Declarying bankcruptcy - I think it's the most sensible thing for me to do

Ryan.Maloney

Hi. I am a student I owe £10,000+ on credit cards, £10,000+ on professional loans and I am only in my first year (I left my last degree due to illness & other serious circumstances)

I've just been reading http://www.insolvency.gov.uk/guidanceleaflets/guidetobankruptcy/guidetobankruptcy.htm

and it looks quite scary


Can they come and confiscate all my stuff (my 'assets') and sell to the creditors?

The only thing remotely precious i have is my laptop which I need for uni - can I claim it is the property of my friend? and my tv! Can they just turn up unannounced and take my stuff?


I have about £300 of unused credit on one of my cards

I am going to withdraw that first thing monday morning, and then go declare bankruptcy

Yep, I know it messes up my job prospects etc, but I have NO MONEY coming in, I live in central London - rent is very high...

Sea78

Hi,

If you do decide to go for bankruptcy, please do still come here and work out your SOA so that you don't end up in the same situation a few years down the line.

Yes, rent is very high in central london, but must you live there? Surely you could live on a tube line and commute to uni each day? If you have no money to do much, it won't interfere with social life etc?

I don't know if you will be committed to staying debt free and learn from the experince or actually just repeat the same mistakes? Couldn't you get ANY part time job going in order to get some money in. I don't think your student loans will be wiped off - could be very wrong of course. In fact I think I am!!

Sea

fatbelly

The basic rule with the Official Receiver is - be honest. I can't see them being interested in a TV unless it's a £2000 plasma job. The laptop is needed for your studies - so say that on the application form.

Your fee is £325 (cash) and the court fee is £150. You can get off the latter by using an EX160 and asking for remission on the grounds of low income. You probably knew all this. Like you know that you can't just turn up at court with your forms - you have to book an appointment.

Even though you owe £20k, it is just posible that your bankruptcy may be declined if the judge feels that your prospects will improve to the extent where you can pay your debts. But I've not had anyone declined yet.

Have you checked that your 'professional' loans are provable? Student loans aren't. But I'm not sure what a professional loan is.

Anyway, best wishes to you

fb

mrcow

Ryan.Maloney wrote:

Yep, I know it messes up my job prospects etc, but I have NO MONEY coming in, I live in central London - rent is very high...

Okay I DON'T mean to be personal (seriously) but what's going on here?

I recognise your username as you've been posting over the last week on the loans board about lying on a loan application etc. There you state that you have a job with an agency, and on a different thread two weeks ago, you stated that you earned £22000 (and were talking about tweaking an application there too).

Honesty is really your best policy here, If you want help sorting out the debt with fair advice, it's best to post up an SOA with your real incomings and outgoings. Everyones seen it before (I promise!).

People can't advise on what your options are unless you're giving them the full picture.

Ryan.Maloney

Sea78 wrote:

Hi,

If you do decide to go for bankruptcy, please do still come here and work out your SOA so that you don't end up in the same situation a few years down the line.

Yes, rent is very high in central london, but must you live there? Surely you could live on a tube line and commute to uni each day? If you have no money to do much, it won't interfere with social life etc?

I don't know if you will be committed to staying debt free and learn from the experince or actually just repeat the same mistakes? Couldn't you get ANY part time job going in order to get some money in. I don't think your student loans will be wiped off - could be very wrong of course. In fact I think I am!!

Sea

I'm at uni in central London

Student Loans are not wiped out by bankruptcy - you still have to pay them back, but not until you are earning.

I have NO SOCIAL LIFE. I can't afford one! not even the cinema... but it's the price I am willing to pay to get an education

Emmzi

Ryan,

I've read your other posts and you sound like your financial situation is making you consider some desperate, knee jerk, illegal and stupid things.

My advice is
- stop panicking
- keep it legal
- go and see 1) your student welfare officer and 2) Citizen's Advice, Payplan or CCCS before you dig yourself into a bigger hole. You're too young to risk a criminal record.

I'd also have a full and frank discussion with your partner.

Ryan.Maloney

mrcow wrote:

Okay I DON'T mean to be personal (seriously) but what's going on here?

I recognise your username as you've been posting over the last week on the loans board about lying on a loan application etc. There you state that you have a job with an agency, and on a different thread two weeks ago, you stated that you earned £22000 (and were talking about tweaking an application there too).

Honesty is really your best policy here, If you want help sorting out the debt with fair advice, it's best to post up an SOA with your real incomings and outgoings. Everyones seen it before (I promise!).

People can't advise on what your options are unless you're giving them the full picture.

I was temping in an office - equated to £22k. I was considering leaving uni and just working but.. I'd regret it bigtime.

Ryan.Maloney

fatbelly wrote:

The basic rule with the Official Receiver is - be honest. I can't see them being interested in a TV unless it's a £2000 plasma job. The laptop is needed for your studies - so say that on the application form.

Your fee is £325 (cash) and the court fee is £150. You can get off the latter by using an EX160 and asking for remission on the grounds of low income. You probably knew all this. Like you know that you can't just turn up at court with your forms - you have to book an appointment.

Even though you owe £20k, it is just posible that your bankruptcy may be declined if the judge feels that your prospects will improve to the extent where you can pay your debts. But I've not had anyone declined yet.

Have you checked that your 'professional' loans are provable? Student loans aren't. But I'm not sure what a professional loan is.

Anyway, best wishes to you

fb

No, it's a little portable telly, but it's all I have. I don't want to loose it.

I use the laptop for general surfing (e.g. this site!) - not just studies.

Professional Loan - for courses like Law, Medicine and Dentistry Banks like NatWest automatically loan up to £15,0000

I was doing one of those degree but left, moved to a different city and am doing a different degree.

Ryan.Maloney

Blimey - £350!

This website seems to think bankrucpty is a baad idea:

http://www.channel4.com/4money/banking/guides/bankruptcy_guide_081003.html

What is getting me down is that I'm in full time education for the next 3 years.. all that time INTEREST is going to be pilling up... if I only I could halt the interest..

Emmzi

Ryan.Maloney wrote:

Blimey - £350!

This website seems to think bankrucpty is a baad idea:

http://www.channel4.com/4money/banking/guides/bankruptcy_guide_081003.html

What is getting me down is that I'm in full time education for the next 3 years.. all that time INTEREST is going to be pilling up... if I only I could halt the interest..

You have a choice. If you can get well paid temp work at 22k a year, you could postpone studying for a couple of years until you are more sorted. You could also take a second job. It depends how serious you are about getting out of debt vs an 'easy' option. Not that bankruptcy is EVER easy.

THE_LONE_RANGER_4

I Would Suggest Going Bankrupt Not An Easy Option But To Be Honest You Have No Assest, You Rent Etc It Will Be A Tough 3 Years For You But Probably The Best Option