Hi Jawigr05

Welcome to the forum.

My suggestion to you would be sequestration (Bankruptcy).
From the looks of your figures I don't think a TD is the best route to go.
However if you contact one of the experts on this forum directly, and give them as much detail as possible they will be able to advise the correct solution for you.

lightbodyae55

Welcome to the forum Jawigr05.

There's a little bit of guesswork involved here based upon the limited information available, but it does look like you may have a few options.

Trust deeds, sequestration and the debt arrangement scheme all look likely to be available to you. Each is likely to have different advantages and disadvantages for you.

How much will you be asked to pay? I don't think I have enough information to provide a useful answer. Much will depend upon how much you realistically need for food, clothing, your mobile phone and other expenses.

It would only take you a few minutes on the phone with an adviser to get a pretty accurate idea on this question.

Hi Jawiqr05

Welcome to the forum. It's a great place to get advice and support throughout the whole process of dealing with an unmanageable debt situation.

As others have said, it is difficult to give properly tailored advice over a forum so I would recommend you go through your income and outgoings with an expert. That way you could get a much better idea of the kind of amount you would be expected to pay.

Having said that, looking at the figures I am sure that once your day to day costs have been taken into account then you are likely to be asked for a significant amount less than what you are currently paying out to your debts. It does look unsustainable at present and I can understand why you are struggling at the moment.

Couple of questions, if you don't mind answering:
- Do you own a car and if so, how much is it likely to be worth?
- How come you pay some money via CSA and the rest directly to your ex? Is there an element of arrears involved?

Hi Jawigr05

TDA is correct as I don't think it is wise to advise on one specific route based on the current information. Sequestration may suit some, but there may be circumstances where it does not as it may have an impact on employment etc.

You should look at all options available and decide which one best suits your own circumstances.

The options available are DAS where you would repay the debts in full over an extended period of time or Trust Deed where a percentage of the debts would be paid over a 48 month period depending on what is realistically affordable and finally sequestration which would require a monthly contribution from income if this was affordable. If not, no contribution would be sought.

Best advise is always to speak with an adviser direct and see what options are available.

Mark

Hi, thanks for the advice. I do not own a car I use my mums old one which is a mazda with 140000 miles on the clock, probably worth around £500 but it's tax and mot are due at the end of January and it needs new brakes pads and calipars which will cost more than the car is worth probably. I need a car to make work as i work night shift and my work is 20 miles away. Regarding the CSA payments I pay my wife money for our 3 kids and the CSA take money for my child from a previous relationship.

Could you advise me on the best person I could talk too, and if I changed my bank account how many months leeway would I have before I would need to finalise one of my options as I really need to have cash available now to have my car fixed so as I can continue to work and I owe quite a few family members and friends money so would really like to repay them.

I can't sleep and really cannot think about anything else adn I have no chance at all of a reconciliation with my wife and kids if I dont do something about my debt. Thanks

Thanks Jawiqr05, that all makes sense and does not present any problems.

You are welcome to contact any of us experts here on the forum by clicking on the "contact" button or calling in. Alternatively there are various other agencies that could help you such as Citizens Advice Bureaux or your Local Authority Money Advice Centre.

It is very unlikely that there would be any imminent action taken against you if you change your bank account, so there wouldn't be any rush. Having said that, you are likely to get letters etc looking for payment so if you are already stressed then I guess it might not be a good idea to let it drag on for too long.

Another query springs to mind - did/do you own your former home with your wife?

Kevin

Hi, no my wife owned the house from before we were married, my name has never been on the mortgage. I dont really think a debt management program would help me as in the long term I don't think there would be any light at the end of the tunnel. If that makes any sense?

That's fine then.

It does make sense. A debt management programme (or a formal Debt Arrangement Scheme programme) would only be a good option if the debts would be paid within a realistic and reasonable length of time. This timescale would depend upon how much you can afford to pay towards your debts.

A Trust Deed or Sequestration is often a good route for people that have no assets of any significance and who cannot afford to repay their debt within a reasonable period. It sounds like you may well fall into this category. However, we would really need to go through your budget with you in more detail before we could say for sure what might be suitable.

Hi Jawigr05

A more detailed income and expenditure would probably point you in the right direction. The great unknown is always the worst thing as you say, however once you know all of the options available and these are clearly laid out, it will give you time to decide what best suits.

Getting things up and running takes little time, once the information is available. However getting the right option is the important thing.

Mark

Hi Jawigr05,

As others have said the first thing is to work through a very detailed income and expenditure with a qualified and knowledgable advisor. By doing that it will narrow down your options and further discussions can then take place on the pros and cons of those options.

The positive thing to remember in all of this is that you have solutions to help you become debt free and provide that light at the end of the tunnel. The hardest thing to do is ask for her and you have already done that.