Bankruptcy - Advice?

raypadams

Hi All,

Firstly i'll give a brief description of our situation then i'll ask some questions if that's ok?

My partner and I relocated to South Wales from Manchester in July '07. We saved up some money for the move but it ended up costing a lot more than we expected so the extra went on to credit cards. My partner also has some debts from before we got together.

I have been a full-time mature student since Sep '07 and my partner works full-time. I have worked part-time jobs and we were getting by ok. In Apr last year we decided to make some changes and get rid of the two cars we had and buy one new one, we did a lot of mileage at the time so we wanted something very efficient and cheap to run. We bought a brand new clio, it wasn't our intention to buy new but the deal was very good and we could afford it at a stretch at the time so we went for it. 70mpg, £35/yr tax sounded great! So it made financial sense, at the time.

I was working as a delivery boy for a local chinese at the time working 4 nights a week and was earning almost a full-time wage. Then fuel prices rocketed and business slowed right down and it became no longer worth it to work there doing the hours I was so I quit.

Unfortunately we then commited the ultimate sin and started living off of credit cards and overdraft and things soon started mounting up. I did get another job working in a pub/restaurant. That didn't last though unfortunately.......I had a problem with the owner stealing tips from the staff....we fell out....I quit (is the short version). It took me long enough to find that job and it wasn't local, I have been looking for work ever since but it's not been fruitfull so far. It's difficult finding work around my hours in college. I did sign on for a few months claiming contribution based JSA but that was a constant hassle because 'they' were always trying to get me to quit college.

So we are now living off one income, no longer paying anything towards our debts, but struggling by each month paying 'essential's' (see income/expenditure below). We don't mind 'struggling' and we are not lavish spenders but we are finding it difficult to save the money to go bankrupt.......we feel that this would be the best option.

Can anybody advise the best way forward? How can we save up the money for the bankruptcy? Even if we stopped paying bills (which we have this month) it would take us a few months to save up the money.....what do we do about our creditors in the meantime?

Income (Monthly)
Net Salary £1207

Outgoings
Rent £550
Water £50 (Payment plan includes arrears)
Electricity £50 (Payment plan includes arrears)
Gas £40 (Payment plan includes arrears)
Mobile Phones £50 (Contract & Essential)
Council Tax £84
Council Tax Arrears £45
Specsavers £15 (Contact Lenses)
Gym Membership £41 (Health and fitness is as important to us as breathing so this is an essential but thinking about cancelling it for a few months once the contract is up)
Shopping £120
Train Ticket £74 (for partner to get to work)
Broadband £15.99
Landline Phone £13.50

Total Outgoings : £1148.49

We have trimmed down by cancelling sky (even though it's the only way we can get a tv reception where we live, lol) and have reduced our broadband subscription to the minimum. BB not absolutely essential I know but it is VERY useful for college work. And we've negotiated good deals for our mobile contracts. We have stopped paying council tax, electricity, gas and water in order to save but some of those bills include arrears and they are very quick to start threatening. Altogether that is going to save us £269/month (although we are still currently paying £42/month for car insurance) so we should have the money in 2 months.

I'm assuming telling utility companies/council that we are saving to go bankrupt is not the best idea? or should that be what we do in order to keep them off our back's?

Debts:

Renault £11000
Barclaycard £1500
Capital One £300
HSBC Overdraft £250
HSBC Credit card £1500
HSBC Loan £8000
Dell £300
Kays £750
Council Tax Arrears £180
Electricity Outstanding £275
Gas Outstanding £291
Water Outstanding £150

It all seems very black and white when you write it all down....doesn't it?

I think realisticaly we'll be able to save £200 whilst not paying bills which means we'll be into our third month before we can apply for bankruptcy.....i'm quite sure they'll be banging down the door before then.....arrrrghhh! lol......any advice??

Cheers all, I hope that all makes sense......i'm sure i've forgotten plenty! :rolleyes:

p.s. Sorry for the topic duplication!!!!!

dalip

Have you rung any of the charity debt helplines?. They really would be your first port of call. It may be they could help with offering your creditors a nominal payment whilst you save for bc. It is alo not a good idea to stop paying your utilty bills.Dx

PS chuck the gym membersship out the window and go for run in the rolling welsh hills:D

raypadams

Thanks Dalip....that's sound advice......we are going to call the CCCS on Thursday this week.

Lol....we do go running a few times a week. Keeping fit and healthy is about more than running though and we can't afford the equipment that they have at the gym.....so it's actualy very cost effective

dalip

Yes it was tongue in cheek;) .

The OR will not allow for gym membership on you SOA so that will have to come out of your surplus.Also check your agreement for the car as that may get taken as an asset or the HP company may want it back.Dx

raypadams

Yeah....we fully accept that we are going to lose the car. We've already made arrangements for the times we need a car (picking up my kids from Manchester) other than that we don't really use it anymore. We walk most places, shopping/college etc and my partner now catches the train to work. There will be times when we'll miss having a car but hey ho.....such is life.

dalip

Yes there are a few things i miss too,like my CC:rolleyes:

tigerfeet2006

Income (Monthly)
Net Salary £1207

Outgoings
Rent £550
Water £50 (Payment plan includes arrears) arrears will go into BR so put normal amount down.
Electricity £50 (Payment plan includes arrears) ditto
Gas £40 (Payment plan includes arrears) ditto
Mobile Phones £50 (Contract & Essential) £25 per person is fine.
Council Tax £84
Council Tax Arrears £45 include in BR
Specsavers £15 (Contact Lenses)
Gym Membership £41 (Health and fitness is as important to us as breathing so this is an essential but thinking about cancelling it for a few months once the contract is up) If you up your housekeeping then it can come out of that if you can live on such a low budget. Just don't put this down on the form.
Shopping £120 £350/400
Train Ticket £74 (for partner to get to work)
Broadband £15.99 will have to come out of surplus unless you can prove it is essential for college.
Landline Phone £13.50

Total Outgoings : £1148.49

That is roughly how a OR will look at it.

For BR you will each have to do your own seperate SoA but when you come to it will will help you deal with it.

raypadams

Thanks tigerfeet.

The shopping is broken down to £30/week which is the minimum we spend, I wasn't sure what the allowance would be for 2 people so thought i'd stick to what we can get by on.

I should also stress that all the debts are in my partners name and it is only going to be her name on the BRO.

louisebt

I agree with Tigerfeet... I went Bankrupt years ago after losing my job due to ill health, I also lost my partner and my home.... and my poor dog was stolen
Anyways I was living on £55 a week at the time, I upped my shopping costs to cover little things, not that you buy much food on £55 a week... I was 26 i think when i went down to the courts for mine, I had to borrow the money to do it form my poor dad..... another tip, if you put down you borrowed the money from a family member when the official recievers go thought your finances they will reimburse that person first (in my case dad would have got the £ had any been found)..... my br was for £7500 in total so maybe not a huge amount, but when your on £55 a week its impossible. I did write to everyone I owed money to and offered £1 a week, i only had one reply, and that was a no!..... I'm also in Wales...... not that it makes a difference lol