Bankruptcy questions.

[Snowydaysaregreat]

Its looking more and more like dp will have to go bankrupt. Lots of old debts from younger years and being wreckless in spending back then.
He doesn't now.

We just can't keep in top of the payments. He has about 15k.in total.

Employed income 1500pm
His sideline self employment is at a loss but there's always room for progression but it's limited.

No personal assets. Car is worth aboit 800. Only items of value are the electrical used for his self Employment

I don't work due to childcare costs and lack of family. We get 150 a month tax credits.

After bills there's about 400 left to cover food fuel clothing and toiletries etc etc. For 2 adults 2 dc NOT INCLUDING DEBTS. they've all defaulted. Main one being a £300 per month loan.
Had lost his job but starts a new one this week at slightly less.

Questions.

Is it worth getting wages paid into my account so when his is frozen our rent isn't screwed.

When they want proof of utilities etc will it matter they're in my name but can be seen paid from his account.

I understand they can't touch his work items. Which include a laptop with a work programme on it. Nothing else.

Any other info.?.
We have nothing of value in our home. Everything here was mine before he moved in but literally no items if value no pc, crap old TV, no gadgets or anything.

A debt relief order may be more suitable and very much cheaper. Will he engage with stepchange or CAB or Christians Against Poverty? If so he will receive advice about qualification for a dro.

You can have a basic bank account as a bankrupt. Bear in mind you need to save k9ney in order to make yourself bankrupt.

What country of the U.K. are you in?

A DRO may be the best option.
You will need to go through an insolvency practitioner to arrange it. They will assess your suitability for one.
You need to have less than £50 per month disposable income after all bills (not including creditors) and no other assets (your car will not be counted as an asset).
It costs £90 to set up. After a year all of your debts will be written off.

It will be registered on the Government Insolvency website and stay on your credit file for 6 years.

I would recommend that you contact Stepchange (www.stepchange.org). They will be able to advise you and can fully deal with a DRO if that is the best option for you.

He was declined for a DRO as part of the loan that was taken out was to pay a person back so it was seen as gifting his money.
I'm England.
He has a basic account as opened that wheb applied for DRO. I thought I may still get frozen Though.

His dad has offered to pay the fee for bankrupt if needed as it's ruining our lives now.

Contact Stepchange and they'll help.

If his self employment is running at a loss; it might be time for him to stop that at least temporarily. Could he replace it with seasonal work; for a while? Pub work or something?

It may be that going bankrupt is best but he needs to take serious advice on it and the downsides for you and him in the future.

OP if part of the money he owes is to an individual (say a friend) a bankruptcy isn’t going to stop that person chasing it. It will
Stop them being able to claim it through the courts but it’s not going to stop them
Coming round your house and threatening you. Are you wanting to include that loan in the bankruptcy?

He really needs to speak to someone that knows what they're doing. The reason for the DRO being declined will also be looked at as part of the BR. He could end up with a BRO against him.

Thank you. He doesn't owe the person anymore. That's what he took the loan out for. He's Contacted a debt organisation . And they have said BR is the best option. But he's got to ring them back tomo as he didn't have all the info off hand that he needed.

Your DP should call National Business Debt line as he has a self-employment element. They are the sister organisation of Stepchange.

Good luck.

Contact an Insolvency Practitioner to discuss entering into an IVA if there is any possibility that he could make monthly payments, release equity from your property if you own, or if his father is willing to make any sort of lump sum payment.

To go bankrupt he will need to owe at least £20k, lower than £20k is a debt relief order and much cheaper, although it is just as bad for his credit file. He needs to speak to Stepchange there is also excellent advice on Money Saving Expert's forum. Stepchange have a section on their website to input the amount of debt and income and it will generate a very general 'solution' ie IVA, DRO, bankruptcy etc. Citizens Advice may also be able to help with generic letters to creditors to halt interest/payments to give you time to find the best option

Sorry you can go bankrupt with less than £20k I was mistaken, I think it's advised to go for a DRO though as bankruptcy is not an easy option. Contact Stepchange regarding advice for the money owed as a 'gift'

Stepchange have said a DRO wouldn't be accepted due to the loan classed as being gifted. Altho it wasn't they said the insolvency people. Would see it as wrongdoing.
They have said either continue to pay the donation amount or go BR. even the donation amount is crucifing us.
His dad cabnt help with any debt. Just the BR fee if needed.
He's gonna contact stepchange again as he forgot to ask some bits.

Is the gift a loan from friends or family? If so, according to Stepchange website it can be included in a DRO and your partner will be protected from paying this. Maybe your DP could check again and speak to someone else and double check. I said on a pp that money saving expert forum would give you advice, it was invaluable to me and enabled me to get everything sorted

The problem isn't including the loan in the DRO, he is barred from a DRO because he has chosen to pay a creditor off. He should not have done this as it is favouring one creditor over another. When money is available to make payments to creditors it's important ALL creditors are paid either a percentage or other equitable distribution. He is barred from the DRO not because of the loan but because he chose to pay a single creditor.
A bankruptcy is different because the trustee in bankruptcy can recover the money from a creditor (after they have been paid by the bankrupt) who has been favoured. Unless it is a considerable amount they don't do this often.

I haven't explained. He owed a person money.
He got a Consolidation loan for other debts and to pay the person.

Made 6m of payments on the loan but circumstances changed and coildnt pay the loan anymore.
. Spoke to stepchange they advised to make donation payments.. With an outlined letter. Which he did.
. In the meantime he filled in dro application. He got a call a few weeks after saying there's no way it would be accepted due to the loan being used to pay a person (was approx half the loan)

They suggested bankruptcy but he said no.. However has now realised that's prob only way.

He did it via the self employment number to call them. He's been trying to contact again but is constantly on hold all lunch time. But I'm sure hell get thro at some point