Bankrupcy at just 24?

Barnsey737200

Hi everyone,

I was hoping I would never have to post in here but looks like the times have just got too hard for me.

Basically, i've been umemployed for a few months and predict that I can't make any payments from 1st July onwards. My debts are:

£9700 loan
£1600 credit card
£800 overdraft
£400 PC loan (don't own the PC anymore)

I also have a cheap car (MOT and tax due next month), a rental contract of £480 p/m and the corresponding bills (Line rental, TV Licence, Internet & Electricity).

I would like to ask if anyone knows where I should start. Should I tell my landlord about my unemployment and that I may not be able to pay the rent, maybe he could take my deposit as rent? Should I withdraw the little money I have (which will be all for the forseeable future in the account) and ignore the notices until I find work. I've applied for high interest credit card in the hope that I can use it for the next rent at least.

I have been applying for jobs like crazy and am constantly surprised at being turned down every time, as they are quite unique vacancies for which I have very relevant experience. Just today I received a rejection letter for a job which I felt incredibly confident about after the interview. I feel completely deflated and helpless.

Being 24, I don't own a home etc. I don't mind losing the few items I have and finding some way of living. I hope I can find a job and scrape by unsuspected, but I feel that more serious action might be necessary if nothing comes along soon despite my efforts.

Eternally grateful for all your advice thus far on the boards and for any help you can offer.

Andy

Broken_hearted

You could sort out a DMP to try to pay YOUR debts back. Then in a year or so if it is still bad look at other options.

Barnsey737200

I'm sure a Debt Management Plan would be fine if I was employed, but there will be absolutely no income coming into my account until I find work. So i'm not sure how they would arrange this? Proof of employment etc.

headoutofsand

Won't you get the rent and CT paid for anyway being you're on JSA.

Do not accept the card if you plan on BR as this will not go down well.

Withdraw the money you have for fees and general living ( that's fine with the OR, even using a cc is fine for food, fees etc). You are also in the DRO zone, so that's good news as you don't have to pay so much as normal BR and it's easier than the full scale BR route.

As for the DMP that's another option, as has been pointed out.

You won't lose any stuff unless you own really expensive items like say a Hendrix guitar:cool:

Barnsey737200

I'm renting privately, so not sure about what i'm entitled to in regards to having rent paid, but you're right I should look into the council tax. Not yet on JSA as have expected to find work and used savings thus far.

Unfortunately i'm in Scotland so I believe I can't get a DRO?

Thanks

philnicandamy

You could conider LILA stands for low income low asset (scottish)

http://www.aib.gov.uk/MainNav/Services/Legislation/accesstobankruptcy/Debtorsapplication/Lila


more stuff to read here

http://forums.moneysavingexpert.com/showthread.html?t=1056083

lisamummytoarchieplusbump

i think that seen as you are job hunting, and unemployment may only be for a short while till you find a job i think you should make £1 token payments to your creditors untill you get back on your feet.

as for your rent as headoutofsand or HOOS for short(didnt want to confuse you) said are you getting HB CTB if not see if you apply for it. if you still have to pay abit on top and you cant afford it then give the flat up, can you stay with friends or family untill you get yourself sorted?

lisa

headoutofsand

Barnsey737200 wrote: »

I'm renting privately, so not sure about what i'm entitled to in regards to having rent paid, but you're right I should look into the council tax. Not yet on JSA as have expected to find work and used savings thus far.

Unfortunately i'm in Scotland so I believe I can't get a DRO?

Thanks

Get claiming for a start including rent,of course the LL will have to know ( Is he/she ok) I know nothing of the Scottish way but some on here do. Killingjoke's from that way, perhaps he may look in later or someone else can help???????? please;)