Thinkin gof Bankruptcy after long talk with cccs

Evans1882

Hi I have been on a DMP for over a year now and its been going well all my creditors have been ok, some have sold debts on to collection agencies but even they have been ok an not aggresive with me.

A few months ago my personal circumstances changed and i was unable to pay as much into my DMP, i currently owe £24,425 and if i carry on paying what i am now it would take twelve years to pay this off.

cccs has suggested bankruptcy as a option to clear my debts, if i'm honnest i know nothing of the cost or implications of bankruptcy, i currently rent my flat with a letting agent i have read my tennancy agreement but it does not mention bankruptcy as a reason to avict me, my only concern is were to live i dont want to make myself homeless if in the future i need to move from my current flat, i want to ask my letting agent if this would be a problem but dont want to upset things if they are not impressed with a current tennant going bankrupt.

any advice would be welcomed i realy think bankruptcy is a option to start off again.

fiveyearplan

At this stage I certainly wouldn't bother telling the letting agent. In any event I don't think they could evict you, they would have to run it past the landlord.

To declare bankruptcy it costs £495 and if that's what you intend to do you can stop paying your DMP and any other creditors (of course keep paying priority bills like rent, council tax and utilities.

Why don't you post up your income and expenditure so we can give some more detailed advice.

dalip

Morn and welcome to the forum


Most on here reccomend you be up front with LL. For your own peace of mind it would be better to. Why no ring and ask without saying who you are.

As far as bc is concerned the fees are £495 but if on certain benefits you can get £150 taken off. Your credit rating is shot for 6 yrs. There are certain restrictions for the 12mths that you are undischarged,like only being able to have a basic bank account,not able to get credit over £500 and certain profession are affected by bc.. Any specfic question ask away and we will do the best to answer them. D

december

morning, welcome to the forum.

December

Evans1882

this is my current expenditure i'm using with the cccs

total income £1511,00

Rent £695
water £27.28
c/tax £99
Elec £30
Gas ££36

Phone
internet
Mobile £28.00

Life insurance £10
Pension £80 Have been adviced to reduce this if consider banktrupcy

Car servicing £20
Road tax £15.42
Insurance £22.96
Fuel £60

Food
toiletries
cleaning £170

clothing and footwear £10

haircuts £13
Prescription £7 (on reqular meds from doctors)
Optictions £5 (wear classes)

sports hobbies interests £10

sundries emergencies £10

loan payment to father £50

surplus £112.24

this is a new budget witch i'm starting next month i have been paying £105 to my DMP. my current debt is around 24,000, as fo rthe restiction i hav enot had any credit since being on my DMP and i have a co-op basic bank account already, as for renting i asked my LL when they did the credit check if i needed a garuntor coz i was in some money problems and she did say if i didnt have any ccj's then there would not be a problem, would that be the same for a BR would you know?

fiveyearplan

Evans1882 wrote: »

this is my current expenditure i'm using with the cccs

total income £1511,00

Rent £695
water £27.28
c/tax £99
Elec £30
Gas ££36

Phone
internet
Mobile £28.00

Life insurance £10
Pension £80 Have been adviced to reduce this if consider banktrupcy I don't think it would be allowed at all.

Car servicing £20 Not sure about this either
Road tax £15.42
Insurance £22.96
Fuel £60

Food
toiletries
cleaning £170 I think you can up this

clothing and footwear £10 same, I think you can add to this

haircuts £13
Prescription £7 (on reqular meds from doctors)
Optictions £5 (wear classes)

sports hobbies interests £10 Bankrupts aren't allowed interests!

sundries emergencies £10

loan payment to father £50 Definitely not allowed

surplus £112.24

this is a new budget witch i'm starting next month i have been paying £105 to my DMP. my current debt is around 24,000, as fo rthe restiction i hav enot had any credit since being on my DMP and i have a co-op basic bank account already, as for renting i asked my LL when they did the credit check if i needed a garuntor coz i was in some money problems and she did say if i didnt have any ccj's then there would not be a problem, would that be the same for a BR would you know?

I'm sure BR would be the same as CCJ where the LL is concerned! However if you are already renting the landlord may not find out and if they do, more than likely if you've been paying on time it is easier for them to keep you as a tenant.

dalip

Can i ask before i look at your i&e if you are single? D

Evans1882

Currently married but seperated

skylight

You can include a pension and you are allowed interests as a bankrupt!!! Both have to be the lowest possible though and the OR will want details of your pension plan to see if its something they can claim on (most pension plans cannot be claimed against, so don't worry too much).

The payable debt to your Dad certainly will not be allowed under any circumstances on your I&E. I would not even mention this on your BR forms as the debt will have to be included in your BR. As most of us feel more morally obligated to pay back a loan to parents than to the bank, then you can still pay him back but any payments must come out of your surplus income and not from your I&E allowed expenses.

Car servicing is also allowed, but reduce it to £15 and mark it as servicing/MOT. As you work you need a reliable car or there is no income.

Housekeeping up it to about £250 and clothing up it to £50.
Do not list internet - that is a luxury so mark that just as phone.

You do not have life insurance or contents insurance. If on your own, life ins is not as essential as if you had children but you really should cover your contents. Actually, do you have children?? Maintenance payments at all?


Most people will suggest you tell your landlord as the OR will ask for a tenancy agreement and may tell them. Some ORs do not tell them - it depends on the OR!

dalip

Evans1882 wrote: »

this is my current expenditure i'm using with the cccs

total income £1511,00

Rent £695
water £27.28£30
c/tax £99
Elec £30
Gas ££36£40

Phone
internet
Mobile £28.00put down as just phone £30

Life insurance £10
Pension £80 Have been adviced to reduce this if consider banktrupcy Yes this amount will not be allowed

Car servicing £20
Road tax £15.42£15
Insurance £22.96£30
Fuel £60

Food
toiletries
cleaning £170

clothing and footwear £10 40

haircuts £13 £10
Prescription £7 (on reqular meds from doctors)perscription/dentaist/opticians £30
Optictions £5 (wear classes)

sports hobbies interests £10no

sundries emergencies £10

loan payment to father £50This would come out of your surplus and best not mentioned;)

surplus £112.24

this is a new budget witch i'm starting next month i have been paying £105 to my DMP. my current debt is around 24,000, as fo rthe restiction i hav enot had any credit since being on my DMP and i have a co-op basic bank account already, as for renting i asked my LL when they did the credit check if i needed a garuntor coz i was in some money problems and she did say if i didnt have any ccj's then there would not be a problem, would that be the same for a BR would you know?

Ok i have adjusted it as to how it might be if you went bc.
Also there are things like tv licence(£12) pets(£20) dry cleaning(£20)house insur(£20) you might also be allowed a small amout towards birthdays/holidays say £20.See how that compares.D

fudge59

Quick reply about the landlord situation.

I went BR in early May this year - did ask the OR during my telephone interview if they'd be letting my LL know (we rent via an agency, but they had his home address) as I was concerned they may have an 'old fashioned attitude to bankruptcy' (which she totally understood). She said as long as the tenancy agreement I sent them was the approved type, then there would be no need to inform them.

Our agreement was due to end in August ... yet we were offered another 6 months so can but assume they were not informed (as I would had thought I'd had had some sort of letter from the agency if they had been).

We havent volunteered this information to them, as we've currently got no way of getting the £1500 we'd need to move for another place just like that - I dare say we'll end up renting somewhere else in the future and would be at that point we'd inform them if it was with the same company.