Advice On Bankruptcy

Debtworry_2

Hi,

I'm considering going bankrupt as i owe roughly 8k and cant keep up the monthly repayments due to being on benefits with depression.

Can anyone give me some advice the ins and outs of going bankrupt, do i have to go to court, do i need a solicitor, and how much from start to finish it costs.

Thanks

Emmzi

here's the Q&A from Payplan..

http://www.payplan.com/frequently-asked-questions/bankruptcy.php

There are a few other pages on the site relevant, click the links at the bottom.

HTH

saubryn

Are you *sure* bankruptcy is the only option? I would suggest calling the people you owe money to, but since you're suffering from depression that might not be something you feel up to. If you could face it, I would strongly recommend either calling the CCCS, or droping in to your local Citizens Advice - they are often willing to help people who owe money, and will handle the case for you - writing to your creditors, and helping you arrange payments that you can afford.

Bankruptcy is a last resort - its fairly 'simple' to do (although in most cases I think you need to pay a fee to do it, I'm sure someone else can advise there), but it stays with you for a few years, and if you can avoid it, then all the better.

sanfrancisco

I know it seems like things will never change at the moment, but you really don't know what the future holds. In 6 months time you might be working again and you could have the debt paid off in a year. Bankruptcy hangs around for A LONG time. You should look at all your options first.

I would ring the CCCS (Consumer Credit Councelling Service). They are a charity and are very friendly. They can talk to your creditors for you and can arrange reduced payments.

skylight

For only £8k -Bankruptcy is not worth it. It effects your life almost for ever.

It costs £450, but if you are on certain benefits, you may get about £80 of this knocked off. This has to be paid CASH only.

You do not need to speak to a solicitor, Payplan (google them or CCCS above) will help, but I think you will find they will not advise bankruptcy for a small amount. They will help you to come to arrangements with your creditors and deal with them on your behalf and help them to stop interest and charges so as not to increase the debts.

Bankruptcy is not an easy choice. But call Payplan and get some advice.

Macduff_3

saubryn wrote:

(although in most cases I think you need to pay a fee to do it, I'm sure someone else can advise there), but it stays with you for a few years, and if you can avoid it, then all the better.

The fee for bankruptcy is £475, although if you are on certain benefits you are exempt from £150 of that. Its a bit of a struggle to raise the money but you can apply for a Social Fund Loan, or apply through your energy provider for a trust fund grant to help with the cost.

Which benefits are you on? Who supplies your gas and electricity?

It does stay on your credit file for 6 years but if you do go bankrupt, take the chance to start afresh and avoid credit like the plague.;)

Macduff_3

charlotte664 wrote:

You do not need to speak to a solicitor, Payplan (google them or CCCS above) will help, but I think you will find they will not advise bankruptcy for a small amount.

Although 8K of debt is not a vast amount, it is all relative. If you are on benefits and unable to pay more than token payments, bankruptcy is an option as £8000 will take a life time to clear. Generally, a District Judge will not let a bankruptcy go through if you can pay off your debts in a reasonable amount of time but it all depends on your ability to pay.

Debtworry_2

I appreciate on the replies and will read through the payplan link, also i spoke to CCCS who helped with my credit card i now pay them £20 per month but i owe £4700 so until i can return to work at £20 it's going to take forever and is getting me down, i spoke to my bank who gave me the loan and they said there was nothing they could do, i again spoke to CCCS who told me to send them an expenditure of what i can pay, but i dont feel upto it at the mo to be honest, i'm on incapacity benefit, i'm living with parents so not sure who the energy supplier is.

I wouldn't usually even think about bankruptcy, but trying to keep up payments is becoming a struggle when i only get £160 a fortnight to live on

Thanks again, much appreciated

Macduff_3

If you're living with your parents, can you ask them for a loan to pay the bankruptcy fee?
Having been in your situation (severe depression, on benefits and a similar amount of debt) you will find that getting rid of the debt will help end the depression. Its difficult to pull yourself out of it if you dread waking up to the same situation every morning.

Debtworry_2

Hi macduff, i was going to ask them for the money to declare myself bankrupt i'm sure they would, i just wanted to know what i was getting myself into before i do anything stupid, another question, say i was declared bankrupt, can the banks credit card company take my belongings and sell them to regain some of their money back? i mean my car is only worth a couple of hundred anyway, and they have to prove anything else i own is mine.

Thanks

Broken_hearted

I agree with other posters £8,000 is a payable amount. I had my lightbulb moment in Jan this year with over £18,000 worth of debt and have paid off over £3,000 already. Its not easy (bloody hard if I'm honest) but it is doable. Contact your creditors, do a SOA and reach a manageable agreement. Hugs.