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    • Moos Mummy
    • By Moos Mummy 29th Aug 17, 1:42 PM
    • 9Posts
    • 1Thanks
    Moos Mummy
    Considering Bankruptcy - So scared :(
    • #1
    • 29th Aug 17, 1:42 PM
    Considering Bankruptcy - So scared :( 29th Aug 17 at 1:42 PM
    Hi all,


    I've been weighing up options of either an IVA or Bankruptcy and to be honest I think Bankruptcy is my best option. This has been a massive step to post this in here and I'm so anxious about it so please be nice.


    I'm suffering quite bad with mental illness at the moment and this is mainly due to my debt problems.


    I know I have got myself in to this situation and only have myself to blame, however now is the time to do something about it.


    I don't have any arrears at the moment as I have basically been living off credit and have been paying the monthly payments using my wages and then getting money from another credit card (although soon this will be maxed out and I will end up defaulting).


    To be honest the whole thought and process of this is frightening me so much but I have read lots of posts about how it is a weight lifted off your shoulders and the best thing people have done to manage their debts etc.


    My main concern is losing my house (we private rent) Although my husband pays 100% of the rent, we still both have to have credit checks etc. At the moment we are fine as we have renewed for another year and no checks were needed etc. Hopefully this will be case going forward unless we have to move.


    I have 2 young children (5 & 2, school & nursery part-time) and really just want to sort my life out and have a stable future with NO debts. I'm actually very frugal when it comes to shopping for food and bargains but my problem is I shop too much, hence the debt (this is actually partly due to my mental illness, please no judging).


    Anyway, I know that Bankruptcy will probably leave it's mark forever but I don't see any way we will ever be able to afford a mortgage in the foreseeable future and I don't have any assets like a house/mortgage or a car).


    I just worry I will end up losing everything (my home/my job/my kids even!)


    I have done a SOA and as you can see I have no disposable income left at the end of each month and not even the money to make these debt repayments as cost of living is just so high. I only work Part Time due to childcare costs but need the extra money for bills. My husband pays for the rent, half of the bills so he absolutely can't contribute anything further. As you can see, it's mainly childcare that cripples us!


    Please could someone take a look and see if Bankruptcy would be right for me in my situation. I will be talking to Stepchange too.


    Many thanks in advance
    A very worried mummy xxx


    Statement of Affairs and Personal Balance Sheet
    Household Information
    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 0
    Monthly Income Details
    Monthly income after tax................ 1287
    Benefits................................ 0
    Other income............................ 137.6
    Total monthly income.................... 1424.6
    Monthly Expense Details
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 160
    Electricity............................. 50
    Gas..................................... 50
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 0
    TV Licence.............................. 13
    Satellite/Cable TV...................... 53
    Internet Services....................... 0
    Groceries etc. ......................... 400
    Clothing................................ 10
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 60
    Childcare/nursery....................... 550
    Other child related expenses............ 20
    Medical (prescriptions, dentist etc).... 22
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 9
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 25
    Haircuts................................ 0
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1442

    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
    Barclaycard....................7500......187...... .0
    Virgin.........................5386......98....... .0
    Lloyds Bank....................2005......20........0
    Tesco..........................3500......35....... .0
    Halifax........................3500......35....... .0
    HSBC...........................6280......160...... .0
    Total unsecured debts..........28171.....535.......-

    Monthly Budget Summary
    Total monthly income.................... 1,424.6
    Expenses (including HP & secured debts). 1,442
    Available for debt repayments........... -17.4
    Monthly UNsecured debt repayments....... 535
    Amount short for making debt repayments. -552.4
    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -28,171
    Net Assets.............................. -28,171
Page 1
    • sourcrates
    • By sourcrates 29th Aug 17, 1:57 PM
    • 11,902 Posts
    • 11,399 Thanks
    sourcrates
    • #2
    • 29th Aug 17, 1:57 PM
    • #2
    • 29th Aug 17, 1:57 PM
    Hi,

    Bankruptcy does not leave its mark for ever, after six years all trace will be gone, the only time you will have to acknowledge it again, is if you apply for a mortgage some time in the future, and it wont be a definite No if you answer yes.

    There are a few possible savings to be made in your SOA, but nothing significant enough to make much of a dent in 28k, and certainly not enough disposable income to pay any kind of debt solution long term.

    I would say far from been scary, Bankruptcy would take away your stress and give you a new start, there are very few negative aspects of Bankruptcy for the average person these days, no requirement to appear in court any longer, you can only apply online now, the rest of the process is conducted over the phone, and via the mail.

