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  • FIRST POST
    • KJ2886
    • By KJ2886 16th Apr 17, 11:29 AM
    • 15Posts
    • 3Thanks
    KJ2886
    Facing up to bankruptcy!.. need help!
    • #1
    • 16th Apr 17, 11:29 AM
    Facing up to bankruptcy!.. need help! 16th Apr 17 at 11:29 AM
    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
Page 1
    • TheGardener
    • By TheGardener 16th Apr 17, 2:57 PM
    • 1,975 Posts
    • 1,867 Thanks
    TheGardener
    • #2
    • 16th Apr 17, 2:57 PM
    • #2
    • 16th Apr 17, 2:57 PM
    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
    Last edited by TheGardener; 16-04-2017 at 3:00 PM.
    • KJ2886
    • By KJ2886 16th Apr 17, 3:55 PM
    • 15 Posts
    • 3 Thanks
    KJ2886
    • #3
    • 16th Apr 17, 3:55 PM
    • #3
    • 16th Apr 17, 3:55 PM
    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
    • By Johnsmith2016 16th Apr 17, 6:56 PM
    • 423 Posts
    • 219 Thanks
    Johnsmith2016
    • #4
    • 16th Apr 17, 6:56 PM
    • #4
    • 16th Apr 17, 6:56 PM
    Bankcruptcy seems best given your circumstances imo. Speak to step change first for impartial advice
    • cancatsdance
    • By cancatsdance 1st May 17, 9:52 PM
    • 38 Posts
    • 12 Thanks
    cancatsdance
    • #5
    • 1st May 17, 9:52 PM
    • #5
    • 1st May 17, 9:52 PM
    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
    • By KJ2886 9th Jun 17, 10:15 PM
    • 15 Posts
    • 3 Thanks
    KJ2886
    • #6
    • 9th Jun 17, 10:15 PM
    • #6
    • 9th Jun 17, 10:15 PM
    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
    • By KJ2886 9th Jun 17, 10:17 PM
    • 15 Posts
    • 3 Thanks
    KJ2886
    • #7
    • 9th Jun 17, 10:17 PM
    • #7
    • 9th Jun 17, 10:17 PM
    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
    • By TheGardener 9th Jun 17, 10:56 PM
    • 1,975 Posts
    • 1,867 Thanks
    TheGardener
    • #8
    • 9th Jun 17, 10:56 PM
    • #8
    • 9th Jun 17, 10:56 PM
    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
    • By KJ2886 9th Jun 17, 11:15 PM
    • 15 Posts
    • 3 Thanks
    KJ2886
    • #9
    • 9th Jun 17, 11:15 PM
    • #9
    • 9th Jun 17, 11:15 PM
    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!
    Last edited by KJ2886; 09-06-2017 at 11:18 PM.
    • TheGardener
    • By TheGardener 10th Jun 17, 8:55 AM
    • 1,975 Posts
    • 1,867 Thanks
    TheGardener
    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
    • By KJ2886 10th Jun 17, 9:44 AM
    • 15 Posts
    • 3 Thanks
    KJ2886
    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
    • TheGardener
    • By TheGardener 10th Jun 17, 1:09 PM
    • 1,975 Posts
    • 1,867 Thanks
    TheGardener
    My apologies - I think the value of the car is nearer £1K than 2 - however, if its value is under £1.5k it might not be worth while the OR selling it. Just try and get the lower value accepted as a 'poor' condition version.

    What you Mum gives you is her own affair - not the OR's and I wouldn't mention it - it is not income as such.
    • ToxtethO'Grady
    • By ToxtethO'Grady 10th Jun 17, 1:59 PM
    • 38 Posts
    • 17 Thanks
    ToxtethO'Grady
    Try Co-operative cashminder account instead of Barclays

    Barclaycard and Barclays still use right of set off so best to play safe and stay away from Barclays.

    You said you receive DLA however that has ended for adults in England and Wales are you receiving DLA for a child? As such you could argue the car is essential and even if you are receiving PIP the OR will take that in to account. Anyway disability related income is disregarded however you may have to provide proof from a medical professional of why some things are needed if the OR wants to know. Just look at everything and try to answer the question "what has that got to do with my/my childs' disability?" And if you can come up with a good reason I'd imagine the OR would be satisfied.
    The more proof the less questions.

