£31,000 Unsecured Debts. On verge of Bankruptcy?

thisistony

Sorry, this is a bit of a long winded one.
I am 46 yrs of age. Divorced July 2007 with Court Order in Feb 2009 to transfer marital home to ex-wife, maintain interest payments on 60% of mortgage (£331,00 on £475,000 property) and pay her £300 pm spousal support for life! and £600 pm child maintenance for 2 children (17 & 13).
I was majority shareholder in Company until it closed in June 2009. It was paying me an income of £56,000 pa.
June-Oct 2009 I was unemployed but claimed no benefits. I have no assets that are worth considering as my share in marital home was transferred to wife in divorce. My only asset is a 7 year old VW passat probably worth no more than £1,000 max. I live in rented accommodation.
Started working for new company set up by my brother in Nov 2009 and pays me £25k pa. I am registered as a Director.
Over the last 7-10 years I have accumulated £31,000 of unsecured debts between 8 Credit Cards. Approximately £12,000 of this built up in last 2 years in respect of Solicitors Fees for divorce plus a desperate attempt to pay £1500-£2000 per month to ex-wife. The other £19,000 accumulated during marriage but I was given the debts as my part of the divorce settlement on the basis that I had prospects and would recover.
I have forms to file in court requesting a 'Variation' to Court Order (not yet filed).
Now in a desperate situation, having been unable to meet minimum payments on cards for 5 months. Have been writing to and speaking with creditors since last November. MBNA finally agreed last week to freeze interest and late payment charges. All others have ignored my pleas and two have instructed debt collectors.
As it stands I have an income of approx £1550 per month with outgoings of £2400 per month. All unnecessary expenditure, DDM's, S/O's, social life were cancelled many months ago.
Spoke to MBNA this morning as friend of family has offered to help with a 'no strings' loan of £3,000. Can maybe get another £1,000 elsewhere. This means that I could offer between 10p and 13p in pound (10% - 13%) of all debt in full and final settlement. MBNA almost laughed at me and said they would get more money 'Selling' the debt to a 3rd party. They and all creditors will want 40-50% as minimum before they will even talk to me or acknowledge an offer. In extreme cases they said they may accept 25%. This is still way beyond me.
As this is an impossibility, I feel there is nowhere left for me to go, nothing left for me to try.
I am desperate. Shall I just wait for the inevitable to happen or shall I stop paying all creditors and get enough money together to file for my own Bankruptcy? Maybe use the offer of a family loan to pay for the Bankruptcy?
I've tried the lottery ticket route but that hasn't worked either. I think a couple in Gloucestershire got the £56m I was hoping for!
Any suggestions, advice or tips will be grateful received.
Thank you.
Tony.

WASHER

Tony, you need advice, and you need it today, have you spoken to the CCCS (a debt charity), they will be able to help you. Check out their website, a wealth of knowledge, and come back and let us know how you got on. DO not use any company that will charge you a fee.

http://www.cccs.co.uk/

thisistony

Thanks Washer. I have spoken to CCCS on two occasions. All very nice but no real hard advice other than to write and don't take any stick from the creditors, just pay what you can genuinely afford...... that sort of thing. I will call them again and report back.

JasX

If i were you I'd be taking proper advice on the following.

How bankrupcy would affect your divorce liabilities
How bankrupcy would affect becomming a company director in future
How being director of a company would affect both you and the company if you go bankrupt

Then you'd be in a better position to weigh up options.... Bankrupcy does look quite favourable if all the above checks out.....