Why you can't sometimes go BR

lizandalfiecat

peachyprice wrote: »

The income and expenditure you fill in on your BR forms is how your finances will be AFTER BR, if you cannot cope with your outgoings once your debts have gone BR will not help you.

Which is how it is for me, as I only have part time work and not enough income (yet) to cover my own basic living costs, even after BR if I went that route. Sorry if I hadn't made it clear - my heads spinning...
Liz

dalip

Hi

Have you actually posted your I&E for us too look at?. Also check that you are getting all the benefits you may entitled to here :- www.entitledto.com

Just a couple of thoughts,not sure they are much help though:D

PixiePie

I had a negative number at BR as well - and I guess I did have (do have!) a partner, but it was known that he earnt a pittance and didn't really have much chance of upping that.

And as everyone else says, its incomings - outgoings after BR, so without all the credit card/loan/car payments etc - just earnings - rent/food/clothing/travel really.

If you aren't earning enough to cover your outgoings after BR then the suggestion probably is if you have a job to help them to let you go (don't resign) and you'll be eligible for benefits to pay your rent/council tax etc thus reducing your outgoings to a manageble level (as I'm guessing it's housing & tax that is the major outgoing - we can all eat a few more lentils and a few less steaks if need be for a bit - even us lol).

dalip

Also can i add that my OH is doing a DMP via CCC's and never once have they suggested bc and yet from my own experience i know that is probably his only way out. He is below 15k and they have also never mentioned a DRO

Another useless thought but hey lets throw um all in the pot:D!

lizandalfiecat

Yup, did these things several weeks ago, but thanks for the suggestions. Theres bound to be things I've not tried that others know about. thats what makes this board soooo brill

Concentrating on upping my income at mo...

lizandalfiecat

Thanks! Got a morgage so unemployment equals loosing place to lay my weary head at night - been through all the housing stuff on here and with local housing office and private sector. The preferable option is to up my income and repay debts as I can manage it. Plan B may look different when I review it all in a few months time...

damoandclaire

just out of curiosity, what sort of things are making you have negative funds after going BR?

surely the idea of going BR is to include anything you cant possibly pay into the bankruptcy to free up funds so you can actually live.

I noticed someone mentioned something about trying to keep a house - if you go bankrupt, its lost and as such, shouldn't be included.

Sorry if i've missed something here folks but I just thought the whole idea of going bankrupt, as the CAB advised me, was to include absolutely anything that I cannot pay before or after the bankruptcy, any credit, overdrafts, bills with suppliers, council tax - absolutely everything so that after the bankruptcy I was paying for bare essentials I needed to survive.

peachyprice

damoandclaire wrote: »

I noticed someone mentioned something about trying to keep a house - if you go bankrupt, its lost and as such, shouldn't be included.

You don't necessarily lose a house in bankruptcy. If there's no equity the OR will have no interest in it at all so if you can afford the mortgage there's no point in giving up.

damoandclaire

peachyprice wrote: »

You don't necessarily lose a house in bankruptcy. If there's no equity the OR will have no interest in it at all so if you can afford the mortgage there's no point in giving up.

Fair enough

Just seem to remember something that my CAB adviser told me and what one of my friends went through. She had negative equity in the property she had, they still took it tho.

lizandalfiecat

damoandclaire wrote: »

just out of curiosity, what sort of things are making you have negative funds after going BR?

In my case...
If you don't have enough income to cover your essential living costs (the things you need to live on) like rent/morgage, utilities, council tax, food etc, you can't make a fresh start by going BR. This is because this problem of not enough money to live on for essential expenses will still exist, and will continue to cause financial problems after the BR.

For example, I need a full time wage to pay for my essential living expenses (nothing to do with the debts), and only have a part time wage. So BR at this point for me is not the best option for me. Upping my income is the priority, to enable me to have enough to live on, which in turn may result in going BR at that point later on.

L xx