Almost maxed out - bankruptcy? - copied from DFW

desperado1973

Hi,
I have been gathering together advice on debt and the information needed to move on to action for about a month and thought I would run this by the forum to see if I am on the right course.

Currently I have around £35,000 of unsecured debt an salery of £16,500 tax credit income of £2,500 per annum.

After paying my monthly payments for rent etc plus minimum payments on c/cards, i don't even have enough left for fuel to get to work. I am therefore buying all fuel, food, clothing etc. on c/cards. they will all be maxed out in 2 months. If I stop paying the c/card bills I may have enough to scrape by but looks like maybe not enough to live!

Thinking of stopping paying then going BR. Don't see how I can even make any offers to pay them back when I have negative desposible income.

Also like the idea of being debt free quickly and not repaying for the rest of my life!

Any advice would be gratefully recieved.

Thanks, Amy.





Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1150
Partners monthly income after tax....... 0
Benefits................................ 260
Other income............................ 0
Total monthly income.................... 1410
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 575
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 36.55
Telephone (land line)................... 30
Mobile phone............................ 20
TV Licence.............................. 13
Satellite/Cable TV...................... 10
Internet Services....................... 16
Groceries etc. ......................... 200
Clothing................................ 40
Petrol/diesel........................... 200
Road tax................................ 36
Car Insurance........................... 70
Car maintenance (including MOT)......... 42
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1479.55

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1300
Other assets............................ 0
Total Assets............................ 1300

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
c/card.........................9309......105.......20
c/card.........................2365......24........0
c/card.........................11000.....160.......20
Benefit over payment ..........1973......8.........0
debt collectors................6548......0.........0
Over draft.....................3700......0.........20
Total unsecured debts..........34895.....297.......-

Monthly Budget Summary
Total monthly income.................... 1,410
Expenses (including HP & secured debts). 1,479.55
Available for debt repayments........... -69.55
Monthly UNsecured debt repayments....... 297
Amount short for making debt repayments. -366.55
Personal Balance Sheet Summary
Total assets (things you own)........... 1,300
Total HP & Secured debt................. -0
Total Unsecured debt.................... -34,895
Net Assets.............................. -33,595
Created using the SOA calculator at makesenseofcards.
Reproduced on Moneysavingexpert with permission, using IE browser.

desperado1973

Thanks for your quick replies.

Further information.
Myself and my partner have been living together for 5 years and the expenditure is joint. The income is from my job and our tax credits so is also joint income. I understand this will be problematic, particularly if BR is best outcome, but see no way to separate it while my partner has no job and cannot claim individually for benefits as they are my partner? they are totally dependent on me.

I lost my well paid job in 2007 and have not been able to get another, after 3 years of not even getting rejection letters I have therefore been forced to take a lower paid job . My partner has been unable to get any employment since loosing their job in 2008.

Rents are expensive on the south coast, believe it or not £575 is a good price for a 2 bed flat. We were paying £950 for a 3 bed bungalow in 2007.

The money on clothes was suggested by a debt avice line, not my idea, but after not having anything new for 2 years we need new clothes so put it in.

Cable TV - this is a package with phone and internet and is difficult to rearrange.

I have a pay as you go mobile which costs me very little, my partner has this mobile bill and will not give it up, as is thier right BTW.

Work more hours you say? that's what put me in hospital last week! When I was 25 I would work 90 hour weeks, now I am 50 I struggle to do my 40 hours.

Thanks for the advice on getting a better job and if anyone has one they would like to offer then I would be very interested. I would remind you that we are in the middle of a recession which looks like lasting a while longer. I cannot even begin to describe the efforts I have made towards that goal or the mental pain of having giving up my home after being unemployed for so long. I even put myself through a Masters in IT thinking that would improve my chances. Passed with distinction, lots of hard work, I don't even get replies to my applications. Paid to have my CV redone, no replies, Jobcentre redid CV - no replies. I would seem to be unemployable. I have to be thankful I have the job at all. There is nothing out there and hasn't been for a number of years.

I have down sized, economised, applied for work, again and again. They say something about banging your head on a wall....

desperado1973

There is no public transport servicing my place of work. It is in rural Dorset and I work shifts, start at 6:45 on earlys finish 22:00 on lates.

