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State Benefits and Bankrupcy
Kier_2
Posts: 59 Forumite
Ullo all. New member, long time lurker since I realised I was in a wee spot of bother with all this debt nonsense!
Just hoping for a bit of advice really, bear with the long post if you can. After I realised my debt was out of control, at c£35k unsecured with a gross income c£25k, I contacted Payplan who put me on a DMP. They've been great, but I was struggling with the £350 payments so they suggested an IVA.
HOWEVER, I then lost my job, after a nasty relationship breakup, and have been on state benefits since Feb this year, making token payments on the DMP. No job is on the horizon, certainly not one in my old profession which is quite specialised so they don't come up often so whatever I end up will probably much lower paid than previously. So. I'm thinking bankrupcy might be my best option.
Firstly, would you agree from your experience that BR is the best option?! I rent, have no significant assets and zero savings. Looking through this board, there is loads of advice, but I haven't seen much about someone like me, whose gross income after rent and council tax has been paid for me via benefits is £56 a week Jobseekers Allowance at the moment!
Another concern is what will happen to my house - I have a BR clause in my tenancy, but from what I can gather on here it is down to the discretion of the Official Receiver and Landlord themselves, and they tend to be sympathetic about tenancies? (I have always paid on time in the 4 years I've been here and aren't behind with rent)
Thirdly, would my going BR have an impact on my ex-partner, whose name is still on our tenancy agreement and utility bills and electoral roll here as the breakup was quite recent?
Fourth - I'm assuming I will get a job at SOME point in the next few months - if this happened during my bankrupcy would they re-assess me and stick me on a IPA thingy (which I gather is unlikely if I am on state benefits at the time of bankrupcy)
Fifth, would I lose things like my computer and stereo going Bankrupt?! They're probably worth £100-£200 each. Probably petty concerns I know but these are things that make life bearable at the moment!
Finally, what will happen after the term of bankrupcy - I believe it stays on your credit file for 6 years, during which time any borrowing would be nigh on impossible - but after this time are you completely "clean" or do you still have to declare it if you apply for credit (or indeed certain jobs - I believe there are work restrictions for bankrupts?)
Lots of questions there I know, but it's all a bit of a life changing time at the moment and I'm trying to get as much info as I can to avoid the kind of !!!!-ups that I'm so good at that have got me here in the first place!!
Cheers all, any help much appreciated, particularly on the benefits thingy.
Just hoping for a bit of advice really, bear with the long post if you can. After I realised my debt was out of control, at c£35k unsecured with a gross income c£25k, I contacted Payplan who put me on a DMP. They've been great, but I was struggling with the £350 payments so they suggested an IVA.
HOWEVER, I then lost my job, after a nasty relationship breakup, and have been on state benefits since Feb this year, making token payments on the DMP. No job is on the horizon, certainly not one in my old profession which is quite specialised so they don't come up often so whatever I end up will probably much lower paid than previously. So. I'm thinking bankrupcy might be my best option.
Firstly, would you agree from your experience that BR is the best option?! I rent, have no significant assets and zero savings. Looking through this board, there is loads of advice, but I haven't seen much about someone like me, whose gross income after rent and council tax has been paid for me via benefits is £56 a week Jobseekers Allowance at the moment!
Another concern is what will happen to my house - I have a BR clause in my tenancy, but from what I can gather on here it is down to the discretion of the Official Receiver and Landlord themselves, and they tend to be sympathetic about tenancies? (I have always paid on time in the 4 years I've been here and aren't behind with rent)
Thirdly, would my going BR have an impact on my ex-partner, whose name is still on our tenancy agreement and utility bills and electoral roll here as the breakup was quite recent?
Fourth - I'm assuming I will get a job at SOME point in the next few months - if this happened during my bankrupcy would they re-assess me and stick me on a IPA thingy (which I gather is unlikely if I am on state benefits at the time of bankrupcy)
Fifth, would I lose things like my computer and stereo going Bankrupt?! They're probably worth £100-£200 each. Probably petty concerns I know but these are things that make life bearable at the moment!
Finally, what will happen after the term of bankrupcy - I believe it stays on your credit file for 6 years, during which time any borrowing would be nigh on impossible - but after this time are you completely "clean" or do you still have to declare it if you apply for credit (or indeed certain jobs - I believe there are work restrictions for bankrupts?)
Lots of questions there I know, but it's all a bit of a life changing time at the moment and I'm trying to get as much info as I can to avoid the kind of !!!!-ups that I'm so good at that have got me here in the first place!!
Cheers all, any help much appreciated, particularly on the benefits thingy.
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Comments
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hi, welcome to the forum. There will be loads more people on here to help.
1] no one on here can or shd decide this for you, contact CCCS or citizens advise 4 help.They will be able to decide if BR is the right choice for you.
