Bankruptcy or Not?

RAS

Louise,

Waspy is right.

They do check how much your disposable income is and they take a percentage of your excess income. So again, as waspy will agree, a lot of it will be down to making sure that your income and expenditure has all the elements that are allowed, so you have some slack.

Before anyone goes up in smoke, people on DMPs, IVAs and who are BK have no scope to take out credit to buffer them if something unexpected happens. It is vital that their SOA makes allowances for everything otherwise they are going to fail to keep to their budget.

Louise, you are talking about renting a really low cost house share. The lower your rent during the time between BK and discharge, the higher your IPA, which you will be paying over three years. So please find somewhere reasonable. OK, the OR will probably revise your IPA if you move (Neko's did), but do you need that hassle?

Waspeze

Totally agree RAS

There is a very different emphasis for people going BR as apposed to normal DFW's

As RAS says you have no scope for emergencies or anything and no credit available so it is best to max out every criteria (within reason.. the people on the BR board can help with your SoA) in order to provide yourself with a bit of leeway .. normally on DFW the empahsis is on minimising expenditure and looking at all possible cost cuttings!

LOUISE22_2

Aw, thankyou all so much, thats really helpful. So they do leave you with a little bit of money then.

I was thinking of house sharing to keep it really cheap, but maybe your right, would I be able to hack that for 3 years... I work at an estate agents at the weekend and there is a lady who rents out houses who i have made friends with. She has a 2 bed terrace which is local to me to get to and from both works, the rent would be 500 a month. She said i could rent it whenever i wanted. This appealed to me so much because i dont think i would pass checks for a house through an estate agent rental would i. Plus i wouldnt have to save up deposits etc, i would just start paying her rent. What do you guys think? If I did declare BK would the OR think £500 on rent was too extravigant? thanks x

RAS

Louise

You need to talk to a proper Debyt advisor from a debt charity before making the decision.

If you decide to go BK, you will find some lovely folk over on the BK forum, waspy included, who can talk you through the emotional and practical sides of things, ad help you fill out the forms.

As for rent, how much would be reasonable for rent locally?

But first talk to the debt charities, so you have looked at all the angles and understand the timescales etc.