Bankrupt ! bad as it sounds?

uglysmithy80

Hello Everyone,

I am very new to this, i will have to declare myself bankrupt in a couple of weeks as i lost my job and i have fallen behind in payments. My creditors to be honest do not really care that i need help as i cant pay my monthly payments.

Is it as scary as it seems?, With IPA 's & IPO do they actually take every last bit of money after paying my bills? will i have a life after going bankrupt or is the OR fare? will i definately have to pay back over the next 3 years? Will i be able to get a morgage in 6 years time?

I have just got a job which is 10K basic and the rest is commission based? how do they work out what i have to pay back each month. because if i do not sell any cars i will only take home £650 after tax and i pay nearly that on rent to my parents and phone bills, money to my daughter.

So So worried i am getting ill.

Kind Regards
Andrew

Ineedaname

Hi Andrew and welcome to you.

First of all - stop worrying about the ifs and buts of life after BR, the decision is whether you should go BR now or not.

So contact one of the free debt advice charities listed in the sticky thread 'Look Here First' and go through all your finances with them.

Having said that, to answer a few of your worries.

The BR allowances to live on are actually quite generous, but yes they will take all your surplus if you have in excess of £20 surplus per month. An IPA runs for 3 years from when it is set up and is flexible up and down according to changes in your finances over the period.

There is life after BR and people do get mortgages later on, but as I said above, don't worry about that just now.

As your income is commission based you would probably have to submit regular figures to the OR throughout your BR year/IPA period.

dancingfairy

Hi Andrew - Have you discounted token payments, a dmp, an IVA, a DRO etc etc? My point is there are many different solutions to the problems of not being able to pay your debts and you should not automatically assume bankruptcy is the option. It is one of many and may or may not be the best solution for you.
Please have a chat with the debt charities and see what they suggest. If they recommend bankruptcy then I'm sure the good people on here will help you with all you need to know. If not then the IVA board is good for IVA's and the debt free wannabe board is good for dmps and token payments etc so I'm sure you will find plenty of support whichever option the debt charities suggest. Oh and at the end of the day they can only suggest - at the end of the day it's up to you which will suit you best.
Best of Luck
df

dojoman

Hi and welcome to the forum:)


Please contact one of the charities below, they will offer free and impartial advice.

https://www.nationaldebtline.co.uk/
https://www.citizensadvice.org.uk/
https://www.cccs.co.uk/

pachalad

Hi Andrew,
first of all, You will get through this - regardless of the decision you make. I went bankrupt, I had to leave my job, horrible times. Once I was declared bankrupt; the letters stopped, the calls stopped... It started to become a little easier. Once I was working, my monthly payments were as much as £145, but they have dropped massively (as I'm back at uni) so as other members have said, the payments do vary and are fair.
For myself, bankruptcy was the best route I could have taken, it's definitely not for everyone, so make a trip to your local CAB or call one of the above org's.
This website will be a mine of information regardless of what you do. Good luck!