I decided to go bankrupt in few days need some advice

cocoalush

I filled in all my bankruptcy forms online and I printed them. I'm going to the High Court in London (my local) on the 4th of Jan. I feel scared.

I'm a final year university student, currently I have debts totalling £10,000.
My income is my student loan and grant which I get every four months, my next student grant/loan is coming on the 4th of Jan (great timing huh,lol).

I decided not to use my accounts anymore, I withdrawed the last £300 that was in my account to go do the food shopping etc. I also updated my student finance details so my student loan can be transferred to my sisters account, which I hope wouldn't be a problem to the OR?

I also took out two payday loans last month, even though I'm not working I needed it to survive. I added the payday loans as one of my creditors, would it be a big problem with the payday loans company? Because the expect the whole payment next month and if I tell them that I'm gone bankrupt how would they react?

Any words of advice for when I go to the court? I'm going alone, so I'm scared. I don't need to make an appointment as the high court is first come first served basis. What is the likelyhood that the judge would let me be bankrupt? My monthly budget is £500 (I get my student loan £2800 every sep, jan and april), my outgoings are about £480, I was in a debt management plan but it was even more of a struggle and I couldn't keep up with payments. I am unemployed, I was foolish to take out so many cards that's why I'm in debt. I have no assets. I'm in my final year at university.

Thanks everyone for all the posts you put up on here regarding bankruptcy it was very useful. :A

* Just to add, my debts are made up of credit cards and overdrafts. I do understand the implications, I just want to make a fresh start, I know it'll be hard for me to gain credit in the future but I see bankruptcy as an opportunity for me not to gain credit at all and I'll be more than happy with a basic bank account rather than having one with overdrafts. I have seeked advise from the cccs few months ago, who mentioned that the best option for me was a dmp or bankruptcy, the dmp I tried but couldn't keep up with, so this is my last option. thanks for all your advice.

dmg24

I think you need to take further advice before going bankrupt. You do realise the implications going forward regarding getting credit, and potentially future employment?

fiveyearplan

HAve you contacted one of the debt charities like CAB, NAtional Debtline or CCCS? I replied to one of your posts yesterday, its usually easier if you keep things to one thread so people commenting know your full story.
As I mentioned yesterday - any student loan cannot go into your bankruptcy.

computershack

cocoalush wrote: »

I also took out two payday loans last month, even though I'm not working I needed it to survive. I added the payday loans as one of my creditors, would it be a big problem with the payday loans company? Because the expect the whole payment next month and if I tell them that I'm gone bankrupt how would they react?

Any words of advice for when I go to the court? I'm going alone, so I'm scared. I don't need to make an appointment as the high court is first come first served basis. What is the likelyhood that the judge would let me be bankrupt? My monthly budget is £500 (I get my student loan £2800 every sep, jan and april), my outgoings are about £480, I was in a debt management plan but it was even more of a struggle and I couldn't keep up with payments. I am unemployed, I was foolish to take out so many cards that's why I'm in debt. I have no assets. I'm in my final year at university.

Thanks everyone for all the posts you put up on here regarding bankruptcy it was very useful. :A

Firstly, you're not unemployed - you're a full time student. They are not the same thing.

Once you've gone bankrupt, you do not pay the Payday loans people. They are part of the bankrupty and to pay them anything after being declared would be to break the law in regards to bankruptcy by making a "preferential payment". Basically, going bankrupt means that the Official Receiver takes responsibility for all of your financial affairs up to the point you're declared. That means, in simple terms, that all debts and all assets belong to the OR and not you. You are not even allowed to negociate with any creditors.

Your student loans will not be included and will still need repaying.

As has been mentioned, it has serious ramifications. First immediate one being you'll have all hell on getting a bank account and forget being able to get a student account with an overdraft facility. You can forget contract phones and expect to have to pay a deposit up front when you move address and want gas, electric and house phone supplied - typically £100-£150 per utility. Your credit is going to be completely screwed for 6 years and you will find you have a lot of trouble getting insurance too as many insurance companies won't touch a bankrupt.

So as you can see, it is far from being a case of declaring, doing your 12 months and then being free of it all.

tigerfeet2006

Also can I add you MAY be eligable for a DRO rather than BR. Please phone someone like National Debtline on tuesday and get some proper advice. Links and numbers in my signature.

confused76

hi there
i echo what the others above have said, please take advice from a debt charity...
of the £10,000 is any of this student loans? if so this won't get written off
please call a debt charity and think it over...the court will still be there later on in the week
i'm sorry to hear you're scared...believe me the majority of us have been there!
best of luck

So_Sad_Angel

Hi...as I said yesterday you need further advice.

As you are a final year student then you are so very close to the end of your studies.....I am assuming at that point your aim is to use your qualifications to get employment....surely at that point you would be in a better position to make a decision on this matter?

As I said yesterday your creditors ( I assume you are aware student loan is exempt from BR) may be more obliging to a DMP arrangement knowing that your studies are coming to an end soon & there is a good likelhood of you being in employment soon rather than a full time student. At which point 10k with a full time job should be easier to manage.

I hope that makes sense...again BR is not a decision to be taken without advice of one of the debt charities...see Tigers signature for contacts.

I wish you luck & please feel free to PM if there is something that you prefer not to discuss online.

SSA

confused76

ps just to add that if the judge thinks you haven't had suitable advice they can turn you down for br...so it is worth having the correct advice. you may also have other options that may be more suitable