Help please

Kevc1962

I divorced a year ago and my x went bankrupt on her debts and the joint ones. I know that I'm responsible for the joint and my own. I have just got a full time job and want to go bankrupt too, I'm living with my mum and its not good, I need my own place, I will have excess income so I will have to pay towards the debt. How will I be able to afford rent as well as paying towards the debt. Pressure from loan companies is severe, I need to go bankrupt quick, but I need a home quick too, what's the best way of going about this, thank you ...Kevin

Anondebtadvisor

Why not find somewhere to live 1st, then you will know what your expenses will be before declaring BR?

Complete an income and expenditure on the basis that you are renting and this will give you an idea of if you can afford the rent and if you will have an income payment agreement in bankruptcy

Kevc1962

Pressure is bad , had bailiff call already , deposit for rent is so high too .

lifebeginstoday

What was the bailiff for? Was it a certified bailiff or a debt collector?

JustinCredibleGillespie

If your renting somewhere then the likelihood of having to pay an IPA is less as you wont have any surplus income. Just tell the debt collectors/baliffs that your going bankrupt & their company will receive notification from your OR in due course then slam the door.

JCG

xx

doseduk

Yes, what everybody else said! I sympathise greatly with you, it still is hard not to revisit in my head being at that point, before having put anything solid like bankruptcy in place, where things still feel as you have described.

As per my experience, my renting situation was odd as well approaching bankruptcy. Bear in mind the Insolvency service would not *expect* you to be able to live somewhere for free.. so in equalities sake, it would not be out of line to be paying a sum to your parents (you can usually buy legal agreements that would suffice from post offices, or online, but its probably worth getting some advice from others on here, or the CAB or something as well about that!).. as long as it was reasonable and excessive. (That was the advice the I.S. personal insolvency advice line gave me, but I was actually renting because the landlord, my mum, was not at the property, she lived abroad at the time, so a little different I guess).

A more mainstream tenancy agreement would be more reliable as a reasonable expense though, I know rent may seem high, but bear in mind that in bankruptcy you would not be allowed to keep any extra money you had after the reasonable amounts for essentials.. whilst this is not by any means as tight as say, jobseekers payments (provided it is realistic, perhaps 200 a month on household day to day costs like food, toiletteries, cleaning etc, but, not alcohol or cigarettes... or other recreational drugs, obviously, either for that matter... then all essential bills, utilities, any insurance you need, and minimal amounts for clothing, haircut, etc... you can check those in the sticky threads IPA calculator)

My point just because that.. whilst in your current situation, rent and all the bills that I'm guessing would also become part of your outgoings if you moved out (I'm assuming this would increase, even if you are contributing where you are now) - probably seems like 'but that leaves me with nothing' - if you can live and buy essentials, it would surely make more sense to spend the money doing that, and investing on your own wellbeing, I know moving out for me did make me feel a lot better about myself, but that might not be for everybody - than having the money taken into an IPA and being liable to hand over any excess income for 3 years.

And, like JCG said, these people will try to convince you that 'this wont go away' or 'youre going to have to pay sooner or later' - I have written formal complaints against many DCA and creditors for saying this, since its simply not true - you're going about things in a responsible way and probably the only realistic way you can proceed... you're doing that at great expense to your own affairs (bankruptcy and the implications) - and it might be the last thing they want you to do, but indeed, *do* slam the door, and take some pleasure in doing so.

As I said to somebody else, one of the main short term benefits for the debtor, of bankruptcy, is going from having that legal responsibility to deal with these people as per credit agreements, to literally being able to tell them where to go should you so desire, and get on with your life.

Get a tenancy BEFORE bankruptcy if possible, as private renting will not be an easy thing to get into with a bankruptcy against your name - btu also bear in mind a guarantor will usually put private agent's minds at rest, and council renting / housing association is always an option too.

Most importantly, whilst getting some advice here, make no hesitation in contacting your local CAB (or ring the CCCS) and booking an appointment with a debt advisor/solicitor. Not only is there a requirement to seek proper professional/legal advice before going ahead with bankruptcy (a judge may refuse the case if they believe you have not done this!) - but this is free and having a solicitor or professional debt expert assure you that this is the right choice, and calmly talk about going ahead with it, is very reassuring.

Keep us all posted, I always empathise with people in your boat simply as it takes me back to last winter, before I went bankruptcy in March 2012 - but as you can tell from the forums and the people on it, it is also delightful to see people transition from that hell of debt that we relate to, through to even just where I am now (which isn't by any means all sorted and fine, but a million miles from where i was!) - or indeed beyond bankruptcy and back to a fresh start

Good luck, get some professional advice, have a look on rightmove or something, see what kind of properties you might be able to afford, just make sure the whole thing doesn't paralyse you. Keep on this forum, keep getting advice, and it sounds like you're making positive steps to get out of all the crap, so keep that up, and you will beat it all

Kevc1962

Thank you so so much for your advice. It would be best to rent first, I will have a look around, managed to save the bankruptcy fees now a deposit I guess!!, the bailiff was for council tax, I did tell him I was going bankrupt , he said I had a couple of weeks, he will be back, I have a bag of clothes , a bed, and my car which is worth £800, not sure what he wants to take !!

PippaGirl_2

It'll be the car! Park it round the corner ..