Needing to ask a few questions if that's ok

allieH

I posted on here a few months ago wondering if I should go bankrupt or just write letters to my creditors asking if I could reduced payments. Well I didn't get myself into gear and just kept struggling to pay. This month is the first month I've defaulted on everything and don't know whether to write asking for the reduced thing or just to go for bankruptcy.
I am not working and haven't been for the last year due to depression, but kept always hoping I'd be back in work and able to pay at least my minimums if I couldn't start making a dent in the debt. That hasn't happened.

My sister is offering to move in with me to help out a bit and give me some support, and I know that will change things like my housing benefit and council tax benefit, but I'm more worried that if I went down the route of bankruptcy they'd sell off things in the house and not make any distinction between hers and my things.
I'd hate for her to lose out when she's trying to help me out. As for my own things I don't really care, I haven't got any swanky stuff anyway just a basic TV and a laptop. I did have to buy a new washing machine last month due to my old one packing up and my family very kindly gave me the money for it...so I'd hate for them to lose out too.

I live in a council house and don't own a car. My debt is 2 credit cards at about £4500 total and a £12K personal loan. The payments cost me £370 a month total. I've been selling stuff on ebay, using my overdraft or credit card to get cash (stupid I know) and scrimping to get the money to pay it each month but this month is the end of the line. I get incapacity benefit of £102.25 per week and housing benefit/council tax benefit, but not the full amount. I have to pay £45 per month towards the council tax and £130 per month towards rent. I'm not behind on my rent or council tax (I was when very ill last year but was granted a backdate on benefits and have caught up).
Thanks for reading and any advice will be greatly appreciated . I just don't want it to have repercussions on my sister if I have to go bankrupt and she is living here.

shadowdragon

Firstly may I say I know exactly where your coming from I am in a similar situation and it is a struggle.

Your possessions are safe unless you have a receipt for the mythical 42" plasma telly or expensive antiques. Your sisters posessions are safe, as they dont belong to you. And they Definatley wouldnt take your washing machine. Unless its gold plated!!!!

Its good you are upto date with the priority bills, and keep it that way.

You need to contact the CCCS, National Debt Helpline or CAB for advice, you need there help and if you decide on BC the judge will ask if you have taken advice and being under affadavit (spelling!!) to say yes you have to have spoken to them.

Theres loads of great people on here who will help you through the process if BC is the route you are going to take.

Dont be a stranger.

Shadowdragon.

allieH

Thanks Shadowdragon
I went to the CCCS website and did the online questionnaire thingy and it said go bankrupt. I'll speak to them about it some more.

My washing machine is definitely not gold plated! and no there's no antiques around (I wish) and that's good to know that they wouldn't just take things from the house to sell willy nilly.
I was worried it might be the same as a warrant sale if you don't pay your council tax.
I'll no doubt be back to ask more things as I go. It's a relief to be able to do that on here isn't it. Thanks again.

skylight

Bear in mind, that if your sister moved in, then yes it would probably affect council tax and housing benefit - plus perhaps your own benefits (I have assumed she does not claim benefit. Very random, I know but your post is not clear).

They do not sell off your possessions. I wouldn't even mention your laptop. No-one visits your home, its mainly done on trust but you do have a legal obligation to notify the OR of any changes to your income etc whilst BR.

And as you are on benefit, then you will not be expected to pay an IPA at all - this is money that the OR tries to realise from your income to pay back something to your creditors. On benefit with no assets - BR is probably the best thing for you and should be a simple case. Call CCCS or Payplan.

dalip

I can only agree with what both shadow and sky have said. Have a chat to cccs and then come back and ask sorts of questions:D .



Oh and welcome to the forum,one of the best places to be when bc is looming believe me.Dx

skylight

dalip wrote: »

Oh and welcome to the forum,one of the best places to be when bc is looming believe me.Dx

Hear, Hear! The best place on the Interweb thingie....

Proper advice, genuine people, advice almost 24/7 (especially if Dalip is up early LOL!), serious and humorous at the same time. :A

allieH

Thanks Skylight and Dalip. Skylight my sister has a well paid job and no benefits coming in, thanks for asking.
I have called CCCS now and the bankruptcy team will get back to me tomorrow. Still scary but better to have the ball rolling and not just sitting with my head under the duvet!

skylight

You will have to include the contribution your sister makes to the household expenditure though on your SOA forms. Ensure that this contribution is equal to the amount spent out, less your income (in that region anyway). You still wont get an IPA as you are on benefits (or zero if you loose them) but its still best to keep it as tight as possible.

dalip

I am on early because of job/habit but will soon be changing shift so will be on late at night:rolleyes: and later in the morn(i hope);)

shadowdragon

dalip wrote: »

I am on early because of job/habit but will soon be changing shift so will be on late at night:rolleyes: and later in the morn(i hope);)

Yay you got the job then?

Great stuff. :j:j

dalip

Not the one i really wanted but a job all the same:D .Thanks shadow

Sorry for hijacking:o .Dx