Is it still ok to go BR when I have been paying everything at minimum amount?

freedomfinder

I have £26000 of CC and loan debt.I actually have a good credit rating as have been paying everything by DD for years at minimum amount.The amounts are not going down for this reason and I have paid horrendous amounts of interest.Is it still OK to petition for bankruptcy?

Also when you do the SOA do you do it as if you are not paying the debts as I have obviously been paying about £600 a month in minimum payments.I have done an SOA as others have done on here and can actually get it to a figure where I am left with a surplus of under £100 but will the OR want to know how I managed to pay £600 to debts.It is mainly because I have not accounted for things like car tax/tv licence....but have just got them on the CC as they come up!

Have spoken to Nat Debt Line and have appointments in 2 weeks for CCCS and CAB.I phoned Walsall court and they said as soon as I give the OK I could petition in a week or less.

confused76

freedomfinder wrote: »

I have £26000 of CC and loan debt.I actually have a good credit rating as have been paying everything by DD for years at minimum amount.The amounts are not going down for this reason and I have paid horrendous amounts of interest.Is it still OK to petition for bankruptcy? yes. you can petition for br if you are insolvent - eg you can't meet your debt repayments as they come due - eg you can't meet your minimum repayments you are insolvent

Also when you do the SOA do you do it as if you are not paying the debts as I have obviously been paying about £600 a month in minimum payments. yes, do the soa as post br I have done an SOA as others have done on here and can actually get it to a figure where I am left with a surplus of under £100 but will the OR want to know how I managed to pay £600 to debts. no, this is the same for a lot of people don't worry about that It is mainly because I have not accounted for things like car tax/tv licence....but have just got them on the CC as they come up!

Have spoken to Nat Debt Line and have appointments in 2 weeks for CCCS and CAB.I phoned Walsall court and they said as soon as I give the OK I could petition in a week or less.

i've answered your questions above i hope this helps

debtinfo

are you saying that you can afford the repayments or cant (out of your normal wage)

freedomfinder

I have been managing to pay minimum amounts for years but balances have been barely altering and I have been robbing Peter to pay Paul.It is making me very depressed seeing these big amounts of interest going on every month and I see no light at the end of the tunnel.If I went bankrupt I could pay rent to my Mum and not have her subsidising me all the time.I would rather pay to an IPA than continue paying min payments.

debtinfo

I think the key here is to differentiate from being able to make the minimum payments out of your income (after reasonable personal expenditure) which would mean that you couldnt go bankrupt.

and makig the payments only because you have continued to use credit to ake the difference which would mean that in fact you cant afford the min repayments and so can go bankrupt.

I suspect that you are the latter case

freedomfinder

Yes I have used the CCs to pay for any emergency or extra expense that comes up or things which you pay yearly.Also my Mum has been subsidising me and I have never paid her any rent.Can I put some rent for Mum on my SOA?

debtinfo

yes you can, it may be worth speaking about it now and to put in writing how much she expects you to pay for the rent

freedomfinder

What do you think would be acceptable?My Mum is not bothered so anything is better than nothing.Its just that I think I should give her something and if I left here I would have to find rent from somewhere!

debtinfo

I would think that if there were 3 adults in the house then 1/3 of all the rent and bills would be acceptable. If 2 adults then 1/2 etc

freedomfinder

There is no rent or mortgage as Mum owns the house.Also it is me and my son living with Mum.Son at uni is here all hols as well.

savvy

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