Need to go bankrupt but struggling with fees

granville14

Hi, we need to go bankrupt, and we need to do it asap. We currently owe £61,000 to NRAM from repossession in neg equity, not paid anything back as yet, £3500 on a credit card, just missed a payment for 1st time, and £10,000.00 on a loan with the bank I work for so cant miss or negotiate payment with them. Worried as because I am still paying loan to bank in full I am now favouring creditors, but cant not pay as my salary has to go in that a/c and they take it straight out? We don't have any money to pay the bankruptcy fees, and thinking of taking a payday loan to cover it, but worried we will then get 'in trouble' as borrowing money we have no intention of repaying?! Aaargh. Really struggling and don't know what to do. Has anybody borrowed more money to pay bankruptcy fees? Thanks x

Lomast

If you work for a bank have you checked that being bankrupt will not break the terms of employment

granville14

Hi, yeah I have spoken to them and it wont affect my employment, my wages will be paid into my a/c, but will have to be transferred straight out to a different bank for my bills ect to go from there x

easygoingchap

granville14 wrote: »

Hi, yeah I have spoken to them and it wont affect my employment, my wages will be paid into my a/c, but will have to be transferred straight out to a different bank for my bills ect to go from there x

We used a pay day loan each for ours. The OR asked about it but that was all - not even a slap on the wrist as I am sure he understand.

granville14

Thanks for that easygoingchap. I am just so stuck with everything. Car is knackered, and now failed MOT, going to cost £500+ to get through, and worried we may still lose it anyway? I feel like Im in a hole and don't know how to get out. I know bankruptcy is the only way, but scared. Cant afford to go bankrupt, but scared to get a loan to do it aswell. Fix the car or not?! Got 2 babies and need the car o get about. I need help

easygoingchap

granville14 wrote: »

Thanks for that easygoingchap. I am just so stuck with everything. Car is knackered, and now failed MOT, going to cost £500+ to get through, and worried we may still lose it anyway? I feel like Im in a hole and don't know how to get out. I know bankruptcy is the only way, but scared. Cant afford to go bankrupt, but scared to get a loan to do it aswell. Fix the car or not?! Got 2 babies and need the car o get about. I need help

What I would say is individual circumstances are that - individual however we have all, on this board, had similar stories to yours. Similar outlooks and similar worries. You are very far from being alone. There is no quick fix but there is hope.

Please speak with stepchange - complete their online assessment first if you like. They are truly fabulous and will guide you to and through a multitude of options. Plus come back here and ask whatever you want - there are a couple of real experts online and bothers, like me, who are going through it bad many who have gone through it and now have a fabulous debt free life.

Good luck :beer:

dojoman

Is the loan with the bank an unsecured loan?

granville14

Yes it is unsecured, but even if I tried to cancel the DD, they would just take it as soon as my salary hit, Im worried about it looking like Im favouring that creditor?

Soleil_lune

granville14 wrote: »

Yes it is unsecured, but even if I tried to cancel the DD, they would just take it as soon as my salary hit, Im worried about it looking like Im favouring that creditor?

Sounds like bankruptcy is the best option. You are never going to pay back all this debt, especially if you can barely afford to repair your car, and you have two kiddies.

For a start, if I were you, I would change banks: you are not obliged to have your account with the bank you are working for: I know many bank employees do have their accounts with their own bank, as they get lower rates and better offers on mortgages and lower rates on loans etc, but I'm pretty sure it wouldn't be in your employment contract that you have to have an account with the bank you work for.

If it is possible for them to just take the monthly payments for your loan out of your salary, then I think it may be time to start looking for employment elsewhere, as things could get uncomfortable and awkward.

You can get into trouble if you have knowingly taken a loan out for bankruptcy, so is there anything you can sell? Can you sell the car and buy a cheaper one to free up some finance? Could ANYone lend you the money? If none of these options are possible; try people like one of these companies on this link:

http://homepage.ntlworld.com/stuart.blackstock/funding/bankruptcy_fees.html

I think you need to have a long chat with someone from HR about your issues, and tell them that you are planning on going bankrupt, as you can no longer cope with your debt, and see what they they say: they must understand that this happens, and many people go bankrupt often through no fault of their own, but through circumstances.

As I said though, if they are going to be difficult, then maybe start looking for employment elsewhere? I do think chatting to someone at work about it may help though.

Good luck.