Considering Bankruptcy as advised by cccs HELP!

howdumbarewe!

Hi
My husband is considering Bankruptcy. He was advised to go Bankrupt by the CCCS. We were trying to go for an IVA but after discussing our situation with them it was found that we only have about £50 a month spare so they have advised him to go bankrupt.

After listening to their advice I was convinced that this was the best thing to do BUT after reading a lot of the threads on here I find it all rather frightening. We owe about £25,000. It has all come about by terrible luck and utter stupidness with money!

We did not willingly set out to do anybody out of money but as I said just now I we are not good with money!

We suddenly realised that we could no longer pay our debts anymore as we could no longer juggle them around in order to pay them.

What worries me is that they will think that we deliberately spent the money with no intentions to pay it. We have been trying hard to keep up with the repayments but we just cannot do it any longer.

We have a holiday booked up for September and paid for part of it by credit card a few months ago will this be seen as a problem? We didn't realise how bad things had got until last month when we had no money for christmas presents and no way of paying the debts.

Any advice you can give will be appreciated.
Thanks
L

dubgirl

Hi, I am afraid that I do not know much about bankruptcy, but I just wanted to offer my support. I totally understand how frightening it can all be. Just one question, could your husband not do a Debt management plan (DMP) with CCCS? I only ask, as I owe considerably more than you and pay £54 a month on DMP with CCCS. Please dont worry you are among friends and there are others who will be able to give you some great advice.

jellycat40

Hi OP.

I went bankrupt in May last year and I have now been contacted for early discharge. It was not difficult to do, each court is slightly different but I had to go to Bristol County Court and I did not even have to see the judge. I owed £130k. I had to have an interview with the OR but if you owe less than £50k likely you will have a telephone interview and be discharged after 6 months also.

I had booked a holiday like you, I had purchased Christmas presents (rather extravagant ones due to my recklessness by that time) and I had also had a lot of bad luck. I had to write a narrative - a sort of story of my life from age 16 ( I was 43 ) and I had to explain in some detail what the money had been used for.

I had several cards and over and over again i had to write the date the card was taken out, the reason and what the money was spent on. Mostly food shopping, stuff for the house, consolidation and robbing peter to pay paul. However, I did confess (if that is the right word) to the holiday and the OR did not seem to be bothered even though we were not going until the November! I was allowed to keep my car and none of my possessions were taken - however, I do not own a property and if you do it is more complicated.

I was helped by a Insolvency Practitioner and I pay her a fee. This is a substantial fee and she will not get paid for some time but she was invaluable in negotiations with creditors and interceding with the OR and she came to court just in case. This is frowned upon by lots of users of MSE but it worked for me.

Good luck, def do not be frightened. You can still have a bank account and there are people out there who will still do mortgages for you and lend you money if you feel it necessary in the future. ( I don't but I know folk who do ).

Louise

skint_geordie2007

howdumbarewe! wrote:

Hi
My husband is considering Bankruptcy. He was advised to go Bankrupt by the CCCS. We were trying to go for an IVA but after discussing our situation with them it was found that we only have about £50 a month spare so they have advised him to go bankrupt.

After listening to their advice I was convinced that this was the best thing to do BUT after reading a lot of the threads on here I find it all rather frightening. We owe about £25,000. It has all come about by terrible luck and utter stupidness with money!

We did not willingly set out to do anybody out of money but as I said just now I we are not good with money!

We suddenly realised that we could no longer pay our debts anymore as we could no longer juggle them around in order to pay them.

What worries me is that they will think that we deliberately spent the money with no intentions to pay it. We have been trying hard to keep up with the repayments but we just cannot do it any longer.

We have a holiday booked up for September and paid for part of it by credit card a few months ago will this be seen as a problem? We didn't realise how bad things had got until last month when we had no money for christmas presents and no way of paying the debts.

Any advice you can give will be appreciated.
Thanks
L

You will get some great advice here.

http://boards.fool.co.uk/Messages.asp?bid=50079

I too am going to go bankrupt after lots of consideration. There are other options as you have mentioned.

skint_geordie2007

howdumbarewe! wrote:

Hi
We were trying to go for an IVA but after discussing our situation with them it was found that we only have about £50 a month spare so they have advised him to go bankrupt.

:

Is that £50 per month after your essential outgoings?
(Rent/Mortgage, Utility Bills, Food, Clothing, Entertainment etc etc) or does that include your debt repayments?

piggeh

howdumbarewe! wrote:

Hi
My husband is considering Bankruptcy. He was advised to go Bankrupt by the CCCS. We were trying to go for an IVA but after discussing our situation with them it was found that we only have about £50 a month spare so they have advised him to go bankrupt.

