Advice needed for Bankruptcy (Long, I'm sorry!)

studentsaver

Hi,

After leaving uni and struggling with debts for the past 6 years, I have decided to go down the bankruptcy route. I think, maybe, it was the realisation that I have paid over £36,000 in debt over the last 6 years though my original debt after leaving uni was only £6,000 and that I have been paying credit with credit to make ends meet.

I'm in the fortunate situation that I have no assets. I live with my Mum (a pensioner) and I do not own a car. My ex-boyfriend loans me a car (on HP in his name) and I just pay for petrol and upkeep. I do claim travel expenses from work as I teach in different areas and this can be around £150 a month. Is this to be included into my SOA as I do actually d0 quite a lot of mileage for work and I have personal mileage as I have to get to my place of work in the first place?

My debts are all unsecured albeit for a laptop I bought from Currys under a HP agreement. It was originally worth £450 and I have paid £250 of it. The agreement is due to end in May, can you tell me if I might loose it as I do need it for work?

My date is set for 2nd March. I am £25,000 in debt. I have filled in my court forms online. This is what I wrote for the reason I became bankrupt:

Prior to attending university, I did not have credit and I lived within my means. However, in 2002 I began my degree and thus began to take out credit without the disposable income to pay for it. Having only a student loan, I turned to credit to support me. This started with a credit card and within a few months the limit was increased and I ended up spending the full amount on the card. I worked throughout University however I found that I was using credit as an additional living allowance rather than for the emergencies it was supposed to be used for. As one card was taken to the limit, I opened more cards and after having trouble meeting minimum payments as I was only working part-time to fit in with classes; I began to use credit to pay credit.
Along with my student overdraft, I left university in £6,000 of debt. I began a PGCE in Education; however after the first term I was forced to leave through ever-increasing debts. I was now £8,000 in debt. I began working full-time after leaving university in 2005 and my starting salary was £14,000 a year. I was now living independently and having acculumated such large debts and now having to pay rent and council tax in a shared flat, the debts furthermore grew.
It was at this time that I took out my first consolidation loan with the Cahoot Loan Company. The loan was for £7,500 and a good fixed interest of 6.9%. The payments were stretched over 5 years and were set at £170 per calender month. I made the fateful mistake of not closing the creditcard/storecard accounts and as I was left with only £50-£75 monthly after outgoings, I turned to these again to live on.
My second consolidation loan was taken out a year later and under the graduate loan scheme with the TSB. I paid most of my overdraft as well as other credit cards/catalogues etc.. This loan was £155 a month and I could always pay the minimum payment but I was never paying off the capital on other debts and I was still using credit to pay credit especially if an unscheduled bill appeared such as a car bill, etc... which set me back.
Around this time, I was still living with my long-term partner. We shared all bills and living costs as well as my minimum payments on debts were becoming increasing larger; I struggled to make ends meet. I took out a further consolidation loan last year with the Alliance and Leicester but by that time, my debts were over £22,000.
Since August last year, many aspects of my life have changed which have led to a further deterioration in my financial affairs. Namely, I left my partner and am now living at home caring for my elderly Mother who has severe arthritis. My Mother receives Invalidity Allowance however she struggles to cope and I often have to help her out. I have never missed a payment but this has left me with no money left over after I have been paid and having to use credit to pay for credit.
Recently, things have got worse. Our boiler stopped working after Christmas and as my Mother has no disposable income, it was left to my Sister and I to pay for a new one. I have also had to pay for expensive dentist bills. These are a result of not paying for earlier treatment in an attempt to save money so my teeth have worsened.
Each month I get more and more in debt. I have paid more than £36,000 in the years since University on my debt and yet I have hardly touched the surface and each month I am getting more in debt.
I have kept all statements back to 2003 and I have never missed a payment to any company. I just can't continue getting in more debt to keep paying minimum payments. Especially since August last year when I have had large unexpected expenses.
I started to approach debt charties last year and discussed DMP's and IVA's. It was only after meeting with my Insolvency Practitioner, Karen Bridstone from Grant Thornton's that we discussed Bankruptcy as a way of moving forward.
I can honestly say I neither want nor shall seek credit again.

