How to pay for bankruptcy

Hollington

Hi,

I spent this evening speaking to a lady at debt advisory line. My partner and I have around £30k worth of debt between us and a monthly defecit of over £600 per month. The debt advisory line suggested bankruptcy was our best course of action. They said if would cost me approximate £1200 (possibly less for my other half because he is unemployed) including court costs etc. We are in so much debt that we can't afford this. They suggested we could take out a payday loan and then include it in the bankruptcy.

Although I thought this was a great idea at first, I'm concerned that the OR will think we have been irresponsible in taking out a loan we knew we couldn't pay back.

I can't see any other way of paying but don't want to make it all worse than it already is!

Please help

mandyl

i dont think thats a good idea, sorry i dont know enough but id have thought that would not look good for obvious reasons.
have you tried ur utility companies sometimes these can help . also turn to us website

patman99

I thought the fee for b/r was in the region of £768 ?. I guess they must tier it depending on your debt level.
Taking a payday loan then adding it to the bankruptcy is one of the silliest ideas I have ever heard.

If you have any debts on credit cards, then you can cancel the dd's and pay them £1 a month token payments. If you do this, will it then reduce your outgoings to a level where you could put money aside in a tin until you have enough to pay to go bankrupt?.

Also worth enquiring about is if it is cheaper (or even possible) to do a joint bankruptcy.

Hollington

Thanks for your replies.

Unfortunately, we are running at a deficit each month even without paying the debts. We havnt been paying our debts for some time. We offered £1 payments until our situation improved - we were ignored and told no by every single on of them.

Both my partner and I are going bankrupt. The fee is for both of us and includes the debt advisory line fee of £600

Has anyone had any experience of this?

freddy911

Hollington wrote: »

The fee is for both of us and includes the debt advisory line fee of £600

Has anyone had any experience of this?

Why pay them £600 for something you can do yourself???

freddy911

Download the forms fill them in take to the court and pay the court, thats it! What you paying debt advisory £600 for? if you need advice go CAB or CCCS.

Hollington

I was under the impression it was very complicated to do....the debt line said the form was 84 pages long!

thefishdude

it is a lot of pages but the it is doable most people do them selves just lots of info about incommings out goings pension bank accounts who you own money to there adresses etc etc . but its worth it to save some money to do yourself just take ya time.

taliz

Speak to one of the debt charities they will advise you of the process and implications for free, they will also help with the forms/

CCCS 0800 138 1111
or National debtline 0808 808 4000

Your debt advisory service is selling its service. Telling you the process and forms are compicated is in their best interest.

Bankrutcy will cost you either £525 or £700 each depending on your incomes.
Regarding help with the fees talk to https://www.turn2us.org they may be able to point you in the direction of charitable trust or an occupational benevolent fund that you can tapinto for a hardship grant (depending on your circumstances). A grant is always a long shot but if you don't askyou dont get.

rocketman80

The form's long but not too difficult to fill in and you can get lots of free help to do so on here without paying £600. They're trying to rip you off!
Contact the CCCS or National Debtline for free advice.

Hollington

Thanks guys! I thought this debt company was my only hope. I'll call cccs in the morning