advice on bankruptcy please

broxiebear1

hi there
i have posted before for advice on what to do ,well tonight i spoke to someone from a trust deed firm and they adviced me that i could not afford a trust deed or debt management plan and to speak to cab regarding bankruptcy.
how soon can i apply for br at the moment i have only missed one payment from credit card but know its going to get even harder after xmas , i am still using one card .the question i am asking is do i wait till i cant pay cards before i go ahead with applying . i have just opend a bank account with coop to transfer wages etc.
cccss also recomender br. hope this makes sence
yea i know i cant spell before anyone says:eek:

confused76

hi broxie you don't have to miss a certain number of payments to qualify for br, it's whether you are insolvent or not - eg can you make all your payments this month including living expenses?
i'm not sure what the rules are in scotland about applying for br - you are in scotland aren't you?

broxiebear1

confused76 wrote: »

hi broxie you don't have to miss a certain number of payments to qualify for br, it's whether you are insolvent or not - eg can you make all your payments this month including living expenses?
i'm not sure what the rules are in scotland about applying for br - you are in scotland aren't you?

yea im in scotland i thought creditors had to send you a certain letter before you had to go br also think the fee is £100 here
thanks for replying
as i am still using a credit card wont the or be tough on me for that
broxie

confused76

i've just had a peek there is some info in the sticky near the top about br in scotland have you seen this?
you are meant to stop using your cc's as soon as you realise there is a problem and you won't be able to pay it back. i have read of people on here using cc's for food etc at the last minute or the fees, but i wouldn't recommend that as i don't know what the or would make of that..

broxiebear1

confused76 wrote: »

i've just had a peek there is some info in the sticky near the top about br in scotland have you seen this?
you are meant to stop using your cc's as soon as you realise there is a problem and you won't be able to pay it back. i have read of people on here using cc's for food etc at the last minute or the fees, but i wouldn't recommend that as i don't know what the or would make of that..

again thanks for reply
i now know how i got into so much mess paying messages with credit because i had to pay bills now two are maxed up but i know its getting worse . i also know only way out is br but will wait till after xmas before i go down that road . what a wonderfull site this is in a way it helps me seeing that its not just me thats got money worries and theres a lot of people worse off than me
broxie.

confused76

i'm sorry i can't give you anything helpful, i really don't know about the Scottish system
this site definitely does help, it's a morale booster and people to turn to when you're feeling low or have questions
keep posting and let us know how you get on

coolcait

Hiya broxie

Can I urge you to get in touch with your local CAB or local authority money advice centre.

I can only go on the posts you've already made on here (thank god for the search facility!), but it doesn't look like it will be straightforward for you to apply for bankruptcy, Im afraid.

It looks like your income is over the amount allowed for the 'Low Income Low Asset' rules (LILA). And, if you've only just started missing payments, it could be quite a while before any of your creditors serve you with a 'Charge for Payment'/'Statutory Demand'. If you get either of those, and aren't able to pay within the time given, then you can show that you are 'Apparently Insolvent', and apply for your own bankruptcy.

That's a very brief summary of how it works, and it might not make much sense - that's why I think it would be a good idea to talk to CAB/local money advice. They can explain the way things work and check to see if you are actually able to go for bankruptcy.

They can also talk to you about other options. The Debt Arrangement Scheme (DAS) might be a stretch for you if you don't have much disposable income - but it might be an option. You wouldn't be tied to a minimum payment of £190 per month, for example.

Generally, money advisers, and the DAS Administrator (the civil service part which decides) is looking for a DAS to last for less than 10 years. But it is possible to have a DAS which lasts for longer - especially if all the creditors agree to it. Again, it's something which is worth discussing with a local money adviser.

I know these are tough times for you, and I really hope that you are able to get some local advice which will help you.

broxiebear1

thanks coolcat
yea i just read all that on scottish br conditions will be doing it after xmas
i have just opend bank account with coop they were brilliant i told him i might be going b.r after xmas.
does that mean i have to stop payments so that creditors do what you say? will have to do a s.o.a and take it to cab along with all my debt.
thanks cool.
broxie,

Leesmom

We went B.R yesteray and we also had only missed one months payments to the creditors, i dont think its this thats important, its wether your have the ability to pay your debts or not, we are now totally reliant on benefits as hubbys redundancy money is all gone, so we filled right away.

Mrs_Malaprop

Leesmom, the bankruptcy system is different and more complicated than in the UK.

scot88

Broxiebear try calling Money Advice in Edinburgh . They have done it all for me, including filling in forms. If you are on benenfits or earn less than £220 a week ,you can make yourself bankrupt. Either way these guys will sort things out for you and explain things to you in a straightforward way. Hope I'm right in guessing you live quite close to them.