What to do with loan offer?

Herbster

I am currently employed but am expecting to lose my job just after xmas, mainly due to health reasons. I have debt totalling around £15k and so would not be able to keep up my repayments as I am expecting to start claiming jobseekers until I find another job. Even if I do get another job I doubt very much i can make the monthly repayments as I struggle to even now and with xmas coming up its a nightmare.
I feel bankruptcy is the only way out of this and have been reading these forums the past few weeks to see what other people have to say. I think bankruptcy will be the best course of action for me...but! My bank have offered to increase a loan I have with them by a few thousand pounds, this will see me through till after xmas.
So my question is. If I do take this offer up, even though I know I cant afford the repayments when I lose my job after xmas. When I do try to declare bankruptcy would this affect me?
I am unsure if this is allowed from a legal standing and do not want anything to prevent my BR application.
Thanks for your help and sorry for long post!

DON79

bump! i think from what i have read on here that the OR would take a dim view of it, taking credit out that you know you can't repay would raise some questions i think. but am sure some more experienced people on here can give some more advice.

fiveyearplan

Is your job loss certain, if so I would advise against taking out the extra loan. Have you spoken to one of the debt charities regarding bankruptcy. Even if you've made up your mind to do that its still a good idea to speak to them as the judge may ask if you have taken advice.

JCS1

OR might view it as "incurring credit with no reasonable prospect of repayment" which could lead to BRO/BRU.

Herbster

Well my job loss is not certain, just that I have taken lots of time off due to bad health, high blood pressure and been signed off with stress and depression. I know that the place where I work are quite underhanded when it comes to things like this which is why im sure they will let me go after xmas.
So I thought I could argue that I had no idea I would be made unemployed and unable to continue paying any of my debts. And I took out the loan extension thinking my job was secure.

tommo20

Hi again Herbster,

If you are seriously considering BR you will find that debt counselling will put a lot of what you ask into perspective.

As said by JCS1 taking out a loan now could turn a potentially simple BR into a not so simple one ....you will have a better idea of what to do after a professional has examined your situation.

Good luck with the job.

lxpeanut

Herbster just a little advice from someone who's been there. The extension to the loan may sound attractive but the last thing you need to do now is get into more debt. Please talk to one of the debt counselling services and see what they can do to help you.

Herbster

Thank you all for your replys, the general answer is to seek advice which is what I will do. There are a few recomendations on here which I will look into. Thank you all for your time and your advice, its very much appreciated

fiveyearplan

Be sure the debt agency you speak to is a charity with your best interest. Other fee paying agencies do what will earn them more fees.