    You just need the fee, any ideas on how you will get that ?
    Last edited by sourcrates; 29-08-2017 at 2:05 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Moos Mummy
    • By Moos Mummy 29th Aug 17, 3:06 PM
    • 9 Posts
    • 1 Thanks
    Moos Mummy
    • #3
    • 29th Aug 17, 3:06 PM
    • #3
    • 29th Aug 17, 3:06 PM
    Thank you so much for your reply. I must admit, the thought of not going to court is a massive plus for me as before I just simply wouldn't have been able to do this but now it's online that makes it a little easier.


    I was applying for Contents Insurance the other day and the first questions before it moved forward was: Have you ever been bankrupt? - surely it can't affect things like £9 a month contents insurance, even after the 6 years can it?


    I do worry so much about the future but the simple thing is, I can't pay my debts so I t's now or never!


    Re the fee, I would probably take the money out on my credit card seeing as it will all be written off. Either that or grovel to the parents.


    My scariest thing is stopping the payments initially to my creditors - I have never in the last 10 years ever missed or failed to pay any payment, so that really frightens me but I understand that once in to Bankruptcy - they can't chase or anything, is that correct?


    I've always thought of Bankruptcy as being 'the end' but hopefully it will be the beginning of a new me and a chance to sort my life out and get over my illness.


    Fingers crossed anyway! Its all just very daunting.


    Thanks again xxx
    • sourcrates
    • By sourcrates 29th Aug 17, 3:23 PM
    • 11,902 Posts
    • 11,399 Thanks
    sourcrates
    • #4
    • 29th Aug 17, 3:23 PM
    • #4
    • 29th Aug 17, 3:23 PM
    My scariest thing is stopping the payments initially to my creditors - I have never in the last 10 years ever missed or failed to pay any payment, so that really frightens me but I understand that once in to Bankruptcy - they can't chase or anything, is that correct?

    Thanks again xxx
    Originally posted by Moos Mummy
    Oh thats nothing to worry about, but i do know that feeling, i was the same, never missed a payment until that point in time when i realized i couldn't carry on paying as i was.

    All you will get are phone calls and letters, collection activity by the creditor can go on for many months, its nothing to worry about, as your solution, once initiated, prevents any creditors contacting you, and demanding payment, you also have legal protection as well, so once you start the Bankruptcy procedure, and its approved, you can forget all about your creditors.

    It is the start for someone like you, the repercussions may follow you around, but there are always products and solutions that dont ask if you were ever bankrupt, so its certainly not the end.
    Last edited by sourcrates; 29-08-2017 at 3:25 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Moos Mummy
    • By Moos Mummy 29th Aug 17, 3:55 PM
    • 9 Posts
    • 1 Thanks
    Moos Mummy
    • #5
    • 29th Aug 17, 3:55 PM
    • #5
    • 29th Aug 17, 3:55 PM
    Thank you so much sourcrates, that's really helpful and seems a little less frightening.


    I'll be starting the procedure in the next month so fingers crossed it all goes smoothly! I wanted to do an IVA but to be honest I just think Bankruptcy will be the best option for me and my circumstances as I won't have the money to pay back an IVA.


    Thanks again for all your help, i'll continue reading some more posts.


    Thanks xxx
    • Jr14
    • By Jr14 29th Aug 17, 5:25 PM
    • 30 Posts
    • 2 Thanks
    Jr14
    • #6
    • 29th Aug 17, 5:25 PM
    • #6
    • 29th Aug 17, 5:25 PM
    I'm in the same boat as you! Have a little one and have been worried about private rent etc but I think it would only cause problems if you were in debt to your landlord!

    I've put it off for so long and got further into debt - I'm currently going through the process of a DRO and already feel so much less stressed (just not looking forward to the calls and emails re missed payments until it clears).

