can you think of what my options might be?

[ce.d]

My situation is that I currently owe £40,000 on unsecured credit cards, loans etc. I am repaying this on a debt repayment plan with Payplan. My husband and I are separating and my 11 year old son is staying with his dad. therefore I am moving out of the matrimonial home and will have to rent. I am also at the moment paying the mortgage and child maintenance. I therefore am unable to pay the Payplan instalments.

My assets are an endowment policy worth £32000 and a house on which there is equity of about £150000. Both are in joint names and my husband will not sign anything to help. So I am stuck with all this equity but unable to touch it! The only thing I can think of is to go bankrupt and have the OR deal with it. I have told my husband that we will lose the house if I go down this route but he seems to think that as there will be a child living there, they will not do this.

Will I be able to go bankrupt at all and can you think of what my options might be? Thank you very much.

[MelanieGiles]

Hi ce.d and welcome to the forum

I am one of the experts who regularly post here, and I am sure that the others will also share their views with you.

Given your asset position - and I would need to know the level of your personal any any joint debts to be able to advise more fully - bankruptcy would be an option for you, but an expensive one.

Your best option at the moment would be to appoint a matrimonial solicitor to act for you with regard to a financial settlement - which you will be entitled to. Once this is sorted, you will be able to look at the solutions available for you in greater detail, and please use the experts on the forum as much as you like in the meantime.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

I agree with Melanie, I think first things first you should take legal advice on this and also contact the Citizens Advice Bureau.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[ce.d]

Dear Melanie and Oliver - thank you both very much for your quick response and advice - I am very grateful to you both. My debt situation is that I owe £40,000, all but about £4,000 is this is in my name and the £4,000 is joint. My husband does not work. Apart from this, the only debt we have is the mortgage of around £70,000. The house should be worth around £200,000 so that is where the equity of £150,000 came from (my maths is slightly out!) and we have an endowment policy with a surrender value of £32,000. As to your advice, I have one or two queries that concern me: Firstly, I cannot afford to pay solicitors upfront and I earn too much to get legal aid. Secondly, I know my husband will be as awkward as he can and will not give an inch, it is likely to be a long process. So what happens to my debts in the meantime?? surely the building society will repossess before then and my unsecured debtors take me to court? do you have any views of this? Thank you once again. Your advice is very helpful. Cathy

[MelanieGiles]

Hi again Cathy

I really do sympathise with your situation and suggest that you really do need to take legal advice as soon as possible. I am hoping that Gizmo may be looking in today, as she is a matrimonial lawyer and may be able to offer some practical advice on this.

Most lawyers will give you a first meeting on a free of charge basis, and some may be prepared to act for you on a contingency basis - ie they get paid once a settlement is reached. With debts of £40,000, you are actually not insolvent, and my opinion is that there is no way that a Court would not award you a portion of the assets.

Could you not ask your husband to release the endowment policy to you to enable you to repay some of the debts?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ce.d]

Thank you again Melanie for your advice and speedy reply. As an indication of how difficult negotiations will be, I suggested to my husband that we surrender the endowment and split it equally. He would have his half completely and I would use my half to continue to pay the payplan payments. He refused for no reason other than spite.

You said in your original message that bankruptcy would be an expensive option for me. Can you explain that please.

I am sorry to be a pest to you today but really am grateful. Cathy