time to throw in the towel.

debtfreewannabe10

Have had a very bad run of luck over the last few months and I really can't see any other way to get through this than go BR. I really just want my life back, to be able to sleep at night without waking up in cold sweats and to get back to a healthy lifestyle, I often go days without eating.

Background - I'm 44, have 3 kids and a wife to support. My wife is undergoing cancer treatment and doesn't work.

My business ceased trading in July, since then we have had no income at all, we're living on a credit card and what money we had put aside to pay off some debts. Which wasn't a lot. The business doesn't have debts but I do. Roughly 27k. 5k of this is to the Inland Revenue. The rest of it is from recent living expenditure and legal proceedings I brought against my ex last year for abuse of our children who now safely reside with me.

Am going for my first JSA meeting this afternoon and will hopefully be able to sign on. Have an interview next week with a recruitment agency, so that's something positive I guess. It's just the here and now seems so very very dark and I can't see any other way out of it than to throw the towel in and go for a fresh start. I'm worried the stress of servicing this debt is going to impact my performance when I eventually start my new role. Laughably my credit rating at the moment is perfect.

Anyway, nice to meet you all.
:beer:

XYZ1000

HelloSo what is your plan ?

debtfreewannabe10

Sign on, and then apply for voluntary bankruptcy. Then hold on for dear life !

I'm not sure if there are any better options really. I suppose I could try just trying to service the debt, repayments are £1700 a month, it's very difficult.

Am open to any suggestions though

Moneymash

Sorry to hear about your woes. You've come to the right place. Remember this is the dark before the dawn and things will change and get better.

You are already making progress, with the JSA and recruitment agency. Servicing your debt should make you feel better as you are doing something about it and it will start to go in the right direction, down.

Have a look around the forum for ideas on 'how to up your income', 'make £10 a day' and how to live frugally until your JSA or a job comes through.

You can get through this, and keep posting.

want_to_save

did not want to read and run. Good luck

dinky201

Your in debt with loans, credit cards?

Sign on you may get child support too you gotta do you own research on what you can claim. get a claim book "from station office".

Debt colectors will send alarming letters, thats all they are writing on paper, remember money is a man made object not a natural resourse

debtfreewannabe10

thanks for the responses.

2x credit cards, 1 bank loan and an amount owed to HMRC

DreamerHelen

Didn't want to read and run.....I wish you all the best....

Once you know what you will be getting every month you could enter into a Debt Management Programme....but for now I would say make token payments on your Debts, just £1 for each Creditor....

And change your Bank Account so that you are with a Bank that you don't owe ANYTHING to...that way no one can take money from you....

Please don't stop Posting on here....there are some VERY wise people around here and we are all happy to try and support you as best we can....

dinky201

yea change youre bank account as dreamerhelen says, Metro bank is good as you get a debit card with a basic account if you got bad credit.

I Maybe able to help with loans and credit cards. (dont contact them by phone)
Then that just leaves the HMRC, and think they only can make you pay what you resonably can.


Read the "Office of fair Trading debt collection guidance" then you know more about what they can and can't do.

dinky201

here read it all espeacially read section 3

http://www.oft.gov.uk/shared_oft/consultations/OFT664Rev_Debt_collection_g1.pdf

loveka

Hello. We were in a very similar position to you a year ago apart from I was working when my partners business went into liquidation which I know makes a big difference as I was able to pay the bills.

I want to share with you some things we did that really helped.

Phone your creditors immediately and explain the situation. They will more than likely freeze your interest and reduce your payments. Some people here will say never speak to them on the phone but our experience, with mainstream lenders, was excellent and you get reduced payments etc straight away.

Phone National Debt advice line- they are brilliant. They may get you to phone Business Debt advice line if your debts are related to your business.

Do you own your home? If so, bancruptcy should really be a last resort. Getting creditors to freeze interest -a Debt Management Plan- is better because you won't lose your home. While your credit rating is OK try to get a good 5 year fix on your mortgage.

You may be entitled to redundancy pay from the government's even though it was your own business. Have a look on the government website-all the information is there. My partner applied and received it. It was a lifesaver.

Go through all your old loans, credit cards etc to see if you have a claim for PPI. My partner got 5k from a loan he didn't even remember taking out.

The inland revenue will probably be your worst creditor- but phone them and explain. Communication really is the key from our experience.

This time last year my partner was unemployed and had 50k of debt all related to his failed business. I really thought that he would end up bancrupt as we had no way to pay these debs. I thought we would lose our house. We agreed reduced payments with the creditors, and within 6 months 2 of them offered to settle for 40% of the debt. We used the redundancy for this. Now he has a new job and the remaining debt is manageable. Good luck.


PI. M