Is this ok?

skylight

Its fine.

Every reason is personal and if your outgoings are more than your income you are insolvent and will not be refused BR.

Are any debts specific Student Loans? Bank ones are included but SLC ones are not - you do know that?

As to your laptop, then list it as an asset for £40. Its all its worth secondhand - and you are highly unlikely to lose it if you need it for work and at that value. I kept mine as I was an OU student and they allowed me to keep mine (it was very low value anyway).

Best of luck - whens your court date??

studentsaver

Thanks for your reply. I pay £50 to the SLC every month but the graduate loans were to consolidate debts accumulated at uni especially the overdraft.

Court date is set for 2nd March and I am nervous though more afraid of seeing the OR!

Thanks for the advice on the laptop. I was going to try and pay it off but have been told it could be seen as preferential payment of debt!

headoutofsand

studentsaver wrote: »

Thanks for your reply. I pay £50 to the SLC every month but the graduate loans were to consolidate debts accumulated at uni especially the overdraft.

Court date is set for 2nd March and I am nervous though more afraid of seeing the OR!

Thanks for the advice on the laptop. I was going to try and pay it off but have been told it could be seen as preferential payment of debt!

Hi SS me too March 2nd 1.45pm Birmingham. The court doesn't worry me as I have been in front of the beak many times, but like you OR is a different matter. Still I reckon I can handle them ( shouldn't of said that):eek:

tomterm8

Have you applied for attendance allowance? You might be eligable (off topic, but every penny counts).

studentsaver

I've heard good and bad stories about the interview with the OR on here so I guess we'll have to wait and see! I think I am egilible to pay the full amount as I work full-time.

SunshineGal_2

I have a face-to-face BRO interview with David Leek in Birmingham next week. By the way, I don't know which examiner you Birmingham people have but mine, Kevin Gardner, is terrible. He's done everything he can to make the process difficult for me, like withholding information, not responding to email queries and getting stroppy and sarcastic when I persist with such queries. I'll just be glad when it's all over, so I don't have to deal with this ***hole any longer.

Anyway, enough ranting. Good luck, everyone!

SG

fiveyearplan

Good luck for tomorrow to studentsaver and headoutofsand!

studentsaver

I was made bankrupt yesterday and that was much more painless then originally thought!!

The Official Receiver rang this afternoon to book in a telephone interview a week on Thursday. She sounds nice and said it would only take 20 minutes to confirm my details and my expenditure. She also mentioned that she had received a lot of information on the forms which had helped.

So relieved. Can sleep now :j

headoutofsand

studentsaver wrote: »

I was made bankrupt yesterday and that was much more painless then originally thought!!

The Official Receiver rang this afternoon to book in a telephone interview a week on Thursday. She sounds nice and said it would only take 20 minutes to confirm my details and my expenditure. She also mentioned that she had received a lot of information on the forms which had helped.

So relieved. Can sleep now :j

Hey well done SS. I and others were thinking of you yesterday. The OR has not rang me yet:eek: I went yesterday too.

headoutofsand

SunshineGal wrote: »

I have a face-to-face BRO interview with David Leek in Birmingham next week. By the way, I don't know which examiner you Birmingham people have but mine, Kevin Gardner, is terrible. He's done everything he can to make the process difficult for me, like withholding information, not responding to email queries and getting stroppy and sarcastic when I persist with such queries. I'll just be glad when it's all over, so I don't have to deal with this ***hole any longer.

Anyway, enough ranting. Good luck, everyone!

SG

Oh no. I may get the *** hole.:eek: Please keep us informed of the Leek chap and F2F. If the OR does not contact you withinn 2 days, does that mean trouble ahead or nothing at all?