Another bankruptcy situation?

gingermark

I've spent a bit of time perusing these forums after chatting with CCCS this evening about what to do about my financial situation. From what I can see there are people on here who have been through situations far far worse than myself and have come through it knowing they have made the right choice. I've been considering bankruptcy for a good while now as I've been unable to see a light at the end of the tunnel. Without being morbid about it all it's also led to a bout of serious depression, with me having to take two months of work to get my head around it all. In a way I find it unbelievable that it's taken me this long to link my debt and depression fully!!! Sweeping soot up the chimney is how someone described it and I really can't think of a better way of putting it ...

Anyway, what I suppose I want to know is whether I'm a 'suitable candidate' for bankruptcy, given everyone else's experiences of this process. I'm 29, separated from my wife for three years but not divorced as she's now living abroad and I have no address for her. All my debts are in my name, we never had any joint finances. And no kids. No mortgage either.

In total I owe 13350 to various creditors, all unsecured. The two option are a Debt Management Plan, at £200 a month on a very very tight very budget (I was being as honest and scrimpy as i could be with the CCCS bloke!), or ... bankruptcy.

Personally I'm more inclined towards bankruptcy and a fresh start (perhaps my communist leaning coming out and the idea of getting one over the system leaking out there .... who's to say?) rather than the DMP, which will be hard for me to stick to rigidly. From what I've read there is a chance i could 'flesh' things out a bit in my budget, but again that just makes me think more of bankruptcy as more of my money will be mine afterwards. Is that a terribly bad thing to think?

Having read this back to myself I note that what I've written can appear a bit glib and lighthearted. Trust me, it's not. I think I'm just pleased to have found two solutions to a problem that has been plaguing and depressing me for years now. Either one is better than what I'm living now. I just want to get other people's opinions on it before I follow through. The bloke from CCCS encouraged me to try the DMP but said that, really, it's six and two threes between the two of them, so whichever ...

All input gratefully received, everyone on here seems to be supportive and honest and I'd just love a bit of advice on what people think before i take what is a massive step ...

gingermark

ps... should is start a pension before i bankrupt myself? is this considered an asset? is it even worth bothering as i plan to start whichever one pretty quickly anyway ...?

Dez-Titute

HI GINGER,
SORRY THE SITUATION HAS CUASED YOUR HEALTH TO SUFFER.

WHETHER br IS THE RIGHT ROUTE WILL DEPEND ON A NUMBER OF FACTORS,A GOOD START WOULD BE TO POST YOUR SOA SO THE MORE LEARNED PEOPLE CAN GIVE THEIR OPINION.

Some times you have to take a light hearted approach,as the saying goes if you don't laugh you'd cry

All the best

DEz

Dez-Titute

And no reason why you shouldn't start a pension.Speak to your employer to see what they offer.If there are more than 5 employees the very least they must provide a Stake Holder Pension although they don't have to contribute they will deduct it straight from your salary.

If you need further info give me a shout.

RichOneday_2

Ginger, I can see what you're trying to do but it all boils down to wanting to get rid of the burden.

I don't think you need to go bankrupt though with £13k of unsecured debt. Is it credit cards or loans?

Either way, have you been advised about requesting CCA agreements yet? These debts may be unenforceable in law.

If not, let's explore what would happen if you never paid another penny back (the same as bankruptcy):

The creditors would either sell the debt to collection agencies (who have no powers) or try to collect themselves. Ultimately, though, they will go for a CCJ. This can be averted if the CCA route has been successful. But if you have CCJs they will drop of your credit file after 6 years, just like the bankruptcy.

Bankruptcy is seen as a lot more serious and you have to pay £495 for the pleasure, so think through whether its worth it.

gingermark

Thanks for the responses Dez and Rich ...

Basically I have:

7k of a 10k loan from IF remaining - paying at 201 per month

1400 overdraft

1350 apex credit (old HSBC overdraft from studenthood that lay dormant but with regular payments going into it until i giot a letter from then credit agency and my payments bounced to HSBC)

1650 credit card

400 credit card

850 combined energy bills (Gritish Bas and NPower)for an old address i moved out of when i went a bit mental and dug my head further in the sand and now can't afford to pay ...

500 remaining on my laptop with PC world

Also 5800 student loans that won't get wiped through bankruptcy and have no qualms about paying once I'm over the threshold required.

I take home 1350 a month after tax and NI, I have no savings and no assets ... I love my job but it's not the best pay! I know i can live relatively comfortable on that amount of money, pay a pension and save a few quid. That's ultimately what I want to do. I'm not really a material person, I'm not a 'money' person in that I don't really strive for it or treat it as my god, but i do realise the impact of having no money can be. That's what stresses me out. Like everyone I've made mistakes with money - and I'll be happy not to get credit for a good long time as, frankly, I think that's how it should be. It's a punishment for being a dafty with money, but it's a punishment I want because no credit means no debt and the chance to get my life back on track.

Cheers again people.

gingermark

And Rich, I was led to believe that bankruptcy was off your file after 6 years too?

What is a CCA compared to a CCJ?

RichOneday_2

Ginger, CCA (Consumer Credit Agreement) is what you sign when you take out a credit card/loan. Most CCAs, but not all, before April 2007 have a legal problem in their wording.

There is full details of what you need to do on another thread - just search on CCA. If they are deemed unenforceable, you cannot have legal proceedings taken to recover the debt.

gingermark

Aaaaaaaah I see ... this place is a mine of information. Awesome stuff.