Can't afford to go bankrupt?

sillygraduate

I have to say, this is the first time I've been on this forum and considering how difficult my life is at the moment, its not really the best having advice come with people taking the p*ss out of you.

Its obvious I don't fully understand whats available to me. Iv tried getting as much advice as possible and Im just stuck with a headache and stress.

Im not some rich idiot trying to look for an easy way out, I am unemployed and trying to clear my debts without having to starve for a year.

If anyone can offer some genuine advice on this I'd appreciate it but if not then please don't just dish out your condescending remarks because 1) it says more about you than you realize 2) it really gives this site a bad name.

MartynK

Well if I recall you can list all your outgoings so if all your wage accounted for living costs then you'd be ok.

Surely it'd depend if your employed or not anyway? You'd either have to pay back some money regularly by being bankrupt or pay back it regularly in loan payments?

Or go bankrupt and get a P/T job

Can you contact the bank that gave you CDL and negotiate lower repayments at all, the Credit Card repayments I wouldn't of thought be that much anyway, and unless your over your overdraft limit then you could dig yourself out of that without to much issue?

I think the keywords here are "surplus earned income" that fermi mentioned. I'd read through the link he gave

fermi

Please give somewhere like National Debtline a call (freephone 0808 808 4000)

Also: http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=01_bankruptcy

Some of what this CAB advisor has told you sounds altogether dodgy.

National_Debtline

Hello there,

Here is a link to our Bankruptcy fact sheet, the key points are explained in easy to understand language:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

As already mentioned you may find that a Debt Relief Order could be an option too, it's far cheaper than Bankruptcy:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders

It's important to research both options so as to be sure which one will be right for you. If you have any specific questions please feel free to post them up here and I'll do my best to answer them.

Best wishes,

David.

rossireps

sorry who is taking the pi.. ?
dont know your living situation but i dont think being unemployed even for just a year is great. i dont work and its no picnic. if you make yourself intentionally unemployed you will also have any benefits your entitled to sanctioned. having re read are you unemployed already?
i went br lost nothing except the man hammering on my door at night threatening me so yep it has helped so so much.
you can survive though as i do to a fashion. i dont have spare money but do cover everything i need to. . as fermi says give national debtline a call, they were fantastic for me. all the best

dancingfairy

o.k so you owe 12,000? The advice from the cab sounds a bit dodgy as someone else has said. Normally when you go bankrupt they will assess your income and if you have any spare after paying yourliving expenses then you will be required to pay into an IPA to go towards your debts.
I've not heard that if you start earning enough your bankrupty will be cancelled - this doesn't sound right to me.
Also if you are unemployed when you go bankrupt then you won'thave to pay an IPA and when you get to the end of the 1st year they then can't suddenly make you pay an IPA so in that sense I understand why they are saying you shouldn't get a job as you'd possibly end up payingan IPA for 3 years but they seem to be seriously missing the point!
1) if you get a job your expenses will also go up (and will be taken into account) so the amount you will be asked to pay may not be as much as you'd think.
2) you have to survive for a year anyway and 1 of the conditions of going on JSA for example is that you actively seek work.
3) it's obviously better for your career if you get a job (obviously).
I can't believe they are actually suggesting you claim benefits and sit on your hands for a year in order to get your bankruptcy done quicker -this seems most immoral.
Bankruptcy is not entirely this quick fix appraoch and in return for having all your debts written off then it seems sensible to me that people should be asked to make a small contribution based on what they can afford.
Added to that you/they don't seem to have taken into consideration the effect on your future career and alsothe fact you still have to find the fees for bankruptcy.....
I feel also that one of the other debts solutions may suit you better such as a dmp (or Scottish equivalent) given the job situation.
You need to get impartial advice from a different source(s) Ifeel.
Best of Luck
df

JCS1

Putting gambling on the forms will trigger further investigation into your conduct.

I suspect the person you spoke to may have been talking about DRO's, as if your surplus income goes above £50 a month it may be cancelled (which may make sense of the comment about starting employment).

It does sound like the advice you've had is not quite correct, so please make contact with other charities.

fermi

Just to note. The OP is in Scotland.

sillygraduate wrote: »

bear in mind, Im in Scotland

National_Debtline

fermi wrote: »

Just to note. The OP is in Scotland.

Oops. Apologies, I missed that.

Bankruptcy is a cheaper option in Scotland than it is in England & Wales, it's £200. Given the circumstances it's likely that an application can be made directly to the Accountant in Bankruptcy via the 'Low Income, Low Assets' route:

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=01_bankruptcy

ontrack

certainly the low income low assets route seems to be the way, there is no requirement in Scotland for you to be unemployed!! and there is no way bankruptcy can be reversed unless you pay off all your debts.
the Accountant in bankruptcy will need to see a SOA for you and look at whether you can afford to make any contributions at all certainly you can earn a living wage without having to make contributions.
as far as I know you can increase your earnings after the first year (after discharge) without having to make additional contributions.
be aware that whatever you do your credit will be seriously shot for at least 6 years!!
As to borrowing money before bankruptcy, basically this is fraud and you have to ask whether the consequences are worth the risks.
have a look at trust-deed.co.uk for good impartial advise from Scottish debt advisers (they also advise on sequestration (scottish bankruptcy) and debt arrangement schemes)