Decided on bankruptcy.

LaLaLa34 · 3 March 2018 at 7:38PM

Hi all,

I’ve decided on bankruptcy to deal with my unsecured debts of around 23,000.

I’m in the process of filling out the online application and just need skmething clarifying under the expenditure bit.

So currently i’m claiming jobseekers allowance due to losing my job, i’m getting around 315 per month and that’s my lot.

I’m back with my parents and expcted to pay £380 a month, at the minute they’re charging me £25 a week while i’m out of work. On the sheet which would you put down? Does your expenditure mean as it is right then? Which leaves me around £750 per month over, or as it is right now with me paying £25 pw and the rest to balance my expenditure and earnings from benefits to 0.00?

Any advice would be much appreciated.

I’ve spoken with national debt line who have said due to what i’ve told them etc that bankruotcy is definitely a consideration for me.

Thanks in advance.

fatbelly · 3 March 2018 at 10:17PM

If your only income is benefits you won't get an IPA.

However, if you get back to work, you might.

Put £380 as your rent.

LaLaLa34 · 3 March 2018 at 10:23PM

Tbh i’d try and keep my hours mimimal until the 12 months is done and go to study full time from September onwards. On the expenditure would you include credit card payments which i’m supposed to make? Or is it a debt free statement of affairs as such?

fatbelly · 3 March 2018 at 11:57PM

You won't be paying your credit cards. Stop making those payments now

LaLaLa34 · 8 March 2018 at 4:39PM

Filling out the application form.
I live with my parents and don't know their income, they wouldn't tell me anyway if I asked.
Do I HAVE to put their financial info on the application. There is no sharing of bills, I pay £380 a month inc everything except food & my personal things.

fatbelly · 8 March 2018 at 6:40PM

LaLaLa34 wrote: »

Filling out the application form.
I live with my parents and don't know their income, they wouldn't tell me anyway if I asked.
Do I HAVE to put their financial info on the application. There is no sharing of bills, I pay £380 a month inc everything except food & my personal things.

No. Their income is not relevant. Household means you and any partner/children you live with

LincsPaul · 11 March 2018 at 2:23PM

Put £380 as your rent, if that's what you think it's worth and suitable for the area in which you live. Note on the form - or if you can't, in the interview - that this includes bills. Don't include any of your parents' financial information as it's not relevant. Your situation is no different to if you were renting an all-inclusive room off a stranger.

Don't put any of your debt repayments in your expenditure as you won't be paying these anymore,
unless you have a student loan or something not covered by bankruptcy.

I was also unemployed when I went BR and even though my expenditure was way above my benefits income, I included all relevant items and this wasn't questioned - toiletries, a tiny bit for holidays, public transport ticket, etc. Try to think of everything you need to pay for to live (even if in reality your parents are giving you a bit of money towards them at the moment). Then at least it's officially on the form to go against your income when you start earning again.

As you say, keep the income minimal and below your expenditure. Remember you will be on Nil tax code and any income tax will go from your employer to the OR and not to HMRC. Are you happy with your employer (HR dept only perhaps) knowing you're BR?

Great positive idea on resuming studies but remember the OR is unlikely to allow any money to pay for this. Bank of mum and dad again

LaLaLa34 · 11 March 2018 at 5:50PM

Cheers mate, much appreciated!

I’ll have no probs at all with them knowing that, it’d only be HR anyway and if they let slip to colleagues i’d be questioning their professional pratice and handling of the situation.

I’d be looking at an apprenticeship anyway which pays low, I want a complete change of career from working in the public sector and an apprenticeship is probably my way in.

Its obviously not ideal going bankrupt but I need the fresh start and the chance to start again for my own mental sanity.

People say th8ngs like you won’t get a mortgage for the next 6 or 7 years etc, well even if I didn’t go bankrupt I wouldn’t anyway as i’d still be paying the debt off without any chance to save money.

LincsPaul · 12 March 2018 at 1:04PM

You're welcome. Sounds like you have a good plan too. Screw the house, enjoy debt free life :beer:

Decided on bankruptcy.

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