A 12 year old car needs more maintenance the £42 is based on £500 paid last year.

I already know that I need to increase my income and decrease my expenditure. That's pretty straight forward.

I have failed. For 4 years I have failed consistently and now....

Once I go bankrupt the £400 that I am currently spending on credit card minimum payments will be used to cover all food, transport, clothing and other costs. the other £1000 income will pay housing costs. There will be nothing left over to pay towards the debt.

fermi

Copied into a new thread for this board.

Original HERE.

kepar

Lets be honest, Low paid job, partner doesn't work and lives a long way from work.

Why can't the partner find work(not explained) has been out of work for three years, not even any benefits.
Do not own house but travel 50 miles each way to work, is thee no way they can move any closer.

It seems that all the OP wants to do is go br and believes that will be the end to all their troubles. Maybe just the start.

fermi

Just picked this out.

desperado1973 wrote: »

I have been to see CAB they told me that Payplan wouldn't be any use and that the CCCS wouldn't talk to me because I am not in arrears. CAB didn't have a debt adviser available and were vague about letting me talk to one as I am not in arrears and have no priority debt.

Please ignore that and start talking to CCCS, National Debtline, PayPlan etc...

Have a look at the list of advice organisations here:

IMPORTANT - Where to seek professional impartial advice about your debts.

If you are even considering bankruptcy, then you would need clear advice from one of those that it is in your best interest. The court will normally insist that you have taken such advice before they would grant a bankruptcy order, so it is something you MUST do. Preferably getting an opinion from more than one so you can get a balanced as possible range of advice on your options.

oopsydaisy_2

I am not in arrears and have no priority debt, but National Debtline helped me. They will give you all your options, but in the end I decided that BR was the best option for me, and this happens next week.

It's not an easy decision to make, but you are clearly struggling so talk to all the helpline people, you will find a solution that works for you! It's your decision at the end of the day

StepChange_Pavan

Hi Amy,

I just wanted to say that it doesn’t matter whether you are in arrears – it’s obvious that you’re struggling, and we can look at your situation as a whole to see what your options are.

I’d recommend that you get in touch with us, either by using our online Debt Remedy (http://www.cccs.co.uk/ref/drcu) or calling our free helpline on 0800 138 1111.

Kind regards,
Pavan

Ineedaname

Have you aproached the council about whether you would be (jointly) entitled to Housing Benefit or Council Tax Benefit? You are on a low income and your partner doesn't work so it's possible you could gain something from applying. Why is your partner not able to claim Jobseekers?

Finances are very disparate in Dorset, especially the more westerly you get. Rents aren't cheap and salaries are low, maybe that will change in a year or two with the advent of the Weymouth relief road and post Olympics with more businesses moving into the area - but that doesn't help you now.

Try this calculator to see if you could receive some housing help.

IF

Hi desperado1973, As Fermi says please contact one of the Debt charities ASAP and do try more than just one. We always advise this for your own piece of mind.


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

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.

Best wishes
If...x

alastairq

Hi Amy, welcome....good to see you realise the storm is approaching..rather than burying the ol' head in the sand?

First action is to speak to the debt charities as above....and start planning for what may prove inevitable.

I suggest, firstly, moving your bank account immediately.

Go for a 'basic' account, with a bank not connected with your current financial position.

I recommend Co-operative, and their Cashminder accounts...full internet access, and Co-op are currently BR-tolerant, should the need arise.

You mention living on the South Coast? Are you in a holiday area? Could you move more inland, where rents may be cheaper? Is that an option?
[if so, get moved before CC's are defaulted, will be easier as your credit references will be currently better].

With regards to your SOA, your car's tax is a bit high per month.....but on an individual note, doing car maintenance yourselves can ease the pain a lot....if you can manage IT without qualms, a simple motorcar will be a doddle, eh?

regarding work, I think you have realised anything is better than nothing.....better to work to live, rather than the other way around?

A long time ago, I realised, qualifications mean nothing if there isn't the work available to use them.....as my DD will soon find out, I suspect?

However, please do not be put off by any reception you received on other forums.....on here, most of us have been in the same boat.