Can I go bankrupt? SOA ADDED

Sunny_Bear

Hi,

I'm in a bit of a mess so thought I'd post for some help.

Basically I owe in the region of £30,000.
I'm married but we are having some problems mostly associated with the amount of debt we have, all of it is in my name.

We are currently renting and I am keeping up with the repayments but my husband isnt working at the moment so I am relying on my credit cards more and more as I dont earn enough to cover everything and have a life! Can you go bankrupt if you dont have arrears/defaults/ccjs?

We dont really go out much, dont spend money on clothes or anything like that. Our only luxury is Sky.

My husband is looking for a job and hopefully will get one soon, but it will probably be munimum wage. I earn £23,000 and take home £1460 per month.

My debts are:

Egg loan - 13000
Halifax cc - 6000
Cap one cc - 6800
joint acct overdraft - 1000
My acc overdraft - 1000
catalogues - 1000
Car HP - 4000

Would I loose my car? I live in Deovn but have to travel to Bristol for work, I do use the train but also like to drive it sometimes, obviously this is a big expense.

Can i go bankrupt becasue if my husband gets a job I could just about manage?

Also, I just feel like I cant get on with my life with all this, It will tke years and years to pay off and I'd really like to start a family in the next couple of years but cant in this mess.

Thanks so much xx



Here is my SOA for some advice if possible!



Monthly Income Details
Monthly income after tax................ 1464
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1464

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 50
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 40
Mobile phone............................ 30
TV Licence.............................. 33
Satellite/Cable TV...................... 39
Internet Services....................... 14.99
Groceries etc. ......................... 150
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 34
Car maintenance (including MOT)......... 10
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................................ 10
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1255.99

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0


No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax CC.....................6000......150.......NaN
Egg Loan.......................13000.....252.......7.9
Capital One....................7100......220.......NaN
Over draft 2...................1000......0.........0
Over draft 1...................1000......0.........0
Car HP.........................4000......138.......8.9
Fashion World..................678.86....30........NaN
Simply Be......................511.04....25........NaN
Total unsecured debts..........33289.9...815.......-


Monthly Budget Summary
Total monthly income.................... 1,464
Expenses (including secured debts)....... 1,255.99
Available for debt repayments........... 208.01
Monthly UNsecured debt repayments....... 815
Surplus(deficit if negative)............ -606.99

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -33,289.9
Net Assets.............................. -33,289.9

My husband is not working at the moment but is claiming JSA but I forgot to put that on, I think its about 90 every 2 weeks.

Do you think that Buankruptcy is the best option rather than a DMP?

dalip

Welcome.
First anybody with debt over £750 can declare themselves bc.


Your first port of call is to get the correct legal advice from a free debt charity. There are 2 numbers in my sig that you could ring. You could also make an app with a debt advisor with CAB.

You have taken the biggest step by admitting you do have a problem.
When you have taken advice and they reccomend bc come back with any other question you may have and we can all help you through the process.D

RichOneday_2

Yes, of course you can go bankrupt. Arrears, defaults etc are irrelevant. If you petition yourself there are no restrictions. Why would there be? You're not going to petition if your finances are healthy.

For someone else to petition they have to be owed at least £750.

As for your car it depends on the value - if it is worth £2,000 or less and can demonstrate that it is a necessity you may be able to keep it. If it is worth more you may have to sell and buy a cheaper model. Is it on HP?

Your circumstances would suggest bankruptcy is a good option because you have no realistic propsect of servicing the debt and don't have any significant assets to lose.

First of all though ring CCCS, who are great at this sort of thing, and you will feel much better. Just google CCCS for their number - its the first result.

Sunny_Bear

Thanks very much for your replies!

Its a very scary place to be. My husband and I have been having so many problems, hopefully we can sort this out once and for all.

With regards to the car, I got it on HP last November and I think its probabl worth around £4000 which is what is owed on it, can I just give it back but then how would I buy another car with no money??eek!

I think I will give CCCS a ring, i have thought about a DMP but im worried it just going to go on and on. Can the courts say no to a bankruptcy petition and suggest you try harded to pay the debts yourself?

