HELP plz big debt.

mandz1

hey all im new to all this but would like some advice. i am a 22 yr old single mum of 2 and have recently lost my council house due to my ex but i am having problems with my debt.
i recently tallied up what i think i owe and was shocked to see that it was around £16,000. i have written to a few of the creditors to say i will pay them between £2 and £10 a month as i am out of work at the moment. i really wanna pay of as much as i can asap but dont know how to do it.
please help.

PNPSUKNET

Think you might be worth going bankrupt, do you have assets?

mandz1

no assets. looked into bankruptcy but i would have to pay about £500 to go bankrupt which i cannot afford to do.

lesalanos

you need to open a basic bank account at a bank that you dont owe money to at present.

then you can write letters to them telling them that you will pay them £1 a month due to problems.

Can you fill in SOA from one of the stickies. this will help to get you loads more advice

try not to worry too much.. they cannot take what you do not have.

have a look at a dmp with cccs or payplan too.

mum2one

I'm sorry you've been through the mill, def agree re new basic bank account, list your incomings + outgoings, theres a link at the top. SOA.

Pop to the CAB for advice, and also ring one of the debt charities such as CCCS or payplan.

If push comes to shove you may be better going bankrupt, is there a way of not paying your fees or getting a charityhelp towards it, the CAB and CCCS will know more.

Good luck with it all xx

DarkConvict

If you owe under £15,000 then a DRO maybe a suitable option.

However if it is indeed over that, then going bankrupt would be best if you have low income and no assets.

BR does cost just over £500, however it is about ~£320 if you are on certain benifits. What people generally do is stop paying the debts and reduce spending drastically in order to raise the funds to pay for it. After which they can go for the BR hearing and see the back of the debts. Although surplus income is taken for 3 years, and debts via fraud/gambling (i believe 40% or more from gambling and the BR is refused anyway) are not wiped away.

girlracer

Get all of your credit reports, and see what information is held about you
see when these debts are due to clear from your reports, if they are due to come off reletively soon .. i mea ccjs and defaults, i would leave them and let them come off
although i will probably get a telling off for saying that, your only 22, uve had a hard time and its clear you are trying to sort your self out.
defo agree with the basic bank account.

are you getting threats from debtors at the house your at now ?
i would wait and get your credit reports and then you can see how bad things are

fatbelly

Bankruptcy fees:

From 6 April 2010 it costs £450 deposit plus £150 as a court fee.

If you're on a prescribed benefit (sounds like you're on Income Support) then you can get off the court fee with an EX160 and a letter from the DWP.

General principle is - get your accommodation sorted out first and then deal with the debts. If you post a SoA (http://www.makesenseofcards.com/soacalc.html) we may be able to give better help.