Question

Jon,

I will give you an overview of my situation, and then also let you know my plans. I would just like a second opinion.

I met my ex-wife at uni and were married and now have 2 children. My debts are as follows:

1 Credit card with a balance of about £3,000

A second credit card with a balance of about £2,000

I have a personal loan for £1,000

My car is on HP, and I still owe about half the payments.

I owe £19,000 on my student loans.

I have to pay child maintenance each month, in addition to my rent, gas and electricity, Internet, petrol and insurance for the car, food, and the usual monthly bills.

I want to go bankrupt to be rid of it all. I need a car for work, but can borrow a friend’s car until I can save up for one. After bankruptcy I would not have all these bills and debts, and could start over again.

I am asking your opinion and for advice.

Thank you,

Roj

Answer

Roj,

Divorce can be costly, in many ways. Added expenses, and the same bills and debts.

In reviewing the information you provided, bankruptcy would not help you be rid of all your debts, and I’ll explain.

Student loans cannot be included in a bankruptcy.

Child maintenance cannot be included in a bankruptcy.

Depending on the number of payments you have made, the car on HP could possibly be handed back over, relieving you of that payment.

That leaves you with £6,000 of debt, which is not enough to qualify you to go bankrupt.

You could consider a Debt Management Plan, or possible a Debt Relief Order, both would depend on your income.

Research the information in the links I provided, and get back to me with any additional questions, and I’ll advise further.

Regards,

Jon

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