What will happen? :( I'm scared

Gboy2

I'm a 53 year old single mother with two children (22, and 18) I am currently signed off work because of illness, and the government is willing to house me for free. I have 28grands of debt which I can't repay.

Would it be worth declaring myself bankrupt to free myself of the debt and the depression its causing me?

The nature of my illness means I will be taken care of by the government for at least a year. I am unable to work.

What would happen if i declared myself bankrupt? would i be able to work in exactly 1 year, would my debts be written off?

Would my terrible credit rating return to being good again after the year is up? Or would i ever be forever branded with my debt ridden past?

haleygrey

Ive only recently made the decision to go BR myself but will try to help as best I can, if I dont know the answer, one of the nice people that know more will let you know. Initially the BR lasts for a year then you are discharged and if you have a surplus income of more than £99 you may be considered for an IPA but I believe that whilst you are on benefits you are not expected to repay any debts as your priorities are utilities food clothing etc.

Good luck with your decision, which will be a hard one to make but once you have made it, the relief will be great and it will only get better as each day gets close to the court date. Good Luck and keep asking questions, nobody bites on this forum,

DON79

Gboy2 wrote: »

I'm a 53 year old single mother with two children (22, and 18) I am currently signed off work because of illness, and the government is willing to house me for free. I have 28grands of debt which I can't repay.

Would it be worth declaring myself bankrupt to free myself of the debt and the depression its causing me? If this is a course of action recommended to you by one of the Debt Charities and you are insolvent, then - YES

The nature of my illness means I will be taken care of by the government for at least a year. I am unable to work. Benefits are not taken into account normally when calculating any payments to be made monthly to the Official Receiver.

What would happen if i declared myself bankrupt? would i be able to work in exactly 1 year, would my debts be written off? Bankruptcy will not stop you getting an ordinary job in a years time, certain jobs do have restrictions but most are ok. You are no longer liable for your debts the very minute that you go BR.

Would my terrible credit rating return to being good again after the year is up? Or would i ever be forever branded with my debt ridden past? The BR will stay recorded on your credit file for six years and will always be recorded on the London Gazette website. You will not be forever branded as a bad risk but it will be quite difficult to obtain credit. When asked "are you or have you ever been declared bankrupt?" you will always have to answer yes.

Do get advice from National Debtline - 0808 808 4000 who will be able to give advice about what the best option is for you.

Hope this helps.

Gboy2

Thanks for the advice.

Are you allowed any sort of bank account if you are bankrupt? are you not allowed to work at all during your 1 year of being bankrupt?

Thanks again

haleygrey

you can either have a barclays account, not sure which one or the co-op cashminder, which is what ive gone for, as Barclaycard are one of my creditors. The Co-op gives you a Visa Electron card, but you can still have direct debits and things and you can still work except if you advise anyone on financial matters.

DON79

there is nothing to stop you working at all whilst you are an undischarged bankrupt. being BR does not mean that you cannot get and keep a job.