uncertain what i should do

tosca5

help!!! i'm in a real mess....£80k debts!!:o no longer in a position to keep up my payments to my creditors, i have thought about declaring myself bankrupt or just waiting for one of my creditors(biggest one £40k) to bankrupt me.
What's stopping me declaring myself bankrupt is losing my car, although its on hp,my loan company said they won't pursue me to giving up the car as long as i continue with my payments.

Don't they send in some kind of money advisor or trustee to see your financial state and if you are able to make some kind of payments to your creditors? My problem is if they disagree with me paying my car loan and think the money i pay towards that should be divided between all my debts.

I really need my car at the moment for my college work and voluntary work i do..hope this all makes sense and someone can advise me what i should do.
did visit citizens advice and the gentleman was most unhelpful, i left there feeling 100 times worse.It's put me off going back.

please help!!!!!

fermi

Several things you could do. And I'm sure you will get further good advice by the other members

1) If you are unsure of what the bankruptcy process involves then, you can look at.

Guide to Bankruptcy
http://www.insolvency.gov.uk/guidanceleaflets/guidetobankruptcy/guidetobankruptcy.htm

How to petition for your own bankruptcy
http://www.insolvency.gov.uk/guidanceleaflets/dealingwithdebt/howtopetition.htm

and the whole of the Insolvency Service website has good info

http://www.insolvency.gov.uk

Good info on all your options is also available at:

http://www.insolvencyhelpline.co.uk/

2) Get professional advice.

Did you see a 'money/debt' advisor at CAB? Many of the normal 'advisors' don't know a lot about bankruptcy.

Excellent free advice is also available from:

Consumer Credit Counselling Service
http://www.cccs.co.uk/
Tel: 0800 138 1111

If you are to go BR, you must seek professional advice to satisfy the judge, so do it now.

Cars:

These can be difficult in BR, especially if they are on finance.
All I can say is that if you are to keep your current car (or replace it with a cheap one for now) you must be able to convince the OR that it essential for your domestic needs rather than just convenient.
Hopefully others who may have been in your situation regarding a car can help further.

Stick around, as I'm sure others will post useful info as well.

fermi

Also, as I just posted in another thread:

If you can prepare an SOA (income and expenditure, with a list of your debts), then we will be able to see your situation (financially) so much better.

If you're not sure how to post an SOA DFW style then please read through this sticky:

http://forums.moneysavingexpert.com/showthread.html?t=107280

Most of us have been there, and there is always a solution.

rog2

Good advice from fermi, tosca.

The car situation is very confusing, and there appears to be a lot of inconsistency in the way that individual ORs handle the question.

Basically, if you need a car in order to earn your living, the OR is unlikely to take the car, although he/she may take it and supply you with cash to purchase a cheaper car.

When the car is on HP, though, it does not actually belong to you - it belongs to the finance company - until you have finished paying, when 'title' passes to you. The OR MAY decide that your payments to the finance company represent too high a portion of your expenditure, and will, most certainly, wish to know how much 'balance' is left on the agreement before giving a decision.