to consider committing fraud in an act of desperation

[Upshitcreekwithoutapaddle]

and tell the tax credits people that DH and I have split up so can get some money off them .

We both work full time and have 4DCs. Over the last few years, we have been unbelievably unlucky. DH was made redundant (along with 500 others - small towns largest employer). My low wage was not enough to cover half our outgoings so had a brainwave? and decided to set up our own business (sold house to raise some money) which went tits up after 2 yrs (had to make 2 staff redundant and wasted bloody lot of hard graft!).

Now in rented accomm (my wage only covers rent and food bill if we live on bulk packs of baked beans which we have done!)and as DH could only find a temp job, when he broke his wrist in the summer had to take 6 weeks off (can't drive with one hand)and did not get any sick pay. While he was off fell majorly behind with bills (now 3 months behind on council tax)when his car went for MOT ended up with 300 quid bill, now mine has just been and needs 550 quid of work!! Cannot believe it. Need both cars for work, no alternative and they are both over 7 years old. Cannot get credit as have been completely f**ked with credit history when business flopped (50k debts)and cannot ask anyone for a loan (parents lent us 1000 for deposit on rented house and would not let us pay back and will NOT ask again). Will have to declare bankruptcy in the next few months as keep expecting bailiffs to knock on the door - have seen a debt counsellor and this is their advice but cannot afford 950 to declare it!!!!

We work so bloody hard and are in the most shitty situation that I feel like I must be dreaming it.

Know it is very wrong to do this, was brought up that you have to work and earn your money which we are doing!! Was thinking we could do this for just a few months until we have enough to pay the council tax and my MOT (will have to drive round without one and therefore insurance invalid and a law breaking again). After all we will still be paying more tax than we will get back.

For obvious reasons cannot speak to anyone in RL about this so will we go to hell/prison for this? WWYD in our situ??

so sorry to read you in dire straits,you must be fraught with worry BUT not worth the risk

i do hope you find some peace some light at end of tunnel

you can get most of the bancruptcy fees paid through the Energy Trust. Google it and apply.

you can't do anything about the garage fees. You will have to look at ways to juggle things with one car. You could then sell the other for scrap and put that towards bankruptcy fees.

go to www.moneysavingexpert.com and then to the debtfreewannabe forum board. There are loads of threads on there re upping your income, minimising food bills etc.

If you go to www.makesenseofcards then you can put together a statement of affairs which will show you exactly what you are paying out and have coming in each month. You can use this when talking to the cab as well.

Applying for a crisis loan is only a very short term fix and it's a loan, you'll have to pay it back which will probably put even more stress on you.

You should sit down and look at your priority debts first; council tax, rent utilities.
Speak to the council re the arrears, negotiate a payment plan and stick to it. Make sure it is at a level you can stick to.
Work out what you have left after those bills are paid and then apportion whats left for food and petrol with a small contingency for unexpected essentials.

Any other debt payments can be stopped if you are planning bankruptcy. Write to all your creditors stating that you are paying token payments of £1 per month due to extreme financial hardship, make sure you state that you will only deal with them in writing. Send the first months payment with each letter via postal order or cheque.

If you have an overdraft open another basic bank account with an unconnected bank so that your wages go into your account and not straight into the overdraft. Use the token £1 payment method with the overdraft as well.

You will get some shitty letters and probably horrid calls as well but if you are going bankrupt then they don't matter.

If you get Tax credits and file for bankruptcy you don't have to pay the admin fees.
Also if someone lends you the money to go Bankrupt then they sometimes give you some of the fee back.

Would you both need to go bankrupt are debts in both names ?

Have you checked out if you are entiled to housing benefit and or council tax benefit ?

have you looked here it tells you what and where you can claim .....

God, I want to wave this thread in Alastair Darling's face to show him what it is really like for families who are struggling just above the level where you get hundreds of pounds thrown at you for working sixteen hours a week. Don't blame you for wanting to grab tax credits, OP, but it isn't worth it.

And who is going to get the massive, much touted tax cuts next week? Oh,the tax credits families. Hurrah.

Wow - really thought I would get flamed so am pleasantly surprised and thanks for the comments.

Yep, everything is joint so both will go bankrupt. One car + cannot both work! Really cannot do without 2 cars, DH has to travel round the M25 so cannot cycle!! and works late so I have to pick DCs up from 2 different schools 3 miles apart after work and cannot be late as after school care closes at 5.45pm. That's why we cannot work two jobs each as his hours are funny and change every week and he can't change jobs as he already gets paid above average (but then he works a min of 48 hrs a week and I work 37). We could have probably coasted along until we got the bankruptcy sorted until he had to take 6 weeks off. Does'nt seem long but really broke us as we were already just making it and are now not able to catch up . Christmas will be on the grand parents (rather that than ask for money) but that will really stick in my throat as well!!

Believe me really would not consider this unless all other options were exhausted. Already make token payments to creditors as we have never buried our heads in the sand about it and have been realistic all along.

