Is bankruptcy an option for me?

emmalou_2

Hi

I'm *trying* to get my life sorted out but i have 8 years of debt hanging over me...

Ive not paid off any debts (apart from one) since August last year... i dont even open letters anymore - just leave them to pile up

the only debt ive been paying was argos - it was only £20.00 a month and i last spent on that 9 months ago, yesterday i got a bill and it said the intrest charge on the £2000 i owe them was £235 for that month, i was horrified! it put my minimum payment from £20.00 to £220.00 so i cancelled the standing order as there is no way in hell i can pay that

I was in a rented house until March and left there as the house was being completely refurbished, i am on a long list waiting to be rehoused and am currently staying at friends.

I have no assets, no nothing... just approx £45,000 of debt

is it just best to call it quits and declare myself bankrupt seeing i have nothing to lose?

I dont know what else to do as i have no way of paying anything off

skylight

You need to post your income and outgoings (SOA - statement of affairs). List everything and we will pick it to the bones to see where you are overspending! (See the Debt-Free stickys section for Southern Scousers post)

Thats the start.

You also need to contact Payplan or the CCCS (google Payplan and CCCS link is above this thread) to arrange a telephone appointment to discuss all your options.

BR is a really big step. Its not to be taken lightly - even if you do not have any assets.

emmalou_2

Monthly Incomings:

My salary - 800.00 after tax

Monthly Outgoings:

Mortgage/Rent - £300
Broadband - £27.99
Phone - £100.00
Food - £100
Travel - £36
Loan from boss - £80
cigarettes - £90
account fee@bank - £10
Private heath care £46

=789.99

wow i have 10.01 left over

and no life! so it seems...

i honestly could not tell you my current debts... i have a letter from when i offered them all £5 per week which was around July last year, i will post those amounts

Mint
5897.17
Egg CC
6,000.29
Egg Loan
£7,914.87
Capital One
£3,694.62
MBNA
£4552.12
Barclays
£1,320.00
Argos
£2200
Boss £3000 (has to be paid off £20.00 per week)

=£34579.07

all debts have now of course been sent off to agencies as it has been over a year

ooooh maybe i dont owe as much as i think!

though of course apart from the last 2 - theres a years worth of whatever charges theyve decided to add to me

Honeybee_2

Is the £100 phone a mobile bill?

emmalou_2

Yup thats my average month - but im within contract term too as soon as its out im going to change it to PAYG

Honeybee_2

How long do you have left on your contract?

You could ask the airtime provider to put you on the lowest possible tariff then sort out a pro forma to pay the contract off. (if they resist, threaten OFTEL, they soon relent!) Even if you'd just started the contract, you could pay it off with what you're paying in a month now!

emmalou_2

i got it in June and im on an 18 month contract, to be honest the charges are really not that bad - its me thats bad
I pay 12.50 a month + 6.99 for insurance.... and i get 100 mins free and 500 text messages, im working on keeping it down this month, so far half way into the month im at £26.00 so im lookin at it bein around £60.00 for this month

Honeybee_2

I'm on PAYG....

I pay £15 per month, get 400 texts and 150 x net, off peak mins with £3 to spare for daytime calls if required. :T

I was awful on a contract phone, I used to spend £150 per month. :eek:

all_hours

Mortgage/Rent - £300
Broadband - £27.99 - this could be cut to £15
Phone - £100.00 - this is high
Food - £100
Travel - £36
Loan from boss - £80 - £20 per week is £87 per month
cigarettes - £90 - stop smoking or switch to rollies.
account fee@bank - £10 - what do you get for this - do you make use of any of the extra features?
Private heath care £46 - Why do you need private health care.

Hi this is a few thoughts on your outgoings.

fatbelly

Well I can't see that you have a reason not to go bankrupt.

Apart from, possibly, that loan from your boss.

Was that an advance of salary or some more informal arrangement? You need to be clear how the Official Receiver would view that one and how your boss would react to it being included in bankruptcy given that there is unlikely to be much if any money available to your creditors.

If you can give us some info on that one, there are a few posters on this board who work for the OR and could confirm whether it would be legitimate to continue making payments in order to preserve your employment.

emmalou_2

all_hours wrote:

Hi this is a few thoughts on your outgoings.

thanks for your notes

I have private healthcare that i darent cancel. I suffer from Avascular Necrosis and Arthritis, darent go through the nhs

The loan through my boss is £20 a week... i get paid weekly so i just take it out of there sorry for just multiplying that by 4


Fat belly - thanks for your advice

I wouldnt put the loan from my boss through the bankruptcy claim, i'd still continue to pay that - it was a very informal agreement more done as a friend than an employee
it isnt in writing anywhere so that shouldnt cause a problem if i still continue to pay that right?

how do i go about declaring myself bankrupt? where do i even start?

oh - I have outstanding council tax too can this go in there? its only for approx £200