Single Family Debt Solution Manchester UK
How does debt affect you following the breakup of a relationship? There are two sides to every coin and that couldn’t be more true in the case of relationships ending and divorce proceedings starting. Where children are involved they are hopefully going to both sides number 1 priority- but while I’m on the subject of coins, finances, and debt will always be the main bone of contention following any separation.
We’ve all read articles in the press and seen clips on the news regarding wealthy couples spending millions of pounds on legal fees to ensure they get their piece of the financial pie that they feel they are entitled to. There will always be arguments for and against the way that assets are divided – many court decisions are baffling and seem very unfair in a lot of cases but everyone will have their own opinions on these judgments and the only certain winners are the legal professionals charging astronomical fees.
Single Family Debt
So what if you’re not fortunate enough to be arguing over several million pounds with an ex who thinks they’re more deserving than you, the chances are you’re main financial concerns are how am I going to afford to pay the divorce settlement, legal fees, mortgage or rent, joint loans and finance that you now find are solely your responsibility. Speaking from experience this is a difficult position to be in and one that can easily lead to financial ruin and a fundamental change in lifestyle, something courts aren’t always particularly sympathetic about.
I’ll tell you about a friend of mine who confided in me as he knew I’d been through a very similar relationship breakdown involving children. Having completed the divorce proceedings Mike was left in the family home having paid out £130k in a divorce settlement to his ex-wife who had used the sum to buy another property for her and the children to live. Between them, they had in in excess of £35k unsecured debts which Mike took responsibility for along with the massive mortgage he was now paying.
Mike soon realized he’d be unable to continue to pay the mortgage along with all of the other bills and debt repayments and he decided to sell the house and move into rented accommodation- He’d just about balanced his books. Mike was able to pay the rent, maintenance to his ex, bills, and repayments to all of his debts. On the face of it this all seemed slightly unfair when his ex-was living in property financed with a very small mortgage, continuing to work full time and receiving maintenance from Mike every month but I’ll leave that bone of contention for another blog.
Mike soon realized that he couldn’t continue along this financial path as he was left with very little money each month and felt like he was merely surviving rather than living despite having a secure and well-paid job as an electrician. After becoming depressed about the restrictions his financial situation was placing his families lives he decided it was time to make a change.
His options were limited as would most peoples be in this situation, he had to pay his rent or he would be homeless, he has to pay his ex-wife maintenance or he could be hauled before the courts, he has to continue to pay for his car and work expenses or may lose his job……. The only answer for Mike was to reduce the amount he was paying towards the debts he had been left with following his divorce which was financially crippling him as he was paying close to £600 per month to unsympathetic creditors.
After taking some advice and realizing his options were limited Mike entered into an Individual voluntary arrangement via an insolvency practitioner with his creditors and agreed to pay what he could afford each month (£125) to clear the outstanding debts. In approximately 18 months Mike will be completely debt free and would have had close to 70% of his debts written off.
Each case is obviously different and an IVA isn’t always the answer when people are in financial difficulty but Mike felt it was a silver lining to what was very grey cloud and one that he could not see clearly without the use of an IVA and assistance from his insolence practitioner.
The moral of this story is there is help available if you are struggling financially following a break-up- if you’re struggling to make ends meet as Mike then reached out and get the help you need to ensure you’re having the quality of life you deserve. Divorce and breakups can be devastating and the financial hardship which can follow ads to the pain, don’t suffer in silence, flip that coin and look at your options to reduce the burden and get yourself out of debt and a situation you didn’t deserve to be in.