Bankrupcty Options/Punished by system!

Riker71_2

Apologies if this is on the wrong board, or if I stray off topic, did a search for the subject(bankruptcy) but didnt see anything.
The problem I have is that I face a 65% cut in income because of company sick policy, which obviously isnt designed for anyone with a genuine medical condition
such as me. I have m.e/cfs..only able to work part time and means I see little of my daughter which is affecting her (am also considering quitting work on health grounds so I can spend the energy I have with her, just trying to work out how to do it so that I dont lose benefits). For now, The company dont pay anything for the first 6 months  >:( which Im guessing is now par for the course for many companies,(been there 3 and a half months with nil days off until now but may be off a month or more now due to relapse) so I am effectively now earning £66/per week ssp as opposed to £185 per week which includes £65 tax credits which I will lose. Even taking into account that my rent and council tax will be paid for, Im still a lot worse off the thought of which is not helping matters, I guess this had to happen at some point, Ive tried very hard to work my way out of health and money problems and it just hasnt happenned even though Ive never missed a cc payment because of the system I now face some difficulty, So Im considering bankrupcty as I understand it would clear the debt and only lasts a year now from what I understand? Rather than CCJs which last until you have paid them. I understand It costs £450 to do but may be worth it as wouldnt have £3000+ to think about. Someone at the cccs said you can still get
a mortgage afterwards and that I would still have my bank account as well. I know I should see a CAB advisor but too ill at moment so Any advice received with thanks or if someone can point me to a website which lists the pros and cons of becoming insolvent.

Debt_Free_Chick

You could start here

https://www.nationaldebtline.co.uk

They also have a telephone helpliine

0808 808 4000

It does seem odd that your company pays you nothing for 6 months and then (through the sick pay policy) 66% thereafter. Many companies pay half pay (some even full pay) for the first 6 months. Worth double checking this with personnel/HR/benefits department.

All the best

Riker71_2

You could start here

https://www.nationaldebtline.co.uk

They also have a telephone helpliine

0808 808 4000

It does seem odd that your company pays you nothing for 6 months and then (through the sick pay policy) 66% thereafter. Many companies pay half pay (some even full pay) for the first 6 months. Worth double checking this with personnel/HR/benefits department.

All the best

Thanks for the info re the company policy, well I may have not been clear, they pay ssp for first 6 months of service which is £66/week and then if off sick after completing 6 months of service they pay company sick pay, not sure for how long. Just seems these days that companies dont take into account anyone with a genuine condition.I know that many introduce a policy to crack down on people who abuse the system, ir taking evry 3rd monday off etc, but for me it doesent make a difference, If Im off Im off and it wont encourage me to go back, other than through the loss of income and debt problems that it causes, possibly to the detriment of my health. Oh well.

lisyloo

I'm not an expert but I don't think you should become bankrupt without taking proper advice.

I think you might have been misled about the seriousness of the consequences.
Although it will clear your debs, there are consequences for a long period.

I know you have difficulties as you are not well, but you should definitely take proper advice and not rely on (well meaning) strangers on web boards.

Do you have a family member or friend who could help do some of the legwork for you whilst you aren't feeling well?

Spendless

RE: the tax credit business - do you mean you will loose it if you pack in work?

Or do you mean you think you will lose it by being off sick. a friend of mine has been off quite a lot this year and has continued to receive her tax credits (tho whether that was CTC or WTC i'm not sure).

It might be worth asking about tax credits and being off sick on benefits board.Someone may be able to answer you.

Reaper

There is a DTI guide to Bankruptcy here (it is a PDF).

As the others have said this is a last resort, not an easy way out. Even after it has been discharged you will find it almost impossible to get any kind of credit for a long time.

Also will it even solve your problems? If the problem is that your income is no longer meeting your outgoings then will this actually help? Talking to one of the free debt advice agencies mentioned above must be your first step so they can advise which option is best for you.

Riker71_2

Do you have a family member or friend who could help do some of the legwork for you whilst you aren't feeling well?

Unfortunately, no.

RE: the tax credit business - do you mean you will lose it if you pack in work?

Or do you mean you think you will lose it by being off sick. a friend of mine has been off quite a lot this year and has continued to receive her tax credits (tho whether that was CTC or WTC i'm not sure).

I mean that as im off sick from work and not receiving normal company pay (receiving ssp instead), that I will lose the tax credits, they need you to be earning normal company pay in order to pay the tax credits

As the others have said this is a last resort, not an easy way out. Even after it has been discharged you will find it almost impossible to get any kind of credit for a long time.

Also will it even solve your problems? If the problem is that your income is no longer meeting your outgoings then will this actually help? Talking to one of the free debt advice agencies mentioned above must be your first step so they can advise which option is best for you.

Maybe it is a last resort but I dont want the debt round my neck for years to come as it does not seem as though I am going to be able to work fulltime, havent for many years, so rather than keep paying and having nothing I figured may be better to clean the slate so to speak, Im sure theres consequences for people with CCJs as well, certainly if you go for many jobs anything to do with a lot of callcentres or any financial companies they wont have you if you have CCjs. I know someone who went bankrupt and got a CC a year later. Anyway thanks for all the replies, I will take advice from my Local CAB in the new year.