Possible bankruptcy

makingdo

Hello everyone, i am new today and feeling rather upset, though i know my husband and i only have ourselves blame.

We are in around 16K of debt. We had a debt management plan in place with payplan for the last year or so. This year my husband was out of work due to the business he worked for going bust for a while till he found his current job and we ended up stupidly using a credit card to get by on (not luxuries just to live on) instead of informing payplan, then with the arrival of our third baby things got even tighter, even with the DMP we just werent making ends meet despite cutting back on just about everything we possibly could.

Anyhow today i phoned payplan, and despite trying to keep my cool just ended up in a bit of a blubbering mess, explaining everything, apologising and so on. They were so good, and really calmed me down.

We went through my husbands and my options. We cant afford to pay more on our DMP, they dont think we can get an IVA and she seems to think our best (or worst?!) option is to go bankrupt. She has sent me through a load of information, and is getting her finance manager just to double check through everything again to make certain there really is no other way for us.

I have been reading through the information and some of me feels relieved already at the thought of not being harassed by our creditors, of being free to make a fresh start, the other part of me is a bit terrified of what it all means. I dont know what i am looking for really, by posting, i just felt the need to try to find others whom might be facing the same thing. My husband tends to bury his head in the sand, its been me constantly trying my best to sort out our financial position for the past 4 years.

ohwell

Welcome to the forum Makingdo.
There will be lots of good advice on here for you so dont worry.
We went BR yesterday and although we havn't had our IPA/IPO yet we are in a more positive frame.

Good luck

makingdo

Thanks for the welcome

I am reading through the information, am i right in thinking as my husband has a job, if we were to be accepted for bankrupcy, we would still be making payments for 12 months? After that it stops but stays on our credit file for 6 years?

Can i also ask, what about current accounts? i have one with the RBS that isnt in any debt, its our only account. Would that be closed following bankrupcy?

startagain_2

makingdo wrote: »

Thanks for the welcome

I am reading through the information, am i right in thinking as my husband has a job, if we were to be accepted for bankrupcy, we would still be making payments for 12 months? After that it stops but stays on our credit file for 6 years?

Can i also ask, what about current accounts? i have one with the RBS that isnt in any debt, its our only account. Would that be closed following bankrupcy?

Hello makingdo and welcome to the board. You are in the right place for help,advice and support.

There will be a lot of good, sound advice for you just as soon as the others read your post.
You only make payments if you are given an IVA - this is where the surplus of your income is greater than your outgoings by more than £99. then you pay a percentage of it for 36 months.
It does stay on the credit file for 6 years so will make future borrowing difficult - but you have to look at your current situation and decide on what is best for you.
Bank accounts are closed by the banks when they receive notification of your bankruptcy, but the co-op bank has an account called a cashminder that most of us have - they do not normally close the account - it may be frozen for a very short time but they will re-open it quickly. This is an account for "everyday living" and this is recognised as being necessary for people going for bankruptcy.
Barclays also have one called a cash card account.
Any other questions - fire away..... there are a number of very good "stickys" at the top of the board with things like a guide to bankruptcy and bank accounts and so on.
Good Luck
SA

makingdo

thanks very much for that information. I will wait to see the outcome of my discussion with payplan this morning then i am sure i will be back with lots more questions. I am going to just have a look about and see if there is maybe somewhere to draw up our incomings and outgoings at present

ohwell

hi makingdo. you can go to http://www.makesenseofcards.co.uk
there you can put you income and outgoings then paste it on here for all to help you with it and change it where needed.

startagain_2

Beat me to it ohwell...... thanks!

SA

ohwell

Ha Ha, sorry SA, Im getting used to this forum thing.:rotfl:

makingdo

i beat you both, it was the first one that came up when i did a google search. Thank you though! I am going to sit husband down (tie him to the chair) and go through it tonight, see what the outcome is.

startagain_2

makingdo wrote: »

i beat you both, it was the first one that came up when i did a google search. Thank you though! I am going to sit husband down (tie him to the chair) and go through it tonight, see what the outcome is.

Good on you - don't forget to keep asking questions.....



SA

ohwell

Fair play. :T