I have read somewhere that you may have to apy some of your wages each month for 3 years. How much is this, do they work out a budget and you have to stick with it?

Sunny_Bear

Also, do they have to see all of your bank statements and Credit card statements for 6 years etc to see what you have spent the money on? My H has used our joint acct and my cc for gambling (I know, I know) and a few years ago gambled an awful lot of money that he had won, this will show up on the statements.

Can they just say you spent it, you pay it back?

RichOneday_2

OK.

1. The car - on what you have said the OR would have no interest in it, so it would be up to the HP company whether you could keep it, Some say yes, some no but you are reducing your debts and outgoings so they may well see you as a good risk.

2. Will they refuse you bankruptcy. Not to make you try harder, no. It could be postponed if you don't confirm you've taken advice. They don't want you going bankrupt if you haven't fully considered the circumstances and options.

3. Will they want 6 years paperwork? Unlikely. They need to get a general idea of why the debt was incurred, usually going back a couple of years.

4. Gambling is one of the problems - if it was incurred relatively recently and represents a good chunk of the bankruptcy amount. If it is deemed that the gambling was reckless you could end up with a BRO (Bankruptcy Restriction Order) which will extend the bankruptcy period to between 2-15 years, realistically 2-5 years. If you want to read all the actual details of recent BROs I can let you have the link.

But, no none of this will stop a bankruptcy.

RichOneday_2

And in terms of payments for 3 years.

You will be assessed for you basic living costs when you go bankrupt. If your monthly surplus is £99 or less after all allowances you will pay nothing into the bankruptcy. If more than £99, you will be expected to pay 50% of the surplus on the first tranche and then higher percentages the bigger the surplus.

Sunny_Bear

Well I spoke to CCCS last night...

I did there debt remedy thing and if I put in my current situation its says bankruptcy or a low start DMP. I then gave them a call but think I did the wrong number becasue the guy I spoke to was for more of a follow on from the Debt Remedy thing.

He seemed to think as my situation may change soon, as in my Husband gets a job and start earning, then I wont be paying all the bills and could up the payment to a DMP. i have 135 left to start the low start DMP but it would last 17 years if i didnt increase the payments.

If however in the future he brings in a wage and I can increase the payments it would be less time but he said up to 10 years is deemed acceptable. Thats a long time!!!!

So, I'm not really sure what to do. Basically the rent is due on 7th of Sept which Ill have to apy along wiht the bills and end up relying on my cc again.

He seemed keen for me to do it all online but I said Id rather someone go through it with me incase I get it wrong.

I just cant see the beneift of not going for bankruptcy, maybe Im seeing it as an easy option, I dont know. But with the DMP they will take all spare money for possibly up to 10 years whereas the bankruptcy is only for 3 years then its all over.

I know getting credit etc is impossible but I never want to see another cc again ever ever ever!!

I think I will ring there proper number and try and get an appointment for someone to call me

RichOneday_2

Well, its your choice, but I think I'd almost certainly go for the bankruptcy in your situation.

Although, bear in mind the discharge date could be 5-7 years if the gambling was particularly bad, although the payments would still be for 3 years.

Bankruptcy is intended to be a release from overwhelming debt, not an easy way out, so its there for circumstances like yours.

deedee_3

Rich I am assuming that from your post you think the OP will get a BRO for the gambling. If any one recieves a BRO then they still get automatic discharge after a year. All that happens is the restrictions of bankruptcy will apply for 2-15 years after bankruptcy depending on the length of the BRO.

Sunny, if you are not happy with what CCCS have said why don't you have a chat with the folk at National Debt Line. The more infomation you have the better it will be.

dalip

Hi
Try NDL their number is in my sig, also try and get an appointment at your local CAB asap. The OR's only usually goes back 12-24 mths so if the gambling occured before that you may be ok. If not,,make sure your OH is getting help to beat the addiction as this is in your favour and helps make sure you don't get ino this situation again.

Oh and if the OR does get wind of the gambling he may give you a bro/bru which just extends the restrictions of bc. You will still be discharged after 12mth max regardless.D