Can someone who is unemployed go bankrupt

Ox1987

Depression has rotted my brain i think
Money is still in cheque form as we can't cash in old bank and new one is not open yet. Do you not think we should start the DMP first and then prepare better

TDMum

Based on your children's ages 2 under 9 and 1 at 6 months
You earning £60k 2012-2013
You earning £0 2013-2014
Rent = £750 for a 3 bed place ( was a guess )
Council tax = £1900 (Again a guess)

This is what your award would be


Entitlement Per year Per week Notes
Means-tested income entitlements
Tax Credits-Initial Tax Credit £0.00 £0.00 This figure is based on the income you received last year.

The Tax Credits figure shown below is based on your current income amount.

Tax Credits £8,716.20 £167.16 Child tax credit.
JSA £5,852.60 £112.55 Assumes adult-only JSA(IB).

Means-tested bill reductions
Council Tax Support £1,899.56 £36.43
You should not have to pay Council Tax as you qualify for full Council Tax Support.Our calculation is based on you receiving £167.16 from child tax credit.

Housing Benefit £9,000.00 £173.08
You should not have to pay rent as you qualify for full Housing Benefit.
For more information on what qualifies see eligible rent for Housing Benefit. Our calculation is based on you receiving £167.16 from child tax credit.

Other income entitlements
Child Benefit £2,449.20 £47.10
You will be subject to the Child Benefit high income tax charge. The calculator does not take sufficient information to work out the exact value of the charge, but on incomes between £50,000 and £60,000 the charge will be less than the value of your Child Benefit. To find out more about see <a href="javascript:gotoHelpPage('childbenefitcharge');">Child Benefit charge</a>.
Total Entitlements £27,917.56 £536.32 weekly


So you would be entitled to the full amount which would be reduced to £500 a week cap if I'm reading rightly? If you decided to go BR and let go of the house and rent you would have plenty to re-start your life. Heck it's more than our income and we manage just fine now

gizmo111

Have you now decided that you are going BR?
If so give that cheque back to your brother and dont cash it. He may need it to help you buy your BI in the house and get you a cheap car.
Going BR doesn't alway mean that you will lose your house
Check on the calculator what help you would get with mortgage if you are unemployed.
Have a look and see what jobs you could get and at what income. Remember the lease car will go back and any charges etc will be included in the BR.
Play with the calculator and see what tax credits etc you will get on a lower salary.

You now have about 40 pages over two threads going over the same ground and round and round in circles. Just make a decision and get on with it.

Ox1987

I did not start this one and just thinking things over as was offered a F&F IVA using the 10k but unsure on impact on job. and was questioned whether as you described i should get off the rat race
Am still in process of setting up DMP but was warned about the length of it

tigerfeet2006

Sorry I've missed the bit about a cheque along the way. Please can someone explain how? where? what? it is etc.

Ox as I said earlier hundreds of people have rented houses in your situation and worse on the board. Unfortunatly due to the nature of the board 98% of people get their help and support, go BR or whatever and then when it is all done and dusted go on with their new, happy, debt free lives and never give another thought to the board. Only around 2% of us stay around to offer that help and support. So unless you want to trawl through all the old threads then I think you will just have to believe us when we say it is possible to rent in your situation.

Rylynn

I am not sure what to tell you, in fact I think you need to speak to some other professionals, ones with nothing to gain either way by the advice that they give to you.

Do you think the DMP will work?

Let me put this in context for you, and what you and others reading this have to remember this is me I am talking about not you.

If I could go back to 2005 I would never have entered the IVA we lived on hardly any money because of it, the stress was awful. My mother aged 70 should have been retired but she had to carry on working or we would have starved.

If DMPs had been around then I would not have taken one of those up either, I was and still am a single mum, I did not earn mega bucks back then either.

I was horrified when I finally learned just how much of the money I had paid in the time that I paid before falling ill and it failing, went to my creditors, it was peanuts, the IVA company had the lions share. I found that disgusting to be honest with you, in fact I would go as far as to say immoral. If all the money had gone to those I owed it to I would have had no problem, but it did not.

If I had gone bankrupt in 2005 I may have paid to an IPA I was working full time then but it would have been nothing like I was paying into the IVA, as you are allowed far more to live on in a BR. I wanted to pay it back I was brought up that way, but I can honestly now say my warped thoughts were just that warped.

My mum and my son suffered for longer than they needed to, I suffered, and at the end of it all it failed as I became very ill.

Bankruptcy is not the easy route, it still has stigma attached to it, but I do not give a monkeys aunt, it allowed me and my son to live normally again, not be scared who may be on the phone. That piece of paper and number are more powerful than I could have imagined, I was getting calls for about a week after BR, the minute I said I am bankrupt ring my OR here's the number, NO more calls.

