Bankrupcy advice due to unfortunate circumstances

powerwillyno18

Hi i have recently became unemployed well 5 months ago i was on the sick from work due to be breaking my hand consequences of being assaulted. My work paid me for 2 months on full pay, then 1 month on half pay, they have now paid me off as i could not return to my work due to my injury.

When i was paid off this resulted in me not able to claim benifits, i then had to go out of the country for 2 months, funded by my family as one of my relatives were unwell, i was the only available person to take care of her illness, before she passed away.

I have now returned to the uk after 5 months, of what i am living from nothing as i cant receive benifits as they paid me off, i have started to look for a job and should find work shortly.

I am currently staying back with my parents who are OAPs, i have 4 creditors, in total i owe £21,000, as i cant continue the payments due to having no income, i have no assets atall, do you think its in my best interest to go bankrupt, would i have to still pay a fee to creditors if i got a job. I would borrow the money it would cost for me to go bankrupt

Hope someone can Advise

William

rog2

Hi Pwn 18 - I feel really sorry for the circumstances in which you now find yourself, and I fully understand your dilemma.
BEFORE looking at Bankruptcy as your only option, why not try talking to CCCS, PAYPLAN or the National Debtline, as there may well be other solutions open to you.
Yes, bankruptcy would solve your debt problem, but if, during your Bankruptcy Period (usually 12 months) you managed to find a job, then an IPO/IPA could be imposed, depending on how much you earn after living expenses. This money would go to the OR, to be distributed to your creditors.

Remmer

Hi William. First thing is to check the benefits position. Nobody, and I mean nobody, gets nothing. CAB will be able to help with that. Secondly, were you assaulted at work? How long had you worked for that employer?

rog2

Remmer wrote: »

Nobody, and I mean nobody, gets nothing. /QUOTE]

I got NOTHING, Remmer. No JSA, No Tax Credits, No Housing Benefit - in fact ZILCH. But they say that there is always an exception to prove the rule.

Remmer

Rog there's always income based JSA. Perhaps you had other income. Don't mean that to sound iffy but I've worked in that field and there is always some benefit available for peeps who need it

rog2

Remmer wrote: »

Rog there's always income based JSA. Perhaps you had other income. Don't mean that to sound iffy but I've worked in that field and there is always some benefit available for peeps who need it

Not in my case, Rem. First of all they sent me a letter, stating that I did not qualify because there had been insufficient payments for 2004-2005 (The account, for which HMRC petitioned for my bankruptcy).
On appeal I was told that it was because I had been self-employed.
With regard to the other benefits, I was informed that, as my wife was working (she is a nurse, contracted for 32 hours, and currently waiting for her hospital to close) we did not qualify.
Since May of last year, the ONLY income in our household has been my wife's salary, which varies from £1000 to £1600 per month.
I have only just started a temporary job - this will, probably, finish within the next 2-3 weeks. Neither have I been given a zero tax code - I have been given a code of 501 - haven't got a clue what that means.
Sorry for the rant. :beer:

Edit: I have to be TOTALLY honest and say that the Job Centre, or at least so they tell me, did pay my NI contributions, whilst I was signed on. It actually cost me £5.00 to go to the Job Centre. After three months, and having explained my reasons, I stopped going to the Jobcentre.

Remmer

Hey! No probs mate. We all here for a reason. Having worked for the sods I can understand the reasons now. 2 years ago I was earning £60000 pa Now I'm a bloody postie earning sod all but my head is up