can no longer keep my head above water

[neilb]

Hi,please help. I owe @ 90k on credit cards and one load and can no longer keep my head above water. I am marred although we are financially independent of each other apart from a joint bank account with little in it.
I have my own house which hopefully will be going on the market in a few weeks. This has equity in it and a loan secured against it.
My base salary is £42275.00 with a take home of 497.21 a week, paid 4 weekly. We have no joint financial things other than one of my credit cards has my wife as a second card holder.
I am really hoping to keep my wife out of this, after all I live in her house which is just about paid off, It's mine I can sell..
I am at my wits end...IVA or bankrupt??? Help...

[kallis3]

Hi Neil and welcome to the forum.

One of the experts will be along to advise you shortly.

[jasperyogi]

Hi there just wanted to say a big welcome to the forum. Please dont worry we have all been in your situation, I was just 12 months ago but got our finances sorted through an IVA. now life is back on track and we can breathe again. So hang in there, one of the experts will reply soon. The advice on this forum is fantastic!
Your amoung Friends [:D]

[casiquebrado]

Hello neilb , and welcome to the forum.

You're certainly in the right place for advice.

I know how you're feeling, I was in that place.

There is lots of good advice on here, particularly from Melanie Giles.

Get all your outstanding balance info together with a list of your income and expenditure , which will help when you contact an IP , or whatever course of action you choose.

All the best, and try not to worry , you're on the road to a solution.

[aguise]

Hi Neil and welcome to the forum. It will help the technical experts if you could post how much equity you have in your property, and how much you have left after paying normal living costs. Dont include the debt payments just the amount you would have after paying mortgage, food travel to work etc. Take into account also the amount your wife would put toward the living costs it should be pro rata to earnings , so if you earn 50% and she earns 50% then the bills would split 50/50.Also is all the debt unsecured debt.
Also as said you need to get advice from a good Ip and they can tell you all the options avaliable that would best suit you individual situation. Melanie Giles and her team come well recommended and can be found on the experts page.
I am not a technical expert but hopefully one will be along soon.

Ang

[pbeck]

Hi Neilb

Probably your realistic options are IVA or bankruptcy, the third option, debt management, would involve paying off all your debts over an extended period, but given how much debt you've got it would take far too long.

Your wife's house would not be affected by any bankruptcy on your part, as you are not one of the owners thereof. However, in either bankruptcy or IVA, the net proceeds of sale of your own house would be expected to go into the pot.

If you undertook an IVA, this would be a 5-year repayment plan, you would pay what you could afford to pay over the 5 years, and as long as you stuck to it, then you would be free of debt at the end of it.

Although you mention that you would like to keep your wife out of it, as you live together as a single household, your wife's earnings would need to be taken into account when working out the domestic budget to see how much you could afford to pay into the IVA.

Do you know roughly how much per month you could afford to pay towards your debts ?

[standard]

Hi, I'm in almost exactly the same position. I owe about £75000 unsecured. I posted a month ago but not since. However, i am down to almost zero credit left. I would instigate an IVA straight away if my wife didnt need to be aware. She doesnt earn much, and works part time 2 days per week. We have seperate bank accounts also, and one joint with virtually nothing in it. I have a buy-to-let property paying for itself with little or no equity in it following the recent problems. I have a struggling small business that just about pays me. Anyone want to take this on!?!

[kallis3]

Standard, I take it you haven't told your wife anything?

I would recommend that you tell her, I kept stuff from my hubby, he found out and it made him ill. Now we are in an IVA and have no secrets. We support each other.

Once you have run out of credit, how are you going to keep the news from her anyway once the phone calls and letters start?

Why don't you pick up the phone and speak to one of the experts who post on here, like Melanie.

She will give you sound advice.

[pbeck]

Standard, I can probably help you, but the first step is the biggest hurdle. You should come clean about your situation and confess to your wife. If you bury your head in the sand you'll just delay the inevitable.

At least with an IVA you'll only pay what you can afford to pay then you'll be in the clear after 5 years.

[Vincent Bond]

This is a tough one but quite a common question. Often one person in a couple is not aware of the total debt that has built up or people are just keen to deal with the debts independently of their partners for whatever reason.

With any family, it is really important to understand the overall situation, i.e. not only the size of the debt but also how much each party pays towards the normal home expenses. As a result details of your partners income and personal debts is really important to make sure your monthly payment is realistic. Maybe she has debts that should be addressed also?

Your partner’s information is part of the proof that you are insolvent and cannot afford your normal contractual payments. This information helps to create a solution that ensures your financial security in the future.

On a debt of £90,000 in an IVA you could be paying as little as £500 per month for 5 yrs, but this depends on who your creditors are, what equity you can release from your assets and also what you can afford every month. Remember, your creditors will always want as much as you can reasonably afford in an IVA.

Vincent Bond

[CoverItAll]

Hi neilb

You've taken the first and biggest step already - you've decided to take control of the situation rather than have it control you. The advice here is absolutely first class. I know from my own experience of bankruptcy just how tough these first decisions are - but they do get easier. Talk to your wife, and speak to an Insolvency Practitioner as soon as possible. There really is life after debt, and everyone here will support you.

[chardonnay]

Hi Neil,
I feel for you - I've been there and know how stressful it is, just like the others on the forum.
My personal advice would be to tell your wife the whole storey, honesty is the best policy and you will get through this more smoothly if you can be open and honest with each other. It's hard to admit a debt problem as we all tend to think of it as failure, what you must realise is you are being responsible and so brave and strong admitting the problem and getting help.
The forum is brilliant and we will all do our best to support and advise you through this time in your life - the experts with advice and others like me for comfort and supportive words.
May the road rise to meet you (as we say at home),
Best wishes,
Hugs,
Chardonnay

[MelanieGiles]

To Neilb - is there something wrong with my maths, because a take home salary of £497 per week does not equate to a gross salary of £42k unless there is something strange about the amount of tax you are paying. An IVA really starts as a blank piece of paper, and your offer to creditors is forumulated on the basis of your own specific set of circumstances, and is therefore difficult to give specific advice to you on a forum. The best think to do would be to discuss your options directly with an insolvency practitioner, who can take you through the advantages, disadvantages and implications of each one - as Philip has already highlighted, one downside of an IVA for you may be the fact that you may need to take your wife's income into account.

To Standard - although it is generally advisable to alert your wife to your financial difficulties, it is possible for you to propose an IVA without her knowledge providing you could cover the payments in your own right. I have a couple of clients who have refused to advise their partners of their situation and, whilst I would not recommend that anyone do this, you do need to be aware that it is at least possible.

[kallis3]

I'm sure his take home pay on his original post this morning was over £800, unless my eyes deceived me.

[MelanieGiles]

That still doesn't add up Jan!