Hello! Considering Bankruptcy!

diva_darling!

Hi all,

This is my first post on this forum so first of all hello:wave:

I'm 24 and currently approx 12K in debt (not counting student loans which arent covered by BR anyway I dont think) and I've been on a DMP with payplan for well over a year now, I'm paying such a low amount on it, it feels like its never ending. Worked it out and its going to take about 20 years!! That's not counting any interest that may be added on!

I can't afford to increase my payments at all really so am considering going bankrupt. I do think it'll be the best way to go and to start anew. My main problem is I'm worried about what will happen if I want to get a house and things later in life (a lot later!) also I have no idea where I'm going to get the money to actually pay for the bankruptcy in the first place!! Any advice anyone can give would be very gratefully recieved!

Thank you x

ClaireLR

Hi Diva,

I'm going to make myself bankrupt for the same reasons as you, such a lot to pay and cant afford to pay it for years and years, plus Im struggling to have any quality of life as all my spare money (and there aint much of it!) goes on debts.

The fee to make yourself bankrupt is £485. Im having a long term borrow from my dad and he has agreed to lend me this for 1-2 years so I can give it him back without being broke myslef.

Theres lots to consider and find out before bankrupcty. Why dont you start by posting us your SOA so that we can see where your cash goes and maybe advise where you can cut back?? There might be other options you can consider before bankruptcy you see.

Im also worried about being able to buy a house later on (im 24 to!) but for now my council flat will suffice, as long as I have a roof over my head thats the main thing for me!

Best of luck with it. x

Conor_3

Apart from the fact that wages haven't increased as fast as house prices so they're pretty much unaffordable in the first place and buying one is just plain stupid, it screws you for about 3 years after discharge.

I remortgaged recently and the advisor stated they don't consider it after 3 years from discharge.

diva_darling!

Ok first question whats a SOA?!!

I could ask my mum for the money but I've been indepenant from them for so long and she has no idea on my debt amounts I dont really want to open that can of worms! I may have to put it of a few months and pull it together and the month I go BR I wont need any money for debts so I can use that!

My current flat is lovely and I love it and have no plans to move in the near future just look way way in advance with the house thing!

diva_darling!

Conor wrote: »

Apart from the fact that wages haven't increased as fast as house prices so they're pretty much unaffordable in the first place and buying one is just plain stupid, it screws you for about 3 years after discharge.

I remortgaged recently and the advisor stated they don't consider it after 3 years from discharge.

I've no plans to do it in anywhere near in the future more like a long term dream if you see what I mean?

Its good to know that they dont consider it 3 years after discharge, only thing is i'm not sure when discharge is? I've read the info but it does all confuse me!

allofadither

Hi DD, welcome to the forum.

If you need to cobble together the BR fees then it is perfectly OK to stop paying your creditors in order to do it. It will mean you will probably get unwanted hassle in the way of phone calls and letters from them but that will only be temporary intrusion.

diva_darling!

allofadither wrote: »

Hi DD, welcome to the forum.

If you need to cobble together the BR fees then it is perfectly OK to stop paying your creditors in order to do it. It will mean you will probably get unwanted hassle in the way of phone calls and letters from them but that will only be temporary intrusion.

Do you think that'll matter if its more than a month? It would probably take 2 months to get it together if I don't pay creditors.

allofadither

diva_darling! wrote: »

Do you think that'll matter if its more than a month? It would probably take 2 months to get it together if I don't pay creditors.

It won't matter a jot DD. If BR is really the only option for you then you should get the fees together asap, get the BR forms, and find your nearest court. Don't bother telling your creditors what you're plans are cos it won't make any difference either, not until you are actually BR.

Please bear in mind that the Judge will ask you if you have taken expert advice, so make sure you have thought it thru properly.

diva_darling!

allofadither wrote: »

It won't matter a jot DD. If BR is really the only option for you then you should get the fees together asap, get the BR forms, and find your nearest court. Don't bother telling your creditors what you're plans are cos it won't make any difference either, not until you are actually BR.

Please bear in mind that the Judge will ask you if you have taken expert advice, so make sure you have thought it thru properly.

I've been thinking about it for a long time, I've recently been forced to move due to circumstance and now my rent is more (still as cheap as place as I could get!) there really isnt any other choice.

The whole what happens in court thing confuses me I've read all the online info but it makes my brain go numb, I'm such a blonde sometimes!

Would people like cccs count as expert advice?

allofadither

diva_darling! wrote: »

Would people like cccs count as expert advice?

Yes...and Payplan, and CAB. The judge is unlikely to refuse your request for BR, but just needs to be sure you have considered the alternatives.

The BR hearing itself takes minutes, usually, but there can be alot of hanging around in the court just waiting. Most people report having sympathetic and understanding judges (me included).

It's worth ringing your local court to see if you need to book an appointment or just turn up. In some places there can be longish waiting lists.

diva_darling!

allofadither wrote: »

Yes...and Payplan, and CAB. The judge is unlikely to refuse your request for BR, but just needs to be sure you have considered the alternatives.

The BR hearing itself takes minutes, usually, but there can be alot of hanging around in the court just waiting. Most people report having sympathetic and understanding judges (me included).

It's worth ringing your local court to see if you need to book an appointment or just turn up. In some places there can be longish waiting lists.

Sorry if I'm sound thick but could you tell me exactly what happens and what I'll need to do?!

I've read the offical stuff but its always long winded and not written by anyone who's been through the experience!

Thank you so much for all your help