Bank Account Q

louilouiloui

Hi all, I have just lost my job and have debts of 14k, so i will either have to go on DMP or delcare bankruptcy. Still not decided on which is best?

I was wondering also, if i declare myself bankrupt, i have just opened a new current account with a different bank i dont owe any debts to, will my new account get frozen or down graded or even closed when they find out i have filed for bankruptcy?

Thanks in advance!

Merlinexcalibur

Speak to the Consumer Counselling Credit Services. And BR should only be considered as a last resort. But up to you.

Merlinexcalibur

Oh, and what is a 'Bank Account Q?' Never heard of that bank before? I don't mean to sound flippant BTW.

And, there really is no 'nice' way to this but this:

if i declare myself bankrupt, i have just opened a new current account with a different bank i dont owe any debts to, will my new account get frozen or down graded or even closed when they find out i have filed for bankruptcy?

Yes. So if you want to go down this route, open a basic bank account NOT a current one. Because EVERY asset, accounts will be gone through by the OR. That's all I know. For now. So what I am saying is you will busted down to the basics if you go BR and then some. It's different for everyone but it's highly unusual you would get to keep a current account. At all. And it would also affect your life in many other ways? Is going BR over £14000 debt worth it when said and done? I don't have near that amount BTW. And I am certainly not going to wreck my life with it when there are other options available before that happens.

Well, never mind because I can see it's one of 'those' again.

pebbles88

hiya,

Please dont consider BR for 14k of debt, thats should only ever ever be a last resort. i have debts of much muchworse than that, and i too thought BR was an option til i got advice on this site. :T

certainly speak to one of the debt charities (CCCS/CAB/Payplan are normally very good) and see what they suggest. If you have been made redundant, do any of your debts have payment protection policys in place to help you out with the payments until you find another job??

as for the other bank account, it shouldnt get closed down i dont think, i have just opened up a very basic account with barclays for similar reasons.

if you are applying for any benefits etc get them payed into your new bank account straight away. it has been heard of that banks you owe money too can take the payments from your account without permission so to speak, its called offsetting. so at least putting them into the new account will make sure you have money left to eat!

someone else with much more advice than me will no doubt be along soon, if you want any help with sorting your debts, I would definitely post a SOA (Statement of accounts) on here, i dont have the link but someone soon will.

then we may be able to help lower some of your debt also.

HTH

pebbles88

ha ha

found it!!

http://www.makesenseofcards.com/soacalc.html

louilouiloui

I talked to CCCS and the adviser said i got 2 options, either bankruptcy or the DMP/Payment Tokens. But as i will be on jobseekers allowance, i would only be able to pay back a small amount each month. If i said to go with the payment tokens, would the bank freeze the interest, because he said that they dont have too? And would they possibly write off part of the debt, or is that in rare cases?

Cheers

pebbles88

louilouiloui wrote: »

I talked to CCCS and the adviser said i got 2 options, either bankruptcy or the DMP/Payment Tokens. But as i will be on jobseekers allowance, i would only be able to pay back a small amount each month. If i said to go with the payment tokens, would the bank freeze the interest, because he said that they dont have too? And would they possibly write off part of the debt, or is that in rare cases?

Cheers

ok, well being honest, CCCS refused to help me too, when i asked if they could help at all, the advisor said no because at present we cant technically afford token payments of £1 to each debtor. (my DH works, but i had to leave my job due to medical reasons early last year. I am currently looking though for a suitable job).

So, i am handling it myself using templates and advice from the wonderful peeps on here. its a bit hard at the mo, some are being great, some being utterly pants. but as i have been told several times, you cant pay what you havent got.

As Merlinexcalibur said, to go BR over debts of £14k just is not worth the huge impact it will have for years to come.

when i first had my LBM, i was in bits, i have a thread, here, if you wanna see the state i was in. you can see how much i owe on my sig below.

no to get bk on track, so your on jsa, me too. as i said before, with any of the debt do you have PPI??? we could really do with a SOA on here. just so we can see what type of debt we are looking at, ie credit cards, loans etc.

even if you cant make more than token payments at the moment, just put that in your letter to your debtors. im assuming that you will be looking for work?? once you get a job, then you will be able to increase you payments as such.

buzzybee05

Hi,

I agree, my debts are about the same as yours Loui, and although i have a job, i do have large ourgoings due to being a single parent.

Don't think of going bankrupt just yet, especially as you may be able to get another job at some point in the near future. Even if its only part time, atleast it'll give you a little extra to give to your creditors. Just keep up the contact with your creditors and make token payments of £1 when ever you can.

Also echoing what Pebbles has said.. do you Payment protection on any of debts? As losing your job is normally covered under PPI.

Good luck and be persistant. NDL may also be able to give you a bit of Do it yourself support. You can call them and they have tons of template letters on their website for you to use to send to your creditors.

Buzzy x

louilouiloui

I didnt take out an option of PPI as far as i'm aware, i've an unsecured loan of 12k and the rest with 2 credit cards and 1 store card. CCCS said to offer token payments of 1£ a month to each (they are sending everything in the post to me), i can afford that, but as i can get a grant from being made redundant for training, i am going 2 go bk to training and then try and get a part time job around that.
I was just thinking with the token repayments, i will be stuck with the debt for a long time, paying off so little. And if they don't agree to freeze the interest, then it will keep mounting up.

pebbles88

louilouiloui wrote: »

I didnt take out an option of PPI as far as i'm aware, i've an unsecured loan of 12k and the rest with 2 credit cards and 1 store card. CCCS said to offer token payments of 1£ a month to each (they are sending everything in the post to me), i can afford that, but as i can get a grant from being made redundant for training, i am going 2 go bk to training and then try and get a part time job around that.
I was just thinking with the token repayments, i will be stuck with the debt for a long time, paying off so little. And if they don't agree to freeze the interest, then it will keep mounting up.

i know what you mean about taking forever, but at least you are paying something off them in the mean time whilst you are training, with the help of cccs they should (hopefully) freeze the interest.

who knows with your training you may land a even better paid job and be able to pay them off quicker!

fatbelly

louilouiloui wrote: »

I talked to CCCS and the adviser said i got 2 options, either bankruptcy or the DMP/Payment Tokens. But as i will be on jobseekers allowance, ...

You've got 14k of debt and CCCS are saying bankruptcy is an option.

So why not a Debt Relief Order?

They're due in in April and there's no one good factsheet yet but take a look at these links and see what you think

http://www.i-m-a.org.uk/debt-relief-orders.html

http://www.insolvency.gov.uk/insolvencyprofessionandlegislation/a%20STANDARD%20LINES.doc