should i go bankrupt?

ttt2009

i have around 50k of unsecured debt which i am starting to fall behind on. i have a mortgage but im in neg equity. i work for a bank and owe a large amount of debt to them. when they find out im behind on payments i will get sacked. therefore i wont have a job, wont be able to pay anything towards debts and wont be able to pay my mortgage. what shall i do??????

Waspeze

It'd be a bit irresponsible for us to recommend bankruptcy too be honest... not knowing your full financial situation means mistakes could be made.

Have you spoken to one of the free debt charities (below) as these should be your first point of call and can advise you on what your options are?

Free impartial debt advice available from: National Debtline - Tel: 0808 808 4000 | The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111 | Find your local Citizens Advice Bureau

Feel free to ask questions if there's information you'd like to know

Sheffield_United

Check your debts are legally correct before you take such a big step. Google 'unfair credit agreements'.

ttt2009

yes the national debt helpline are sending me some info. i dont think i have much choice though as im going to lose my job. ive read that you have to pay £400 to the county court to declare it but i dont have the money to do it. does anyone know how long it will take to repossess my house?

Waspeze

You pay £495 to declare bankruptcy though if you are on benefits you can get exemption for £150 of it (so only pay £345)
Usually the fees are got by saving what you'd normally pay to your creditors as once bankruptcy is decided on then there is no reason to pay them

Not good on houses so will leave that to someone else!

Pssst

You cant go bankrupt. you can only apply for bankruptcy. It isnt an automatic right and you may be declined.

Waspeze

Pssst wrote: »

You cant go bankrupt. you can only apply for bankruptcy. It isnt an automatic right and you may be declined.

True but if you've taken proper advice and have been advised bankruptcy then it is very unlikely that you'll be refused.

ttt2009

but if i have no job i wont have any money apart from what benefits i will be entitled to. i'll have no money to pay any fees. i dont know where i will live as i have no family and i have a young child. if i pay a pound a month for a loan that i usually pay over £300 a month on will this do for the time being?

Waspeze

There are some places that supposedly help with fees though what the success rate with them is, i've no idea

http://forums.moneysavingexpert.com/showthread.html?t=1167839

Do you have an overdraft facility or credit card with credit on that you could use? Not the best idea as you are taking credit knowing that you can't pay it back but if you have no other choice then it might be a way of doing it.

Other than that it's pretty much either save for a while (hard I know when on benefits)

ttt2009

theres no chance of me saving! i cant even afford to eat at the mo so saving that amount would take me years! shall i start moving stuff out of the house before the balliffs come? not that i have anything of value!

Waspeze

ttt2009 wrote: »

theres no chance of me saving! i cant even afford to eat at the mo so saving that amount would take me years! shall i start moving stuff out of the house before the balliffs come? not that i have anything of value!

Is there anything you can sell or a friend you could ask for help?

Could you get a temping job for the time being? (not sure what the situation is with your kid.)

Unless you have a failed ccj, unpaid council tax or a failed debt with AMEX then you should be ok from bailiffs at the moment .. you will get court papers first.