Bankruptcy... Your experiences and advice and/or comments on my situation..

NewUserHere

I'm looking for your experiences, advice and comments with regards to bankruptcy and debt in general... i'll explain my situation then you guys can eat in to me..

I'm 25 and stressed like hell. Business went under in November 2011 leaving much debt and i've since accrued more and entered the world of payday loans... so here it is:

[total current: £15.6k; projected Nov 2013 £24.7k]

Bank OD | £2.2k
Bank CC | £2.1k
Bank 2 OD | £3k
Bank 2 OD2 | £500
6x other creditors incurred up until Nov '11 | £1.8k
Utility Debt this year | £400
LL Debt from business (sole trader) | £5.6k (and counting until Nov 2013 when lease ends - expected to reach £14.7k)
CC1 | £1600
CC2 | £600
PD1 (Pay Day Loan) | £300
PD2 | £200

(Not sure if i've missed any)

• I'm a cab driver (self employed) and took out PD1 & PD2 last month as I couldn't work for a week due to an accident and used CC2 to pay for new insurance policy to get my car on the road as the company car was written off.

• Over the last 6 months i've sent several letters and emails to key creditors (banks etc) offering a small full & final settlement offers which was naturally rejected. Then sent them letters offering £40/month and none of the letters or emails was responded to!!
• I don't earn much money (£200 pw) and have a child due in December.
• I was hoping to pay the payday loan off next week but due to the several unexpected car repairs consecutively can't afford to pay either off them!! Paid £10 to PD1 and £0 to PD2.
• I have no assets other than my work car and one more asset worth circa £700. Then nothing else (rented home).
• LL will accept £1250 full and final settlement ONLY IF paid soon, but I cannot even afford this.

I have been contemplating bankruptcy for a few months, mainly due to the significant debts and commercial lease building. And I just cannot see a way out of this without it taking like 15-20 years of struggling and stress.


I just don't know what to do...



... I read somewhere the pay day loans and CC2 won't even be taken in to bankruptcy as they will be seen as taken out in anticipation of the bankruptcy order and excluded due to being incurred in the majority in the last 30-90 days.


Well this is my situation... not really sure exactly what advice i'm hoping for really. Just want to hear the thoughts and opinions of those who have been in this situation before... what did you do...

PippaGirl_2

Hi there. No one will eat into you here!

Firstly I would recommend contacting any of these to talk through your situation

• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026

as a lot of your debt appears to be business then the business debtline might be a good first call.

If you do decide BR is your best option given the advice you receive do ask more questions and we'll help you with your SOA and advise you through the process.

NewUserHere

Thanks,

I went on the CCCS website and filled in the 'Debt Remedy' form which suggested bankruptcy.

It's an automated system though, so probably best speaking to a real person.

My main worry is the PDLs taken out recently. I also used some money my partner gave me in July to pay off one CC and the bulk of another, but in August withdrew it again as it overstretched the OH and needed to give it back. I'm worried it will be seen as taken in anticipation.

Or can I exclude the PDLs to avoid this?
How deep will the OR look in to the balances?

Anybody with experience in this please share your experiences.

I also don't know what forms I need to fill in?

Lou67

Hi Newuser. So sorry to hear of your troubles... I must admit, I can only echo what Pippa says above ^^^

C.A.B. are brilliant and the best for your first port of call.

jayk

Hi

You need to seek advice from advice agencies i.e Nat debt line and others as listed in OP post in first instance. Also helps to ready stickys posted on this board re forms you would need and gives examples. Important you make the right decision for you. Have a talk with agency see what they advise, come back to board and ask any further questions. It is a difficult decision BR and not right for everyone. I personally have not regretted it as would never have been able to settle all debts- not enough years left work wise.

The relief of not having al the stress, letters and phone calls was almost instant after going BR. Not easy and money is very very tight but then was prior to BR. But taking action was thye best thing I did.

Wish you well.