Facing up to bankruptcy!.. need help!

KJ2886 · 16 April 2017 at 11:29AM

Hi Everyone, Ive been reading posts on here for a while and finally facing up to the possibility of bankruptcy!

I owe approx 35k in Overdrafts, Credit Cards and a payday loan and im so annoyed with myself I let things get this bad! Due to gambling and general over spending, balance transfers and ending up using cards again and 0% offers ending and debt increasing!
I hadnt missed any payments until 2-3 months ago and I was all set up to start a DMP, opened up a new bank account, wrote to a few of my creditors (online) but not all, got a pack from Stepchange - but never got up to filling it in!
My new account is with Halifax but then realised thats part of Lloyds banking group, and one of my debts is Lloyds (£1500 overdraft) so thats why I never actually started with the DMP yet

I went to check my credit file on noddle adding up all my debts and then I saw a CCJ on my account from Oct 2016 for £5000! and now im freaking out and scared about what will happen now! Haven't contacted anyone about the CCJ yet (Is listed at an old address so this is first ive heard about it)
Im now worried ill have bailifs at my door or they will take my car etc now

I dont know what to do now!
Im dealing with this alone and I dont want any family to know what Ive got myself into

Thank you for reading

TheGardener · 16 April 2017 at 2:57PM

Hi and welcome. First things first - read read and read some more on all the welcome posts at the top of the forum. Then on Tuesday get in touch with StepChange or National Debt line or CAB and get some free expert advice about your position.

The gambling - have you stopped and are you receiving/seeking help with this?

Post a statement of your account - income, outgongs etc and we'll all try and help from there. Use the template here http://www.stoozing.com/calculator/soa.php

KJ2886 · 16 April 2017 at 3:55PM

Thank you for replying!
I will ring stepchange on Tuesday! Im getting help with the gambling its very recent too and just spiraled over the last couple of years
Think im just more stuck now since finding out about the CCJ on my credit file too

Here's my SOA - Not put in the debts yet tho

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 500
Partners monthly income after tax....... 0
Benefits................................ 413
Other income............................ 343
Total monthly income.................... 1256

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 280
Management charge (leasehold property).. 0
Council tax............................. 92
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 12.12
Satellite/Cable TV...................... 28
Internet Services....................... 27.5
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 35
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 8
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 1007.62

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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,256
Expenses (including HP & secured debts). 1,007.62
Available for debt repayments........... 248.38
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 248.38

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

Income is part time wages, WTC and DLA
Car tax - Disabled so no cost,
Had to guestimate some like clothes, food shopping, presents, petrol and things like entertainment as dont really know what I spend.
Sky TV is coming to an end in a month, put my notice in last week as 50% offer is ending - was offered same again for £28 which is 50% off my package but not sure I want to be in contract for another 18 months!
Mobile is £15 PM Sim Only (Put £20 incase go over)
Council Tax is over 10 months so could go over 12
Dont currently save for emergency fund but know i need something here so wasnt sure what to put. - had to buy a new fridge freezer last year and ended up putting these things and car repairs on overdrafts and cards!

Johnsmith2016 · 16 April 2017 at 6:56PM

Bankcruptcy seems best given your circumstances imo. Speak to step change first for impartial advice

cancatsdance · 1 May 2017 at 9:52PM

you wont be any worse off from reading your SOA and will be discharged after 12 months unless your income goes up. just have to live for 6 years like a nun lol

KJ2886 · 9 June 2017 at 10:15PM

Hi
Thank you to those that posted!
Ive been speaking to stepchage about the DMP and advice on the CCJ
Things have escalated now tho as I recieved a Notice Of Enforcement at my address yesterday for the CCJ!

I have until 16th June before the bailiffs come, looking at my SOA I dont know if im kidding myself that ill be able to get these debts paid on a DMP and I do feel like bankruptcy is maybe the best option!
Im just scared about it all as a lot of debts were from gambling and some recent this year which im getting help for.
What are the timescales for Bankruptcy from once i fill in a form online? Would that stop enforcement of the CCJ/Bailiffs?

I tried to ring CAB for more help today but couldnt get through so will have to wait till monday now!
As my current account is with Halifax (9 months old, no overdraft but is a Halifax Reward account) I set up with the intention of the DMP, will that be closed if I go down the bankruptcy route?