    I've found everyone on here so helpful and don't worry about losing your kids that's wouldn't happen! Look forward to having a nice Christmas after all this ��
    • Potbellypig
    • By Potbellypig 29th Aug 17, 7:46 PM
    • 119 Posts
    • 54 Thanks
    Potbellypig
    • #7
    • 29th Aug 17, 7:46 PM
    • #7
    • 29th Aug 17, 7:46 PM
    Where's your partners income?
    • Moos Mummy
    • By Moos Mummy 29th Aug 17, 8:58 PM
    • 9 Posts
    • 1 Thanks
    Moos Mummy
    • #8
    • 29th Aug 17, 8:58 PM
    • #8
    • 29th Aug 17, 8:58 PM
    I didn't put my Partners income as he hasn't any spare money to help towards anymore as he already pays 100% rent plus a few other bills. We don't have a joint account but we both pay half, equal to what we earn.
    • Potbellypig
    • By Potbellypig 30th Aug 17, 11:07 AM
    • 119 Posts
    • 54 Thanks
    Potbellypig
    • #9
    • 30th Aug 17, 11:07 AM
    • #9
    • 30th Aug 17, 11:07 AM
    I didn't put my Partners income as he hasn't any spare money to help towards anymore as he already pays 100% rent plus a few other bills. We don't have a joint account but we both pay half, equal to what we earn.
    Originally posted by Moos Mummy
    When I went bankrupt, they looked at mine and my partners income (total household income). I think your level of debt is enough to go bankrupt in any case, but I would just check that they won't take into account your partners income into account, as they may say you've got enough left over to repay some, depending on what he earns of course. The question will be asked by the official receiver when you say that your partner pays your rent and some other bills, so you'd be better off having an answer prepared which you know he'll accept.
    • Moos Mummy
    • By Moos Mummy 4th Sep 17, 11:11 AM
    • 9 Posts
    • 1 Thanks
    Moos Mummy
    Ahhh Jr14, hope it all goes smoothly for you. Its not a nice situation but it's good you are feeling a little less stressed! xxx
    • Moos Mummy
    • By Moos Mummy 4th Sep 17, 11:12 AM
    • 9 Posts
    • 1 Thanks
    Moos Mummy
    When I went bankrupt, they looked at mine and my partners income (total household income). I think your level of debt is enough to go bankrupt in any case, but I would just check that they won't take into account your partners income into account, as they may say you've got enough left over to repay some, depending on what he earns of course. The question will be asked by the official receiver when you say that your partner pays your rent and some other bills, so you'd be better off having an answer prepared which you know he'll accept.
    Originally posted by Potbellypig


    Thanks for the info! I will of course tell the OR my partners income/outgoings etc it's just that I think he/she will agree he can't pay anymore than what he does as our rent alone is £1325 a month! I'll make sure I have all his info too!


    Thanks x
    • Moos Mummy
    • By Moos Mummy 4th Sep 17, 11:42 AM
    • 9 Posts
    • 1 Thanks
    Moos Mummy
    I have another question if anyone is able to help me please:


    About a year ago, my mum paid off my loan of approx £11,000 but my debts have still continued to spiral out of control. Is this going to be frowned upon? I have seen it mentioned that it might be classed as 'favouring a lender'. Of course it wasn't, I assumed that my debt problems were going to get better but then I moved in to a new house and other stuff. Obviously at the time I had no idea I would be heading for bankruptcy. What might happen in this case?


    I must admit, some of my debts are due to gambling but not the majority or anything. I will be as opena dn honest as I can. I just dont want to end in prison for anything like fraud (even though I dont think I have committed fraud or anything) :-/


    I'm just finding this all so stressful and scary - I want to get the ball rolling but I go on holiday in 2 weeks (paid for by my parents might I add due to the stressful year we have all had).


    Just dont really know where to start. Literally living off credit at the mo


    Thanks in advance xxx
    Last edited by Moos Mummy; 04-09-2017 at 1:54 PM.
    • sourcrates
    • By sourcrates 4th Sep 17, 1:35 PM
    • 11,902 Posts
    • 11,399 Thanks
    sourcrates
    Just be honest with the OR thats all you can do.

    It may be questioned, but as long as you answer truthfully, you should be ok.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Mouse007
    • By Mouse007 4th Sep 17, 2:21 PM
    • 68 Posts
    • 39 Thanks
    Mouse007
    About a year ago, my mum paid off my loan of approx £11,000 but my debts have still continued to spiral out of control. Is this going to be frowned upon? I have seen it mentioned that it might be classed as 'favouring a lender'. Of course it wasn't, I assumed that my debt problems were going to get better but then I moved in to a new house and other stuff. Obviously at the time I had no idea I would be heading for bankruptcy. What might happen in this case?
    Originally posted by Moos Mummy
    You didn't "favour a lender", your Mum did and she can do what she likes. It would have possibly been a different matter if you had paid off the loan, but you didn't. Don't worry about this.
    • Moos Mummy
    • By Moos Mummy 5th Sep 17, 11:57 AM
    • 9 Posts
    • 1 Thanks
    Moos Mummy
    You didn't "favour a lender", your Mum did and she can do what she likes. It would have possibly been a different matter if you had paid off the loan, but you didn't. Don't worry about this.
    Originally posted by Mouse007

    Thanks Mouse007, I'm starting to feel a lot more positive and less scared about declaring myself bankrupt.


    Thanks to everyone that has replied! xxx
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