JSA - bancrupcy option?

grumpyoldwoman41

Hello everyone,

To try to cut a long story short and stick to the facts - I have taken sort of voluntary redundancy from my last job and I am not working since 1st December this year.

Till then I used to pay about £570 per month via DMP with CCCS to my several creditors, the DMP was frozen for December and January now as I explained to CCCS that I am no longer employed.

I have just received a letter from Job Centre, that I have been awarded JSA of £65 per week, I am still waitng to hear about Housing Benefit and CT benefit - it seems to take ages, I have applied 1`st December and still no decision.

Being on JSA I am obviously unable to keep the payment of £570 per month or make any payments really as frankly I have no idea how am I going to live on £65 per week (I was on 43k per year so far) till I find another job/when I find it.

So obviously thought of going bancrupt.

Can someone on JSA apply for bancrupcy?

I was told that if my outgoings are higher than my income (and at the moment they are while I am trying to work out where/what can I cut on) that I can NOT apply for bancrupcy?

Is this correct?

If I can not afford to make payment AND I can not apply for bancrupcy - what on earth am I supposed to do?

Any advise very much appreciated.

fermi

grumpyoldwoman41 wrote: »

Can someone on JSA apply for bancrupcy?

Yes.

grumpyoldwoman41 wrote: »

I was told that if my outgoings are higher than my income (and at the moment they are while I am trying to work out where/what can I cut on) that I can NOT apply for bancrupcy?

Is this correct?

Nope. That is utter nonsense.

If you are insolvent the court will declare you bankrupt.

Obviously, if you did go bankrupt you would no longer have access to credit (if you still do now). So you would have to address the shortfall between your essential expenses and your income. Plus ,of course, find £600 (ish) for the fees beforehand.

Have you talked to somewhere else for impartial advice such as National Debtline?

debt_doctor

Hi,

Yes, as Fermi says you can go BR on JSA.

Your costs would be £450 and if your only income is JSA then you would not have to pay the court fee of £150.

Again, if JSA is your only income you will get full c/tax benefit and maximum housing benefit (which may or may not pay all your rent depending on whether social housing or private rent)

As said, you need to talk to a debt charity.

DD

grumpyoldwoman41

Fermi and Debt Doctor - thanks for that.

So being on JSA I would only have to pay £150 in fees and not almost £500?

fermi

debt_doctor wrote: »

Your costs would be £450 and if your only income is JSA then you would not have to pay the court fee of £150.

Only if you are on 'income based' JSA.

If you've paid enough NI to be in 'contribution' based JSA for 6 months, then that doesn’t exempt you from the £150.

grumpyoldwoman41

I think mine is contribution based, I was working for years before having to claim now.
So what the court fee for the Bancrupcy Application would be then please?

Thanks a lot

fermi

grumpyoldwoman41 wrote: »

Fermi and Debt Doctor - thanks for that.

So being on JSA I would only have to pay £150 in fees and not almost £500?

No. You would have to pay £450 at least.

If you are on one of the above benefits, then you would be exempt the other £150.

Otherwise, you would have to pay the full £600.

grumpyoldwoman41

Oh I see, thanks a lot for that.
I thought it was the other way around and while on benefits I have to pay £150 only.
Thanks for straightening this up for me.
It is expensive to go bancrupt.. another worry

fermi

grumpyoldwoman41 wrote: »

It is expensive to go bancrupt.. another worry

I know. It's daft...:(

hhhonlyfan

hi,

just a thought here but if you dont mind me asking how much debt have you got? if its under 16k apply for a debt relief order. if you outgoings are more than income this could be for you.

Its like a mini bankruptcy but costs only £90

grumpyoldwoman41

Thanks but is it much more than 16K