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Been advised to take bankruptcy as 'the golden opportunity'
FlyingHigh_3
Posts: 45 Forumite
Hi all, a brief introduction... I am 27 years old, male, currently living with my partner and her father at her fathers house.
I have approximately 10k debt but my monthly outgoings don't allow for much extra to pay off debts and if I cut back on luxuries I would be pretty much living to work for the next 3-4 years or so with nothing left for 'me'... a selfish stance I know but let's face it, you have to put yourself first!.. I've had these debts since around late 2000, around the end of 2003 I ended up losing my job and got a bit out of my depth, I spent 6 months unemployed and pretty much hid from my creditors... and by 'hid' I mean I did a runner (yep, shameful thing to do now that I think back to it but my young self was petrified of what could happen to me)
Since then I've been living off the electoral register, unable to vote but I had to get myself a basic bank account about a year and a half ago (basic = money card only!).. it seems as if one of my creditors has caught onto this fact and has now got my current address. I'm worried that further creditors may get a whiff of my whereabouts and begin hounding me for money again.
Whilst bankruptcy seems a bit overly drastic given the small amount of debt I'm in, it provides a far rosier situation than actually paying my debts off does... as I said before, you have to put yourself first and my credit record will be on the right track in a shorter time period after going bankrupt and at some point I'd like to be able to get credit again! As in the thread topic, it was described by a finance expert as 'a golden opportunity'
Ok, enough of that.. I have a few queries I need to get off my chest before I take the next step:
1.) I cannot currently afford to go bankrupt but I have a debt collection agency chasing me to make a full payment or atleast a part payment on my debt, I uinderstand I can write them a letter to explain that I am seeking professional advice but how long can I reasonably expect them to hold off?
2.) I have few assets, a car which I rely on to get to work and a bike which is more a leisure item but I do also use it to get to work occasionally when the weather is nice!
3.) I've seen people posting that they're afraid their accounts will be closed etc.. my account is already a 'basic' account so is there still a risk that my bank (abbey national) would shut my account down?
4.) As I mentioned, I pretty much did a runner from my creditors and the debt collection agencies. I could only remember who the creditors where and have no paperwork remaining (too scared to open it, straight in the bin.. stupid I know)... how should I go about working out how much I actually owe? should I call the companies I had credit with and explain that I need to find out how much I owe and/or who the debt collection agency is that's dealing with my debt?
5.) Does bankruptcy literally wipe your credit record clean? apart from having to declare yourself as previously bankrupt on applications etc.? This is the biggest selling point for me, even if I were to pay my debts off tomorrow I assume the record of those debts would still cripple me for a good few years yet
6.) I have no clue whether I have CCJ's against me.. as I said.. I did a runner! How can I find out whether I had CCJ's raised against me whilst I was running?
...and I just realised, I never explained HOW I got into debt... I figure it's the same story as most others, I was young.. moved away from home to a good paying job... thought I was invincible and never understood what kind of horror I was setting myself up for and went berserk with spending on the cards, loans to repay the cards, then back to the cards... it's been approximately 6 years since I got credit and my life since then has been a rollercoaster ride of emotions, running, hiding and wondering how on earth I was going to dig myself out of the pit I'd made for myself.
Anyway, thanks for reading and thanks in advance for any replies
I have approximately 10k debt but my monthly outgoings don't allow for much extra to pay off debts and if I cut back on luxuries I would be pretty much living to work for the next 3-4 years or so with nothing left for 'me'... a selfish stance I know but let's face it, you have to put yourself first!.. I've had these debts since around late 2000, around the end of 2003 I ended up losing my job and got a bit out of my depth, I spent 6 months unemployed and pretty much hid from my creditors... and by 'hid' I mean I did a runner (yep, shameful thing to do now that I think back to it but my young self was petrified of what could happen to me)
Since then I've been living off the electoral register, unable to vote but I had to get myself a basic bank account about a year and a half ago (basic = money card only!).. it seems as if one of my creditors has caught onto this fact and has now got my current address. I'm worried that further creditors may get a whiff of my whereabouts and begin hounding me for money again.
Whilst bankruptcy seems a bit overly drastic given the small amount of debt I'm in, it provides a far rosier situation than actually paying my debts off does... as I said before, you have to put yourself first and my credit record will be on the right track in a shorter time period after going bankrupt and at some point I'd like to be able to get credit again! As in the thread topic, it was described by a finance expert as 'a golden opportunity'
Ok, enough of that.. I have a few queries I need to get off my chest before I take the next step:
1.) I cannot currently afford to go bankrupt but I have a debt collection agency chasing me to make a full payment or atleast a part payment on my debt, I uinderstand I can write them a letter to explain that I am seeking professional advice but how long can I reasonably expect them to hold off?
2.) I have few assets, a car which I rely on to get to work and a bike which is more a leisure item but I do also use it to get to work occasionally when the weather is nice!
