Need to go bankrupt

youngandindebt · 20 January 2018 at 6:13PM

Hello everyone,

I feel ashamed im 22 and need to declare bankruptcy.

I was self employed but business has gone down to 0
£16000 income now unemployed
I have £4000 business debt Personal guaranteed
£5700 to natwest loan
£4820 to barclays loan
maxed out £5000 overdraft
£4500 on barclays credit card
£2100 HSBC credit card
£250 to paypal

£22370 total debt

Live in a rented home with parent. does total rent get halved on my SOA? Do they need to see the parents bank statements?

youngandindebt · 20 January 2018 at 6:17PM

This is the first month of not paying bills, how long until bailiffs are at my door? weeks or months?

enjoyyourshoes · 20 January 2018 at 6:23PM

Can you get yourself a paid job and work to pay off the debts.

Get back to solid ground financially then move on.

Many of the most successful entrepreneurs have been bankrupt once, but learnt from it (overextending too soon, poor cash flow forecasts, not having weekly handle on £,debts , debtors and income). Also it takes time to come back from bankruptcy, so try do work work work and throw everything at the debt.

youngandindebt · 20 January 2018 at 6:27PM

Applying for jobs recently, the overdraft alone in fees takes £100, repayments on the loans/CC are £700 a month - even on a monthly after tax of 1200, this would leave me £400 for travel to work, expenses etc, and would take even at £200 a month towards the OD 25 months to clear it.

Seems the best route is bankruptcty I have no assets

enjoyyourshoes · 20 January 2018 at 6:31PM

Do some research into the options:-

https://nationaldebtadvice.org.uk/?keyword=national%20debt%20advice&ref=adwords&matchtype=b&device=c&adposition=1t3&gclid=CjwKCAiA7ovTBRAQEiwAo8dPcWSO3mSgZiC3HxGWogusyRGpovO1XZrNB7nXTUgLbIYk4ewdjEBEHBoCP4EQAvD_BwE

youngandindebt · 20 January 2018 at 6:37PM

Thanks, I was told and read with no assets and been young bankruptcy is your best bet, as an IVA does the same damage to your credit record as bankruptcy. I am also planning on moving to spain in mid 2019.

haggis0073 · 20 January 2018 at 8:17PM

sorry to hear of your problems, its nothing to be ashamed about and you have come to a good supportive forum.

Firsts things first is that you need to ring one of the free charities for advice, national debtline, stepchange or if you have a local citizens advice bureua near you arrange an appointment with their money advisor

Secondly you need to see if you are insolvent, i would go to stoozing.com and use calculator on there to work out all your incomings and outgoings, you can then post up your Statement of affairs on here for us to look at and advise you better

Relax with worries of bailiffs, if this is your first month of missing payments then you have months to go before/if it gets to that stage

youngandindebt · 20 January 2018 at 10:27PM

I have halved the total rent + Bills, as living with a parent who is paying this for me at the moment as im out of work. I have put this income as I have 2 job interviews for £17000 - is there anything I can add as more to the budget? I have a partner who lived abroad would a flight be a reasonable expense or would the OR say no?
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1237
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1237

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 385
Management charge (leasehold property).. 0
Council tax............................. 69
Electricity............................. 40
Gas..................................... 25
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 10
Mobile phone............................ 19
TV Licence.............................. 147
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 240
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 17
Entertainment........................... 0
Holiday................................. 10
Emergency fund.......................... 10
Total monthly expenses.................. 1089

Assets
Cash.................................... 800
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Business loan PG...............4012......0.........0
Credit Card HSBC...............2100......0.........0
Overdraft......................4995......0.........0
Paypal Finance.................250.......0.........0
Barclay Card...................4495......0.........0
Natwest loan...................5722......0.........0
Barclays Loan..................4726......0.........0
Total unsecured debts..........26300.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,237
Expenses (including HP & secured debts). 1,089
Available for debt repayments........... 148
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 148

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -26,300
Net Assets.............................. -25,500

moneyistooshorttomention · 20 January 2018 at 11:35PM

You've put the annual tv licence bill down as a "monthly" expense - it's a yearly expense.

You've put electric and gas down as £65 per month. Presumably that is what the bill is between you - and therefore that is £32.50 per month to you.

£240 groceries per month - is that the bill for the 2 of you? In which case - £120 each per month.

Total about £280 per month extra available after amending those figures. £148 + £280 = £428 approx per month available for debt repayment.

haggis0073 · 21 January 2018 at 10:08AM

what is your parents income in comparison to yours, normally if you earn the same then you pay 50% towards household expenses (not sure if this applies if its your parent you live with?), normally if you earn more than other household members then you pay a higher percentage

your dad/mum may need to provide evidence of their income if they earn less than you otherwise the OR will presume you pay half the bills

With regards to the 800 pound assets then if its cash then i would not personally mention this, unless there is a recent paper trail of you withdrawing it.

You really need to get proper debt advice before committing to anything, If you were to go down the IVA route then it would take alot longer to pay off, if you went bankrupt then any IPA payments would finish in 3 years so alot shorter.

If you WERE to go bankrupt then if you could manage to stay unemployed or even get a part time job for the first 12 months of bankruptcy then no IPA would be set, then after the 12 months you can earn what you like

haggis0073 · 21 January 2018 at 10:30AM

with regards to the flight to see your other half, i doubt this would be an allowable expense i'm afraid

Need to go bankrupt

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