going bankrupt .

luckymum_3

hi
i am new to this part so here goes.
i am a single parent on income support and i get child benefit,totaling £152 per week.i am in debt to the total of £3365. i am really struggling paying my debts so have considered going bankrupt but need more info about it and how much it will cost me to do the process . i no that i have to declare everything ,i have a bank account ,but its only used to pay in money to cover my virgin media bill once a month , i have no car ,the most expensive possesion i have is my tv which now to buy is about £200.all my debts are catalogues and one provident loan .what else would i have to declare , what would i lose and how are the debts paid off..sorry about this,its just all new to me and i dont no where to start the procees if its what i decide..

allofadither

Hi there,

Bankruptcy is an awfully drastic step for the amount of debt you have. Have you sought any professional advice? CCCS/Payplan/CAB?

I notice you are already a DFW. They do give excellent support and advice on that forum...have they given you any help?

I know debt of any amount is worrying, but you are already dealing with it and maybe one of the companies I suggested might be able to get your payments reduced.

Don't take the bankruptcy route just yet....try and explore all other avenues first. But please come back to us if you need more advice.

gettingitsorted

First of all welcome .

Have you contacted anyone or proff advice such as
https://www.cccs.co.uk
https://www.payplan.com

both of these are charities and are a great source of help and information.
Also i bankruptcy is they way you want to go then you will asked i you have had prof advice by the judge .

luckymum_3

hi,will have a look at them,i did try for an iva but as i dont owe more they cant help,i am just struggling all the time ,its horrible having to add up in your head what food you can afford to buy .on £152 a week i pay out £85 then i have to allow money to cover the debts,leaving me with about £30 a week ,and god help my kids if they need shoes...as i cant buy them.my daughter currently needs some but will have to wait.i just need help.

Bakeybadoo

My debts totalled less than £5000 but I'm going BR, it's not the amount, it's the money you have available to chuck at it to clear it.

I'm also only on benefits so I can empathise with how much it takes.

You do need to seek professional advice though, you'll be asked if you've done so before BR is granted so it's worth checking all your options.

No point in an IVA for such a small amount, as you say you couldn't get one at that relatively small amount but maybe DMP might be an option?

Anyway, to answer some of your questions:

BR costs £485 in full but you'd get an exemption from the court fees b/c of your benefit so it'd be £335 for you.

Your bank account could still be frozen. It's not the judge who orders that, it'd be the official receiver who decides. Your best bet is to open a parachute basic account, just incase. Co-Op, Nationwide or Barclays all offer bankrupts a basic account so try them.

Your tv would be safe, it's of no value to the OR.

Do you own your own house?

You have to declare all your debts, all your incomings and outgoings will be subject to scrutiny.

Your debts are written off. All but some CCJ's/fines and student loans, which you obviously don't have.

You could get an IPA which would mean you'd be required to pay a % of your surplus income to the OR who would distribute it amongst your creditors in the way they see fairest BUT that probably wouldn't apply to you unless you have a surplus of £100+ per month, after all essenstials are paid so I wouldn't fret about that.

tomterm8

You do realise that they CAN'T require you to pay money from your benefits?

Frankly, I'd talk to CAB / national debt line etc.

if I were your I'd consider open a basic bank account, stop paying your debts right now, and send them http://forums.moneysavingexpert.com/showpost.html?p=4942339&postcount=10.

If your creditors take you to court, admit the debt, and seek an Administration Order, then a Composition order. http://www.insolvencyhelpline.co.uk/debt_factsheets/administration_orders.htm#14

allofadither

luckymum wrote: »

hi,will have a look at them,i did try for an iva but as i dont owe more they cant help,i am just struggling all the time ,its horrible having to add up in your head what food you can afford to buy .on £152 a week i pay out £85 then i have to allow money to cover the debts,leaving me with about £30 a week ,and god help my kids if they need shoes...as i cant buy them.my daughter currently needs some but will have to wait.i just need help.

I know exactly what you mean! I also didn't have enough debt for an IVA (I don't understand the logic of that rule). Perhaps CCCS or Payplan can sort you out a DMP.

Gud luk!

Bakeybadoo

I'm sure she does but that won't stop the hassle which is why we personally decided BR was for us.

We weren't paying a penny towards our debts but the hounded was constant and we decided enough was enough. We've gained nothing in monetary value per month, now he's BR, but the phone has been silent for the first time in months so far today. What a relief.

Bakeybadoo

allofadither wrote: »

don't have enough debt for an IVA (I don't understand the logic of that rule).

I think it's a good rule, considering IVA's add fees on. You end up paying just as much in fees sometimes as what your debt was. For £4k, it's simply not worth taking that route.

luckymum_3

hi,i tried ccs ,they just said i had more money going out than i did coming in so try and cut down on spending !!!! but i am already on a budget,my daughter needs shoes and i cant afford them,i dont own any property ,i live in a two bed high rise with my daughter aged four and my son aged ten.and there would be no way i could find £335 to file bankruptcy,i cant get an ipa as monthly i have left less than £100.will post up my soa,any help appreciated

Bakeybadoo

There is no help with the £335. I had to put my BR off until 10th May to let my husband go first and he had to pay the full fee.

Could you borrow it? Could you eBay anything and everything? What about telling a white lie to the DWP and getting a Crisis Loan and using the money for BR?