My Personal Statement - Help please

Gemmzie

Would going bankrupt affect your career?

If you want a house eventually, then bankruptcy is going to affect your credit rating for approx 7 years (two for the bankruptcy then six for the file to clear) and a DMP for 11 years (five to pay it all back and then six for the file to clear).

notverygoodtammie

Gemmzie wrote: »

Would going bankrupt affect your career?

If you want a house eventually, then bankruptcy is going to affect your credit rating for approx 7 years (two for the bankruptcy then six for the file to clear) and a DMP for 11 years (five to pay it all back and then six for the file to clear).

Is it 6 years ontop of the payment? Yeah, going bankrupt would stop the aspiration to run a company one day.. I believe!?

Gemmzie

If you are defaulted (which the majority of companies do at some point during a DMP) then that takes six years to drop off your file. Some default early on, but people do have them do it quite far into a DMP which means it could potentially be 11 years.

notverygoodtammie

Oh if only I hadn't buried my head in the sand when I lost my job in December!!! Hind site is a great thing!

Thank you, I'll keep you posted

Moglet

Companies shouldn't default more than 6 months after missing or reducing payments according to guidelines I was quoted yesterday. You can't be a company director whilst bankrupt and you can't practice certain careers. Bankruptcy will stay on your credit file for 6 years from the date the order is made however you would always have to declare it when asked and you can expect to be asked for mortgages and even if they don't, they will carry out a bankruptcy search which is seperate to your credit file. It will be up to the lender then to decide if they're willing to lend to an ex bankrupt, some will and some won't, even if was 20 years ago.

JCS1

notverygoodtammie wrote: »

Is it 6 years ontop of the payment? Yeah, going bankrupt would stop the aspiration to run a company one day.. I believe!?

You cannot be a company director whilst you are bankrupt, but you can after you are discharged (normally after one year)

A bankruptcy on your file can prevent you from doing certain jobs, such as law or some FSA regulated jobs.

If you don't work in those industry's then it should not be an issue.

Jimby509

You owe over £45,000 and have no house that can get possessed. As others have said, look into going bankrupt.

DVardysShadow

I am almost at the point of agreeing with bankruptcy - but 2 other issues need to be explored first

• Any prospect of regaining your former income?
• How much longer do your 2 loans have to run? I suspect a long while, but if they are nearing their end, then you only owe a fraction of the original loan amount, which I am assuming is what you have quoted.

notverygoodtammie

DVardysShadow wrote: »

I am almost at the point of agreeing with bankruptcy - but 2 other issues need to be explored first

• Any prospect of regaining your former income?
• How much longer do your 2 loans have to run? I suspect a long while, but if they are nearing their end, then you only owe a fraction of the original loan amount, which I am assuming is what you have quoted.

Hopefully in the new year when perks of job kick in. I just got to get then.

The loans, are what remains. Egg loan is 14 months, Lloyds 5 years.

dancingfairy

A dmp is theoretically possible. You may struggle to get one of the charities to administer it for you due to the length of time it would take but it is technically possible.
Also if you expect to get extra perks of the job in January you can review it then if needs be - a dmp is flexible so when your wages go up you can pay more etc to be debt free quicker. You do need to be aware that the companies may not accept your dmp so may seek to bankrupt you but it is by no means a foregone conclusion. There are some people on here that have paid off large sums without bankruptcy - admittedly they are few and far between but there are some.
It's a personal choice really - to me it's 50:50.
Good Luck
df