final salary + JSA, bankruptcy

seh567

Hi

After 4 short months of employment I am about to claim JSA, HB & CTB. I have struggled to pay my debts over a period of 3 years due to self employment poor pay and previous unemployment. I have been on a DMP with CCCS recently but now I no longer have a job I cannot keep up the payments. I will be phoning CCCS to find out what my options are now but I suspect they will recommend bankruptcy as they did previously when I embarked on DMP. At the time I wanted to do the responsible thing and repay my debts but now because I have lost my job I think I have no alternative.

Because I had to include my overdraft in my DMP I changed my bank and am currently using a Lloyds tsb basic account. I received my last pay cheque yesterday for £2.2k which included bonuses and paid it into the account yesterday. I understand that if I get a bankruptcy order my bank account will be frozen and this money will be owned by the OR. Is the OR likely to let me have it all back because I am unemployed and I need it to supplement my benefits. I was thinking of withdrawing it before going bankrupt but will the OR ask me why I have done this and will it cause me major problems. I am a single person living in a housing association flat and I do not have any other assets other than a car which I have already asked about on this forum.

Thanks,

debtinfo

As the money represents your income you will be allowed to keep it, the OR will only take savings

seh567

Was advised by counsellor today to go for DRO as I have now been laid of from my job and will not be able to carry on with DMP payments. Having been reading on this forum I notice that you can't do a DRO if you have a contracted out serps insurance policy or private stakeholder pension pot, which I have from a previous employer, although they are small amounts it puts me over the £300 assets limit. I have no other assets apart from an old car worth approx £1k. I have between £15 & £16k worth of debt, will CCCS be able to help me through this process or do I need to contact a court for applications and hearing date and go throught it alone. Thanks

seh567

Have been speaking to my parents today and I really can't get my head round bankruptcy and its consequences. They have said they are willing to fund full & final settlement for 30% of the £15.5k debt I have spread over 5 creditors, Natwest, Nationwide, A & L, Egg and Barclaycard. I have been on a DMP for a couple of months with CCCS. What are the chances of these creditors agreeing to this level of settlement. Also would a f & f request letter be better coming from me or should my parents write to them explaining this is a limited time offer and leave them in no doubt that if this offer is refused I will have to declare myself bankrupt. Thanks