Advice, Is Bankruptcy an option for me?

MeanMatt

Well first or all hello all, I'm new here found this website purely by luck and it's my first time on an internet forum!!

I'm running out of ideas now, Money is getting tighter and tighter, I changed jobs back in june this year due to redundance threatening, Well i'm working for minimum wage now and slowly running out of money.

I got into debt about 9 years ago seems soon as I turned 18 Natwest could not wait to throw credit my way I was in heaven, Drinking all the time smoking all the things teenagers do!

Well now 9 years on I am still regretting it!

My debts are around £10,000 Currently, I have up untill this point never missed a single payment on anything! I have gone without food, clothes, just about anything else over the years but have always payed my bills.

Now with the wages i'm earning things are even tighter,

I now have a more pressing problem my car is about to die, I have to run a car to get to and from my current job, I do rotating shifts so public transport does not run at the times I need it.

I don't plan on spending more that 3-4 hundred quid on my next car and it looks like the only way i can possible afford it is to not pay my bills for a month or so.

What do i do, would my creditors allow me to miss a payment to purchase a car? in the end it's in there intrest as if I can't work I can't pay anything.

I'm scared silly now of what might happen, I don't want ballifs comming banging on my dads door, It was a bit rocky me moving back in with my dad after my relationship broke down with my X at the end of last year. Mainly due to money problems if i'm honest. Moving out and leaving my kids behind was the hardest thing i have ever done. I do still see them and pay maintainance but its not easy.

Any one in a similar position? Is bankruptcy an option while I am still working?

Matt

Waspeze

Hi and welcome

The first thing to do is to get free professional advice from one of the debt charities:
(stolen from TF's sig )

Your first port of call should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only.

CCCS 0800 138 1111 National Debtline 0808 808 4000 Business Debt Line 0800 197 6026 CAB – Contact your local office and ask to speak to a Specialist Financial Advisor. Insolvency Service- 0845 602 9848

Dunpayin

Hi Matt

Welcome to the forum. I found this forum 2 months ago and, like you, had never been on one. I went BR last week, and it seems the right thing to do. Check out my thread for the story (To BR Or Not To BR?) Here's my advice:

Waspeze is right, you really should contact some debt agencies. Considering you've dropped down to minimum wage, with repayments and maintenance to pay, it does sound like you are doing the right thing looking for a solution. If it turns out that a DMP aint sounding good, then BR will be for you. Fill out the SOA on makesenseofcards.com, and post it on your thread, then we can see how it looks.

If it turns out BR is for you, then you can stop your repayments, buy a car and save for the BR fee. You need to be fairly canny with it, coz the bank might freeze your account if you default on a loan agreement, so taking any money you have out is a good idea. You can use an overdraft for the BR fee if you've got one.

If your creditors are banks, then it'll take some time before they pass your debt onto a collection agency, then bailiffs etc. Someone else will be able to advise further on this.

It sounds like a difficult time you've gone through with your relationship and leaving your kids. It is the banks job to get us into debt, then profit off the interest. They farm our misery. I'm a big fan of getting one over on them, but you do have to research this BR process, to be sure it's right for you.

Good Luck

D*

Dunpayin

Just bumping you up!

MeanMatt

Well I'm feeling even worse now than I did before I contacted them, I tried to explain my situation to the lady on the phone and she just did not seem to understand what I was saying and basicly said they could not help, I guess I'm doing this on my own now.

I tried to explain the car situation to her and she explained they consentrate on long term debt solutions so basicly me buying a car even for a few hundred quid is out of the question, If I want it to be considered a in a debt plan I need to get a new car on long term HP.

Doesn't that make my situation worse? If I go and get a car now i'll be facing £20000 instead of £10000, Can't see how thats going to help me, I'm fairly mechanicly minded and know enough people in the car trade to keep an old banger on the road without it costing too much to run.

I then tried to explain that my current debt are costing more than my income but she seemed absoulutly fixed on the car by then, She said about speaking to a debt couselor which is apparently an hour interview, And I asked about if they would be able to help with the car situation, Basicly that no car means I can't work, I then got told they can't advise me not to pay bills it's my choice and they could not help me as any plan they come up with has to be long term. I just don't have anything secure at the moment to plan on.

I could just about break down now, I just don't know what to do!

Matt

tigerfeet2006

Hi and welcome Matt.

First of all don't panic. Pick up the phone again and ring National Debtline. Tell them that you are having money difficulties and think that BR might be an option please can they advise. Don't say about the car straight away. Mention it down the line a bit. As Dunpayin has said if you are advised BR could be an option then you can stop all payments to your creditors and buy a car and save the £495 to go BR.

Hang in there.

MeanMatt

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 823
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 823

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 216
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 175
Clothing................................ 25
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 50
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 152
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 6
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 819

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 823
Expenses (including secured debts)....... 819
Available for debt repayments........... 4
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 4

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Well writing this out has made me feel even worse, I know I need to get rid of some more expenses I want the phone gone but I tied myself into a contract, If anyone can give some advice it would be most appreciated,

I'm seriously considering bankruptcy, is this something I can go about doing myself without support of CCCs?

I'm not going to pretend to be all clued up on this and what it entails, I'm only really armed with the info I have gained from these forums and some google searches.

tigerfeet2006

Well looking at your SOA there is no real room for manuvere at all. I reckon if you do as I say in my last post NDL will advise BR.

If you want to get rid of your phone difault on it and it will go into BR.

Read through the first post of the Bankruptcy Help sticky as well.

Dunpayin

After getting conflicting advice from Debt Counsellors and an Insolvency Practitioner, I went through the BR process solely with the help of this forum.. Read the BR bumf, I think its on the insolvency website, keep asking questions and remember this forum can help with info and support. It worked for me!

MeanMatt

Well I took the advice as soon as it was posted and got straight on the phone to National Debtline, What A different experience than calling CCCs. I'm not going to put the CCCs down as i'm sure they do there part, I'm thinking maybe I just didn't explain myself properly or was misunderstood, Won't mention them again thou.

Well I spoke to lovely young lady named Sarah, I was quite impressed first names straight away and lovely and friendly on the phone!

We worked out my budget not 100% sure how but she managed to put an extra 35 quid a month as spare cash, Also was advised that I can probably claim a small amount of working tax credit, She reluctantly estimated a figure of 300ish per year although she did say it was pretty much a guess thou, They don't have all the fancie calculators that the tax credits people use to mess your income up lol....

My budget still does not look good thou I also brought up the car situation and she recomended being very crafty and doing basicly what people on here have said regarding stopping my dd's and getting a car, At the end of the day I have to keep a car to keep my Job.

I was advised two possible options,

Option 1, I can contact all my creditors and send them a budget, Get on my hands and knees and beg them to stop intrest and charges and accept a smaller payment which would then go straight towards my debt.

Option 2

Bankruptcy,

Well there posting me out the dreaded budget and about 3 trees worth of leaflets and forms to help me decide what to do. I was told if I have any questions or need any more info just give them a quick call and they will be happy to help.

I feel kind of funny now thou finally looking at all my bills and debts and realizing just what a mess i'm in! I ain't going to pass the blame thou I know it's my own fault but I just can't deal with cash

Thankyou to everyone thats offered advice! I will be hanging around and reading all the posts on here and will keep you all up to date with my progress.

Matthew

tigerfeet2006

Glad NDL were able to help. Now you read, read, ask questions, read and read and fill out forms and ask questions

We will help and support you through this as much as we can.