To much debt for BR

Denzel1989

I have been planning to go BR for a few months now, i have got the money together for the fees and all my business accounts sorted etc.

So....i rang stepchange today and they have told me that until my budget is more balanced then bankruptcy is not an option?

What on earth am i supposed to do, Im 25/30k in debt (ish) with no work and zero income? I have only put basic living costs on the budget on there debt remedy tool but they say that its to much?

I thought this is what bankruptcy was for?

Helpmeoutofthismess

You can still go bankrupt but are you going to be able to cover your essential outgoings with no access to credit? If you have no access to credit at the moment then I suppose you will manage as you have been doing! The OR won't mind but you need to try and get within budget or you will just end up even deeper in a hole than you must be already.

H x

Denzel1989

Essential outgoings are very minimal or they can be made that way as i still live at home with my parents. I cant live on any less than what i have put on their form.

debt_doctor

Hi,

Step change seem to come out with this from time to time. If your business has ended then you should claim JSA (presume you are looking for work?) and then presumably you would contribute monies to your parents for 'board'.
DD

PippaGirl_2

Might be worth posting up your SOA on this board for people to advise on.

Denzel1989

No i am not on JSA, i am planning on staying in business and doing what i can whenever i can which will earn me way more than any paye equivalent job. But at the same time re-train for something else and concentrate on improving a few work related injuries i have.

As my income is effectively 0 at the time of writing (this 'could' change tommorow' they said i have to improve my financial situation by making my personal outgoings match my income, well my personal outgoing are also effectively nill when i am not working....obviously. This made possible by a very sympathetic family. But when i am earning they expect me to pay board etc which is what i put on their form. If i put on the SOA nill outgoings and nill income then am i right in thinking that i will then qualify for BR?

arcon5

DanielN1989 wrote: »

No i am not on JSA, i am planning on staying in business and doing what i can whenever i can which will earn me way more than any paye equivalent job. But at the same time re-train for something else and concentrate on improving a few work related injuries i have.

As my income is effectively 0 at the time of writing (this 'could' change tommorow' they said i have to improve my financial situation by making my personal outgoings match my income, well my personal outgoing are also effectively nill when i am not working....obviously. This made possible by a very sympathetic family. But when i am earning they expect me to pay board etc which is what i put on their form. If i put on the SOA nill outgoings and nill income then am i right in thinking that i will then qualify for BR?

You misunderstand what others have said.

You do not have to qualify for BR. Basically StepChange are wrong to tell you BR isn't an option until you've balanced your books -- what they should have said is BR isn't recommended. For example, if your outgoings are £1k per month and you earn £800 and living in credit, they don't want you to go post-BR incurring more debt and beginning the spiral all over again.

As you say your outgoings are based on your income through work, your books DO balance.
What you should put on your SOA is an average income/outgoings - look at the last 3 months for example.
When you have the interview with the examiner (probably a phone interview), they will go through it all and you explain you live with your family, your income is very low and intermittent and when you are earning you are expected to contribute and when you are not earning they are subsidising your living costs.

BR isn't a one size fits all situation - the receivers office know this and will compile their report in to your affairs based on your individual circumstances.

If you know for certain BR is the best option for you and you are going forward with some financial stability (even if that is your family subsidising your living costs) then go ahead and take your petition to the court house.

Denzel1989

Thankyou Arcon, i think with they way my life and business is at the minute then BR is the only option.