Contemplating bankruptcy - initial queries

Happy_bunny wrote: »

Just been told by CAB that my debts - In excess of 22k (as a guesstimate) mean I cannot apply for a DRO and my next potential course of action might be to consider bankruptcy but have a few queries.

Initially is there a way of finding out ALL my current debts and creditors? I'm sure there are old debts which just haven't caught up with me and haven't kept paperwork/letters. You could obtain your credit reports as a guide to help you, but debts over 6 years old should not be there. The good thing about bankruptcy is that all of the debt you owe on the day you go BR is included whether you put it on the forms or not - so old debts turning up later are automatically covered.

How long would I remain bankrupt? 1 year

How do I provide the OR with a budget? I've never worked to a budget and some debts are things I've just been unable to afford - like water rates - is there someone / an organisation able to help me write a budget to INCLUDE the things I'm currently unable to pay? Is there any kind of online / offline guide which would give me an example of what I would be permitted to budget for? Someone will provide the link for our SOA tool. We can then comment on your budget.

I Have to drive for my work, will I be allowed to keep my car and include tax, petrol and servicing within a post BR budget? Car is probably worth 2K, probably my only asset! Should I sell and buy something cheaper before BR, possibly using the difference to pay the BR fee? Would that be allowed? If you can prove a NEED for a car you can keep it along with its associated costs. The guideline car value is around £1k - there is nothing wrong in doing as you suggest about getting a cheaper car.

I'm single, work 3 days a week due to a physical disability and rent a flat from the local council - is there any general guidelines on my potential 'allowed' living expenses? Would my wages and Tax Credits be frozen? I have no savings and minimal food at home generally - living week to week and buying just to feed me rather than stock cupboards and am terrified I won't be able to feed myself or pay utilities and rent should this happen! You will be able to afford your normal food and bills, bankruptcy allows for this.

Sorry for the length but it feels like a minefield and can't find the answers online