Dont know what to do.

*****_19

Hi everyone first time user so here it goes

I am in my young 20's and i am considering bankruptcy, I have been in debt for over 3 years with loans and credit cards, about 5 months ago my circumstances have changed and i am now using my credit cards to pay my loan payment.

its getting to the point now where they are running out, i have looked at different options and BR seems the logical one because i have no assets,

my concern is because i am young will i ever be able to get a mortgage after being fully discharged? also is it as simple as it seems? is it a scary process? and can you get a debit card with a basic bank account after 12 months?

i would be greatful for your comments.

chelseabun_3

Hello FiveStar! (Better thing to call you than *****!) Welcome to the board!:hello:

Have a good read of the stickies at the top of the board - they will answer a lot of your questions, but don't be afraid to ask anything you like - it's what the board is here for.

Without knowing your circumstances and how much your debt and income are it's difficult for us to advise you. BR is a huge decision, especially for one so young and you need to take professional advice to see whether it's the right decision for you. Please call one of the debt charities listed in the stickies - CCCS, CAB, National Debtline - and get advice as a first port of call.

If you'd like us to look at your SOA (income and expenditure) then put it on here and folks will advise you.

All the best for now, but keep us posted with what the debt agency says and any questions you may have. CBx:D

*****_19

hi thanks for the reply,

I earn about £1100 per month and i am in debts of about £29000 to date. I could afford my debts no problem untill we had a bereavment in the family i had had to start paying alot more into the houlshold.

i have been seeking advice from national debt line who sent me information about different ways of dealing with debt and after reading them i think br is the best option, part of me is DO it because with the financial situation anyway i think it will be nearly impossible to get a mortgage anyway, but then part of me is NOT DO it because i am young.

is it as simple as the info sounds?

thanks in advance.

skylight

BR is never simple! The process itself is, but emotionally its a rollercoaster.

BR will also last a lifetime. You will always be an discharged bankrupt. Mind you, I will always be an ex-smoker and therefore its just a label. But even in 30 years time, if you apply for a mortgage and they ask the question, you still have to answer yes - balancing that though, 30 years down the line its unlikely to affect any application!

Getting mortgages and stuff is difficult within the first few years of BR. But as its difficult anyway in this financial climate and will be for some time, this is likely to impact on BRs and make things even more difficult. After 6 years the whole thing drops off your credit file anyway.


You can get a debit card on basic accounts whilst bankrupt, so thats not a problem (choices are limited though). Its a very young age to be declaring bankruptcy - life is long. But its also the only one you have.


You state that due to a recent bereavment you are paying more into the household. I am assuming it was someone close, so my question now is have you been left anything in a will etc? If a parent and no will, do you know the outcome of probate yet? I ask as any inheritance will be taken from you in BR.

chelseabun_3

Can you put up an SOA for us to look at? That'll give a clearer picture and enable people to offer suggestions and help.

Re the mortgage, with the country (and world!) economy the way it is, getting a mortgage isn't going to be easy for the foreseeable future unless you've got a huge deposit, which I guess you haven't. Who can tell what the economy will be like next year or in 6 years time? My opinion is, don't worry about the mortgage at the moment, as your debts are real, present and need dealing with.

What advice have nat debtline given you? What's their suggestion for the best thing for you? You don't have to go along with it, but it would help us to know.

Re BR itself, there are a lot of threads on here at the mo from people who are going through it. It may seem simple, but it is a huge emotional decision and is emotionally exhausting. Do you have people around you who will support you through it, if you decide to go for it? You also need to be aware that if you are not actually insolvent the judge may not make you BR.

BR really is a last resort. You need to make sure you are fully aware of the effect it will have on you before deciding whether to do it or not. CBx

Rylynn

I agree with the replies above, it is a huge decision to make, but if it is the right one for you then people here will support and help you through this.

The advice forms may make it sound easy, but you have to take into account most of them do not tell you about the emotional side of things, the stress of filling out 37 pages for the court, trying to get the money to actually do it, and then facing the Official Receiver and the questions you wil be asked.

I can say that the visit to court is stressful, I felt sick and nervous, and it was only yesterday! so is implanted still on my brain. However the people at the court were wonderful. There was no feeling that any of them not even the judge was looking down on me, or being judgemental of the mess I was in. I did feel a huge relief when I walked out of meeting the judge, and the whole ordeal lasted 1.5 hours and some of that was spent in a waiting room.

On the mortgage well I have to say thank the lord I have not got one, people often ask if I miss having my own home which I lost 17 years ago, and my reply is NO. I do not have to worry about boiler breaking down, or roof leaking the council have to do it. So always remember there are other places you can live in, ie rented accomodation. If buying a home is important to you I think as has been said you will not get a mortgage for several years after discharge.

Just a thought to the others here, if this person was going to be getting a joint mortgage with a partner would that make it easier. Not that I am suggesting he or she should rush out and find one a year after BR.:D

chelseabun_3

Hi RL,
I think the OP would have difficulty getting a mortgage until after the 6 year period, whether that was on their own or with a partner. But I might be wrong! ...

*****_19

many thanks for all your replys.

I know its a big decision to make and its not one i am going to make lightly...

here is my income and out goings to help you give me a bit of avice,

income £1133

out goings
rent £240
Council tax £100
water rates £50
contents insurance £15
Gas £60
electric £50
TV licence £9
housekeeping £200
traveling expenses £70
meals at work £60
clothing £40
phones bills £105
contact lenses £18
car insurance £80
carmaintainance £30
Pet insurance £20
total £1147

I have no assets apart from a car which in today's market is worth around £1500.
I have spoken to nat debtline who have not actually advised me, they sent me information and i have read through it and br seems the best option as i have no assests apart from my car.

i have not actually defaulted on any payments yet but spoken to nat debline today who said dont take the money from the credit cards to pay them so this month will be my first defaulted payment.

thanks in advance:o

Rylynn

Your car insurance is mighty high! Are you paying ALL these bills by yourself or does someone else live in the property with you?

Do you need your car to get to work? if so it may be made exempt and you get to keep it as it is under £200o depends on the OR and if you need it for work and you cannot get there cheaper by public transport.

PSNautical

Rylynn wrote: »

Your car insurance is mighty high! Are you paying ALL these bills by yourself or does someone else live in the property with you?

Do you need your car to get to work? if so it may be made exempt and you get to keep it as it is under £200o depends on the OR and if you need it for work and you cannot get there cheaper by public transport.

the OP is only early 20's..

im mid 30's and my car insurance is 55a month, but its because the area i live in, well..

its crap.

haha

chelseabun_3

Hi again Star,

income £1133

out goings
rent £240
Council tax £100
water rates £50
contents insurance £15
Gas £60
electric £50
TV licence £9 should be £12
housekeeping £200
traveling expenses £70 is this fuel costs?
meals at work £60 you probably need to put this in with housekeeping
clothing £40
phones bills £105 Crikey! OR wouldn't allow this much, try £50
contact lenses £18
car insurance £80
carmaintainance £30
Pet insurance £20
total £1147

I have no assets apart from a car which in today's market is worth around £1500.

I've added comments which might help. Your phone bill is huge - does it include landline, internet and mobile? Is there any way you could reduce it, as the OR won't go for that much. What about a PAYG mobile?

Meals at work are not usually allowed, as you can make a packed lunch far more cheaply. Maybe try putting housekeeping up to £250 to cover this.

Do you live on your own or are some of these bills shared? If so you need to show the contribution of the other person.

Hope that helps a bit! CBx;)