Is bankrupcy an option?

Woodski

My brother has got into debt with credit cards and a bank overdraft.

He has been adviced (not by a legal representative) to make himself bankrupt.
I think his total debt is around 10K, but he sees no end to the demands for money.

He is in full time employement and lives in rented accommodation, but his outgoings equal his income. Therefore he cannot pay his credit cards, one of which has been sent to a collection agency.

Does anybody know what will happen if he does not pay the credit card companies, do they get bailiffs involved.

I would appreciate any comments and advice I could pass on to my brother.

southernscouser

Hi Woodski!

Eventually they could get the balliffs in if he doesn't recognise the problem. He is also ruining his chance of getting credit again for the next 6 years or more which at this moment in time wouldn't be a bad thing.

He "could" go bankrupt but with his current attitude it wouldn't be a surprise if he was refused it. Bankruptcy isn't a divine right. It is there to protect people who are misfortunate rather than reckless spenders.

My advice to him would be to speak to either The CCCS or Payplan. These are both registered charities that are there to help him. They don't charge a fee like most debt management companies do!

You can find contact details for them in this thread!

CLAPTON

to be able to give advice, your brother would need to give full details of this financial situation..it is called an Statement of Affairs (SoA). Basically this is a statement of his income, his basic expenditure and details of his debts including debt, monthly repayments, and APR. also a statement of his personal circumstances... partner, children, house...value and mortgage
useful to read the 'sticky' at the top of this board for first time posters...best to start a new thread

Woodski

Thank you to both Clapton and southernscouser for your comments.

Personaly I do not think that declairing himself bankrupt is an option, I would advice him to look into The CCCS or Payplan.

Thank again

annam0787

As stated above, you have to apply for bankruptcy then a court will decide whether to declare you bankrupt or not.
It could be an option as I was offered it by the CCCS (along with IVA and DMP as two othet options) and I was £21k in debt and had £323 spare every month after the credit repayment (DMP) budget was put together.
Talk to the CCCS. https://www.cccs.co.uk They can't tell you what to do but they will discuss all the options you have.
Thanks,
Anna