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I am on a CCCS DMP paying £89 per month I now have no job and stay at home with my two young children. I owe £36k.

I'm considering bankruptcy as I can't see another option, I live in rented housing through a letting agent (the lease is in my husbands name). The only thing we have which is joint is a lloyds bank account which has an overdraft of £538 on which he is going to clear and take my name off the account before I file the papers. I drive his car but pay monthly for the car insurance and have a mobile phone contract.

Is there any other option for me apart from bankruptcy?
Hi there Decisions-decisions and welcome to the forum.

I would agree that a DMP does not seem like a sensible option. I assume that your husband is not able to afford to help you pay your debts? For example if he could afford to pay £100 a month, then if this were added to the £89 you pay you might be able to start an IVA.

However, given you have no assets, really the best solution for you is really bankruptcy. It will make little or no difference to your life other than the fact that your debts will be taken away. Your mobile phone contract will not be affected. Nor would your husband's car. You would be discharged after 12 months and all of your debt would be written off. As such I really think this is your best option.
Thanks for your reply. My husband only earns £14k and we use the majority of the benefits we get to cover monthly expenses but if I went for an IVA would I be able to do it with such a small monthly amount (£89 from me and £100 from my husband)? And how much does an IVA cost?

How would I go from DMP to IVA? I'm thinking an IVA might be better as I'm frightened of anyone finding out and the implications of paying the court fees etc.

I have an old bank account at my mums address if I close this before doing an IVA would anything go to my mums address? Also the joint account I have I need to take my name off it so my husband doesn't get dragged down with me?
I have a basic bank account already so don't think anything would change there.

I have a payday loan (bad I know) could this be added to the IVA?

Sorry for all the questions, really appreciate your help
Hi Decisions-decisions

Please try not to worry about your situation too much. I understand the pressure you are under but there is always a solution. :)

Yes, you could certainly carry out an IVA with a payment of £189 a month even given the amount of debt you owe. It is relatively easy to move to an IVA. You simply make the application and once it is accepted you stop paying your DMP. There are no costs to worry about as these are all taken out of your monthly payments.

However given your husband is also on a relatively low wage I am not sure the IVA is the most sesible option for you. To be honest after the initial cost, bankruptcy would be a far easier route to take as i think you would get away without making any payments at all (other than the initial bankruptcy fees)

You should understand that that if you go bankrupt it DOES NOT go in your local paper. As such your Mum is no more likely to find out about you going bankruptcy than if you started an IVA. In terms of your old bank account, all you need to do there is change the address to your new address. In terms of the joint account with your husband you do not really need to worry about that either. It is just that your husband will continue to be liable for the overdraft. Otherwise he will be totally unaffected.
By Michael
Hello Decisions-decisions

I agree with Steve. I think that you would be best off going down the bankruptcy route. Why get yourself into an IVA which will mean scrimping and saving to make a payment of £190 a month for 5 years when you could go bankrupt and by the sound of it make no further payments to your creditors and be debt free in 12 months. I definitely think that is the right solution for you.
Thanks for your replies.

Im waiting for a copy of the tenancy agreement my husband signed as I think it had a clause in it that if the tenant or permitted occupier went bankrupt the lease would be terminated, if that clause is in there I think an IVA would be better but I can totally see your point about paying it for a long time and struggling (IVA's are also subject to acceptance which is another worry).

So if I went bankrupt that wouldn't affect my husband even though we have a joint account? My name can't come off it until the overdraft has been cleared.

I'm being given £500 by my mum and I'm not sure whether to use this for the lloyds overdraft or bankrupt fees, just don't want it affecting my husband
Hi Decisions-decisions

If the tennancy agreement does have this clause then it might be best to have a chat to the landlord up front and see how they would react to you declaring bankruptcy. If you have been living there for a while and have been good payers and explain that by you going bankrupt it will actually make it easier for the rent to be paid, then most landlords do not have a problem. They prefer a good tennant they know to the possible problems of having to replace you.

Bankruptcy will certainly not affect your husband even if you have a joint account. As Steve rightly said, you would not have to try and pay this off as he would simply be liable for it. I think if you can overcome these initial concerns then bankruptcy would be best for you in the long run.

Having said that if bankruptcy is going to cause you a problem with your landlord then an IVA would be a sensible alternative. I have no doubt that it would be accepted based on what you have said about your circumstances. Ultimately you have nothing to lose by making the application because you do not stop paying your DMP until the IVA is accepted and the process costs you nothing (this is certainly the case if you use BeatMyDebt.com). If it is not, you can simply continue paying your DMP until you decide the next course of action

If you want to chat these things through, then by all means please do not hesitate to contact me.
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By Hayden
Hi Decisions-decisions.

I would agree with James that having a chat to your Landlord about the bankruptcy option would be a good idea if you feel you can. At least then you will confirm that option or not. I have to say that from reading everything you have said about your situation I feel that this would be the most sensible route for you and just to re-iterate, your husband will not be affected in any way. However if you discout bankruptcy then the IVA is definitely your next best option. I would speaking to james at BeatMyDebt.com and he will definitely help you either way.