I posted in general debt queries in November and was advised against IVA and DMP in favour of BR as we have no house and owe over £50k in current debts due to house selling, moving etc - one debt is £30k over another 27 years at £400 a month – with not being a home owner we can't move this high interest Northern Rock loan to anyone else to ease the interest charges. Our income is currently £3500 and we can just about pay everything but we are expecting our second child in April and we will not be able to afford everything with me on maternity leave
The main thing for me is to find out a few things:
1. Should we wait until I get my first maternity leave payment before starting the BR process and are unable to pay all the debts? As my income will go from £1700 to £400 a month. Or should we start early, quoting our income in April will go down to £2200.
2. What restrictions are there for expenses? Can we keep basic sky, £20 a month mobile phone, broadband, 2 cars (one hubby uses for work as he starts at 7am over an hour away and one is mine since we live in the country with the little man, and currently use it for travelling with work, although i will soon be on maternity leave and it will be then that we go BR) They are both old cars, worth not more than £1500 combined - probably not even that
3. What other ‘assets’ may they want to take? We don’t have much of worth since we rent, but do have a laptop, new kindle HD, flat screen tv (although it is 5 years old…) and PS3… Just wondered if there was a list of assets they may want to take, and what you can keep…
4. I presume we do it ourselves as someone we know went to the court and got a pack to complete, although they never followed it through – do we not need to use an agency or anything? Just complete the forms and pay the money? How do we find out which court to go to? As our address is complicated, on royal mail it is Swindon, Oxfordshire, with the council of the Vale of the White Horse (VOTWH) – 3 different places! Swindon is Wiltshire, VOTWH is a district in Oxfordshire…
5. The other thing i need clarifying is how long are you on a BR order thing for? 1 year or less i thought but i have read reference to 3 years... Is it a year, and then all the applicable debts are wrote off and you are left with all your income and existing debts? Or is it 3 years, with your applicable debts wrote off after a year and the rest basically being under a DMP/IVA arrangement?