help please

Lugabruga

Hi,

I have around £90k of debt and am thinking about going bankrupt and need some advice on the pros and cons.

the reason for this is that the money was an unsecured professional studies loan that I took out to train to be a pilot.

whilst im very happy in my career due to the credit crunch and other reasons the pay is not what I thought it was going to be and the £1,000 per month payments are difficult to afford, so much so that I have reduced the monthly payments with the bank to £250 per month.

Now, given that I earn £30k per year once I have paid for travel to and from work, insurance for my car and running costs let alone somewhere to live (I rent with friends) then after the payment has gone out it leaves me with little left and I see no light at the end of the tunnel.

Given that I don't think bankruptcy affects my job like it may affect a solicitor or accountant and I am not a homeowner and have little in the way of assets then I am considering going bankrupt so that I can start again.

I understand that it will stay on my file for up to 6 years and I am ok with that but what are the other downsides?

Will I also be 'allowed' to go bankrupt is another question?

Any help would be appreciated.

Many thanks

dojoman

Have look here, it is a good place to start:)

https://forums.moneysavingexpert.com/discussion/1056083

Lugabruga

Thank you for your post, it is very helpful.

IF

Hi Lugabruga and Welcome to the Bankruptcy (BR) Board. As Dojoman said the 'look here' sticky is a good place to start. So next step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. 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. Also if your not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two for your own piece of mind. Your BR could be refused if you have not sought advice.

* Blue text on this forum usually signifies hyperlinks, click on the blue links below *

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
• TaxAid - Help with tax debts.

Please don’t do anything rash take your time and weigh up your options and read everything you can.

For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

BR friendly home insurance thread.

BR Friendly bank accounts sticky.

BR Abbreviations.

If you are new/old to this board and receive/see a comment that is not helpful or insensitive please don’t let it put you off posting, often these comments are made by people who don’t normally contribute to this board and don’t speak for us.

What to do if you get an insensitive or hurtful comment.


And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.


Best wishes
If...x

National_Debtline

Hello there. There has been some great advice on your thread so far.

I understand that it will stay on my file for up to 6 years and I am ok with that but what are the other downsides?

Your name would appear on a public register for the duration of the bankruptcy. It is also likely that you'll be asked to pay your dispoable income into the bankruptcy for a three year period, this is known as an income payments agreement. There can also be further implications on tenancies, the supply of utilities and with your bank (only a few banks would allow a bankrupt person to have an account with them).

Will I also be 'allowed' to go bankrupt is another question?

If it's clear that you are unable to pay your commitments when they fall due, and that it would take a long time to clear the debt it should be likely that the order will be made.

Do double-check with your employers to ensure there are no work-related implications.

Best wishes.

confuzzled2012

hi sorry for hijacking your thread, what sort of implications can there be on utilities in bankrupcy?

Lugabruga

Thank you all for your advice, i'm taking it all on board and acting upon it.

"Your name would appear on a public register for the duration of the bankruptcy."

is this the six years, and once the six years are up how easy or difficult will it become to get a mortgage at high street rates? or other finance such as a car?

Thanks