Is bankruptcy the best option for me?

emptypiggybank_2

Hello,
i've been reading these forums for quite a while now, and i've been doing quite a bit of research into bankruptcy...

I'm 27 and currently unemployed after my place of work closed 3 weeks ago.
I'm considering going into primary school teaching, and would start a PGCE next september.
I really just want to want to wipe the slate clean, and make a fresh start, and it would be very hard to study and commit myself to the course if i'm working all hours after college to make ends meet and continue paying off my debts (when i did my degree i did quite a lot of hours in my part time job, and i think this affected my uni work).

I have no assets, no car (can't even afford lessons :laugh:), nothing of value and no savings.

Currently my debts are:
Overdraft - £700
Friend - £500
Parents - £600
LLoydsTSB advance card - £3,256 (5.5% LOB)
LloydsTSB loan - £5,456 (£168.63 pm, 37 payments left)
Virgin card - £1,500 (soon to be transferred to &more 3.9% LOB)
Total - £12,012 :eek:

+Student loan - approx £17,500/£18,000 (unsure, haven't paid anything back yet, and had no contact with them).
I know this won't be included in the bankruptcy.
I will probably need to get another student loan if i go to do the PGCE - would this be permitted?

So is bankruptcy an option for me?
I know it affects your ability to get a mortgage, but it will probably have dropped off my credit file by the time i apply anyway.

I know bankrupcty is not the easy way out, but i'm beginning to think it's the best option for me, considering what i want to do.

Any advice much appreciated
thanks
x

rog2

I'm not sure that Bankruptcy is the best option - it is certainly one option, but you would need to take into account that your Student Loans can not be included in your Bankruptcy.

Storm

Have you looked into the funding around being a student again? If you go the PGCE route you'll get I think £6k to live on, but if you do the GTP (Graduate Training Programme I think!) you are based in a school and get £12500 a year. The training does take 2 years doing it this way as opposed to 1, but it's more than double the money (plus, a friend of mine who did this negotiated a raise in her 2nd year to NQT level pay of around £20K)

What are you intending to do in between now & starting to train, as presumably you're too late for this year's intake?

I don't know anything about bankrupcy I'm afraid, but I'm sure someone will be along soon who does

Good luck!

Storm

Storm

Oops, and meant to say - having seen friends go through the PGCE course, it's so tiring with the teaching practise, plus lectures, plus assignments that none of them had the time to work part time as well

Angela_D_3

you will have to declare that you are bankrupt on every application form you fill out even for agency work. Is a headmaster going to believe you can manage a classroom and work load if you can't manage your finances.
I would do everything you can to avoid bankruptsy, you've only just begun your life, this the begining.

mrslawrence2003

well it sounds as if you are still able to work, so can still generate an income. not too sure why you dont work for another year to bring the level of debt down and then apply for your course? sure it's a pain in the !!!! and you can't do what you want right away, but having what you want when you want it rather than saving up for it could be one of the reasons you got into debt in the first place.

i want very much to do a masters. but i can't afford it cos of my debt. however i am not, nor would i consider going bankrupt just so i could do what i want. yes i would be very happy if i could do a masters, but i would be extremely unhappy if i had to go bankrupt to do it.

in all honesty, i dont think bankruptcy is really the best solution for you. but then i am not a professional. have you contacted payplan or cccs as they would be able to offer you help and advice about the best course of action that will enable u to achieve your goals.

good luck!

earwig

the question is can you aford to pay your debt if you can you cant go bankrupt do a dmp instead i know its nice to wipe the slate clean but bankrupcty is for when you dont realy have a choice anymore not just cause you would like to do a course and have a fresh start belive me my oh is bankrupct so i know what im talking about its not the free ride its cracked up to be

bikerqueen

Your friend and parents will have to be treated equally in bankruptcy with your credit card/bank companies. How will that go down?

My suggestion is to work really hard this year and get rid of the debts. Apply for your PGCE to start in September next year, post an SOA here and get the nerds to help you minimise your outgoings whilst you work super hard to maximise your outgoings. It's only 12 months.

Then when you start next year (with only student loan to pay off, and only when you start earning, although overpaying that would be rather lovely when you're earning enough) promise us you'll teach kids to avoid the mess we find ourselves in by training them in sound financial management!

emptypiggybank_2

thanks for the replies! definitely given me a lot to consider.
i'm planning to just work from now until next september, so i will hopefully be able to bring the debt down to a more managable level.

thanks storm, it looks like that route into teaching would be better, that was one of my main worries, becoming a student again while also trying to work and pay off the debt.

x

LolStevo

Storm wrote:

Have you looked into the funding around being a student again? If you go the PGCE route you'll get I think £6k to live on, but if you do the GTP (Graduate Training Programme I think!) you are based in a school and get £12500 a year. The training does take 2 years doing it this way as opposed to 1, but it's more than double the money (plus, a friend of mine who did this negotiated a raise in her 2nd year to NQT level pay of around £20K)

What are you intending to do in between now & starting to train, as presumably you're too late for this year's intake?

I don't know anything about bankrupcy I'm afraid, but I'm sure someone will be along soon who does

Good luck!

Storm

Hiya, you can get between 6,000-9,000 depending on your subject! To me going bankrupt does not sound like the best option. Have you tried like CCCS and them? x