Should I go for bankruptcy

At the moment I’m on a DMP and have £15,000 worth of dept which should be cleared in 2025. I was happy with this arrangement but looking into next year my circumstances are going to change with my daughter turning 18 and off to uni my benefits will be reduced and my salary is £10,000 a year. I’m a teaching assistant and with government cuts in education my job is definitely at risk next September. I’m 50 and with my income getting reduced and my outgoings increasing I cannot see my debt ever been paid off.
But would I lose my car? What happens when my bank account gets frozen can I get another one?
Please can someone advise me.
Thank you

Comments

  • sourcrates
    sourcrates Posts: 28,711
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    Hi,

    Going bankrupt for just a 15k debt seems a little extreame to me.

    Would you qualify for a debt relief order, maybe not now, but next year ?

    Don’t do anything hasty, look at all your options, stepchange website is a good place to start, as is debt camel.

    But to answer your initial questions, if you have debt with your bank, your account will be closed, if you don’t, it may be closed anyway, you really need a basic account with a bank with whom you have no debt.

    It will be frozen initially, but then you will be allowed to use a basic account.

    You car, if worth less than 1k should be ok, if worth more, it’s an asset that could be seized by the OR.

    Likewise you should not be a homeowner as any property you own may be at risk.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • fatbelly
    fatbelly Posts: 20,380
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    Basic Criteria for a debt relief order :

    •Must not be a homeowner,

    • Debts less than £20,000,

    • Can have a car worth up to £1000,

    • No other assets of more than £1000,

    • Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),

    • Cannot have had a DRO in last 6 years.
  • National_Debtline
    National_Debtline Posts: 7,998
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    Hi Newstart1 and welcome to the forum.


    The basic criteria for a Debt Relief Order (DRO) are set out above, but it is worth having a read of our guide as well for a fuller understanding of what is involved:


    https://www.nationaldebtline.org/EW/factsheets/Pages/debtrelieforders/droadvice.aspx


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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