There is a thread here about IVA's perhaps when you have time Ox you should read just the first post, I was one of those failures, it is not a very good success rate looking at what he has to say really and I can see why, most people end up with too little to live on.

https://forums.moneysavingexpert.com/discussion/4353261

You have to do what is right for you, but I would look at all your options slowly and think clearly first, do not do as I did and just jump quickly and then regret it later on.

I now need a chill pill... cannot have any alcohol as gave that up 6 days ago, so coffee it is then!:A

Rylynn

gizmo111 wrote: »

Have you now decided that you are going BR?
If so give that cheque back to your brother and dont cash it. He may need it to help you buy your BI in the house and get you a cheap car.
Going BR doesn't alway mean that you will lose your house
Check on the calculator what help you would get with mortgage if you are unemployed.
Have a look and see what jobs you could get and at what income. Remember the lease car will go back and any charges etc will be included in the BR.
Play with the calculator and see what tax credits etc you will get on a lower salary.

You now have about 40 pages over two threads going over the same ground and round and round in circles. Just make a decision and get on with it.

Hi Gizmo,

I agree with you, the cheque would need to be returned and then an amount given over for a years rent, a car and whatever else was needed.

Someone has already put what the calculator says or roughly and for me it would seal what I was going to do. Maybe it is because I did the IVA, it is not over with an IVA, with BR it is over, even if you have to pay an IPA it is nothing like they take in an IVA cannot say on a DMP as I have not a clue about them.

Can I also add my son aged 33 thought he had completed his IVA last month (stupid idiot should never have gone into it) and they came back and said sorry you got this bonus, he said yes and I told you, well sorry you now owe us another £1700, he told them in 2010 and they now tell him, how poor is that!

Maybe it is all in the brain, going to court, having a judge tell you it is over you are bankrupt, whereas with the IVA it was not, I had to fill in forms every 3 months I think, when I was ill they never left me alone, they phoned weekly, my mum had to take the calls in the end as I was too ill, they wanted doctors notes, and complained when they got one saying 2 months! could I not go back after a month they asked. So as I say I had a bad time with the IVA.

I would not advise people against them but in Ox's position is an IVA any better than BR as will an IVA also I stop him working, and if that is the case I would take bankruptcy over an IVA, but he needs to find this out.

This DMP is going to take how many years? I could not take that stress for that length of time and I am a pretty strong person mentally, well most of the time, I was not in 2005 or 2008 my debts nearly had me commit harry carry.:o

gizmo111

On todays figures it would take 12 years - however if he goes down the DMP route he has £10k to knock off his debt straight away reducing it to 8 1/2 years. Once he gets rid of his ridiculously expensive lease car he will be able to double the payments or save and make F&F offers - reducing it to about 51/2 years - as the children get older and wife works it could reduce even quicker.

Rylynn

gizmo111 wrote: »

On todays figures it would take 12 years - however if he goes down the DMP route he has £10k to knock off his debt straight away reducing it to 8 1/2 years. Once he gets rid of his ridiculously expensive lease car he will be able to double the payments or save and make F&F offers - reducing it to about 51/2 years - as the children get older and wife works it could reduce even quicker.

Gizmo, look my friend I have given up alcohol, I have had a stressful day and now you tell me it will take 51/2 years PLEASE!:eek: don't do this to me! LOL:rotfl::rotfl::rotfl:

Sadly for me if I was sitting here weighing that up I know the route I would take, and it would not be a DMP, not unless I was in a job I simply adored and it would mean losing, which I cannot say I think of Ox it does not come across as him loving his job at all.

Having to go through even 5.5 years would just be to much for me to take, having been in the IVA and realising what can happen and change and then be back to square one again, no I would opt for the BR myself, but that is me.

I would want the new start, the debts gone, as even if things change in a BR and you are paying an IPA and you suddenly lose your job they do not dump you back with the debts, in fact you would not pay anything I would not think.

And especially if I had £10K at my disposal to rent a house and pay a year up front and get a car, mind you worth no more than £1K as we know that can be taken if too expensive.

We all see things differently, things work for some people and not others. I also have to consider they have a home and very young children, I did not, well not when I went bankrupt anyway.

I just want Ox to take his time and really think about his choices.

alastairq

Going back to the 'job'?

Ox...why would you 'resign' from your job?

Why not just let your employer go through the process of sacking you ? [once you have petitioned BR]


Does your employer want to lose your talents?

Can they employ you outside of your present role? [Certainly for the duration until AD?]

Does your employer have a HR department? [So that you could investigate exactly what happens in cases such as yours?]