Thinking Seriously About Bankruptcy

Moosejaw

Hi everyone,

I only joined yesterday and I have learned a lot alright. I am emigrating very soon and I have a credit card debt of around £10000 to the Co-op bank that I know that I will cannot pay off in time.

With my salary it will take me well over a couple of years to repay this amount. I have already missed a payment and I am trying to make up for this. I am having to repay them £1000 this month that I cannot afford. I am trying to pay off what I can but this is very difficult on my salary.

I only live on essentials and I have cancelled all direct debits, except the direct debit for my credit card to the Co-op. I know that my debt problem is not as severe as other people that I have read about, but I am deeply distressed by this.

I am seriously considering bankruptcy because I know that I cannot repay the amount before I have to leave. Because there is a time limit on arriving in the new country I will have to leave within months of getting my visa through.

However I do not have any assets at all except an old car that is not worth too much more than a bag of chips and the computer that I am writing this on. The computer is now not worth very much at all. I still live with my parents because I cannot afford any where else and I have no savings except my occupational pension that I cannot get access to until I retire. The effect of bankruptcy on my credit rating will not matter too much because I won't be in the country any longer, but if I have to return it could harm me. If I go bankrupt could this affect my parents?

Does anyone have any advice? I know that this is an unusual request for help.

Thank you

Wonder_Girl

Just because you are going to be living in a different country doesn’t mean you can’t still repay your debts.

A lot of people who live aboard operate DMP’s with one of the above charities, they send a monthly payment to them and they pay the creditors on the clients behalf.

I suggest you contact Payplan or CCCS (links above) to get advice.

It is VERY unlikely a judge will grant you bankruptcy if you are able to repay the debt in a reasonable amount of time, regardless of the country you will be living in.

WG xx

was_bankrupt

You may also want to consider the impact that you actions will have regarding your entry to the country. Financial status can be an important qualifying factor.

Dolly_Smith

I really wouldn't go for bankruptcy - as the other poster says, the judge is unlikely to grant it if you are just moving to another country and could pay it back over time

Broker_2

I think you should talk to CAB. I can understand you would like to 'wash your hands' off all your debt and to start life afresh. Bankruptcy can help you if it does not affect you in your new country. I'm not sure what criteria would be used to apply for a bank account, loans, etc in that country. Your best bet I think is a debt management plan with an aim to settle your debts in five years. Here you would repay an amount that is affordable and your debt would be written off in full in the end. The advantage is that you will pay a fixed low amount. Speak to CAB asap.