Do I Go Bankrupt?

sdbanotts · 15 April 2008 at 5:44PM

Hi Everyone,

I'm new to the forum but have been reading with interest for a while, and eveyone on here seems full of such good advice, and willing to assist.

As such, I need help and kindly ask for any advice on the following.

1.I have credit debts totalling £50,484.06.This is a settlement figure if paid in full now.

2.With interest it totals £59.617.80.

The credit debts are as follows.

1.M&S Loan
2.HSBC Loan
3.Egg Loan
4.HSBC Credit Card.
5.M&S Credit Card
6.Mint Credit Card
7.HSBC Overdraft.

I used to work in TV, but since Aug 2006 have been concentrating on writing music, as I sing and play guitar.Jobseekers allowance and housing benefit has been my sole source of income since this time.

1.Income- Jobseekers-£256, Housing Benefit-£1018.33, Mum-£135

Without even making a payment to my credit cards/loans I have £101.67 spare each month. That's if you can call it spare, as I have completed my personal budget sheet with National Debt line, and set each figure as low as possible without turning myself into a Monk.

Income=£1366.00
Outgoings=£1264.33

I have no priority debts such as mortgage as I rent.

So money left for credit debts is £101.67

I have worked out a pro rata ayment to all my creditors, outlining what I can afford to pay them per month, as for the past 2yrs I have been meeting all my payments by robbing Peter to pay Paul from my Credit Card.Not clever!!!

I am now writing to them all to accept the pro-rata payments until my circumstances improve. HSBC have already agreed.

My big question is should I just go bankrupt?, as I don't really see my circumstances improving to such an extent that I will be ever able to meet the £800 credit debts payment per month (which is how much I have to pay on all the creditors).

Advice is much needed, and warmly received.
Thank You

FeelingLow · 15 April 2008 at 6:20PM

sorry i cant answer your questions but i just wanted to welcome you to the forum

Waspeze · 15 April 2008 at 6:35PM

Hi and welcome

Have you contacted any of the free debt help places yet? (cccs, cab etc)

I know from experience that "we" can't really advise you to go BR but once you've had professional (and free!!!) advice then every one here will help you in any thing you need to know!

Waspeze · 15 April 2008 at 6:38PM

Took this from tigerfeets signature (a few times i've done this now

)

Your first port of call should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only.

CCCS 0800 138 1111 National Debtline 0808 808 4000 Business Debt Line 0800 197 6026 CAB – Contact your local office and ask to speak to a Specialist Financial Advisor. Insolvency Service- 0845 602 9848

sdbanotts · 15 April 2008 at 8:25PM

thanks waspeze, yes I have contacted the National Debtline.Am currently filling out my personal budget sheet, and ready to call them again tomorrow.

Just completed the CCCS debt remedy plan online, and the findings of that suggest I go bankrupt.

My worry is this.

1.In Aug 2007 I took out a loan with a company, and can't remember exactly what I put on the application form.I hadn't worked since Aug 2006, but as a freelance TV producer I may well have put that I was working (as my work tends to be for short term contracts), and I had expected to be working in the coming weeks, although no offers were formally on the table.

As a result I'm worried that if I decide to go bankrupt, the loan company in question may consider that I obtained the loan dishonestly. Which in theory I guess I did as at the time of writing I wasn't in employment.

Any one have any advice on this regarding 'stretching the truth' re loan applications.

As a freelance TV Producer I was earnig £1000 (net a week), and prior to August 2006, had been in almost constant work for 5 years. Albeit it on different rates of pays, whilst I got promoted through the Industry.

Presumably the companies credit check procedures saw nothing wrong with my application, otherwise it would have been refused?

tigerfeet2006 · 15 April 2008 at 9:09PM

It will very much depend on how much of a % that loan was in your overall debt. It might just be you get a slap on the wrist and the OR looking into more detail all your incomings and outgoings. The worst case scenario would be a BRO/U.

sdbanotts · 15 April 2008 at 9:16PM

tigerfeet 2006,

The loan is £20,000 out of the £50,000.
What's a BRO/U- A bankruptcy restriction order?
Do I goto prison?

To calrify this, I have never missed a payment on all my loans in all the time I have had them, so do have a pretty good record for paying. I just can't afford them anymore.

I'm just unclear as to whether the company in question will feel I have acted dishonestly in the fact that at the time of application I wasn't technically working.

I had never intended to not pay the debt off,as I had hoped to be working soon after the application was made. Jobs in my industry just haven't materialised, and I don't think I will ever earn that money again, by being a musician.

Thanks Agin

tigerfeet2006 · 15 April 2008 at 9:18PM

No my sweet you won't go to prison. They don't do that any more.

Bear with me and I will get you a couple of links.

This explains the in's and out's
http://www.insolvency.gov.uk/guidanceleaflets/bro/bro.htm

This is people who have them imposed and the reasons.
http://www.insolvency.gov.uk/databases/ddirector/viewbrobrudetailslatest.asp

sdbanotts · 15 April 2008 at 9:27PM

thats a relief, as my mum is a prison nurse!!
don't fancy seeing her behind bars.not too good for the family rep!!!

tigerfeet2006- really appreciate your time.

a couple of things then re going bankrupt.

1.Does it stop me from living in a country within the EU (my girlfriend is German).

2.As a musician will they consider my guitar/recording equipment/mics/amps etc as assets, and thus have to be sold off??

tigerfeet2006 · 15 April 2008 at 9:34PM

As long as you keep the OR informed at all times of your where abouts and he can contact you by letter, phone and email then you should have no problems with moving to another country.

Not a 100% but if you are using them to earn a living then you should be able to keep them. If they are sitting in a corner then he may want them. Give the IS a ring and check with them (number in my signature.)

sdbanotts · 15 April 2008 at 9:43PM

great, really do appreciate your advice.
I'll call the CCCS first thig tomorrow, and discuss further before committing myself to anything.

Do I Go Bankrupt?

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