3.) I've seen people posting that they're afraid their accounts will be closed etc.. my account is already a 'basic' account so is there still a risk that my bank (abbey national) would shut my account down?
4.) As I mentioned, I pretty much did a runner from my creditors and the debt collection agencies. I could only remember who the creditors where and have no paperwork remaining (too scared to open it, straight in the bin.. stupid I know)... how should I go about working out how much I actually owe? should I call the companies I had credit with and explain that I need to find out how much I owe and/or who the debt collection agency is that's dealing with my debt?
5.) Does bankruptcy literally wipe your credit record clean? apart from having to declare yourself as previously bankrupt on applications etc.? This is the biggest selling point for me, even if I were to pay my debts off tomorrow I assume the record of those debts would still cripple me for a good few years yet
6.) I have no clue whether I have CCJ's against me.. as I said.. I did a runner! How can I find out whether I had CCJ's raised against me whilst I was running?
...and I just realised, I never explained HOW I got into debt... I figure it's the same story as most others, I was young.. moved away from home to a good paying job... thought I was invincible and never understood what kind of horror I was setting myself up for and went berserk with spending on the cards, loans to repay the cards, then back to the cards... it's been approximately 6 years since I got credit and my life since then has been a rollercoaster ride of emotions, running, hiding and wondering how on earth I was going to dig myself out of the pit I'd made for myself.
Anyway, thanks for reading and thanks in advance for any replies
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Comments
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Hello and welcome, I'll try and answer what I can but someone more knowledgable will be along soon to help you more.FlyingHigh wrote: »
1.) I cannot currently afford to go bankrupt but I have a debt collection agency chasing me to make a full payment or atleast a part payment on my debt, I uinderstand I can write them a letter to explain that I am seeking professional advice but how long can I reasonably expect them to hold off?
If I were you, ignore them if you choose to go BR. You do not want to be seen making any payments, looking like you can afford to pay them.
They will contact you, just either avoid or don't answer. Nothing drastic will happen.2.) I have few assets, a car which I rely on to get to work and a bike which is more a leisure item but I do also use it to get to work occasionally when the weather is nice!
Depends what both are worth. Around £2000-£3000 for a car is considered reasonable. Anything over that and then you risk the OR getting it sold to pay off your debts, giving you a bit back to buy a runaround.3.) I've seen people posting that they're afraid their accounts will be closed etc.. my account is already a 'basic' account so is there still a risk that my bank (abbey national) would shut my account down?
Abbey do not accept bankrupts so get yourself another account before going BR.
Co-op Cashminder will give you an electron card.
Barclays Basic will give you just a cashcard.
Nationwide offer one but not sure what. It'll be just the basic though.4.) As I mentioned, I pretty much did a runner from my creditors and the debt collection agencies. I could only remember who the creditors where and have no paperwork remaining (too scared to open it, straight in the bin.. stupid I know)... how should I go about working out how much I actually owe? should I call the companies I had credit with and explain that I need to find out how much I owe and/or who the debt collection agency is that's dealing with my debt?
Check out your credit report:
https://www.experian.co.uk
OR
https://www.equifax.co.uk
If you do know who you had the debt with, you can call them and they can advise who they sent/sold it to.5.) Does bankruptcy literally wipe your credit record clean? apart from having to declare yourself as previously bankrupt on applications etc.? This is the biggest selling point for me, even if I were to pay my debts off tomorrow I assume the record of those debts would still cripple me for a good few years yet.
All but student loans and secured debt (car HPA or mortgage) are wiped off.
You are eligble for an IPA which is a payment order that the OR will make if you have surplus income of over £100.
This will be in force for 3 years and it's on a sliding scale but as a basic rule, it's half of any disposable income that they take. If you have £200, they will take £100.6.) I have no clue whether I have CCJ's against me.. as I said.. I did a runner! How can I find out whether I had CCJ's raised against me whilst I was running?
Credit record as listed above is your best bet!:: BCSC #71 but now discharged! ::0 -
I'm pretty new to bankruptcy but I can help you with regards to finding out what you owe... You can apply to receive your credit files from the 3 companies that hold this information, Experian, Equifax and Callcredit. You can do some of these online or you can print the forms off and post them. Each one cost £2 and you will receive a detailed list of what you owe and if you have any CCJ's.
Here are the website addresses:
Experian - https://www.experian.co.uk
Equifax - https://www.equifax.co.uk
Callcredit - https://www.callcredit.co.uk
Hope this helps... 0 -
You are absolutely mad to go bankrupt for £10K.
If you get yourself onto a DMP with a reputable company you can have £10K paid off in no time at all.
For all the benefits of bankruptcy it does have repercussions for the rest of your life and is not a decision to be taken lightly.0 -
Bakeybadoo wrote: »Hello and welcome, I'll try and answer what I
Depends what both are worth. Around £2000-£3000 for a car is considered reasonable. Anything over that and then you risk the OR getting it sold to pay off your debts, giving you a bit back to buy a runaround.
