Should I go bankrupt?

spinningsheep

Hiya guys, I have had some really deflating news today from 2 of my creditors who I am in a debt repayment plan with. They have refused to update my credit file with my "reducing debt" until the amounts are completely cleared off, and then it will be 6 years from then that the defaults are removed from my file so they say, so, I have done my SOA and wonder, looking at it, would you say I am best sticking with the repayments until my autumn years or should I just say sod it and go bankrupt? Help! Any advice would be appreciated.

SOA. All household bills ie utilities are shared between me and housemate aside from Sky, and the amounts listed are my half of the bills. Mobile phone bill is contract and still has 12 months to run, cannot lower tarrif. I am cancelling the gym membership. My income of £800 per month is my guaranteed take home pay, sometimes I earn more with overtime etc but that is never guaranteed pay. My "overspend" is taken care of by the extra wage I sometimes earn.

DEBT LIABILITIES


Welcome Finance = £569
Lowell Financial = £681
£5,738
£313


AIC = £6,262

NTL = £215

Orange = £487


TOTAL = £14,265



Income = £800 per month

Outgoings:


Rent = £180
Npower = £30.00
Severn Trent = £11.39
Welcome = £39.93
Vanquis = £50.00
Cap One = £50.00

Lowell £79.00 for all 3 debts

AIC = £15.00

Lovefilm £13.97
02 = £100.00

Tv licence = £11.00
Sky = £40.00
Gym = £25.00
BT = £20
AA Ins = £23.00
Brighthouse £20.00
Provident £60.00


Food = £60.00
Leisure = £100.00

Total = £928.29 per month

Overspend = £128.29 per month

Richard_S

spinningsheep wrote: »

Hiya guys, I have had some really deflating news today from 2 of my creditors who I am in a debt repayment plan with. They have refused to update my credit file with my "reducing debt" until the amounts are completely cleared off, and then it will be 6 years from then that the defaults are removed from my file so they say, so, I have done my SOA and wonder, looking at it, would you say I am best sticking with the repayments until my autumn years or should I just say sod it and go bankrupt? Help! Any advice would be appreciated.

SOA. All household bills ie utilities are shared between me and housemate aside from Sky, and the amounts listed are my half of the bills. Mobile phone bill is contract and still has 12 months to run, cannot lower tarrif. I am cancelling the gym membership. My income of £800 per month is my guaranteed take home pay, sometimes I earn more with overtime etc but that is never guaranteed pay. My "overspend" is taken care of by the extra wage I sometimes earn.

DEBT LIABILITIES


Welcome Finance = £569
Lowell Financial = £681
£5,738
£313


AIC = £6,262

NTL = £215

Orange = £487


TOTAL = £14,265



Income = £800 per month

Outgoings:


Rent = £180
Npower = £30.00
Severn Trent = £11.39
Welcome = £39.93
Vanquis = £50.00
Cap One = £50.00

Lowell £79.00 for all 3 debts

AIC = £15.00

Lovefilm £13.97
02 = £100.00

Tv licence = £11.00
Sky = £40.00
Gym = £25.00
BT = £20
AA Ins = £23.00
Brighthouse £20.00
Provident £60.00


Food = £60.00
Leisure = £100.00

Total = £928.29 per month

Overspend = £128.29 per month

Hi spinningsheep,

We're not really in a position to recommend bankruptcy, that's a job for the professionals. If you contact one of the debt charities, CCCS, CAB, National Debt Line etc etc, they'll offer you free and impartial advice. Their advisors are professionally trained and only advise on what's best for you.

If they advise bankruptcy then you're in the best place for anecdotal advice and support. We've all been in the "no man's land" where you are at the moment so contact one of the debt charities and start to take control of your life again.

Best regards

Richard

Broken_hearted

Agree with Richard you need proper advice but I think you could avoid bankruptsy.

NekoZombie

Yes, I'll second the above. You do have an overspend, but I think maybe a couple of things could be cut down, maybe the sky at £40 and the o2 at £100. I appreciate you might be locked into a contract with the gym, but you may be able to cut that down. How long are you projected to carry on making payments before you are debt free?

On an income of £800, are you not entitled to tax credits/housing benefit/council tax credit. I was on that amount.

spinningsheep

The contratcs with 02 are in contract and so cannot be lowered, and my sky package also cannot be lowered for 6 months as i am on a promodeal.I am cancelling the gym. I have done that website quiz thing on what you are entitled to with no dependants etc etc and it says im entitled to didly squat

NekoZombie

Thats shocking! I bet you're just over the threshold.

I'm sure you have your reasons, but ouch! £100 is a hell of a lot of money to spend on mobiles.