What to do next?

I don't really know where to begin and everything is scary and confusing.

Long story short I'm currently in a DMP due to a £28 pay rise and a minor change to my bills (-£14) my DMP is going to jump from £47 to £126 (god knows how they calculate this) so instead they have advised I consider bankruptcy as my total debts are around £19,600. I made a priority payment of around £600 to Apple so I could retain my phone prior to starting the DMP.

I'm really concerned about the effect that will have on my day to day life.

1) I currently have a current account with a £260 overdraft, I don't use the overdraft but how will this be affected by going bankrupt? If it is how do I get paid from my job, pay my bills etc without a bank account?

2) I private rent and my tenancy is due for renewal in the next couple of months. I don't want to go through with this and find im unable to rent anywhere for the next 6 years.

3) What exactly will the official receiver require me to provide? Pay slips? Bank statements? How much of my finances do they take a magnifying glass to.

4) What happens to my current assets such as my TV, mobile phone and laptop?

Is there anything else I should be aware of before continuing down this pathway? Are their other alternatives that may be better suited? I was suggested an unsupported IVA (?) but have no idea what this is?

Comments

  • TheGardener
    TheGardener Posts: 3,303
    Name Dropper First Anniversary First Post
    Forumite
    Hi and welcome. don't panic, firstly get an appointment with one of the FREE debt manage charities National debtline, stepchange etc.

    To answer your questions:
    1.You may have to change your account but its ok - you will get a basic account that does everything a 'normal' account will do with the simple exception of an overdraft - you will not have an overdraft for a while
    2.If you are not in arrears with your rent then don't worry too much about that. Most LL's simply want a good tenant who looks after the place and pays their rent on time.
    3.The OR will want as standard a years bank/credit card statements and payslips - if you don't have them don't stress about it - the OR has the right to ask banks to provide all the info they want. IF the OR suspects something is amiss - they can look further back into your financial history
    4. Nothing happens to ordinary assets at all. The OR would only be interested in high value assets - cars over £1000, antiques, art, jewellery etc - normal domestic goods, laptops and phones are of no interest to them at all.

    As I said at the start - get some free expert advice and read everything you can on the welcome sticky posts on this board :)
  • Thanks for the reply, its Step Change who are suggesting going bankrupt.

    I don't need or want an overdraft, although do a lot of things online. Chatting to a friend whos had to go through something similar they also had to forfeit their bank account and now have an account with Think Money (?) who they have had nothing but trouble with when trying to shop online. Do all "basic" bank accounts allow you to use the bank card without restrictions?

    I'm not in arrears on any of my debts except a credit card and personal loan, everything else such as council tax, household bills and rent is paid up to date. I'm very concerned though, the same friend I've mentioned above was unable to secure a rental property at any estate agents in Manchester CC due to having a CCJ as a result they had to get a guarantor and pay a substantial amount upfront neither of which are available to me. I wouldn't want to put myself in a position where by I go bankrupt and then am unable to secure a rental property due to failing credit checks.

    Although from point 3, I would be extremely concerned as it may highlight some significant "issues" that may alter my eligibility to go bankrupt. The way in which I pay my bills/share my bills with other housemates makes expenditure vs declared budget not entirely add up.

    Lastly the agent from Step Change stated any valuables over £1000 would be of interest to the OR and they specifically mentioned my iPhone 7 (twice) and my laptop.

    Thanks again!
    DS
  • Is your Iphone 7 under contract...if so id say you will keep it for obvious reasons.


    Regards Laptop, the OR will know how. Unless its a super duper high spec gaming laptop, id doubt he would be interested due to low resale value.


    When I went BR I was told to be honest but not overly honest..basically don't offer information unless asked,you will suffer after the BR for long enough so no need to add to that.
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