Depression, debt and bankruptcy

lucydiscodiva

hi

Could really do with some help with the bankruptcy team-

I am in about £20k of debt and have been on a DMP since about 2008.
I have had to change my job and go from full time to part time as i suffer with Severe depression.
The CCCS have reccomended bankruptcy which I am open to- however I need to get some help about the following things:

The CCCS talked me through bankruptcy and my budget and said I have surplpus in my budget about £100. They said that when I go BR that £80 of this would be taken away from me and given to my creditors.
I have issues with this as at the moment on my DMP- i only pay £40
to my creditors and it seems that if I go Bankrupt I will be worse off.

What i'd like to do is change my budget- eg add more rent etc. but need to talk to someone who is on my side and trying to save me money not someone like the CCCS who think that this isn't fair to my creditors. As far as i am concerned i don't earn very much anyway and if i do any extra hours in my job- I want to be able to have that money and not have to give it straight back to my creditors.

Does anyone have any guidelines on how much is acceptable to put in each part of the budget on the income expenditure form ( which needs to be approved before bankruptcy) I need to know the maximum amount that I can have in each area- thus giving me more cash.
If i do take the CCCS advice and give my creditors £80 each month as well as going bankrupt- i will be worse off. I won't be able to afford my gym membership which i need for medical requirements as I have joint pain and manage my condition through exercise.

My friend went bankrupt and she hired a financial advisor/solicitor to handle all her affairs and she doesn't have to pay her creditors a penny. I unfortunately can't afford to do this and would appreciate any advice anyone has.

Also Martins money booklet on debt and depression is amazing. I thoroughly reccommend it :money:

thanks

tigerfeet2006

Put up your SoA and let us look at it.

You will need a Dr.'s note to prove that the Gym is a medical need.

You can't just put down what you like on your SoA it needs to reflect your outgoings as they are. The Or get suspicious if things are to near guidelines. They will check things like your rent with your landlord as well.

http://makesenseofcards.com/soacalc.html

Also make sure you read the sticky marked LOOK HERE FIRST:Bankruptcy Help

And it won't be £80 it would be the full £100, also any extra you earn you need to notify the OR and they will want that. Any way get your SoA up asap and let us check it.

lucydiscodiva

Hi

I am not sure if BR is the best option for me then if
I am having to give more than my DMP amount.

I appreciate i can't put what i like however it does have to be workable.

Also how come my friend who went BR not owe her creditors anything? She doesn't have to give them anything.
She was told by her financial advisor that the BR people can't check her
Bank account.

I would like to know the approved budget for how much you can spend on clothes/household etc.
Do you have access to this?

tigerfeet2006

There is a link on the Look Here First thread that I pointed you to. Post 86ish I think.

Look do me a favour and put up your SoA as it stands now, please, lets have a look at it. Can you get a Dr.'s note for the gym?

With out knowing your friends full circumstances I can't comment, each case is looked at individually and you can bet as she used an IP that the OR will have looked at her SoA very thoughrally (sp?) and she is wrong the OR can look at current bank accounts if they so wish.

lucydiscodiva

Hi
Can't post it now- but will do at the weekend.
Appreciate your help

kepar

If you do get an IPA, without seeing a SOA we cannot really advise, but it will only last for 3 years. How long are you in your DMP for.
They will probably start asking for more and more, a lot of br's who post on here have been on DMP's and have failed to complete.

Just think paying a DMP for 4 years the failing and then having to go br and paying an IPA for 3 further years.

lucydiscodiva

I know its just i earn less than i ever used toand due
To my illness i can't work full time. So every penny really does count.
The thought of BR does make me feel very anxious and panicky.

System

Something else to consider with the DMP is the 'harrassment' factor. I'm less than a year into mine and am utterly fed up of the whole thing.

lucydiscodiva

I don't tend to get harassed- no phone calls etc. Only occassionally

Tinytootz

Hey. I got an email through today from my OR regarding this, so maybe I can help a teeny bit. But please be aware, I may be wrong. Don't take what I say as gospel, and I strongly recommend you see the CAB. They give impartial advice, and in my experience, lean towards yourself rather than the creditors. Plus, I am a newbie

On top of the rent, council, utilities etc, I was told I could also claim £15 a month for hairdressing, £20 a month for holidays, £200 a month for housekeeping, £40 a month for clothing, £9 for prescriptions, and £10 for emergencies. The only reason I was told this was because I fall well below the threshold for having to make monthly payments, so she sent me an excel sheet with it on, so I knew what my threshold would be for when I would have to inform the OR in a change of circumstances money wise. But this may vary depending on your personal circumstances, depending on the area you live, and such like. But perhaps that gives you an idea. My total was 731, but as I say, I fall well below this.
But I do highly recommend CAB. They give you impartial advice. Like I was recommended to go forth as a single person THEN move the other half in and then I wouldn't need to tell the OR. I didn't do this, but it was recommended that I did it that way.

Good luck with whatever you choose to do

lucydiscodiva

Thankyou thats very very helpful.
I went to CAB and the guy was completely unsympathetic
He also seemed to suggest my depression wasn't real even though i 'm on meds and
Have felt suicidal about my debts.
Thanks for your help