Bankrupt!

Goldilox

If I was that much in debt I wouldn't even have Sky - I'd be sticking with the regular 5 channels.

NickToye

Goldilox wrote:

If I was that much in debt I wouldn't even have Sky - I'd be sticking with the regular 5 channels.

My debt's not that bad. Plus how long do you think it will be until the 5 channels are turned off and you have to have digital?

The water bill is that high because I haven't paid it for 3 months, because the companies screwed up and it turns out I was on a different company. I've moved 1 mile down the road and its a different supplier.

My mum has water meter and she regrets it, plus I have a bath everyday, so I may be better off as I am.

NickToye

so £20 is all I need, I can just tell Sky to sod off, and buy this card for £20, anyone have any first hand experience with this?

Chortle_2

NickToye wrote:

My debt's not that bad.

Strikes me as an odd thing to say considering this started off as a thread saying the only way forward for you was bankruptcy

I don't think BR is the answer, but I *do* think you should ditch the sky contract, and switch to freesat. A one off £20 charge, or £36.50 p/month - no contest.

NickToye

@Chortle, totally agree with you.

When I say my debt is not that bad, I mean its not that bad that I have to put up with 5 channels. Cutbacks are important, and i've made loads, and some big decisions, switching to freesat is one, but cmon I can't cope with Coronation Street, Emmerdale and Eastenders, I need some culture in my life

BTW, when was your Highest Debt? What year? Because you seem to have done a really good job of bringing it down.

jesster_2

Don't feel too down Nick. We all have glum days, I promise. Freeview would definitely do me (but i had to take my box back because my aerial signal wasn't strong enough and i can't afford to get an aerial man out to sort it!) You WILL find a way through. All those small cut-backs really do add up. And those 'easy' quick fixes aren't necessarily all that easy or quick!

IVAs also stay on your file for 6 years and have a big impact on your future credit score, so they have to be considered very carefully. Especially as whatever repayment arrangement you come to is legally binding and not exactly flexible. The bonus is that they run for a set period rather than going on interminably.

Also, to the person who asked whether they mean you can pay back £1 a month to your creditor, the answer is no. You need to be able to pay back a decent whack each month, so the bizarre thing is that some people will be too poor to do one! Your insolvency practitioner has to strike a deal that a minimum of three-quarters of your creditors (in terms of the value of how much you owe) agree to. So in some senses you probably will end up paying back more than you would through an income payments agreement post bankruptcy.

This is NOT to encourage you towards bankruptcy as although you're likely to be discharged after max 12 months, you may be under an income payments agreement for 3 years, your credit score is shot for 6 years, and you will have to declare it to anyone who asks, forever. Plus if you want to get a mortgage you will end up paying over the odds because of your previous bankruptcy - and houses cost quite enough already without setting yourself up for more expense! You also will not be able really to save towards a house deposit for at least 3 years after declaring, because any earnings over what you need to live could be taken by the OR. In that sense it's like putting your life on hold not just for one year, but for at least 3, and in some ways 6. It's not something to be taken lightly.


My point here is that I reckon something needs to be done to make IVAs a more attractive proposition than they currently are, cus if you look at the affects of them compared to bankruptcy you can see why a lot of people sway towards the latter.

This is not meant as a criticism at all, because we know how you feel. But there are people here with lower earnings paying off higher debts through DMPs. Don't take that as a slight, but perhaps as inspiration?

NickToye

OK, points taken and well received. DMP? Debt Management Programme? how do I go about this, is there people you can speak to who help you out or is it just another way to describe consolidation?

Chortle_2

NickToye wrote:

BTW, when was your Highest Debt? What year? Because you seem to have done a really good job of bringing it down.

Thank you That figure was late 2004, when I realised it had to go! It has been a slog, but the end is nearly in sight now :j

NickToye

How have you done it though, i've worked that out at nearly 2200 per month. How is that possible. I don't mean to pry, but my god, if you can do that, then so can I.

jesster_2

No it's definitely not another word for consolidation.

If you contact CCCS or PayPlan (links at top of page) they can help you FOR FREE set up a debt management plan, by contacting your creditors, arranging for interest to be dropped or frozen, and arranging for you to make repayments that you can afford. It's about putting things the right way up again: they work out with you what you need to live first, and then what you have left they offer to divide between your creditors. There are commercial companies who will offer to do this for you and charge you for the privilege. Don't do it. All the help you need you can get for free.