So Confused about Bankruptcy, pls help!!

cermummy

Hi All
I am a lurker on this site and have found the advice given amazing, but now I need a lil bit of help ...

I have taken my head out of the sand and contacted National Debtline who have been brilliant. I have debts of £8500 from when I was married (now divorced and single with 3 children) and debts totalling £6500 which I have managed to run up myself.
NDL have run thru my options and it seems Bankruptcy is the way to go.
They told me the fee would be £525 and I would also need to make payments into the bankruptcy for 3 years - has any one else made payments as the few bankrupt people I know have paid nothing?? My problem is I would need to borrow the fee and if I am paying into the bankruptcy I would not be able to pay the person I borrow the money off back iykwim.
My nerves are on the edge now, I'm soooo stressed but I really cannot carry on the way things are.
Thanks for reading my post

NeverAgain_2

The total fee may be £700, depending on your circumstances.

Those circumstances also govern if you have to pay anything monthly after you are bankrupt.

It depends how much money you have coming in and your allowable expenses.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/Bankruptcy/DG_187338

cermummy

Thanks for replying, I'll take a look at the link now. I'm on benefits but my ex husband pays maintenance so maybe that is why.

tigerfeet2006

As you are on benefits you will be able to apply for the fee remission so not have to pay the court fee and as you say just pay the OR's deposit of £525.

Also as you are on benefits you most likely won't have to pay an IPA unless your ex pays a huge amount in maintenance.

angel_nicx

I can't really add any advice OP, but good luck to you. I also had to declare myself bankrupt back in 2009 following a divorce (I stupidly moved all HIS ccd debts into my name, as I had a perfect credit record!). As a single mum of two I didn't have to pay anything towards my bankruptcy and things were very tight.

However, I just wanted to post and say that there is light at the end of the tunnel! Whatever you go ahead with I wish you all the best, I know what you're going through. Sorry I can't be of any help.

xx

alastairq

hi..the information you received was correct...but can be misleading if the exact words are cherry-picked.

When BR is petitioned, the BR individual is 'allowed'..for want of a better word, 'reasonable living expenses'...

If there is an income, then whatever is surplus after the SOA has been agreed, can be 'paid' as an IPA/IPO.

Benefits do not qualify as 'income' in the above sense.

Maintenance is strictly for the kids only.....

Your adviser has to make you properly aware of what might occur in BR....since this is questioned by the Judge in Court.

Time to unwind?

You've taken that first step now!

cermummy

Thankyou everyone, my children are with their father this weekend so I'm on a mission to sort this out - think I'll phone NDL back tmrw and get proper advice as you said alastairq as at the moment I know nothing for definite, just need to get my head straight and get some answers!! I'll try get thru to citizens advice too as its been impossible to speak to anyone there this week.
I'm just panicking a bit as dont use my credit cards at all but they are there as a 'just in case' - ie car conks out, theyre my safety net and if that happens I wont be able to find the money anywhere, I also need to find out how much i would be allowed in my budget as a contingency/emergency allowance if I do need to pay into the BR as NDL have been vague about this too ... Will make a list of questions now and sort it in peace tomorrow, getting a bit fed up of waking in the middle of the night and fretting. Thanks again for your replies, and watch this space ) x