Please advise - new to bankruptcy

Apolonation · 29 October 2008 at 4:10PM

Firstly thanks for reading this, I appreciate your time. Anyone that knows about these issues or has been through them please do reply and give me your thoughts.

I am currently unemployed (have been for two months) since the age of about 18 I have accrued terrible debts, I was irresponsible when younger, and didn't realise just how much trouble I would be creating for myself in future years. I am now 27 and my life is plagued and pretty much on hold / at a complete standstill because of my debts.

It started with a Natwest bank loan at 18 and since then escalated. When I went to University I had to get more loans and also had some card debts. I had to leave University after the first year because I couldn't afford it. Since then I have worked in small jobs and just about had enough to rent a place to live, eat etc... I have put the debtors off as much as I could for the past... It just got too much now, I can't move on with my life and am completely paranoid everytime I speak to my parents that they have called again.

My bank account accrued charges when I couldn't repay an unofficial overdraft also about 8 months ago, and that was eventually closed and also sent to debtors, so I no longer have a bank account.

The great majority of my debts are with debt collectors including one that was just moved from the University for living accomadation for 7k. I also have a student loan with the government which is income linked for about 6k. I have also owe about £600 to pay day loan companies.

It doesn't matter how many times I or my parents tell them I no longer live with them, they don't listen and constantly harras my parents phoning regularly, and write to their address threatening me with legal action. I have contacted them and told them I am inbetween accomadation at the moment (which is true) and also that I have no means of paying them, but they are always very condescending and most try to bully me on the phone. They have also called neigbours of my parents and asked do I live in the street, so that has caused extra distress.

My total bank/loan/credit debts have just gone up through my ignoring it all and hoping it would go away (I was younger at the time and naive... but no excuse I know). Now I estimate they must be about 20k in total with the Uni costs.

I am trying to get a copy of my credit report but don't have the money to send off for it at the moment - as I just have job seekers allowance as my income at the moment and no savings.

All of this is now just too much to take, it's hugely impacting my life and there is no way I will make any dent into clearing any of it. It's just too much. I'm not one for drama, but I can honestly say - It is ruining my life.

So that is my background.

I would like to go bankrupt. I have read a bit about IVA and Bankrupt online, and the opprobrium and negative credit aspects of the Bankruptcy don't concern me as things are so bad now they couldn't really get any worse on that front.

I understand that Bankruptcy is more complicated and it seems more severe from what I've read. This has taken my life away, and I would like to get it back, I think bankruptcy will provide me with that possibility, is this a reasonable thought?

My question is in the first place do I sound like it might be possible for me to go bankrupt? If so. What would my best next step be?

Also I have read that there are costs of hundreds of pounds to go bankrupt. I can not afford those at the moment for obvious reasons. Is there anyway around these or a way of paying this some other way for people that are currently unemployed and receiving job seekers allowance, I have about £10 at the moment... which is my sole net worth.

Richard_S · 29 October 2008 at 7:19PM

Hi Apolonation,

It does seem as though bankruptcy will give you the fresh start you're looking for. You will have to take professional advice before a Judge will declare you bankrupt, and the Debt Charities are always worth talking to; their contact details are in my signature.

I've heard people talking about grants being available for people who can't afford the bankruptcy fees, but I'm not aware of anybody who's been successful; I'd love to be corrected if anybody has any suggestions.

I would have thought in the run up to Christmas you could get a temporary job in the retail or catering sector. I know they don't pay particulalry good wages, but if it gives you the chance to get your life back then it's got to be worth it.

Regards

Richard

snoozeulose · 29 October 2008 at 7:31PM

The first thing I would ask is: Do you have any asssets, and have you done
anything that may seem like misconduct, i.e gambling or borrowing lots of money to go on holiday within the last year? I only ask as this is what the
official reciever will look for. The other thing that i should tell you that the student loan company will not be included in the bankruptcy.

sandywindsor · 29 October 2008 at 7:35PM

hi apolonation,
I was unemployed when I went bankrupt (and still am until next monday!) the court fees of £150 were the only items i didn't have to pay I still had to find the £345 Br fees (OR). As Rich said the judge will require that you have sought some financial advice...but you have taken the first step to realisation! Debt cannot be ignored.

XXX

Sandy

fiveyearplan · 29 October 2008 at 7:59PM

Hi and welcome Apolonation. I'm so glad you found this site, we can answer all your questions or at least point you in the right direction to get the advice you need. Don't feel ashamed of your circumstances - to some degree we have all been where you are now. You should congratulate yourself for getting off the wheel of debt.

