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A good starting point for bankruptcy questions
By Saldawop
#37234
Currently have debts of around £35000. Have been managing for a while now, by switching between credit card accounts when they offer 0% balance transfers. Also have a loan with costs 350 per month (was hoping to get that done in 2 1/2 years then put that amount towards cc bills. They all seem to have ended at the same time. One of I have just transferred to must have upped the percentage, whereas before it cost me 100 it is now 250 per month. I am not going to be able to keep up payments for long.
I know a little about bankruptcy but not much, same with IVA.

I live with my partner in her house and I pay £100 per week to cover costs such as food, electric, cleaning etc.
If i was to get into problems and need some form of debt management, would that cost be acceptable.
I have a car worth probably £3000. Although i work 2.5 miles from home, I have a disabled son who lives 100 miles away who i have every weekend (over 18), would petrol costs for that journey be allowed (£50 per week)

Thanks
User avatar
By Hayden
#37237
Hi Saldawop

Welcome to the forum :)

From what you have said, it seems that you definitely need to consider using a debt solution. Importantly, you dont have to worry about your partner's property. Neither they or their property would be affected in any way. You would position yourself as a lodger in any application for an IVA or Bankruptcy paying £400-£450/mth to your landlord which is more than reasonable.

Given you are not a home owner the advantage of bankruptcy over an IVA is your monthly payments are likely to be lower and last for just 3 years rather than 5-6 for the IVA. Note: With bankruptcy if you have no surplus income you will not have to make any further payments at all...

However then you need to consider your car. If you do an IVA your car is not an issue at all. You will simply be allowed to keep it. If you go bankrupt the maximum allowed value for a car is £1000 (and they will not make any allowances on this for your son....). The first thing I would advise is you double check the 2nd hand value on we buy any car. It might be worth less than you think. However if still over £1000 you have two options: Sell and get a cheaper one before going Bankupt and use the extra funds to pay for the bankruptcy. Or someone else pays the difference to the official receiver and you keep the car.

Fuel expenses wise I dont think you have an issue. Based on the living expenses guide £200/mth is on the top end of the scale. But if you have a good reason for needing the fuel (eg visiting your son) then it would be allowable in both solutions.

I would strongly recommend that you contact James Falla to discuss your options in more detail before making any decision. He can be contacted at Beat My Debt (0800 077 6180)