Any advice greatfully received

Maya

Hello there

I was advised to look at this site by a debt adviser - looks like you know your stuff

I'm completely new to this bankruptcy thing, so please excuse any ignorant comments... a bit of background stuff:

- I'm 30 and when I was 20 I took out a loan for £10,000, which, for a number of reasons, I've been unable to repay. It has been handed over to a debt collector and currently stands at just under £15,000, with me paying £10 a month. I also have a student loan of just under £20,000 and a student overdraft from 2005 of £2,000, due to be reduced to £1,000 at the end of June, which I will be unable to repay.

- I have not worked for a year and I'm unlikely to return to work in the near future (I have an incurable illness, therefore my current income is housing benefit and income support, plus possibly DLA in the near future).

- I have no asset's in the sense that I do not own a house or a car.

- I'm single and have no dependants.

I've been advised by my local debt advisor that bankruptcy is probably my best option (although not a step to be taken lightly) and whilst I'm considering this I have a few concerns, so any advice would be really good, these are:

* As I understand it when you become bankrupt all accounts are frozen and then most likely closed. I'd like to know if, when you are going through bankruptcy proceedings, you withhold an account there is anyway they will know? Do they do a search or just take your word for it? I ask as, whilst I realise not disclosing everything would be dishonest, owing to my illness I do most of my grocery shopping on line, and it would make life very difficult for me if I didn't have a debit card to continue doing this. I don't have anyone who could open an account for me until I'm discharged and the basic accounts I've looked into do not have cards you can use on-line. The account that I'm thinking of withholding has no overdraft facility whatsoever and I'm really only thinking of trying to keep it because of the difficulties I'd have if I didn't.

* If I ever tried to set up my own business, what sort of difficulties might I have as a bankrupt? I wouldn't ever be setting up anything major, just at some point in the future hope I'll be able to work part-time as a therapist, and so would be self employed - it wouldn't be for at least a year - am I likely to have any problems?

* After you've been discharged I know it's still difficult to get credit, but after the six years is it still really hard? I wouldn't want a loan or overdraft or anything, but I'm wondering if I was ever in the position where I could buy a home, would I have big problems getting a mortgage? Would the interest rates be stupidly high?

* Also, I know that they changed the law to stop student loans being included in bankruptcy, but also seem to remember there's still a loophole which means you can include it? It seems a bit drastic to go bankrupt and still have nearly £20,000 worth of debt

Any advice at all on the above, or any other major negatives to going bankrupt would be hugely appreciated - I'm scared it seems the easy-ish solution but perhaps I don't know all the drawbacks...

Many thanks in advance :A

fermi

As I understand it when you become bankrupt all accounts are frozen and then most likely closed. I'd like to know if, when you are going through bankruptcy proceedings, you withhold an account there is anyway they will know? Do they do a search or just take your word for it? I ask as, whilst I realise not disclosing everything would be dishonest, owing to my illness I do most of my grocery shopping on line, and it would make life very difficult for me if I didn't have a debit card to continue doing this. I don't have anyone who could open an account for me until I'm discharged and the basic accounts I've looked into do not have cards you can use on-line. The account that I'm thinking of withholding has no overdraft facility whatsoever and I'm really only thinking of trying to keep it because of the difficulties I'd have if I didn't.

You will be committing an offence if you deliberately withhold details of an account. You can request that the OR leaves an account open, but the bank may still close it.
This link gives details of accounts open to BR's, some of which do include a Visa/Electron debit card.
This can be used for on-line shopping at most supermarkets except Tesco.

http://www.fsa.gov.uk/pubs/public/bank_account.pdf

* Also, I know that they changed the law to stop student loans being included in bankruptcy, but also seem to remember there's still a loophole which means you can include it? It seems a bit drastic to go bankrupt and still have nearly £20,000 worth of debt

No loophole. It has been closed. Believe me, I have checked and then checked again. Anyway, you don't pay these back until your income is quite reasonable.

Working on the other questions.....:)

Maya

Thanks for your reply Fermi

One thing though... having looked at the link you sent me, on the last page it lists the banks which offer bank accounts and *all* of them bar the Co-op and Natwest do not offer a debit card. As the Natwest is the bank I have the student overdraft with, that leaves me with the Co-Op - and I can't help wondering what if they turn me down for some reason... I'm just really unsure about leaving it to just the one life line. I do fully appreciate that I'd be committing an offence if I withhold details of an account, but it's a risk I'd be wiling to take if it might allow me an account with a debit card - hence wondering if anyone knew if they check? I'm not normally dishonest, just this is REALLY important to me - if I don't have it and I can't get out to do shopping... I know no-one can/will advise me to withhold info, just would like to know how likely it is they'll check - and what would happen if they did.

Thanks lots

allofadither

Hello Maya,

I got myself a prepaid credit card, (no credit checks involved) which just like most credit cards is accepted worldwide, including internet purchases, but the difference is that you have to 'pre-load' the card with dosh before you spend. There is a monthly fee or a transaction fee, but I decided it was still worth it for the convenience of use. The card can be topped up thru retailers, the Post Office and by bank standing order. So you could just transfer your weekly shopping budget from your bank account onto the card account and continue with your on-line shopping unhindered.:j

Dither

fermi

Thanks allofadither,

I had thought of that but was searching for a link

This one seems to offer the most reasonable fees/subscription, but there are others.

http://www.mycashplus.co.uk/

This has been recommended by many members of other forums, and is a suggestion only. Please search for other options.

Considering that banks are now considering charges on a normal card, this suddenly does not seem so bad.

allofadither

fermi wrote: »

Thanks allofadither,

I had thought of that but was searching for a link

This one seems to offer the most reasonable fees/subscription, but there are others.

http://www.mycashplus.co.uk/

This has been recommended by many members of other forums, and is a suggestion only. Please search for other options.

Considering that banks are now considering charges on a normal card, this suddenly does not seem so bad.

Yup, totally agree. I did some checking to compare the available cards and the Cashplus was the one I opted for. I am using cash for some things but I don't really like carrying cash so the card suits me better.

NekoZombie

Though I want to point out the co-op offer an electron card - I have succesfully used it to buy online and instore exactly like a switch card. I just did my tesco shopping online (a scary £92 for the week!!!) and paid using my electron card. Maya, trust me, this is the least of your worries:D

PS I also have a cashplus card, but have found I barely need to use it as the electron is accepted most places.

fermi

NekoZombie wrote: »

Though I want to point out the co-op offer an electron card - I have succesfully used it to buy online and instore exactly like a switch card. I just did my tesco shopping online (a scary £92 for the week!!!) and paid using my electron card. Maya, trust me, this is the least of your worries:D

Good news. I've seen lots of reports of it being refused, but no successes.
Have you only tried recently, or have you used it for a while with Tesco on-line?
It would be useful to know if they have recently changed there minds on accepting it.

NekoZombie

Ahh,

ok slight retraction. Tesco is indeed one company that don't accept electron online - I used my cashplus card to pay. But I suppose the point is if you have both you have all angles covered, eh? Sorry for the confusion peeps!:o

fermi

NekoZombie wrote: »

Ahh,

ok slight retraction. Tesco is indeed one company that don't accept electron online - I used my cashplus card to pay. But I suppose the point is if you have both you have all angles covered, eh? Sorry for the confusion peeps!:o

OK. Tesco may be idiots in this regard, but at least they are consistent idiots. :rolleyes:

NekoZombie

fermi wrote: »

OK. Tesco may be idiots in this regard, but at least they are consistent idiots. :rolleyes:

*nods sadly* TESCO, GET WITH THE PROGRAMME!