After listening to their advice I was convinced that this was the best thing to do BUT after reading a lot of the threads on here I find it all rather frightening. We owe about £25,000. It has all come about by terrible luck and utter stupidness with money!

We did not willingly set out to do anybody out of money but as I said just now I we are not good with money!

We suddenly realised that we could no longer pay our debts anymore as we could no longer juggle them around in order to pay them.

What worries me is that they will think that we deliberately spent the money with no intentions to pay it. We have been trying hard to keep up with the repayments but we just cannot do it any longer.

We have a holiday booked up for September and paid for part of it by credit card a few months ago will this be seen as a problem? We didn't realise how bad things had got until last month when we had no money for christmas presents and no way of paying the debts.

Any advice you can give will be appreciated.
Thanks
L

I would be interested to know why you find it frightening. I know it is a bit of an unknown, and there are certain misconceptions people have about where it leaves you, but it should be seen as a possible path (depending on your circumstances of course).

I declared bankruptcy 2 and a half years ago or so. I have not regretted it really. You get the occassional minor niggle (I dont have a proper debit card for example, although have a prepaid credit card in case I get really stuck), but it is a massive weight off your shoulders and allows you to look ahead with a lot more optimism. Really you just have to look at how it will affect you personally, against other options, and if it's the best option then take the plunge in whichever direction is best.

For example - will you/your husband be looking to rent or buy a house in a few years? How will this be affected a)by an IVA and unsettled debts, and b)by being a bankrupt. Is your income likely to go up in the future which would then mean your debts could be paid off a lot quicker? If so, then bankruptcy may not be the best option. If your income is unlikely to go up, then you won't clear the debt for years, and the defaults will stay on your account regardless, and you will have an adverse credit record regardless.

I would not worry too much about your holiday - firstly I doubt there is much value in the OR taking an interest in it. Secondly, because your debt should be more important than a holiday. You should only be considering which is the best option to get out of debt and worry about your holiday afterwards (although imo I think you would be allowed to keep it).

howdumbarewe!

skint_geordie2007 wrote:

Is that £50 per month after your essential outgoings?
(Rent/Mortgage, Utility Bills, Food, Clothing, Entertainment etc etc) or does that include your debt repayments?

That is £50 per month after essential outgoings

howdumbarewe!

Thanks for your advice everyone.
Just a quick note. The holiday is booked in my name not my husbands but some of it was paid by his credit card. Not sure if that makes any difference?!

skint_geordie2007

howdumbarewe! wrote:

Thanks for your advice everyone.
Just a quick note. The holiday is booked in my name not my husbands but some of it was paid by his credit card. Not sure if that makes any difference?!

I think you should post a SOA (Statement of Affairs).
I think if your left with £50 left after essential outgoings, you need to seriously look at what those out goings are.

livinginhope

Hi there,just had a quick look at this thread and I cannot understand why CCCS didn't suggest doing a DMP?
Bankruptcy is the LAST resort when there is no hope of paying the debt back,but you have £50/month spare to pay the debts,therefore you have hope of paying them without bankruptcy.
I think the best thing you can do is post a statement of affairs so that we can see if you do have the spare cash to pay these debts,we may even find you can pay more than £50/month
Your debt is a lot smaller than many on here who are doing DMPs,I personaly don't feel bankruptcy is the best option here.
LIH

howdumbarewe!

Monthly
Income
Wages £997
Child Benefit £164
Child Tax Credit £477
TOTAL INCOME £1,638

Outgoings
Rent £290
Water £20
Council Tax £100
Electric £50
Wood & Coal £100
Contents Ins £14
Telephone, mobile, internet £35
TV Licence £12
Satelite £30
Life Insurance £30
Pension £55
Vehicle spares / servicing £10
Road Tax £16
Motor insurance £25
Vehicle breakdown cover £6
Fuel & parking £150
Public Transport £22
Food / Toiletries / Cleaning £375
School Meals £8
Pet Food / Insurance £20
School trips / activities £15
Special Needs Playschool fees £20
Medicine / prescriptions £13
Hairdressing £13
Clothing / footwear £20
Sundries / emergencies £10
Loan from family £120
TOTAL OUTGOINGS £1,579

Total income £1,638
less outgoings £1,579
Amount left £59 per month

NOTE:
We are under contract to Sky tv so cannot change that for another 6 months
We have cut down on using the car as much as possible but hubby needs to use it to get to work as we live in the country & there is very little public transport.
I have used the comparison services for the utilities & have now chosen the cheapest as advised by this site.
The amount we spend on coal / wood per month is ridiculous but it is our only means of heating and the price has sky-rocketed this year!
My son has to go to the special needs playgroup as he is suspected as being autistic. If he is we might be entitled to further benefits but we have been warned that it could be anything up to a year before he gets a diagnosis.

Hope this helps give a better picture of the situation.