Just think that we have paid taxes for so long and a few months of getting some back (less than what we pay in) would be nice in our extreme circumstances. With the best will in the world, it seems that even if you play by the rules and try to work hard to support yourself, it does'nt work out, get at even trying sometimes but I am sure there are plenty in similar boat - I would like just a small paddle!!

Have you got anything you could sell to raise some cash? We're currently ebaying lots of things we don't need to survive. Would prefer not to have to sell them...but when you need to put food on the table...

YABU

A lot of people are in the same boat. It doesn't make it right to commit a crime.

Sounds like an awful situation.

I am very nervous about the driving of cars with no MOTs. Cars fail their MOTs for a reason, and could be dangerous?

Your tax credits must be wrong- you must be able to get more than £40 a month. Are they going on larger earnings? When we moved and dh had a huge pay drop I had to tell them otherwise they would have carried on thinking he was on his big salary and we wouldn't have got them.

What an awful situation to be in. Have you contacted your local CAB? It should be possible for you to sit down with an advisor and for them to help you work out some arrangements with your creditors and look at what else (other benefits etc) you might be entitled to. They don't charge for their advice and do try and help you find a resolution that isn't bankruptcy (I think there's something else, voluntary insolvency or something)

As for lying to the tax credits people, it's not a good idea, they'll want to know where DH is living and I think they'll work out quite quickly that you're lying (they're trained to spot fraud). You're unlikely to go to prison though, but you would have to repay the money, and I don't know about hell, not sure whether HMRC has the power to send you there

I really hope your situation improves soon.

i dont think you will have to lie, I think you will probably be able to claim for something. try every avenue, if the banks can get money to bail them out then you should try to get what you need also, I know a family that claim and receive a good amount a month.

As for bankruptcy sounds like it may be a good option for you, definitely look into it, but check and double check all benifits, working, childrens, housing, council, you never know.

Gosh i had this very same discussion with a friend today so i know how tempted you are. Were in a similar situation. DH working days and i'm working nights to cover child care. Never ever claimed anything!!
We have both always worked and at the moment were not really keeping our heads above water. Parents helping with food parcels, extra childcare if i can get extra hours.
We get under £5 credits a month because of an over payment ( there fault)!!!
We don't know where to turn. Trying to do extra training so i can earn more but would have to put even more on credit card to pay for it. I never even had one till 6months
ago!! Had to have one to cover unexpected bills when hubby was made redundant. He has got another job.
I'm also temped to kick him out and give up work for awhile!! Do they pay the mortage??

Try speaking to the Council tax people.... they may let you defer teh payment onto next years.

Call all your debtors and ask them to stop accruing interest.... Explain that way the will get some payment as your only other way is to go bankrupt.

can you get another parent to pick one of your kids up.... that way you have more time to get to them or car share. We save about £100 pm by me car sharing with a co worker.

A long shot but put a wanted on Freecycle for a vege box..... loads of allotment holders have more than they can eat.

We also save loads of money by only going shopping in a supermarket once a month, growing our own vege and buying meat from the local farmers directly. Half a lamb is about £40 and half a cow £110....... which is enough to last 6 months. The other big saving is not buying prepack meals. Our food bill for 4 is about £250 - 300 pm. and we eat really well.

Sorry if I am teaching you to suck eggs.

Sounds like you are not claiming the benefits you are entitled to. HB etc, either that or you are spending your joint income on luxuries and not essentials. You should have been able to claim HB when your DH was on sick pay. Why run two cars if you both don't have the incomes to make it worthwhile.

Sorry if this sounds harsh but no you should sort out what you can claim legit.

Alleve, you do know that not everyone gets housing benefit, don't you? And the OP clearly needs two cars for both her and her husband to work (you know...work?)

I know not everyone gets HB. I don't (if that's what you were hinting). If income is greatly reduced and you are paying rent then it's there as a safety net. That applies just in the short term e.g when off sick etc. so people don't default on rent and council tax. Defaulting on council tax can lead to hugh problems for people and should be a priority next to rent/mortgage.

see what other options you have before considering something like this as if you get caught all benefits stop yopu have to repay that money and you'll be in more trouble

unless your dh can stay with family for maybe 6 mths and you claim you wont be lying as such then but i shouldnt rreally suggest that either seek halp at cab

but to be honest its a thought i think we have all had at one time or another dp was going to move out so that we could save money on rent etc as would be covered for me but we didnt need to resort to that in the end but we would have done it so he stayed wioth family not here then it at least is not so much lying

but honestly there are people out there that can help rather than having to resort to these drastic measures nothing is that easy ther eis never a quick fix it normally is to good to be true and you would probably end up worse off

Tough times, call for tough measures, can you not make some cut backs to save a bit. You could always sell one of the cars, do both you and hubby need a car?

Appreciate it must be hard for you. The CCS are a charity that help you sort out your finances. You agree an amount you can afford to pay back and they write and agree it with all the people you owe money.