Is bankruptcy right for me?

markbbe

Hi,

I'm after some friendly advice....

I have debts of approx 14k
Approx £8200 on Credit Cards (Citi / BarclayCard / Abbey) all at fairly high interest rates.
Approx £3300 Overdraft
Approx £2500 rent arrears

I have no assets, as I live in rented accomodation, and have a company car.

I am on an ok salary, but live in London and therefore have high living costs.

I am in a job that I don't enjoy and would like to retrain. (I would also like to move to Australia after retraining, or indeed to retrain there).

In terms of my debts what options do I have? I am just able to meet minimum monthly repayments but feel completely stuck in a rut, which I am unable to get out of, and in a job that I do not enjoy.

Is bankruptcy a good option as I have no assets?
Am I likely to be subject to an IPO?
Do i have to tell my employers I have become bankrupt?

I am thinking that I could file for bankruptcy, then move out of London (probably move in with a parent for 3 to 4 months) reducing my outgoings, and save enough money to retrain but I don't know if that is feasable from the bankruptcy side of things?

Thanks in advance,
Mark

P.S. I have tried to apply for 0% balance transfer cards but my credit rating is such that I cannot get one.

fermi

Bankruptcy may be an option, but you really need to get that advice from one of the independent debt counselling charities.

• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

An IPA/IPO depends on whether you will have surplus income of £100 or more after reasonable living expenses. It's not possible to say yes or no on that one. If one is agreed, then it would take 50 -70% (sliding scale) of any surplus.

Unless you are in a job where you must tell your employer or professional organisation (FSA approved role/accountant/solicitor etc), or it is in your contract, then you don't normally have to tell your employer. Again, without knowing more details it is hard to say.

You might be able to save a bit, but surplus income could also be subject to an IPA.

Also be aware that if you accumulate savings while you are bankrupt that are not necessary for your domestic needs, then technically the OR is entitled to claim them. I can't remember that happening to anyone here, but it is something to bear in mind.