Advice needed for HUGE debts!

oscar_uk_2

Firstly, I feel completely ashamed at the situation I'm in and can't believe how bad I let things get before realising what I'd done.

Here's my story,

I went to university and then drama school so left there with student loans. I've paid bits of them off over the years and now owe them about six grand. Other than the student loans I left drama school three and a half years ago with a 1500 pound overdraft but pretty much a clean slate. Couldn't get any credit so couldn't get into debt... wish things had stayed that way!!

After a year of auditioning, got a job in a touring musical with a year contract. Suddenly found myself with a lot more money and started collecting credit cards. I originally thought it would be good to have them for when I was out-of-work (occupational hazard for an actor) and as a buffer-zone.

I spent alot of money propsing to my girlfriend (2 grand ring, expensive holiday etc.). After the tour ended, I went to Japan to be with my fiancee. We broke up and I returned to the UK. My only excuse then is through depression I lived off my credit cards for nearly a year and managed to run up the following debts,

Lloyds Overdraft - 8500
Lloyds Credit Card - 3500
Abbey Overdraft - 900
Sainsbury's Card - 3900
Marks and Spencer - 7000
Halifax - 4300
Student Loans - 6000

I also had surgery during this time which accounts for about 8000 pounds worth of the debt. I'm now working as a waiter and my take home is around 1300 pounds a month. If I add my cash tips this comes to around 1800-1900 pounds. I have therefore been able to make the minimum repayments but the debt is crippling. I've had to virtually give up persuing acting because I do not have the time. I'm paying so much in interest and constantly find myself having to max out the cards again. The advice from the cccs website was to file for bankruptsy. I have reservations.

My questions are

1. My dad gave me a lot of money around the time of my engagement some of it as a gift and some of it to inflate my account so that it looked better as I was considering buying a house with her. Will this look suspicious to the court. It was around two years ago.

2. My cash tips from working as a waiter are not declared to the taxman at the moment but I have been paying them into my bank regularly to avoid spending them and to cover bills. What problems might this cause?

3. I'm in the process of claiming back around 2 grand in bank charges through this website. Would I be able to use that to pay my current girlfriend the 700 quid I owe her before filing for bankruptsy or would that be dodgy/found out?

4. Once I've made the decision to go BR should I stop paying the cards or carry on until it's official.

5. Can I save money while bankrupt or must all surplus go towards the debt?

6. How long does is last and what is a BRO?

7. Will all my debts be written off? Will my student loan be written off?

I would really appreciate any help and advice from people who've been through this/know alot about it

thanks

Mark

doggydaddy

Hi mark,

I am very new to all this and have not as yet become bankrupt, but I can I think help you with a few of your questions:

3. I think the court or OR would find this a little dodgy - something to do with favouring one creditor

4. once you go to court and they declare you bankrupt then it begins immediately, so card payments would cease. Up until that time I would continue to repay.

5. when you go bankrupt, the OR will look at your SOA and will come to an arrangement for repayment of part of your debts - from what I understand you will be locked into an agreement where you repay a percentage, from 50-75% of what you have left from your income after expenses, if you have more than 100 quid left. I believe you are locked into this for 3 years, so there is some room for saving

6. Bankruptcy lasts 12 months, but the court may impose a longer term if there are extenuating circumstances - eg. this is a second bankruptcy, or there is fraud involved etc. It may also be discharged quicker if there is little for the OR to deal with, ie. not much in the way of assets (house, pension, insurance etc).

7. The debts are all cleared as far as I am aware, though student loans remain payable no matter what, as are fines etc.

Hope this has been some help. All I can say is read what people on here have been through - there is a wealth of information available. Good Luck

Remmer

Hi Mark and welcome

1. If 2 years ago doubt whether the OR will even pick up on it

2. Iwas under the impression that if working as a waiter HMRC would tax you on what they expected you to earn in tips but if not, owed tax is usually included in your BR

3. This is favouring one creditor and would indeed be frowned upon. The OR could in fact claim the money back from your GF

4. Once you decide on BR, and you must take advice from one of the charities first (the judge will usually ask if you have) why continue to pay? Save the money towards the fees.

5. You can save from the surplus you have should an IPA be in force after BR but you wont have a huge surplus. Again advice is essential.

6. You would normally be automatically discharged after 12 months (or sooner) but may have to continue making payments to the OR or trustee for 36 months from the date the IPA is agreed. BRO (bankruptcy restriction order) wouldn't seem appropriate in your case but all it does is extend the period during which the same restrictions apply as in BR ie directorships etc.

7.Student Loans are NOT written off but everything else is

oscar_uk_2

thanks for you answers. i had a consultation with CCCs over the phone today and the lady thought that bankruptcy was definitely the best option for me. She was really nice and by the end of our chat was really upbeat about the whole thing saying how they get loads of positive feedback from those that have done it and not to feel too bad for the banks.

I'd like some help with the next steps please. She told me to fill in the forms to apply for bankruptcy. I couldn't find the forms to be filled in online. I could only find them in Pdf format to print out. Is it possible to submit them online?

1. I'm going to fill in forms 6.27, 6.28, and EX160 to try and reclaim the fee.

2. I'm going to set up a new account with the post office to get my wages paid into from now on.

3. I've stopped all my direct debits

What else do I need to do?

gettingitsorted

oscar_uk wrote: »

thanks for you answers. i had a consultation with CCCs over the phone today and the lady thought that bankruptcy was definitely the best option for me. She was really nice and by the end of our chat was really upbeat about the whole thing saying how they get loads of positive feedback from those that have done it and not to feel too bad for the banks.

I'd like some help with the next steps please. She told me to fill in the forms to apply for bankruptcy. I couldn't find the forms to be filled in online. I could only find them in Pdf format to print out. Is it possible to submit them online?

1. I'm going to fill in forms 6.27, 6.28, and EX160 to try and reclaim the fee.

2. I'm going to set up a new account with the post office to get my wages paid into from now on.

3. I've stopped all my direct debits

What else do I need to do?

Hi Oscar

Glad your talk with the cccs went well

as far as i know you can only fill in the forms online to print out and take with you not sumbit online.

As for basic accounts its a must that you check what there policys are on bankrupts having account as only a few will not freeze them once informed by the OR of your bankruptcy.

ring your local court and find out if you haft to make an appointment or what days are available to go in as some have waiting lists and you could be waiting a while for an appointment