Bankruptcy or not?!?!?!

leon1983

I recently had a CCJ given to me by a previous employer over a dispute over contractual terms. The CCJ will now be on my record for 5.5 more years. However, i have paid the sum on a credit card... 6k...in full however it was not within a month of the CCJ being issued.

I have 10k worth of existing debts all on credit cards and overdraft all interest baring. I cant shift the balances because of the CCJ. plus about another 1.5k i owe to the council for overpayment of housing benefit while i was unemployed between university. 17k in total....

I earn 35k a year however, given my outgoings it would take 20 months minimum to clear the CC debts. and have no real spare cash until they are paid off.

I am a single male, no mortgage, live in a housing association house. Im not behind in my rent. i dont have savings or own a car (company car).

Should i just declare myself bankrupt and start again, given that i can get a credit card or mortgage anyway for the next 5 years?

PLEASE SOMEONE HELP ADVISE ME

IF

Hi leon1983 and Welcome, First thing make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another.

Please don’t do anything rash take your time and weigh up your options and read everything you can x

For ‘essential’ BR info this is Fermi’s sticky - Click here

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
  

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes
If...x

debtinfo

20 months seems a reasonable time frame to pay off the debts

kepar

Put it this way, if you go bankrupt , you wont have any spare cash for at least 12 months , and looking at your income you would get an IPA. If that case you would have no spare money for 36 months.

If I was you I would bite the bullet and get all paid off in 20 months without having br against your name.

Ineedaname

I assume the 20 months is if you threw everything at the debt? What about not going quite that mad, having a bit spare each month and planning to pay it all off in 4 years instead? As long as you're not continuing to spend on credit cards and pay over and above the minimum payments it will go down over time.

dojoman

If you can afford the DMP, go down that route, only use BR as the very last resort.

Ineedaname

I'm thinking the OP could avoid even the affects of a DMP on their credit record if they can consider paying everything off in 20 months just by throwing money at their debts. It doesn't look like they are unable to afford minimum payments and need a DMP to negotiate lower payments on the debt.

mel12

thats a good point i need a name -

Leon can you pay the minimum payments as they fall due? If so you won't be able to go bankrupt as you're not insolvent.

If not you do have the option of going bankrupt, but you would be expected to pay any surplus income towards the bankruptcy for 3 years - an income payment arrangement [IPA]. There are allowances for how much you're allowed to spend on different things, but you might find you're better off just paying the debt.

mel12

Just found the allowances guidelines - see here