Abbey do not accept bankrupts so get yourself another account before going BR.
Bakeybadoo - this is completely untrue!!
A car of £2k is more likely than not to be taken by the OR.
Abbey DO a Basic Bank Account but if you have borrowings with them they will most certainly close the account.0 -
shameless-about-money wrote: »Bakeybadoo - this is completely untrue!!
A car of £2k is more likely than not to be taken by the OR.
Abbey DO a Basic Bank Account but if you have borrowings with them they will most certainly close the account.
My car was worth around £2000 back in 2003. As I needed it for work they let me keep it.0 -
Sometimes they do, sometimes they don't, it just depends.
The point is that there is no "fixed" limit to which the OR works - therein lies the problem!0 -
shameless-about-money wrote: »Bakeybadoo - this is completely untrue!!
A car of £2k is more likely than not to be taken by the OR.
Abbey DO a Basic Bank Account but if you have borrowings with them they will most certainly close the account.
shameless,
You have no first hand experience of bky, you do post some good advice (occasionally) but I do wonder about your motives. Bakeybadoo is absolutely right, if the O.R sells a car worth £2k what are you going to get in return; roller blades?
What do you do for a living?
Are you male or female?
What are you going to make a million doing?
How many posters do you P.M with "debt free solutions"?
Why do I think you have no right to post on this forum?
Why do you think nobody can see through your very thinly disguised veneer?
I will give my home phone number, my mobile number, work telephone number, email address, mother's maiden name, inside leg, outside leg, to anybody that wants to verify whether I'm a genuine poster or not - what will you give?????
Your one and only admirer,
Richard0 -
shameless-about-money wrote: »Bakeybadoo - this is completely untrue!!
A car of £2k is more likely than not to be taken by the OR.
Abbey DO a Basic Bank Account but if you have borrowings with them they will most certainly close the account.
Shameless - this is completely untrue!!
The OR will only take a car if a suitable cheaper alternative is a viable proposition.
You can keep the following items unless their individual value is more than the cost of a reasonable replacement:
tools, books, vehicles and other items of equipment which you need to use personally in your employment, business or vocation; (source: https://www.insolvency.gov.uk)
From this and your other posts regarding motoring matters, taking your advice is like getting a kidney transplant from a compulsive bed-wetter.
You once advised me not to 'generalise' as this gets people into trouble.
Ditto.Money won't buy you happiness
But at least you can be miserable in comfort
BCSC Member No 460 -
shameless,
You have no first hand experience of bky
And your point is? That because you are bankrupt yourself you know everything?????
you do post some good advice (occasionally) but I do wonder about your motives.
I don't need your validation for the workings of bankruptcy
Bakeybadoo is absolutely right, if the O.R sells a car worth £2k what are you going to get in return; roller blades?
it has been known for the OR to take a car from someone worth £2K where the car was owned outright, to be replaced with £1K in value.
What do you do for a living?
Actually it has nothing to do with you, or anyone else, but I am a psychotherapist and am in training for the financial services
Are you male or female?
Male - well I was the last time I looked!
What are you going to make a million doing?
financial services - nothing to do with debt
How many posters do you P.M with "debt free solutions"?
None at all - never
Why do I think you have no right to post on this forum?
because you think I work for some debt management company obviously
Why do you think nobody can see through your very thinly disguised veneer?
I didn't know I had one
I will give my home phone number, my mobile number, work telephone number, email address, mother's maiden name, inside leg, outside leg, to anybody that wants to verify whether I'm a genuine poster or not - what will you give?????
Nothing on a public forum. I shall do so if and when mse require us to prove whom we are and not until.
Your one and only admirer,
I neither seek nor need admirers. I give of my time to help others, not for personal gain.
you are the one and only person who criticises every word I write - perhaps you need my services as a psychotherapist? Unfortunately it does not come free - I am very expensive.
The green-eyed monster does cause problems for some!0 -
Shameless - this is completely untrue!!
The OR will only take a car if a suitable cheaper alternative is a viable proposition.
You can keep the following items unless their individual value is more than the cost of a reasonable replacement:
tools, books, vehicles and other items of equipment which you need to use personally in your employment, business or vocation; (source: https://www.insolvency.gov.uk)
From this and your other posts regarding motoring matters, taking your advice is like getting a kidney transplant from a compulsive bed-wetter.
You once advised me not to 'generalise' as this gets people into trouble.
Ditto.
Yes and there have been folks here whom have had cars of £2K and £3K taken and replaced with cheaper vehicles.
I cannot change what has happened to others in bankruptcy.
I did not generalise about cars, I said that there is no threshold that the OR uses. Nor does the OR use the manual any longer!0
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