Advice On Bankruptcy

Rallya

I am on Incapacity Benefit too at the moment and owe £29k to my credors.

What I did was write to them all enclosing a copy of my letter from the benefits office confiming the amount I get each week and said I could only pay £1 per month until I get myself sorted out and back to work. Still negotiating with my creditors at the moment but ive found that out of the 5 creditors I owe, 3 of went to debt collection agencies and have accepted payments of £1 per month. The other 2 debts i havent heard anything back from yet.

For £8k I really wouldnt go bankrupt as its not worth it, if you think you are going to be back in work any time soon. Just write to them enclosing a copy of your benefit letter and state you can only afford £1 per month and to only contact you via letter.

Hope this helps

Debtworry_2

Thanks to all who replied, i just spoke to pay plan and they were very helpful and are going to send me out an info pack so i can write to my creditors, they said even if i can only afford £1 per month then that's all they can have :j looks like i wont have to go bankrupt after all :T

Thanks everyone, your advice was very helpful

Wonder_Girl

Hiya Debt worry,

Regarding the selling of possessions it is something they would look at, but if your car is only worth a few hundred they would let you keep it.

With the information I have so far I think bankruptcy is a good option for you, however there are two things I would like to know before I tell you to go ahead –

1) how long do you think you will be out of work?
2) What are you spending the £346 a month you get on?

Please don’t think I’m trying to be rude, it’s just without this information I can’t tell you if a bankruptcy is really your better option

viktory

Although Debtworry says s/he no longer has to declare bankruptcy (hooray!!) :j :beer: a thought has occured to me - if bankruptcy was declared would it affect his/her parents as that is where Debtworry lives and I assume would be the address on the banruptcy petition?

sanfrancisco

You really need to concentrate on getting better now. Try (I know its hard) to stop worrying about the money. You will get through this. Beware of the cycle of being out of work for too long. Could you do some voluntary work, to keep your toes in the door?

Wonder_Girl

viktory wrote:

Although Debtworry says s/he no longer has to declare bankruptcy (hooray!!) :j :beer: a thought has occured to me - if bankruptcy was declared would it affect his/her parents as that is where Debtworry lives and I assume would be the address on the banruptcy petition?

No, Credit checks only relate to the individual now and not the property

Debtworry_2

Wonder_Girl wrote:

Hiya Debt worry,

Regarding the selling of possessions it is something they would look at, but if your car is only worth a few hundred they would let you keep it.

With the information I have so far I think bankruptcy is a good option for you, however there are two things I would like to know before I tell you to go ahead –

1) how long do you think you will be out of work?
2) What are you spending the £346 a month you get on?

Please don’t think I’m trying to be rude, it’s just without this information I can’t tell you if a bankruptcy is really your better option

Hi Wonder_Girl

In answer to your questions, i'm not sure how long i will be out of work, i was under a counsellor but you only get a limited time, and may need to see them again soon.

The £346 i get a month, ok a quick rundown:
this is monthly outgoings:

£136 a month for my loan repayment
£30 ISP
£10 S/O into my sons account
£25 Car insurance
£60 Rent (although i very rarely pay this as i cant afford it)
£15 bank charges for the privalege of having an O/D facillity
£25 petrol
£40 shopping ( i do my own shopping)
£20 Food for my son as i have fortnightly contact
£20 Credit Card
£30 Another Credit Card

That was a good question from Viktory, i never thought of that, but least you calrified it will just be my name not the household.

Wonder_Girl

Debtworry wrote:

Hi Wonder_Girl

In answer to your questions, i'm not sure how long i will be out of work, i was under a counsellor but you only get a limited time, and may need to see them again soon.

The £346 i get a month, ok a quick rundown:
this is monthly outgoings:

£136 a month for my loan repayment
£30 ISP
£10 S/O into my sons account
£25 Car insurance
£60 Rent (although i very rarely pay this as i cant afford it)
£15 bank charges for the privalege of having an O/D facillity
£25 petrol
£40 shopping ( i do my own shopping)
£20 Food for my son as i have fortnightly contact
£20 Credit Card
£30 Another Credit Card

That was a good question from Viktory, i never thought of that, but least you calrified it will just be my name not the household.

Dw,

Armed with this new information I don’t think bankruptcy is an option for you at the moment, according to your figs if you take off the creditors you are only spending £155 on you and your son. Even if we plump this out with extra food and mobiles etc I think you could still have about £100 left to throw at your creditors. I think a DMP is a much better way to go currently. Based on the figs a bankruptcy is unlikely to be granted as you could repay this in around 6 years at the £100.

I’m glad to hear your getting support for your depression at the moment, but fingers crossed you should be on the mend soon. As I said I think a DMP would suit you better and I appreciate that the stress caused by the debts is probably detrimental to your recovery. I would give CCCS a call on 0800 138 1111 and ask for an appointment with a counsellor to set up a DMP, so long as you can afford £5 per creditor we will be able to support you. By being on the DMP CCCS will take care of your creditors, and although it can take a few months to settle down contact from your creditors will significantly reduce which will relieve some of the pressure and allow you to concentrate on yourself and getting yourself better.

And don’t forget this would be a temporary solution. Once you are back on your feet and start work again you could reduce that 6 years right down just work on the basis that the 6 years is the very MAXIMUM and you would quite probably be debt free a LONG time before that

WG xx

Debtworry_2

Thanks Wonder_Girl can i just ask what a DMP is? also i'm registered with the CCCS, they were the people who helped with my Credit Card, and i since talking to you guys at CCCS pay £20 a month

Debtworry_2

I'm wanting to ring CCCS tonight if possible, so if anyone (Wonder_Girl) can confirm my previous question i will be greatful

Thanks