Bankruptcy 27th May - Right thing to do?

kkjamor

Hello Debt Free Wannabe's... I would like to be one too!

I am due in court to file for bankruptcy on 27th May but I really don't want to do it

We are a young family, I am 23, husband of 21, and daughter of 3 years.

My husband was made redundant 3 weeks after we moved in to our first (rented) home and prior to that was also made redundant by his previous employer. First redundancy was in Nov 08 which was followed by 3 months of unemployment. He found another job in Feb 09 and was made redundant from that in August 09. He is a Carpenter and so it was really hard to find work and so we started our own Handyman/Carpentry business.

I also had to take a pay cut in order to keep my job in Jun 09.

I'm sorry this is so long! To top it all off I was diagnosed with mental health problems around November 09 and am under the care of a psychiatric team.

All of these factors have resulted in us not paying our debts since Nov 09. I have not opened any letters. I have not spoken to them at all and we were advised that bankrutcy was our best option and so I made an appoinment with the court but with the appoinment looming, I am getting cold feet and really want to try to resolve this with going bankrupt and this seemed like a good place to start!

Our debts total around £35,000. If anybody can offer any advice we would both be VERY grateful

Thank you for reading, apologies for the length of post I have just emptied about 6 months of worry on to one post!

K x

DEVONLIFE_2

Hi kkjamor
Sorry to read about your problems but your amongst people who can help and give advice. Firstly have you sought any help professionally ie CAB or CCCS if not I think that a court will not approve bankruptcy as one of the questions asked is have you sought advice. You need to do a SOA statement of affairs and we can see if we can help. It may also help if you contact the CCS for advice.DL.

kkjamor

Hi Devonlife. Thank you for your response. CCCS advised us that bankruptcy was the best option as we have no assets and essentially would be clear of all debt and could start a new life after 6 years. As wonderful as this sounds, I still can't get my head around being a 'bankrupt' x

DEVONLIFE_2

Obviously then you have done the SOA and they have looked into it. I would read the posts on the bankruptcy threads to read other peoples experiences. I would wait to see if others post here as many have more experience on this than I do. Being a bankrupt in todays world is pretty well accepted! What ever you decide I hope things work out.

kkjamor

Thank you very much. x

Hammyman

1) Do you own your own house or anything of significant value?
2) Do you have a realistic chance of meeting the repayments without severe hardship? (severe hardship - having to choose between paying the rent or eating or gas or electric, not simply having to do without Sky TV, fags or beer)
3) Do you have any realistic chance of paying it off within a reasonable time, say 10 years?
3) Is this severely impacting on your health (mental and physical) and your family?

If the answers are no, no, no and yes then its simple.

CCCS have confirmed it as the only viable option. Bankruptcy is not what it used to be. Most people nowadays are surprised at how little impact it has but just how stress relieving it is.

never-in-doubt

kkjamor wrote: »

Hello Debt Free Wannabe's... I would like to be one too!

I am due in court to file for bankruptcy on 27th May but I really don't want to do it

We are a young family, I am 23, husband of 21, and daughter of 3 years.

My husband was made redundant 3 weeks after we moved in to our first (rented) home and prior to that was also made redundant by his previous employer. First redundancy was in Nov 08 which was followed by 3 months of unemployment. He found another job in Feb 09 and was made redundant from that in August 09. He is a Carpenter and so it was really hard to find work and so we started our own Handyman/Carpentry business.

I also had to take a pay cut in order to keep my job in Jun 09.

I'm sorry this is so long! To top it all off I was diagnosed with mental health problems around November 09 and am under the care of a psychiatric team.

All of these factors have resulted in us not paying our debts since Nov 09. I have not opened any letters. I have not spoken to them at all and we were advised that bankrutcy was our best option and so I made an appoinment with the court but with the appoinment looming, I am getting cold feet and really want to try to resolve this with going bankrupt and this seemed like a good place to start!

Our debts total around £35,000. If anybody can offer any advice we would both be VERY grateful

Thank you for reading, apologies for the length of post I have just emptied about 6 months of worry on to one post!

K x

Instead of B/R which will stay with you for life (if you ever go for a job in certain sectors or apply for a mortgage they will ask if you've been made b/r - you have to legally say yes for the rest of your life) - why not consider unenforceability - Unenforceability & Template Letters III

If you have debts from before April 2007 then it could be worth a shot, alternatively you could look to see if you were sold any PPi or insurance plans with your loans/cards and if so reclaim this as it will help reduce any debt.

Regards to unenforceability, the debt is never "gone" as such, until 6 years have passed at which point you could start again as it would all be clear and you'd not have the b/r stigma attached to yourselves.... but it is better than going b/r - especially as your credit file is shot for the next 6 years anyway (due to not opening letters for 6 months) - so nothing to lose, but you do need to consider the facts - have a mooch and if it is for you, then it's worth a shot prior to jumping into b/r - Unenforceability & Template Letters III

Good Luck, am here to help if you do decide the UE route suits you.

I suspect with your ages that the debt is all newer than 2007 so may not be an option in fairness....

fermi

What exactly is bothering you about bankruptcy? There are a lot of 'myths' and 'nonsense' repeated about it, so if we know your concerns then we can try to see if they are founded or not.

You've spoken to CCCS and had their recommendation, but why not try one of the other free advice organisations for a 2nd opinion?

See: Non-profit Debt Counsellors' List

If one or more of those advise the same, then it may give you more confidence in the advice.

Or if they may suggest other ways forward. Token payments for a while perhaps, if there is a prospect that things might improve.

For advice on the bankruptcy side, go and post here on the Bankruptcy & Living With It.In the end, no-one can force you to go bankrupt, just try to help you decide.