This resulted in action taken against Shirley’s husband and he chose to petition for Bankruptcy. At the time no action was taken against Shirley. However, some years later the other party issued a writ against Shirley and entered into a Deed of compromise to repay of £57,000 the debt by monthly repayments.
Shirley’s sought advice from The Business Debt Advisor team on Shirley’s behalf. Shirley’s health had been seriously affected by a bout of cancer and the stress of the debt was affecting her recovery. As Shirley and her husband lived in rented accommodation and had minimal assets, it was clear that bankruptcy was really the only sensible option.
The Business Debt Advisor team helped Shirley pull together financial information on her assets which were minimal plus her debts and income and expenditure. We helped her complete her bankruptcy application online and her husband who was still working helped out with the application fee of £680. Within days Shirley was bankrupt and her experience of dealing with the Official Receiver was very positive. They agreed with her that she would affordable pay income contributions of £210 per month for a 3 year period.
Situation before Bankruptcy
Total unsecured debt: £57,000
Personal debt: £3,200
Total Debt: £60,200
APPROVED BANKRUPTCY SOLUTION
Shirley put off for many months the decision to opt for bankruptcy. She did not like the idea that she would not pay her debts in full. She eventually realised that payment in full was never going to happen given her advancing years and also she needed to recognise that the stress of being in debt and subject to a Deed of Compromise was seriously affecting her recovery from cancer. Dorothy is still paying her monthly contributions to The Official Receiver said she was very pleasant to deal with and recognise that she is vulnerable due to her health conditions.