My current situation: Is bankruptcy an option?

Gray-Fox · 27 October 2008 at 6:23AM

I'm in my early twenties and I have the following debts:

Credit cards: 1 RBS @ the current balance of £-3087.44
Professional Training Loan: Nat West @ at the current balance of £-16,672.80 (repayments begin in Jan 2009 @ a monthly rate of approx 229 pcm).
Overdraft: Nat West @ the current balance of £-1552.20

I also have two other credit cards with balances of £0.
I also have a student loan, but since I don't even begin to pay that back until I earn a certain amount, I'm not really considering that as an immediate debt.

My current job is POORLY paid and after rent and other associated living costs I have very little left. I budget fairly well and although it might not appear so, I am very good with money and disciplining myself. However, when January comes, it is highly unlikely that I will be able to factor the Professional Training Loan debt into my already tight budget. After tax, I earn well under £1000 pcm, £360 of which goes on my rent.

Since I have no intention in the foreseeable future of a) having any more credit cards b) buying property I was wondering whether bankruptcy is an option, since, as aforementioned, I don't know how I'm going to manage to pay £229 pcm towards that professional training loan debt come January.

All advice would be appreciated,
Paul

carrottopsuk · 27 October 2008 at 9:10AM

I'm sure someone will be along soon that can help. In the meantime, they usually ask people to post their statement of Affairs (SOA):

http://www.makesenseofcards.com/soacalc.html

Good luck

dancingfairy · 27 October 2008 at 9:19AM

can you move in with friends if you aren't already? move back home with parents? any chance of getting a better job? Is it usual to start in such a lowly paid job?
You could post an SOA and see if people have any ideas for you.
Umm might be worth also posting on the bankruptcy forum as well - there are some professions you would not be able to be in if you were made bankrupt. You may also find that a DMP would be a better solution. Have you tried talking to CCCS or CAB and seeing what they suggest?
Good Luck
dfr x

Gray-Fox · 27 October 2008 at 9:42AM

Hi, what is CCCS and DMP?

No chance of moving back home or getting a *much* better job for the foreseeable future.

carrottopsuk · 28 October 2008 at 12:20AM

bumping this up to see if others can help

Gray-Fox · 28 October 2008 at 1:08AM

Thanks, I was thinking of doing the same.

Ames · 28 October 2008 at 10:43AM

CCCS are a charity that help people in debt for free. A DMP is a debt management plan, which CCCS can set up, they negotiate with your creditors and you pay a reduced amount, which you can afford, each month.

peb · 28 October 2008 at 10:58AM

MOrning

For whether it is possible and advantageous do post on the bankruptcy sub board - the guys are really helpful and a lot of them have been through it.

It is a very big step and you must take professional advise - CCCS, National Debt Helpline CAB amongst others will help.

It is worth posting your SOA on here to see if we can help you manage with either cutting back or a DMP; the impliciations of a DMP are less severe than bankruptcy.

Sorry for the Hijack but Hello Ames - I don't seem to have been on hte board at the same times as you recently!

Ames · 28 October 2008 at 11:13AM

Hi, I noticed that too!

My current situation: Is bankruptcy an option?

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