Summary:
If you’ve ever been divorced you’ll see that the proceedings can often leave both parties deeply in debt. The emotional side of divorce can be awful, but it’s the money side that can be one of the most demanding areas of separating. And tallying up the debts from the marriage can leave a big black hole in your finances.

Since in fiscal and emotional terms the whole divorce process can be expensive, there have been calls for a more amicable way to sorting out the separation terms. The “Debts and divorce campaign”, has been released by the UK Insolvency Helpline to provide a efficient method in dealing with family debts. This is good news as nearly two thirds of people questioned said that breaking up caused them more financial problems than losing their job or losing their partner.

In the survey, thirty per cent of divorcees stated that they required professional debt counselling, while twenty eight per cent found it difficult to adapt to having just one household income. In fact 9% had sizable problems organising their debts and had to consider bankruptcy.

The study which was funded by the UK Insolvency Helpline, has decidedly demonstrated that the expense of divorce can leave people burdened with debt. 15% said they had used credit cards to purchase holidays or luxuries they wouldn’t have purchased if still married. This kind of spending can create a very sore point during the divorce negotiations.

Only 8% of people said they had successfully managed to balance their finances during the divorce process and had come to an amicable decision. Of the 76% of those questioned who ended their marriages on good terms, the majority said that their finances now needed thorough review and makeover. Maybe even reduce your debt online!

On for the most part those divorcees who got in touch with the UK Insolvency Helpline had between £14,000 and £25,000 of unsecured borrowing, while half of them had debts of between £2,100 and £6,000, mainly resulting from the costs of moving.

Many divorcees quizzed had entered into an Individual Voluntary Arrangement (IVA) which is a lighter option to bankruptcy whilst still resulting in largely reducing debt levels.

When it came to functional information, many relied on the CBA, whilst some turned to peers and others went to counsellors or used support organisations.

A spokesperson for the UK Insolvency Helpline said, “We have launched the Debts And Divorce Campaign to try and comprehend our callers’ spending habits. We can then develop a plan for the future so that they should be able to minimise their legal costs as they are instructed through the whole divorce process.”

Bookmark It

Hide Sites

A discharge from bankruptcy means you are free from the limitations of bankruptcy and it frees you from almost all of the debts you owed at the date of your bankruptcy. Any monies outstanding under student loan agreements or child support will remain outstanding.

In specific, special circumstances, the Official Receiver can appealrequest the Court for a Bankruptcy Restrictions Order. This means that you continue to be limited by restrictions after your discharge from bankruptcy for the duration stated in the Court Order. A Bankruptcy Restrictions Order doesn’t effect the discharge of your debts.

How long am I bankrupt for?

Discharges typically happen after 12 months. But the Official Receiver can file a Court notice before a year are up to claim that he has finished his analysis of your finances. If accepted, you will be discharged when that notice is filed. When such a notice is issued, a copy will be sent to the bankrupt to confirm that they have been discharged.

If the defendant does not work with the Official Receiver or Insolvency Practitioner, then the Official Receiver or Insolvency Practitioner can request the Court to postpone discharge. For example, if the bankrupt provided erroneous or false information to the Official Receiver or the Trustee.

How do I obtain my discharge?

Normally, the defendant will be automatically discharged after 12 months, even if no instalments have been paid to the creditors. If the defendant is discharged automatically, the defendant does not receive any notification to notify their discharge unless the bankrupt specifically asks for it. Do not write to the Court earlier than 2 weeks prior to your discharge date, you will get acknowledgement of this around 4 weeks later.

The price for the discharge notice is £60 payable to the court and additional copies will cost £1 each. The bankrupt can also request the Official Receiver to advertise your discharge all the advertising charges in advance.

You will not get an automatic discharge if your discharge period has been suspended or the bankrupt are under a criminal bankruptcy order. If you want more information on this you would be advised to write to the Official Receiver.

Bookmark It

Hide Sites

Overwhelming costs from poor health is one of the most common causes of people pursuing debt advice.
As in chronic illness people are incapable to work or are reliant on state benefits, income deficits can exacerbate create debt problems in many ways. Strain caused by debt is a fundamental contributing factor to health issues.

The sort of advice consumers are asking for includes: Free Debt Management Schemes , Protected Trust Deeds, Individual Voluntary Arrangements (IVA’s), bankruptcy advice, administration orders, general finance advice and  Bankruptcy advice, Protected Trust Deeds, Individual Voluntary Arrangements (IVA’s), administration orders, general finance management and budgeting, Free Debt Management Schemes

Debt consultants usually spend more time with people burdened with debt from poor health because they appreciate the particularly difficult times they are experiencing. They do not want to see clients struggling with serious debt problems created by ill health.

The causes for financial issues in sickness are many and varied. The most common issues that lead to debt issues for those suffering from ill health are as follows:-

• The speed with which their income has fallen.
• When you are sick you tend to neglect finances.
• It can be more difficult to sort out debt issues with people whose health is deteriorating.
• Some clients get into financial problems because they have more costs related to their poor health.
• Respite care can be expensive
• Debts can be stacked up by the additional cost of transport for appointments.
• Repaying debts can drastically reduce the persons available funds and the reduction in profits due to poor health, makes the circumstances even worse.
• The illness can mean that carers have to be employed.
• The situation can be exacerbated if the bread winner job is physically orientated. It makes getting back to work slower.
• Similarly, problems related to mental health may force people to be off work for particularly long periods.

If you have to get a new employer many more problems arise. Although there are ridged employment laws in the UK, some people with poor health often have debt issues because they’re unable work normal hours. For those with chronic term health difficulties, dependency on benifits will make their financial issues much difficult to sort out. The problem is that some people suffering from ill health do not qualify for any Disability Living Allowance.

So what can you do? If you’ve already gotten behind on your payments, your creditor will normally suggest ways to pay off your arrears gradually, together with your usual payments. And if you’re unable to meet these extra payments, you may be able to add them to your loan or delay them for a while. It will mostly depend on your credit history. So pay as much as feasible each month. Keep up frequent payments even if you have to stagger them as this demonstrates that you are dependable then your lenders are more likely to treat you sympathetically and you could might minimise the arrears charges as well.

Bookmark It

Hide Sites

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

Bookmark It

Hide Sites