2] I would check with your LL, if you have paid on time and are not in arrears then I wouldn't see them gaining anything by not allowing you to stay.
3] All debts that are in joint names get past into the other named person on the bill, so if its you ex - they will be chased for any outstanding bills.
4]any change in circumstances means you will need to tell the OR if your bankrupt. They will allow you a certain amount to live on.
5]No they only take antiques or other things that are generally over the value of £1000 (i think).
6] After BR you will find it hard and possibly a high APR to borrow. If you borrow over £250 within the first year of BR you have to declare your BR to the lender. It stays on the credit file for 6yrs. Only jobs in finance are restricted, others will be along shortly with more info on this.
Hope this helps you a little, also you wont have to pay the court costs only the OR fees if your on income support. Check with your local court.
Good Luck with the BR, keep posting the qustions.
BSC member 137
BR 26/10/07 Discharged 09/05/08 !!!
Onwards and upwards - no looking back....0 -
Holy @:!£
I've been reading through a lot of stuff this morning and am I right in thinking they can send you to jail!?! Bejeeezus.
Thing is, the debt is all my fault - just irresponsibility and poor money management, robbing peter to pay paul etc. Even whilst on the DMP since May last year I have racked up another £5k on credit cards to meet living costs etc. Can't see the Bankrupcy people looking kindly on that kind of behaviour. Plus even losing my job was because of me taking a risk that didn't come off (I thought I could make a go of freelancing rather than being employed, but it really didn't work out)
Lummeee. Maybe I'll change my name to Juan Carlos and abscond to South America, could be safer!0 -
PS - thanks for the help NuttyP0
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I've been reading through a lot of stuff this morning and am I right in thinking they can send you to jail!?! Bejeeezus!
No. You are not right in think the that.
You would have to have committed MAJOR fraud for that to happen.
Living off your credit card when times are hard, or losing your job don't even come close.
There is an outside chance of a BRU/BRO but that is far as it goes.
Put all thoughts of prison out of your mind.
Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
Are you sure? Sure you are sure? Absolutely sure you're sure?
Gawd allmighty it's all pretty scary. I WANT to pay it off, it's my fault after all - but because my life has just crashed apart there's little chance of even keeping creditors at bay, never mind paying it off completely.0 -
Are you sure? Sure you are sure? Absolutely sure you're sure?
Gawd allmighty it's all pretty scary. I WANT to pay it off, it's my fault after all - but because my life has just crashed apart there's little chance of even keeping creditors at bay, never mind paying it off completely.
Stop beating yourself up. You are most certainly no worse than anyone else who has found themselves with financial problems. Also the OR is not there to judge you.
A friend of mine went BR last year with debts of £36k on mostly loans and credit cards and he is now getting on with his life.
Good luck0 -
Kier, if you went to prison for going BR, then non of us would be here posting. We'd all be making post bags or on the exercise yard.:D
As Fermi says, you'd have to have committed a huge fraud to get prison.
Have you rung one of the free debt advice agencies? you'd be best to do so as they give great advice, and if you continue with going BR the judge will want to know that you've sought advice and are aware of the implications.The first time we said hello, was the first time we said goodbye. As the angels took your tiny hand and flew you to the sky-you forever left us breathless. RIP my beautiful granddaughter
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Are you sure? Sure you are sure? Absolutely sure you're sure?
I'm sure.
But tell you what. Don't take my word for it. Talk to one of the professional advice agencies in my signature and confirm it for yourself.
If you are considering BR then you need to do that anyway because the judge/court will ask if you have before they will grant the bankruptcy.
EDIT: something minds thing alike.....;)Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
Ta for the link Fermi.
It seems from the public register that I'm not the worst case they will ever see! Wow.
Between 16 April 2004 and 10 July 2006 the bankrupt, X, incurred new credit of £86,518.40 (including interest and charges) which he had no reasonable prospects of repaying. In particular: 1. At 16 April 2004 X monthly household income was £2,309.56 and monthly household expenses (including payments to creditors) were £3,590.61, resulting in a deficiency of £1,281.05. 2. Notwithstanding the level of monthly shortfall, between 16 April 2004 and 10 July 2006, X incurred credit of £22,395.47 on an overdraft, £38,622.93 on credit cards, and £39,500 in personal loans (of which at least £25,500 was new monies advanced). 3. The new credit incurred between 16 April 2004 and 10 July 2006 represents approximately 60% of the overall deficiency at bankruptcy
OK so how likely is a BRO/BRU? I mean, are they commonplace for people whose debt has been incurred basically through irresponsibility, or are they the exception rather than the rule?0 -
betterlatethannever wrote: »Kier, if you went to prison for going BR, then non of us would be here posting. We'd all be making post bags or on the exercise yard.
Yeah yeah, you say that, but how do I know you're not in prison? They are like holiday camps these days, computers and playstations and all sorts, I know it's true, I read it in the Mail
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