Basically, myself and my partner are way in over our heads in debt. By that I mean somewhere in the region of 50k I would think although have so much paperwork kicking around I dont have a running total. When taking on these debts (havent taken on anything new in about 2yrs now, they are all older debts), we both worked full time. Now, we have a 2yr old, a baby due in 2 weeks time, I am on maternity leave from my part time job, and my partner also only works part time now due to ill health and childcare problems.
Our home is being reposessed, although we havent had a date to be out by. We have been lucky and managed to get a house thru the homeless route at our local council, which we are currently decorating like mad in order to move into it before baby arrives.
The debt advisor at the council has most of the paperwork from all our creditors now, and has basically been putting most of them off by telling them about the reposession, baby due etc, and that she will get back to them when we are settled and know our income/expenditures etc. This has kept some of them at bay, but others have taken it thru the courts. We have completed Time To Pay orders for the ones gone thru court, some have been accepted, some have refused what we have offered and dates of hearings have been set etc. (one of them being my due date )
The debt advisor is coming up to visit us on thursday to discuss options, but the way she is talking she seems to think we should file for bankruptcy. I know she will be able to tell us the ins and outs of it all, but want to kind of have some info to hand before we see her, so we know more of what it involves.
The creditors who have accepted the Time To Pay offer - would we still need to stick to these if we went bankrupt, or would bankruptcy cancel these out? The hearings for the ones who have refused the offers - do we have to attend these hearings? What can they decide without us being there?
Between us, once I return to work after maternity leave, I would expect us to have an income per month of around £1000. The only other income on top of this would be child benefit (about £110 with 2 kids) and tax credits (£45 a month due to repaying overpayments to them.) How much would we have to pay each month being bankrupt? Do you still pay creditors or does the money go elsewhere? Can you go bankrupt if you have no money, or very little, to pay towards it per month? Will it affect our jobs?
Sorry its a bit mumbo jumbo but trying to sort my head out here which isnt easy, esp. with a belly this size!!
Hope someone can help, and thanks xx
edited to add - I'm in Scotland if that makes a difference to anything above?