Need Help going Bankrupt

Batesy

Hi,

I'm a 30 year old currently suffering from depression. I lost my job around 7 months ago through illness and owe around £10,000 on credit cards and personal loans, overdraft etc.

I am surviving on incapacity benefit of £57 per week, now living back home with parents after a relationship breakdown and have no assets whatsoever.

I'm suffering from all the constant barrage of calls letters etc from creditors, which isn't helping my depression.

I've been in touch with CAB who have advised me my best course of action is bankruptcy but I simply cannot raise the £310 I need to do it, how can I possibly get this money together, as obviously I can't apply for credit. I have no family or friends who are able/willing to lend me this amount.

All I want is to try and start again and rebuild my life.

cozzie

My OH went bancrupt a few years ago now and has received his "Certificate of discharge", (at another cost of £60). It was hard to get the moeny together, but, we knew we had to do it and that we had no alternative. We lived on £5per day, which had to cover all food and shopping and after 2months we had the money.

Things got better almost instantly as the pressure is lifted and have been getting better and better finacially ever since as we have learnt from this harsh lesson.

We now know that we can live on £35pw for our shopping, and we do so, even with a toddler, which leaves us more money for other things.

Why not ask the CAB if they can deal with your creditors whilst you save the Court fee's as it is really affecting your health.

Look at saving this money as the final hurdle and going to court is the finish line. Rather than feeling negative, see it as a positive step in the right direction. By coming on this site and asking for help you are going in the right direction already. The sooner you can deal with this situation the better as very soon it will be harder to declare yourself bancrupt and probably more expensive.

Welcome to the site.

Batesy

My big problem is I just don't have any money left over to spend at the end of the day. I have to give up virtually all my income to my mother as rent, not because she is insensitive to my problems, but because she is on a state pension and simply cannot afford to run a house for the two of us without my contribution. My being back home has reduced her housing benefit and council tax benefit etc. so I have to make up the shortfall. I'm lucky if I have a couple of quid a week left over, which means it will take years to save this amount.

I have heard rumours of help that can be found to assist with the costs of bankruptcy, are these false?

celticlass71

There is another way , when i was with my ex we got into alot of debt we were going to go bankrupt but got some advice on going insolvent instead. It leaves you with better options than going bankrupt and does not affect your home. insovency agency will advise you not to take the calls from your credit cards they deal with everything , you do have to pay money back but they get rid of the interest thats on your debt and make it into a managable amount for you to pay. I f i was you i would contact your local citizean advice they should help you.

jesster_2

I'm confused: is insolvency different from bankruptcy but also different from an IVA? Can individuals do it, or just businesses?

celticlass71

Insolvency is an iva and no its not only buisnesses , individuals can do it too. We used a company we found online but you can go through citizens advice for help too. We didnt want to lose our home thats why we went this way instead of bankrupt.

celticlass71

got the name of the company we used it was sorsky,s of london we got it through the uk iva online help.

Verbatim

Hi there,
So sorry to hear that you've been depressed. Have you asked the CAB to check whether you or mother are entitled to any other benefits or help with council tax? Again they would be able to find out if there were any help available to pay the costs of going bankcrupt. Or perhaps do a google search.

jellycat40

Unless you can offer a premium to your creditors of around 25 -30p in the pound then your IVA will probably not be successful. You could possibly do a DMP if you have £5 per creditor to offer. Contact https://www.payplan.co.uk to see if they can help. If the worst comes to the worst they will at least send you a bankruptcy pack free of charge and offer advice.

Louise

Addicted2Chocolate

Insolvency has two definitions: either being unable to pay your debts as and when they fall due, or when your debts exceed your assets.
There are lots of different insolvency proceedings but for individuals there are Individual Voluntary Arrangements and Bankruptcy. For ltd companies their is compulsory liquidation ( winding up) volunatry liquidation, administrationa nd administrative receivership..maybe otehrs too!

jesster wrote:

I'm confused: is insolvency different from bankruptcy but also different from an IVA? Can individuals do it, or just businesses?

Addicted2Chocolate

i think you mean you are doing a IVA

celticlass71 wrote:

There is another way , when i was with my ex we got into alot of debt we were going to go bankrupt but got some advice on going insolvent instead. It leaves you with better options than going bankrupt and does not affect your home. insovency agency will advise you not to take the calls from your credit cards they deal with everything , you do have to pay money back but they get rid of the interest thats on your debt and make it into a managable amount for you to pay. I f i was you i would contact your local citizean advice they should help you.