Big debt - can't go bankrupt!

chrisp65

My husband I & have accumulated large debts of 35k on cards. It has now got to the stage where the interest is so big I can only afford minimum payments so nothing is being paid off. I hate being like this, it's affecting our lives with our children. I know now that we have to seek advice as clearly with prices going up we can't do this anymore. I'm frightened they will say we have to go bankrupt - can they force us to do this?

skylight

What do feel is so frightening about bankruptcy?

No-one (as in an advisor) can force you to go BR. Only a creditor can make your BR, there are a small handful of creditors that will force a BR, they apply to the courts. Not many do this though, American Express and councils for council tax ring a bell.

Mort

Going bankrupt can be avoided. Have a look at this guide and check out who to talk to for free here, never use a company who will charge.

chrisp65

I had a look at the Guide and it's 'Debt crisis' but am frightened if I go there, they will suggest going bankrupt. My OH & I both work public sector and I don't know if they allow you to carry on as read sometimes you are not allowed to carry on in your job!! Also, it is always printed in our local paper. I want to pay off our debts, and try and provide for my children. In tears now. It was a big deal to look at the video and join this forum. Sounds wishy washy, but it was.

skylight

A suggestion of going BR is just that. Only a suggestion! The FREE advice organisations offer advice (make sure its a free one completely and not free advice/pay service place), and advice can be taken by you or not.

Going BR is a difficult step but you do not have to take it. The debt free board here is a good place to start. Use the MSE income and expenditure form and post it. The people on that forum can show you some ways to reduce the expenditure.

Mort

I am in the public sector and it didn't cause me problems. Had to inform management that I was in financial hardship which was embarrassing as it had to be repeated a few times. Only thing that happened to me was that I lost the burden of having to look after some financial aspects of my job. I gained SC clearance whilst on the DMP with Payplan.

If you are worried about talking to managers you can ask your union representative to accompany you.

Recognising and accepting your financial position is a big step, the next one is to do something positive about it and that was not quite so hard for me.

eyeopener2

I think we need to step back a little bit here! There is no reason to talk bankruptcy or telling your employer at this stage, I didn't through my entire dmp and I work in the public sector.....in finance. So don't start worrying on that part.

So....where do we begin?

First things first is a statement of affairs. You will find a link to this in the sticky at the top of the page. You can post it on the forum and the amazing people of debt free wanabee land will give you advice on where to cut back, where to re-jig and generAlly give you a stiff talking to (in a nice way).

So, and I say this time and time again, don't not worry about things that probably won't happen. Concentrate on forming a plan to get you out of the debt hole. I did it, so can you.

jubilee14

Hi Chrisp like Eyopener says no need to rush straight to BR. I had slightly above your debt and am able to go n DMP will take 6/7 years interst freezing but all the same its not going up anymore. why not try stepchange debt remedy they can give you some idea of what the best route is and there is not commitment. I did it twice before actually taking the plunge and wish i did it sooner. My work also requires clearance so i told them in case they thought i was dishonest. Our guy says its been before and my job shouldnt pose a problem. so best of luck and hope you get the right solution for you

*Foolish*

Have a look at my sig, my DMP is in my name only, I get a financial contribution from my OH, but I'm the higher earner and battling this off predominately alone, it can be done, and bankruptcy was never mentioned. It'll all depend on how much you can afford. Obviously everyone's circumstances are different.
There is plenty free help out there and, as mentioned, I'd definitely look at doing something like the debt remedy on StepChange's website, it's none committal and will give you an idea of what advice you're likely to receive.
I hope this helps, good luck.