My current situation: Is bankruptcy an option?

Gray-Fox

I'm in my early twenties and I have the following debts:

Credit cards: 1 RBS @ the current balance of £-3087.44
Professional Training Loan: Nat West @ at the current balance of £-16,672.80 (repayments begin in Jan 2009 @ a monthly rate of approx 229 pcm).
Overdraft: Nat West @ the current balance of £-1552.20

I also have two other credit cards with balances of £0.
I also have a student loan, but since I don't even begin to pay that back until I earn a certain amount, I'm not really considering that as an immediate debt.

My current job is POORLY paid and after rent and other associated living costs I have very little left. I budget fairly well and although it might not appear so, I am very good with money and disciplining myself. However, when January comes, it is highly unlikely that I will be able to factor the Professional Training Loan debt into my already tight budget. After tax, I earn well under £1000 pcm, £360 of which goes on my rent.

Since I have no intention in the foreseeable future of a) having any more credit cards b) buying property I was wondering whether bankruptcy is an option, since, as aforementioned, I don't know how I'm going to manage to pay £229 pcm towards that professional training loan debt come January.

All advice would be appreciated,
Paul

carrottopsuk

I'm sure someone will be along soon that can help. In the meantime, they usually ask people to post their statement of Affairs (SOA):

http://www.makesenseofcards.com/soacalc.html

Good luck

dancingfairy

can you move in with friends if you aren't already? move back home with parents? any chance of getting a better job? Is it usual to start in such a lowly paid job?
You could post an SOA and see if people have any ideas for you.
Umm might be worth also posting on the bankruptcy forum as well - there are some professions you would not be able to be in if you were made bankrupt. You may also find that a DMP would be a better solution. Have you tried talking to CCCS or CAB and seeing what they suggest?
Good Luck
dfr x

Gray-Fox

Hi, what is CCCS and DMP?

No chance of moving back home or getting a *much* better job for the foreseeable future.

carrottopsuk

bumping this up to see if others can help

Gray-Fox

Thanks, I was thinking of doing the same.

Ames

CCCS are a charity that help people in debt for free. A DMP is a debt management plan, which CCCS can set up, they negotiate with your creditors and you pay a reduced amount, which you can afford, each month.

peb

MOrning

For whether it is possible and advantageous do post on the bankruptcy sub board - the guys are really helpful and a lot of them have been through it.

It is a very big step and you must take professional advise - CCCS, National Debt Helpline CAB amongst others will help.

It is worth posting your SOA on here to see if we can help you manage with either cutting back or a DMP; the impliciations of a DMP are less severe than bankruptcy.

Sorry for the Hijack but Hello Ames - I don't seem to have been on hte board at the same times as you recently!

Ames

Hi, I noticed that too!