Bankruptcy - an option or not?

LeeDJC

Hi everybody. This is my first post so be gentle!

I currently have approx £20000 of unsecured debts (waaaaaaay behind with payments, but interest frozen etc and currently paying them). I currently work and earn £15k a year, live with my partner who earns approx £10k a year and my two kids, in a furnished flat (so assets are virtually non-existent) Car is worth less than £500. Only thing worth any money is our kayaks and gear and mountain bikes.

I am about to leave work to become a full time student in September and be supported solely by my partner and benefits.

We are also due to get married at the end of July (if this makes a difference re bankruptcy)

I certainly have learnt my lesson regarding debts, and will never use overdrafts/credit cards/loans if at all ever possible ever again!!! I just want a fresh start for us as a new family, and for me going into further education.

Would bankruptcy be an option, considering our potential income when I leave work? Will this affect applying for student loans (if I *really* have to)? I'll be studying for approx 6-7 years, so I guess that the bunkruptcy will be well over and done with by the time I finish Uni, so we can easily buy a house etc.

If anyone has any views on this, I'd be very grateful to hear them! Thanks!

sophistica

Why don't you ring National Debtline or go to the Citizens Advice bureau I know that they train all their advisers in the pros, cons and how tos of bankruptcy (I know cos I organise the writing of their training materials).

roswell

its one option but theres many others to

davelewis

Interesting to read your post OP.

But I was wondering - how do you intend to fund your studies without loans, overdrafts and credit cards?

I have returned to full time education after 8 years - but I sold a property and am living off the equity.

Most of my fellow students are managing with the obligitory loans, overdrafts and credit cards.

Just wondered how you envisage student life!!

CLAPTON

with an income of £15,000 plus OH's, you have built up debts of £20,000 but you are confident that you can live for 6-7 years (what sort of course is that?) on OH's income (with a growing family).
of course there may be many reasons why that is possible but do you have a financial plan that makes that reasonable (even if you get your debts wiped out)?

LeeDJC

CLAPTON wrote:

with an income of £15,000 plus OH's, you have built up debts of £20,000 but you are confident that you can live for 6-7 years (what sort of course is that?) on OH's income (with a growing family).
of course there may be many reasons why that is possible but do you have a financial plan that makes that reasonable (even if you get your debts wiped out)?

The £20k of debts that we have are old ones. I haven't signed a credit agreement in over two or three years. We don't have an overdraft or live off credit cards. The oldest debt is around 8 years old. Which was a personal loan from the AA

The course is a Pharmacy Degree - train to become a Pharmacist. I need to top up my study before going to Uni which will take two years, and then the Uni course is 4 years plus 1 years pre-registration.

I need to write up a sound financial plan, but on the face of it, it looks as though we can survive on the increased child tax and working tax credit and also Housing Benefit (still looking into whether we're definitly eligible for this) and other benefits. I/We have paid in enough tax over the past few years to start clawing some back! Also once qualified I will be earning IRO £40-70k depending which type of pharmacy work I'll be doing, which, in my opinion, is well worth the effort.

If necessary I will take out student loans etc, but I don't want to take these out imeediatly as many students do. I kow of people who have got through studies without borrowing any money - just requires a lot of hard work - not the typical student lashing it up all weekend!