Can someone who is unemployed go bankrupt

Anondebtadvisor

I have recently spoken to a few clients who have sought advice from charities and been given completley wrong and misleading information so that they enter into a DMP rather than IVA or BR

Rylynn

Anondebtadvisor wrote: »

I wouldnt be quick to assume that it was a company that told the OP this, just as likely to be a charity in my experience?

Sorry I was not meaning it is a company, but I know how I was treated by one, and I felt because I was a woman and very vunerable at that time I was not given the whole facts as I later found out I should have been, options were not discussed with me fully.

If it is a charity and they are giving advice on such matters should they not know the facts of bankruptcy?

londonTiger

i think whoseever is advising them misunderstood. You have to pay something like 700 quid to go backrupt so I presume what they meant was if you have no money what so evrr you cant go bankrupt because you wont be able to afford the filing fee.

fermi

There can be good and bad advice from any organisation. At various times I've seen some utterly shocking advice from CAB, National Debtline, PayPlan, CCCS and just about any other organisation you can think of.

Most of the time they get it right, but there are bad apples in every barrel and there don't seem to be enough of the good advisors to go around for any organisation.

Sometimes training seems to be lacking, while in other cases individuals have bias all their own.

I recall hearing of one advisor with a free organisation saying when challenged on them not recommending bankruptcy for an obvious case: "Well, people shouldn't be allowed to go bankrupt. You should pay your debts, even if it takes the rest of your life." I would stress that this person is no longer employed themselves after their line manager reviewed the recording.

This is why you should always get advice from multiple sources. Never depend on any one person or organisation.

Rylynn

Anondebtadvisor wrote: »

I have recently spoken to a few clients who have sought advice from charities and been given completley wrong and misleading information so that they enter into a DMP rather than IVA or BR

Can I ask do you think that is due to them not knowing the real facts or another reason?

Rylynn

fermi wrote: »

There can be good and bad advice from any organisation. At various times I've seen some utterly shocking advice from CAB, National Debtline, PayPlan, CCCS and just about any other organisation you can think of.

Most of the time they get it right, but there are bad apples in every barrel and there don't seem to be enough of the good advisors to go around for any organisation.

Sometimes training seems to be lacking, while in other cases individuals have bias all their own.

I recall hearing of one advisor with a free organisation saying when challenged on them not recommending bankruptcy for an obvious case: "Well, people shouldn't be allowed to go bankrupt. You should pay your debts, even if it takes the rest of your life." I would stress that this person is no longer employed themselves after their line manager reviewed the recording.

This is why you should always get advice from multiple sources. Never depend on any one person or organisation.

Thanks for that Fermi, I guess all companies have bad apples, and some companies do not train properly and I do agree with you, if you are considering anything like this you need to get more than one opinion. One of the companies you mention are the offending company I went to, but I will not openly name them.

It is strange you mention the person saying people should not be allowed to go bankrupt, I thought everyone in the court would think like that, how wrong was I, they were in fact all lovely at the court in 2008.

I wish to god I had gone to more places to seek advice back in 2005, but I was in such a terrible state, I honestly thought I as going to be sent to prison and I had a son of only 14, we had nasty phone calls every single day, I had a card saying someone was going to call at the house and take all our stuff away, my poor mum in her 70s was terrified of being here alone. I was not sleeping, and my work was suffering and my mental and physical health were going down the pan fast.

I will say I went to my local CAB and they could not see me as they were overwhelmed with people, they gave me some leaflets and I rang one of the companies, I should have rung more, as I said earlier shame I did not know about this site back then.

Ox1987

It was a charity but i was looking at the worse case scenario and he was concerned about my house payments if I was unemployed and said you would pay creditors 1 pound and then take a payment holiday until you found work. I said if it took more than 1-2 months they would repossess then we would have a shortfall, he said that if outgoings exceeded incomings then we could not go bankrupt. In my simple head and at the moment it is is that we would go bankrupt lose everything and end up on benefits until I found a new job and we would have to find housing either via a council or friends etc. I would have no income as my profession does not allow BR

Rylynn

Ox, someone will soon tell me if I am wrong here, but if your outgoings exceed your in-comings that is why people go bankrupt, it is not a reason to stop you going bankrupt, it would have to be the other way around.

I know your profession does not allow BRs is that for life, or is that whilst you are bankrupt, as you are aware that you are only bankrupt for a maximum of one year? You are held to conditions within that time frame, and many like myself get an early discharge, mine was all over within 6 months. Yes my credit rating is probably naff, I have never ever looked, it does not bother me as I never want to borrow another dime in my lifetime.

I thought going BR would be the worst thing that ever happened in my life, the thought of it terrified me til I found this site. I was in a dreadful state, I was not well, I was not eating, I began drinking heavily, I was bad tempered, not a nice mum at some points, we had constant phone calls as the IVA had failed. But bankruptcy was not the worst thing that happened in my life, it was the one of the best decisions I ever made.

I have never looked back and thought you terrible terrible person Lynn, you should be ashamed of yourself. I was in a position I could not get out of, my home life was suffering and so were my mum and my son's every day lives.

I came out of that court and within minutes was in floods of tears, it was relief, it was over I could move on, which I have. I cannot tell you what to do I can only tell you to now go and get as much advice as you can get from all different sources.

The people on this site and many are still here were totally brilliant to me, I was like a lost soul at sea whom they rescued by simply telling me I was not going to get locked up and have the key thrown away, and that I would get through it, and I did.

RL

Ox1987

Thats what I hoped I feel lost at sea at the moment with DMP as my only option but fearing thanks to conversations what BR might mean to me and my family, from what i got this morning chased around to infinity for my debt and the house debt if we lose it. Whereas I thought it was a debt solution to sort just that problem and start afresh. Not that I dont want to pay back my debts just if I have no job after a year then I want to understand options

tigerfeet2006

It's not that you can't go BR, it's how will you cope if your normal everyday outgoings exceed your incomings. Some judges don't like to see a deficit but most will understand if you tell them you are working to get it under control and in our experiance if you go from work to benefits you cut your cloth so to speak and you live to those benefits ie: you don't put things like holidays down and you cut your clothes budget.

In fact if I remember correctly 5yearplan had a large deficit and there have befn quite a few who have had deficits and no problems. So yes you can go BR.