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    • PippaGirl
    • By PippaGirl 12th Sep 17, 7:34 PM
    • 2,166Posts
    • 1,789Thanks
    PippaGirl
    Ashamed to be back again
    • #1
    • 12th Sep 17, 7:34 PM
    Ashamed to be back again 12th Sep 17 at 7:34 PM
    I'm ashamed to have to come back here again. I went bankrupt in May 2012 and was discharged January 2013. All that debt was through no fault of my own, having left a DV relationship with little more than the clothes on my back I moved into a small empty flat. I had no idea I was entitled to benefits except child benefit so having had a nervous breakdown gained debts and hid under the duvet crying.

    This time I have to take responsibility for it, I made a stupid decision. The garden had been 6ft-10ft brambles since I moved to this LA property and the wooden fences surrounding it had collapsed. So after 6 years of having nowhere for children to play or hang the washing out I stupidly paid for replacement fencing and the brambles to be cut, all on a credit card of 39.9% for which I thought I'd manage the repayments and more and would pay it off quickly. Things went from bad to worse and in trying to keep up repayments other debt appeared, I couldn't afford to eat etc and I've finally phoned stepchange for advice. The only feasible option is bankruptcy again. Stepchange say that as I've been bankrupt less than 6 years ago I will be treated in a harsher way, be bankrupt for longer, have a payment plan in place for 3-6 years and be constantly monitored.

    I'm still just as ill. Been detained under the Mental health act twice in the last 2 years, I'm living on income related employment support allowance and PIP and that's very unlikely to change. I feel so low I'm fighting off 'way out' thoughts but I've got to try and take this one day at a time. I'm paying my 4 creditors £1 a month as the stepchange calculator says I have £5 a month spare however they said that the insolvency service are unlikely to allow me the allowances I've got on their form. That's help with my disability and specialist food for my eating disorder.

    Apparently I have to open an account with the insolvency service and start paying installments and when I've paid £680 I can file for bankruptcy. That could actually take me ages. So I'm here for the long haul, paying £1 a month to 4 companies and saving in dribbles for the bankruptcy. I'm unsure how my mental health will hold up if the 4 companies don't agree that figure, give the debt to debt agencies or threaten court action. I am in pieces right now. And this time it's all my fault.
    "Our prime purpose in this life is to help others. And if you can't help them, at least don't hurt them." Dalai Lama
Page 4
    • StopIt
    • By StopIt 21st Sep 17, 11:03 AM
    • 864 Posts
    • 795 Thanks
    StopIt
    OP is also a single person paying rent on a three bedroomed house. At some point these excessive spending is going to come up, whether you think her income doesn't cover her outgoings or not. It doesn't, because she is choosing for them to not cover it.


    She may qualify for a DRO (unlikely, but, whatever you say. I'm not going to get into a qualification comparison contest...) but will be in the same situation shortly, with no access to credit, unable to pay her rent or her costs for her disability.


    Its not a mini lecture, its not surrounding in cotton wool. Telling people paying for a house to big for their needs, excessive pet costs(for the amount of pets the cost is high) and medical costs which may or may not be covered by her PIP in full, is cloud cuckoo land and not helping anyone.


    Honestly on this assessment how could anyone fail to get a DRO? Just move into a larger house than you need *instant* reduction in your excess income...
    Originally posted by marliepanda

    A DRO only works if you have less than £50 a month spare excluding debt payments.


    It isn't for anyone with a negative surplus also. If the OP was losing £x a month after her PIP also, she would be declined. The PIP complicates matters but because it doesn't count as income, any expenses that it also covers can be balanced to it. So long as after that balancing is complete then there is less than £50, but not a negative surplus, a DRO is fine.


    You cannot use a DRO to balance a situation where you are insolvent before debt payments.
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