From what you have posted I would say BR is your best option but why don't you give CCCS, National Debtline or CAB a call. As Richard said, the judge may or may not ask if you have taken advice although I don't think you'll be asked to prove it. I know I certainly felt better after speaking to CCCS and realising what my options were!

If you have an more specific questions then please ask! Well done for taking this step and sorting your life around.

sandywindsor · 29 October 2008 at 8:12PM

Hi,
during my pre-judge interview I was asked by clerk about contact with agencies..i had contacted ClearDebt..had not included this and clerk added .

Later the OR asked for specific details from me regarding my contact.Not sure if just me...but better safe than sorry.:D

Contact an agency pref CAB or similar organisation i.e. not for profit!!!

Keep in touch on here I have had lots of help and only want to pay back.

:cool:

Sandy
X

tommo20 · 29 October 2008 at 8:46PM

Hi Apolonation,
You have found this site and that is the first step on the road to getting things back under control. Everything you need to know is on here if you do a little digging.
It has already been said that you must contact one of the advice lines. Use the ones quoted in this thread. They are registered charities and will give you UNBIASED help. I can't tell you how much better you will feel after you have spoken to someone and started the process of getting control back.
Something you could consider in the meantime is writing to all your creditors telling them that you are seeking advice and will be in contact with them with a plan as soon as you have completed your interview and are better informed regarding your position - if it is advised you petition for BR you have no need to communicate with them further - Be sure to put your new contact address and ask them not to phone as it is distressing to you and your family, ask them to communicate by letter only. They certainly do not have the right to make 'local enquiries' with your neighbours and I would mention this in your letter and tell them you are seeking legal advice on the matter and you will be informing the original creditor of this behaviour (I assume here that some of your debts would have been passed on to debt collected agencies and it is they and not the Banks etc who are harrassing your neighbours) Send them by registered (signed for) post cost around £1.08.
They may not all reply and the ones that do will probably reply to your old address but having done something will make you feel better.
Start a diary or something and keep records this helps to make you feel a little more on top of the situation. I did this and the flood of letters and demands became a manageable stream.
You are right they are bullies but they have to be because they have no real powers - once you realise this it becomes a lot easier to deal with them.
It costs close to £500.00 to petition for B.R this is paid on the day you attend court. If you log on to https://www.insolvency.gov.uk you can find out how to get the fee waived.
I might have got this wrong but in the back of my mind something tells me you cant get a student loan included in a Bankruptcy petition...worth checking.
Good luck

deedee_3 · 29 October 2008 at 9:58PM

This is a link to the remission forms from the Bankruptcy Help sticky at the top of the board. It is well worth having a look at the first post on that sticky.

Court fee remission and forms.

HMCS - Court fees do you have to pay them? (And guidance on completing the fee remission form). (pdf)

HMCS - Form EX160 - Application for a fee remission (pdf)

Example application for a fee remission based on gross annual income - EX160 (Thanks to NE Derbyshire CAB)

Example application for a fee remission based on permitted benefits - EX160 (Thanks to NE Derbyshire CAB)

Check out this for ideas on paying for your fees.

Possible assistance with Bankruptcy costs / fees (Thanks to NE Derbyshire CAB)

Apolonation · 29 October 2008 at 10:17PM

Thank you all so much for the advice it's made a big difference I already feel like there might be a way out of this having read all what you have said. I logged in hoping to see a reply and saw seven! so once again, I really appreciate it, thanks so much.

The first thing I'm going to do tomorrow is contact those charities and seek some advice as you suggested. I telephoned experian earlier to find out about getting my credit report as I think this will be the most comprehensive way of finding out who I owe money to - as half of them I do not even know the names they have been passed on so many times.

I'm going to ask them about the grants that someone kindly mentioned as well.

I'm also going to spend the next hour reading in this forum all the other threads and other peoples stories to get some insight.

Thanks again

Apolonation · 29 October 2008 at 10:26PM

Snooze hey I forgot to answer your questions. No I don't have any assets, and haven't been on holiday for years (about 5) and have never been abroad, In fact my holiday this year with friends fell through because I couldn't afford it.

Only loans I've had this year are the pay day company type loans I used the money shop and was paying them back each month which was a big drain on any cash.

New debts are my bank which was closed because I couldn't pay the overdraft, and then send to debt collectors (about 6/8 months ago) and then the next most recent apart from those pay day loans, would have been about 4-5 years ago when I was at university. All the other debts stem back to that time or before.

Apolonation · 29 October 2008 at 10:27PM

I'm just going to read all those remmision forms also now thankyou

Please advise - new to bankruptcy

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