what happens if you are a contract worker?

springhaze

Hi,

After splitting up with my wife a year ago I have been struggling to keep going but had managed until now. I have a number of loans, credit cards and a house with secured loan and negative equity. I did not pay the mortgage in december and will no longer have enough to pay all my debts each month from now on. This is mainly as I am a temporary contract worker and used to work 7 days a week in order to have enough to pay everything. The place I work recently stopped all weekend work and also cut everyones rates.

I am not living in the house. My ex wife was but moved out some months ago so it is empty and I do not want keep it. It is for sale, but there has been no interest.

I am going to ring The National Debtline tonight and suspect the only option is to go bankrupt.

But I do not have a fixed salary each month I am paid for the number of days worked and if I take a day off I don't get paid.

I have been looking at this site over the last few weeks and haven't managed to find out how this would be handled by the OR. I will definitely be earning enough to have to pay an IPA but how will they work it out if I get paid a different amount each month?

I haven't had a holiday for years but would like to be able to take some time off if I can in the future so will I be able to factor in saving some each month so I can afford to have a much lower income the month I do take some time off work?

Has anyone here been in a similar situation.

Thanks in advance.

debt_doctor

Hi,

They will average your income over several months or, if neccessary, look at it on a monthly basis. I suggest you stop working excessive hours and do indeed factor in enough expenditure for your reasonable needs. (there are plenty of SOAs on here to look at)

Its a tough time coming through all those stressful things and I always suggest that folk take a back seat for a while if possible.

DD

shazbo

hi springhaze, sorry but i am not able to give you any advice, just a welcome and good luck in sorting it all out, it is a stressful time when we realise what we have done as regards to credit but it can all be sorted.

From my experience the advice on here is invaluable and everyone is very friendly so you will get as much help as you need throughout the process and without judgement too, you cant ask much more than that

springhaze

Thanks for the swift replies!

I know that once this thing is all over it will be fine, but I guess I will have a bit of a bumpy ride coming up.

Assuming the National Debt line do say I should go bankrupt I know I need to make an appointment with the court and also I understand I should stop paying all the monthly payments on my debts.

I was expecting to tell everyone that I was going bankrupt when they started ringing, but after reading another thread here it seems people recommend not telling them that. What is the reason for not telling them straight away? I thought that might make stop ringing?

Also I realise I must stop using my credit cards and only spend money on essentials from now on.

If I don't pay any debts in January I will be left with several thousand pounds in my account. I know I can't take any of it out, but the thought of it being there but me not paying anything seems odd. But I presume the OR will just share it around everyone anyway?

Thanks again.

debtinfo

hi, the reason they say not to tell creditors is that some creditors will realise if ou tell them that they will likely get very little if you bankrupt and will step up the pressure to get as much out of you before you do.