My first step on a long painful journey - Bankruptcy need advise please

underfire

Can't afford not to go BR - Can't afford to go BR


Ok. So after months and months of contemplating BR today I have taken the first step (and the hardest) to filing for BR. I feel so many emotions at this point but I'm trying very hard not to beat myself up and get on with it. Not sure I'll manage but I'll try.

The first problem I have is finding the funds to file for BR. The advisor said it would cost £120 for the court fees and an extra £360 to file for BR. The problem is I just don't have that money. I have no income apart from child benefit at £21 a week or is it a fortnight and £574 a year working tax credits as my DH works full time but out finances (luckily) are separate. Because of this I am not entitled to any benefits so I don't have any real income.

What can I do?

I hope someone can help me with questions I have along the way. How long does BR take from start to finish on average or isn't there an average?

Thanks in advance

Tinytim

Hi Underfire,

What do your debts consist of? if less than £15,000 a DRO may be a possibility.

miss_spooky

Hi Underfire,

As Tinytimsays, what does your debts consist of? Did your advisor go through the Debt relief Orders with you? There is a pretty strict criteria with these - surplus has to be under £50 and total debt can't exceed 15K and EVERYTHING has to be included i.e Car HP agreements, but if you fall under the 15K then we may be able to give you some pointers on your SAO to see where your surplus stands. A DRO is only £90, last for a year etc.

Alternatively, you may qualify for a fee remission depending on what your partners income is. Though BR is a personal thing, the fee remission is based on couples joint income rather than the individual even if only 1 is going BR.

Have a look at the stickies at the top, in the help notes, there is a link to the EX160 notes which will give you the guidelines for remission fees.

Other than that, you could try the CAB as they do approach charities that will offer financial help with fees.

Who was your advisor?

underfire

Thanks for your advise. My own income total is only130 a month. My Partners is 2200 a month net. He can't carry us both any more so I want to ease the burden I feel so guilty as he's trying so hard and not complaining at all but I know how tough it is. My sole debt is around 16k. I wondered how long it takes roughly from start to finish of decalring yourself bankrupt?

Thanks again

miss_spooky

Hi Underfire,

Hope you are well.

Did you have a read of the EX160 notes to see if you would qualify for one of the remissions?

Just a thought - If you did qualify for a fee remission, could your OH could scrape the £360 needed for your br? This could be what you are paying out anyway on creditors, or not far off?

BR undischarged period lasts for 12 months regardless. Early discharge can be anywhere from 6ths on. Not guarenteed.
BR will stay on your credit file for 6yrs - but then most defaults etc will as well, so your credit history couldn't get any worse...