    Also you need to contact who took out the CCJ and advise them you receive disability related income and the enforcement agents, as above they'll say prove it so a letter form a medical professional, copy of prescription or your PIP/DLA letter shoudl help there. They should put the account on hold for 30 days.

    Get an N245 form to suspend the warrant/vary the judgement and as you're on benefits you'll get help with the fees.

    Contact StepChange or National Debtline today think they are both open to get this all confirmed and they'll be able to point you in the direction of trust funds that can help with the fee for BR
    • luvchocolate
    • By luvchocolate 10th Jun 17, 6:11 PM
    • 1,344 Posts
    • 1,166 Thanks
    luvchocolate
    I am sure I read on here that the charities do not help with fees any more, I may be wrong but please check.
    • KJ2886
    • By KJ2886 10th Jun 17, 6:25 PM
    • 15 Posts
    • 3 Thanks
    KJ2886
    Thanks for the help, Ive spoke to stepchange last few days about the CCJ and to either get a N244 to Stay and get it set aside or the N245 to vary the judgement to pay it installments, but with the other debts and stuff I wasnt sure if to go down that route with a DMP for other debts or bankruptcy

    The DLA is for myself (Not been moved onto PIP yet)

    One of my main worrys was the car with the bankruptcy, dont want to sell it, It is in 'poor' condition and has cost me a lot over the last year getting so much fixed, more than its worth but it was the best option at the time rather than costs of a new one!
    • ToxtethO'Grady
    • By ToxtethO'Grady 10th Jun 17, 8:01 PM
    • 38 Posts
    • 17 Thanks
    ToxtethO'Grady
    Trust funds
    It's a smaller list all the time that do however it's mainly the utility trust funds and you have to be backed by one of the free debt advice agencies.

    I know British Gas Energy Trust, Severn Trent and Yorkshire Water still help but a lot will only give to the most vulnerable.

    To OP: based on your valuations I'd say explain to the OR and if it will cost you more to get your car ready to be sold and then to buy another one that is less reliable for less that £1K they may let it go.

    It is always an individual basis, sorry I can't give you a definite answer, but like I said if you can explain that due to your health or location it is essential they will take that in to account
    • KJ2886
    • By KJ2886 11th Jun 17, 12:11 PM
    • 15 Posts
    • 3 Thanks
    KJ2886
    How long before submitting the application for bankruptcy does it all take effect?
    Will it stop any enforcement of my High court writ in time? (payment 'due' by midnight on 15th June)

    Thats if i raise/ask/find the £680 fee in time

    Ive started filling in the questions online for bankruptcy now, just finding out details and figures of my debts now, dont have all login details for my credit cards now for actual figures too
    • fatbelly
    • By fatbelly 11th Jun 17, 2:35 PM
    • 10,821 Posts
    • 8,085 Thanks
    fatbelly
    The adjudicator's office normally confirms your bankruptcy in 2 days.

    Use the lower figure for your car value - you have documentary evidence from Parkers, and that's the preferred site.

    Don't worry if you don't have the latest figures for your credit card debts - it's not as critical as with a DRO.
    • ToxtethO'Grady
    • By ToxtethO'Grady 11th Jun 17, 8:14 PM
    • 38 Posts
    • 17 Thanks
    ToxtethO'Grady
    Hi OP

    You know that as your High Court writ is above £5K if the HCEO can return the writ to the creditor it could mean they will make you BR? They don't have to issue a stat demand if a high court writ is returned they can go straight for a creditors petition.

    I'd get legal advice first.

    Even though its High Court same rules apply; they cannot force entry and park your car away from the house on private land, preferably in someone's garage or drive with gates. Make the HCEO aware of why you get your DLA you should then be classed as vulnerable.
    • KJ2886
    • By KJ2886 11th Jun 17, 8:41 PM
    • 15 Posts
    • 3 Thanks
    KJ2886
    Would the HCSO's do that tho return to creditor? would they just keep coming first to try to enforce it to keep adding fees etc? and it would cost the creditor to make me BR then wouldnt it?
    Just want to stop them coming to start with really!

    I dont have a drive or garage, just a communal car park with numbered spaces, I do have a blue badge for my car so I did read they cant take a car with a blue badge.
    So for now until I file for BR or look at my options, if they do come, dont answer the door/let them in theres not much else they can do?
    Just the thought of them knocking on my flat door and with my neighbours around/knowing I wanted to avoid
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