Sorry again for all the questions

KJ2886 · 9 June 2017 at 10:17PM

Also, With my SOA, plus the fact a lot of debt is due to gambling, what are the chances of having to pay money for 3+years?
(Income is Part time wages, DLA, and Working Tax Credits, so not sure if they count the income from DLA?)

TheGardener · 9 June 2017 at 10:56PM

Hi - Take a deep breath. What I have learned on this forum over the years is that there is rarely a problem that doesn't have a solution

Bank Accounts: Accounts that have an overdraft facility may be closed, but 'basic' accounts (do everything a normal account does they just don't have an OD facility) may remain open but it depends on the bank - not the OR. You could open a Barclays 'basic' account and make sure you transfer all your DD's and income to it. It may be frozen for a few days but its not normally a problem.

Once you hit the submit button: a) you are back in control of your financial life and b) - things will move pretty quickly with BR. I went though on the old court system but posts on here suggest the new 'online' BR seems to be very quick - some posters have said the OR has rung them within hours to set up the interview/paperwork

The 3 year IPA is not dependant on how you came to be BR - it is based solely on your income so don't stress about that. However, if gambling is the issue the there may be some additional restrictions. Again, if they happen they happen - the number 1 priority is getting help with your gambling and only you can do that. A clean slate is no use if you go out and do it again...

SOA - put in at least £10 month for parking - costs me that for just one trip to town a week.
Put in something for a holiday - I cant remember what the old 'guide' figure was but start with £20 per month as a modest holiday is allowed.
Put in something for medical - do you never go to the dentist (cost of at least of 2 checkups a year)? wear glasses? at least a couple of prescriptions a year?
If you get an IPA then so be it - the trick is to try and make it as low as possible.

Time to make a decision I think - you will sleep easier once you stop putting things off

KJ2886 · 9 June 2017 at 11:15PM

One of my biggest debts was with barclaycard so not sure can get a barclays card
Halifax is my 'new ish' current account who I have no debts with - its not a 'basic' but doesnt have an overdraft

My debt had been creeping up for years, think i was setting up a DMP a few years ago and never did, kept putting it off, trying to manage and getting there slowly, hadnt missed any payments, but then 0% offers ended, dept crept up and now escalated v quickly lately
I think I just need to stop over thinking and putting things off, ive been upset and crying over this for way too long now espesh now the CCJ has got to enforcement stage, no one in my family know or can know about this too so trying to go it alone

I dont pay Dentist, or persciptions so dont think I can add anything there
Any other areas on my SOA that can be changed? Will add some for parking and holiday, is car maintenence ok at £20 ? (Just had to spent £150 this week on my exhaust

) Had a lot of problems with my car over the last year or so!

My mum had been helping me out when ive been stuck with money too, how would that look on a bankruptcy? would I have to delare anything? also if I want to clear out and sell stuff on ebay etc?

Its just decing to go for it and finding the bankruptcy fee now and fast to stop enforcement action!

TheGardener · 10 June 2017 at 8:55AM

How much is your car worth? If its more than £2k the OR may insist you sell it but would give you £1000 to buy something to last you. If its on a lease you may have to return it.

Barclaycard and Barclays Bank are technically different entities but after BR, you would be able to open a new basic account with Barclays.

Money borrowed from relatives can be included in the debt but you will not be able to pay her back. However, once you are BR if you find you have a little left over after your essential expenses then you could treat her -I'm sure the best thing for her is to see your stress levels reduced and the you getting help with your gambling.

I sold loads of stuff on ebay to raise the fees for the BR and the OR didn't comment on it at all.

KJ2886 · 10 June 2017 at 9:44AM

Looking on parkers my car is valued at £1195 for poor and £1495 for good (Based on 100,000 miles, mines done 80k, and metalic paint so not sure if its worth a little more?)
Would they make me sell that?

I dont owe money to family, but my mum has just given me extra in the past to help me out when im short or something comes up, never wants it back, just wasnt sure how that would look if she gives me more again after BR

next worry is getting together £600 odd pound quick to get it started since I have an active writ/notice of enforcement stage debt now

Facing up to bankruptcy!.. need help!

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