Where do I start? Locating creditors

kerrypn

The only reason I am urging you to look at different options is that if you are not insolvent, the judge can refuse a bankruptcy order.

Please do discuss with your debt charity-but you could also be brave and speak directly to your creditors-this will look much better on your credit file too.

As I say, best of luck

Cash_Waster

Kerrypn's advise is sound. You will need to discuss this situation properly next week but just be very honest. You will get answers you wont like, for example magazines for work are not essential, nor are dog walkers or smoking or lunch at work and pet food (I was told it had to come from my shopping budget). I know smoking is essential, because I still do it, but that has to come out of my allowance being a BR. You just have to take it in the chin I guess.

I would not labour the student point either for your daughter. She is in reciept of a student loan which theoretically is used to live. Could she be contributing to the household bills? Its a tough point, but I wouldn't shout from the rooftops that you are supporting her for free if she is living at home.

Basically your SOA in real terms with everything you can claim would be more like this.=

Based on 2 adults at home - myself and my daughter who is a full time student:
Salary £2,323.00
Total Income £2,323.00

Rent £ 336.00
CT £ 96.00
Gas £ 80.00
Electric £ 50.00
TV License £ 11.95
Phone services £55.00
Pet Insurance £ 50.93 Very high...usually the OR will only allow £20-£25 unless you can back it up with professional proof as need
Internet £ 14.00 NOT allowed usually would have to come from surplus unless its needed for work/education. Work would have to send a letter saying you work at home regularly.
Travel to work £ 100.00
Perscriptions pre paid yearly £9 (£108 per year)
Food/groceries £ 375.00
Clothes £ 60.00
Dry Cleaning £ 15
Haircuts £ 20.00
Holiday eyc £ 40.00 (Its only for you)

Total spend £1313.

Surplus £1010

This is with very generous allowances for a single person/child. So insolvent? It depends on your credit payments. Your personal debt to your daughter wont count dont forget, as its not formal. (BRU's are on the cards for paying that off before going BR, as has happened to ourselves) It looks like budgeting yourself is the way forward, let alone a formal debt management plan where these allowances will be much smaller, they will wring every last penny out of you, you wont get a shopping allowance of £375 thats for sure.

If you went BR on this SOA, they would claim roughly £700 a month as a IPA anyway. Would you not be better managing your own debt plan a month rather then taking the ultimate step. Dont forget, once BR thats it. No credit, and total frustration as they tell you what you can and cannot spend basically, thats just for the 3 years of a IPA, then you have the next 3 or 4 years just trying to get back on the ladder with a "normal" bank account.

As has been suggested, think very carefully, BR is not just about 1 year, its a total life changing way of life. Its not easy if you are used to a good job and credit like yourself. Its probably the most frustrating thing in the world. I like you have a good salary and its depressing knowing that everytime you get abit more pay or a pay rise like I have this year, its taken from you. Its totally fair though.

My question you have to ask yourself is
"Would you really go BR for £32000 which is 3/4's of a years salary to you"?

If you mangaged to prove insolvency now all the rough figures above suggest a IPA of £700. You would pay back £25,200 anyway. (36x£700). So you are going BR for the sake of roughly £7000.

As I said at the start, be ready to hear some tough questions and basically "how you are going to change your life"? Do you do it, or does somebody else do it for you?

Good Luck, keep asking questions

PS I have only answered this long to help you assess what you need to think about before next thursday, its better to be prepared as they say

gettingready

Kerryp, Cash Waster - thanks a lot for your posts/support/advice.

I have done some number crunching and at £600 per month I could pay everything off in 5 years (60 months).

That is provided all interest will be frozen and that I suppose not all of the creditors (if any) would go for.

Also, provided I stay in my current job (or another job with the same salary) for the next 5 years.

Lots of "if" actually.....

I would really worry to start a DMP at £600 per month only to have to break it 3 months in due to change of income for example (very likely).

Just have to see what CCCS advises me on Thursday but your advice on here, all of people who replied in my thread - very much appreciated.

Thanks again.

gettingready

Sorry - still having massive problems locating who my debts are currently with and current amounts.

Any ideas for this please?

Calling the original creditors I seem to be coming against a brick wall...

kerrypn

The original creditor should know who they have passed the debt to and if they don't, you need to tell them you want to pay them directly.

HTH

gettingready

Kerrypn - thanks, I knop they should know and I am sure they do. The problem is they do not want to tell me - for whatever reason.....They were asking me some questions to which I did not know the answer (it has been quite a while for me) so would not give me any detail.

Also, I have had no letters from any of the creditors for quite a bit one (again, very strange) so can not work this out from letters either.

Only one (Westcott) keeps on sending letters, they took over one of my loans and I know that Abbey overdraft is still with them (Abbey) - others I have no idea....

Well, I am expecting a phone call from CCCS today at 5.30 pm so hopefully something will get sorted, there may be some light at the end of the tunnel....

Thanks again

gettingready

Opsssssssssssssss, just my luck - CCCS just called and they said they have to move my phone appointment for next week.

gettingready

Finally spoke to CCCS - they have calculated my disposabe income at £811 per month and suggested a DMP for that amount.

It is going to be a real struggle but hopefully only for 3 years ir so.

Thanks everyone for your support while I was looking at the BR option.

Is there a section of the site that deals with DMP? I seen one for IVA but it is not quite the same, is it?

Thanks again.

Mrs_Malaprop

If you pop over to the Debt Free Wanabe board they will talk to you about DMP's.

All the best with the future and don't hesitate to pop back if you need any help with anything bankruptcy related in the future.

gettingready

Thanks for that....