Police Officer needs bankruptcy advice

soccer32

Hi,

OK, Following a relationship split up I have ended up with some pretty big debts on my credit cards and loans. I lost money on a property that I had to sell and then to top it all had a car crash out of work and ended up on long term sick for most of last year, resulting in my pay being halved.

Due to these circumstances I found it almost impossible to repay my debts and they have ended up spiralling out of control. I contacted the CCCS and am now on a debt manegement plan and I am finding it almost impossible to live right now. I went back to work for a couple of months but suffered a relapse and ended up back on the sick with a view to being retired on ill health grounds. Now if this happens I will get my pension, which is a lump sum but this is all the money I have in the world to enable me to buy a house as presently I am living with my parents and have absolutely zero assets. I am considering going bankrupt and then starting all over again in life in my mid 40's. Any advice would be appreciated. can they take my pension lump sum?

My father has offered to lend me an offer of a one off payment to my creditors but it is about a quarter of what I owe?

Thank you all for any advice as I am at my wits end.

So_Sad_Angel

Hi soccer32

Just wanted to say welcome & well done for getting through the last year....sounds like its been a tough time for you. Hopefully you are now looking to move on & resolve your debt situation so you can get on with your life.

I don`t really know about the pension lump sum but I`m sure someone will offer thoughts soon. If you get an income from your pension then you may have means to continue the DMP & repay the debt yourself.

I do think its worth contacting CCCS again & looking at full & final options if the funds are available. Sounds like you have options to consider ...don`t go down the BR route unless you absolutely have to.

Take care,

Angiexx

debtinfo

If the pension some matures during the bankruptcy it will be payable to the OR,

If it matures after you are discharged and not in an IPA then you get to keep it

If it matures before the bankruptcy and you use it to purchase a house the or will look to realise the value in the house, the same is true for any othe asseys you buy with it

maxmycardagain

go sick, go bankrupt, asap...run the 2 together, hope for ED, in 6 months you could be out the other end...

he who dares, wins rodney

GotToChange

Try not to worry too much; you have come to the right place.

Max ^ puts it quite succinctly but it may be that simple (as if anything ever is). If there is a way for you to go BR quite speedily, it may be a good a plan - or as good a plan as going BR can ever be (it does ease your mind a lot though). If you are remaining a Police Officer for the time being - albeit on sick-leave -are there any implications within the force as it used to be seriously frowned on didn't it? Is there still a problem?

You have a fabulous Dad (wish I had one like that); it may be worth checking with your creditors what their full and final settlement figures are as sometimes 25% will do it - a lot can depend on amounts and length of time owing, time of the month etc etc (last one was a joke).

You pension lump sum is precious but the OR will take it away from you if the timing is such that you go BR before you receive it or are still BR Undischarged) when you do. Any mention of it or of leaving the force may be best left (if at all possible) out of any application or discussions - but not forgetting that you have to swear on oath on the day of your BR.

Having said that, it is possible to start again on your mid-40's with "nothing" - the millstone of the debts being removed, either through BR or paying them off with your lump sum, may make you feel substantially better. You have had a rough time and probably don't see things too clearly. This is a grand place for advice and wisdom and with the occasional reality check from maxthecardigan. Hopefully, something in all of this will come right and you will be able to see the trees and not just the wood.

x

skylight

I will concur with the others. If that lump sum arrives before your BR or whilst you are BR, then the OR will take it. All of it - and the property you will have purchased with it.

Any chance of being repositioned with the force whilst you are BR? Or stay sick for the year? Just as Max put it!

fiveyearplan

How many creditors do you have and how much debt to each and how long since you have stopped paying them?

25% may not be all that unreasonable - answer the above and I will be able to get a better picture.

soccer32

Gee guys thanks for the support.....

Im on the sick at the moment but I think I will be pensioned off by December and then my monthly pension of around £1000 per month will not cover the £415 I pay on debt management as I have 3 kids I pay maintenance for!

I thought that they couldnt take my pension lump sum? But if they do I will knackered as I cant live at my parents forever, its not fair on them, I feel like a burden....I am clinically depressed and dont sleep too well right now and not sure if im making judgement calls at the moment...ALso, Nat West have rejected the amount that I can afford to pay them, I have 3 defaults and my credit rating is ruined. All because of a relationship breakdown, I canr believe it.

If i went bankrupt before finishing in my job and I kept it quiet about the fact I may be loosing my job, would they find out? Bad I know but I have to protect myself somehow

skylight

They can take the lump sum. Its the pension pot as it currently stands that they cannot take.

You cannot lie to the OR - HMRC inform them of your tax position/earnings etc and yours will flag up.

If you are then pensioned off and do not want to go BR then you will have to look at your DMP again as that amount is unaffordable. So stuff what the creditors want and pay what is affordable on a pro-rata basis. And 3 kids or not, your maintainence will have to change in line with your new income and the ex will have to like it or lump it.

There is no way to go BR and keep your lump sum - unless you retire and get your lump sum both after discharge. You need to work out (and fast) if you can hold out that long.

maxmycardagain

whack em...

So_Sad_Angel

GotToChange wrote: »

This is a grand place for advice and wisdom and with the occasional reality check from maxthecardigan.
x

:rotfl::rotfl::rotfl:pmsl....LOL Max & his cardigan again !!