does have to be included do you think it's best that we try pay as much as possible off our debts for next 6+ months to get the total debt amount under the 20,000 (my mum has said she will try and help us if need be after this time if we are still slightly over the limit)
OR is Bankruptcy now a better option? im really scared of both but DRO just seemed a better option for me/us.
Sorry starting to panic again