Is bankruptcy really an option?

lynzpower

missk_ensington wrote:

And how would you go about proving this? Last I heard there isn't a scan available to read your thoughts.

Ethically/legally it is wrong, but morally I can see where he is coming from as I too would be distraught at the thought my family were out of pocket because of me.

I presume it would get "proven" in court, if the original lender ( ie the secured loan provider) twigged on if the dates are too close together

missk_ensington

It is quite feasible that someone is a lot of debt would try and get more credit to keep their head above water? I know people in a lot of debt have got loans just to feed and clothe their family as all the money is sucked into debts.

Also, many irresponsible bankrupts are banrkrupt because they got credit and blown it on going out, meals etc etc, and it would be impossible to prove someone didn;t just go out and blow it on a binge drinking frenzy. It was on Trevor McDonald last year sometime about this lad who'd gone bankrupt after spending £100,000 in Londons swanky bars and on loose women in Stringfellows!

daxon

lynzpower wrote:

Could I recommend then that you stop lending him money he is unable to repay, as this is likely to make him feel worse in the long run

I know where you are coming from but with no money for petrol he can't get to work, hence job lost............... then he really would be in trouble and I would worry even more for his mental health.

daxon

well......... from what I can gather he is having a pretty bad weekend. Early hours he convinced himself that everyone would really be better off without him but managed to hang on. I have told him of your advice and he now knows going bankrupt is not an option. Taking out a loan isn't an option really either as he just couldn't afford the repayments. All I can do is just be there I suppose.

chevalier

You can get your full credit history from Experien for £2 (?) I think. He will then see exactly what debts are in his name and what the total is. He will need this for Payplan or CCCS anyway. I think you can get the credit history online.

Next he needs to get together all the paperwork for his debts. Plus paperwork like wage slips. He will need these for the phone interview that Payplan or CCCS (whichever one he has talked to) do to assess his level on indebtedness. He may have to face up to going back home to get this information, but it is vital so that the debt repayment shedule the company sets up is manageable.

I am a bit confused as to why he has left home? It will not protect his family and their home from his debts ?

He could also post a statement of affairs on here, to see if the monthly outgoings can be adjusted to help pay the debt. Ie changing to pay as you go mobile, switching utility providers, getting rid of sky/go for the basic package, etc etc.

Best of luck
chev

all_hours

daxon wrote:

well......... from what I can gather he is having a pretty bad weekend. Early hours he convinced himself that everyone would really be better off without him but managed to hang on. I have told him of your advice and he now knows going bankrupt is not an option. Taking out a loan isn't an option really either as he just couldn't afford the repayments. All I can do is just be there I suppose.

Would he sign up here and post an SOA or could you post on his behalf? The other DFWs will be able to offer advice cutting down on his outgoings and moving debt around to keep interest low. The thread by southernscouser has a template to follow -

http://forums.moneysavingexpert.com/showthread.html?t=107280