Really confused... Is this the best way?!

MeandtheLilUn

Hi everyone,

I've been posting on the Debt Free Wannabe's board (http://forums.moneysavingexpert.com/showthread.html?t=2035463)

But this is the general story so far:

I have been signed off work by my GP with stress/insomnia/depression. I was signed off on August 19th, and I have been on antidepressants since the beginning of September.
Due to being off work, my income has reduced by £700 per month (I am hoping to go back in the new year, but at the moment I can't afford to even pay my rent, never mind the fuel costs for 60 miles a day)
My current debts stand at £11,600. Including debts to council tax and nursery. I am also behind with my utility bills. I have spoken to CCCS, and they have recommended I send letters of financial hardship and token payments of £1 per month. I have been doing this as the bills have been coming through, and so far 3/11 creditors have agreed to accept the payments.

But I still feel like I'm in a sinking ship. It doesn't seem to be getting any easier, and the more I think about it the worse I feel. I understand that offering these 'good will payments' should help, and mean there's less financial burden (as such) but I keep looking at the bigger picture: I still owe these companies a combined £11k+ and paying them off at £12 per YEAR isn't going to help reduce the debts any time soon. I checked my credit score with Experian, and to be honest, I don't think it could get any lower! I went from average/good to poor in just a few months, after trying my hardest to improve it.

Anyway, to get to the point! (Sorry, I ramble from time to time) I was asked by a financial advisor (a bank one, when I went in with a friend of mine) if I had considered bankruptcy. I am now not sure what to do. Afterall, the prospect of being 'debt free' would be such a huge weight off my shoulders, yet I'm scared of losing what little I do have. I know bankruptcy is a big decision, and I don't know if I'll be making the right one.

The main thing I'm trying to focus on at the minute is making my life better (I'm only 23 now, and I don't want debts hanging over my head for the rest of my life) and more importantly, my 2 year old daughters life better, and more fun - I know by being like this I am affecting her despite my best efforts to not - I'm not the most fun person to be around right now, and I know I've started to snap easily, and when I shouldn't.

Anyway, sorry for the ramble. I was just hoping that someone here could maybe give me a fresh mind on this... I am REALLY confused right now.

Thank you.

Me x

MicheH

Aw, your signature, there's no gold in that mine but there's a away out. We just have to find it. There's so many people on here that will give you the correct advice on where to turn to. Did CCCS mention any other way of coping with this. I guess if you're going to return to work then finances will pick up but I totally agree with you - where do you find the fuel costs to get there till pay day.

You know that i'm going to say BR is massive with so many consequences so you really need help to see whether you're really prepared to go with the negatives associated with going BR. You're obviously insolvent so we need to find a way and poorly too so we need to find the way and support you in doing it. Hello friend, I feel I have waffled (that's because I don't really know what advice to give)

I will say that BR for me was a life line and a way to rebuild my life, it's not an easy process to go through, rebuilding isn't easy either but I would not change what I have gone through. If BR is the right thing for you, you have come to the right place!

Maybe talk to CCCS again too.

alastairq

hi and welcome...


are you entitled to any benefits whilst off work?


Another similar course of action could be a DRO [see stickies at top of forum]??


Certainly, a DRO or BR would allow you to start afresh...

confused76

hiya Me (sounds like i am talking to myself!)

well done on trying to deal with this, sounds like you've got a lot on your plate.

i can't really add any more than MicheH has already said....

i would speak to cccs again as you may be eligible for a debt relief order, similar to a bankruptcy but for debts under 15k

keep posting any questions

shazbo

Hi Me, definately look into the debt relief order, our CAB mentioned it even tho we had no chance of doing that and the fee was only £90 compared to £510 and he could do it all for a someone online, so long as you have no assets ie own your home. talk to a free debt cousellor

MeandtheLilUn

Hi,
Thank you for such quick responses!! I think I'm going to speak to CCCS, potentially the CAB, and possibly the advisor who first mentioned it. I may even talk to all 3! I just want to be sure about all this. I know that having a fresh start would be blessing right now... it's just the downsides I need to work out, and evaluate.

I read the sticky on DRO, and I don't think I would qualify. But it would all depend on what they count as assets?! Also, I downgraded my car to something (really) cheap to run, but it is worth about £1500, and I can't really do without is as I have far to travel to work. And for me to use public transport it would be a bus/taxi, then 2 trains, and then another bus/taxi. Which would in no may make it possible for me to take/collect my DD from nursery and get to/from work in the time I have.

I spoke to someone from the jobcentre, and the crisis loan department, and they told me I'm not entitled to anything. I have also applied for help with housing benefit and I've been told it will be at least an 8 week wait for a response (I have to pay my rent on the 9th - £475 and I am already in my overdraft, so I'll have no money for the rest of the month again)

I'm just scared right now. I'm just glad I have the people on this forum to turn to! :-)

Me x

MeandtheLilUn

Also, I don't understand the charges for bankruptcy, I've heard people say it costs anything from £300 - £650. How do they work that out? And how would you pay it?

Me x

alastairq

for BR the charges are currnetly £510.
this is payable, on the day.


this is in reality two payments.....part for the court, part for the OR.

Are you with a private landlord, or LA? [if LA, then maybe they will alow time for payment?]

Your car would be ok within BR..if it is deemed essential.

chin up.....pretty emotive time of year, I know....but things are looking up....

So_Sad_Angel

Hi Me....welcome Hun...it is important to investigate all options.

Do speak to CCCS, CAB , Nat Debtline ( Nat Debtline may be quickest as the advise immediately on phone). Get plenty of reading done & esp the DRO stuff as alastairq suggested.

Knowledge is power & with it brings confidence to deal with whichever route is best for you.

Have you tried Welfare Rights at your council. I have depression too & I was advised by my GP to call them...best thing I ever did to help with benefits & the forms etc.

Keep posting....lots of support on here.

Angiexx

MeandtheLilUn

I'm going to add Welfare Rights onto my list of people to speak to.

I'm with a private landlord, she lives miles away, and it's difficult getting in touch with her majority of the time. I haven't managed to get in touch with her regarding my rent, so for now i'll just have to keep paying.


So far I've looked on a few different sites about bankruptcy (MSE included obviously!) and I'm just baffled by the amount of information there is. (I think I'm going to have to start taking notes!) I'm going to look further into DRO too, to see if I can qualify.

Thanks again for your support! :-)

Me x

Mrs_Malaprop

Welcome to th board.

I am afraid a DRO would not be suitable as your car is worth over £1k.

As others have said the charges are £510 to go bankrupt. The payment to th court is £150 and the payment for the OR is £360, this is all payable to the court on the day. If you are on benefits or a low income then you can fill in a form and you won't have to pay the court fee's. There is information on fee remision in the Bankruptcy Help sticky, which you should read.

I would give National Debtline a ring and go through your options with them. Link and number in the Bankruptcy Help sticky.

Also check on https://www.entitledto.co.uk to see if you are getting the correct benefits and apply for them. Even if they take weeks to come through, thy may be helpful at that time.