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Scared to make the leap..

Sunrise2010
Posts: 9 Forumite
Hi - thanks for reading
I have posed before and you guys have been really helpful so hoping for a bit more advise ..
I am technically ready to file for bancrupcy, but scared to death of actually doing it as I can't see how I am going to survive without credit. This isn't a 'what am I going to do without my credit card' moment, I have written out simply all my outgoing excluding my debits, and my income still doesn't cover it! I have written what I feel to be fairly conservative figures for everything -I don't have any extravagant thins - no sky, no insurance.
Basically my income will be 1900 PCM
Rent 550, childcare 500, gas elec water council tax 285, food (my daughter too) 280, petrol 200 plus the small things like tv licence bt phone, persciption, mobile phone- 80, allow a small monthly amount for clothes for us both 20 .. So we are hitting even
But what happens if the washing machine breaks?! We are not allowed to save for such an eventuality even if we are able to- fair enough as any spair money should pay our creditors, but we cannot get credit either to fix such a situation.
I cannot foresee going 12 months without an unexpected bill.
What do you do??
I have posed before and you guys have been really helpful so hoping for a bit more advise ..
I am technically ready to file for bancrupcy, but scared to death of actually doing it as I can't see how I am going to survive without credit. This isn't a 'what am I going to do without my credit card' moment, I have written out simply all my outgoing excluding my debits, and my income still doesn't cover it! I have written what I feel to be fairly conservative figures for everything -I don't have any extravagant thins - no sky, no insurance.
Basically my income will be 1900 PCM
Rent 550, childcare 500, gas elec water council tax 285, food (my daughter too) 280, petrol 200 plus the small things like tv licence bt phone, persciption, mobile phone- 80, allow a small monthly amount for clothes for us both 20 .. So we are hitting even
But what happens if the washing machine breaks?! We are not allowed to save for such an eventuality even if we are able to- fair enough as any spair money should pay our creditors, but we cannot get credit either to fix such a situation.
I cannot foresee going 12 months without an unexpected bill.
What do you do??

0
Comments
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Very simply, live within our means.
Which is not as harsh as it sounds.
Much of what you might have on your SOA can be juggled about to accommodate over-expenditure elsewhere.
If the washing machine breaks, get it mended locally. Or, obtain a replacement via such means as Gumtree, etc.
It is the reliance on 'credit' for those 'just-in-case' moments that has helped you arrive at the position you are in now?
Bankruptcy itself does require a review of how we live our lives, our lifestyles.
Post your SOA on here, to allow experts to peruse and make observations.No, I don't think all other drivers are idiots......but some are determined to change my mind.......0 -
It may not be as bad as you think.
Once you are bankrupt you will be given a nil tax code. You will pay x amount of that tax to Moon Beever. However, if you SOA shows you at a loss even after your expenses you may be able to keep some of the tax you would have paid in your employment.
It happened to me and my wife. We managed to keep about £30 per month of our tax.0 -
Hello there.
The few figures you have posted up demonstrate clearly that you are likely to need all of your income to cover your essential outgoings, food and travel costs. I can't see that you'll be asked to enter in to an income payments agreement based upon those figures.
It is generally the case that we would urge our clients to set aside a reasonable amount each month to cover eventualities and emergencies. Whilst I can appreciate the difficulties in doing this when things are tight I think you are absolutely right to consider that there are likely to be items that you may need to pay for at random points during the year.
Although not impossible, you will find it very difficult to source credit whilst you are bankrupt. You are not allowed to borrow more than £500 unless you tell the lender you are bankrupt. The bankruptcy is likely to last a year - and you'll find that this twelve month period flies by.
Best wishes,
David @ NDL.We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
I took out and it was allowed in my SOA a policy with domestic and general that covers my dishwasher, washing machine, tumble dryer, fridge,and freezer. It costs £21 a month and repairs or replaces each item. I took as my 7 year old washer broke down and they came out fixed it for £15 if i went onto the plan. it is with domestic and general and had they of not been able to repair it it is new for old.
it is with domestic and general their only stipulation was the appliances are under 8 yrs old when the policy is taken out but they dont end it when they get to a certain age.
i know insurance policies dont suit everyone but i would rather pay £21 a month just in case than pay more into my IPA.BSC no.370 AD March 14
:xmastree:SPC no. 196 target £350 for Christmas '14:xmastree:0 -
hi - Just a thought - but you are claiming the childcare element of tax credits aren't you?0
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Thanks all- the insurance is a great idea - money wise, sort term pain for long term gain. Thanks you...
Yeah am getting a small amount for childcare tax credits. Not a huge amount though due to my earnings.
The reason I have found myself in this situation is because have gone from 2 income household income to just me. I haven't missed a payment yet amazingly on any of my debts as I had some savings which I am using to pay as much as I can for as long as I can.. But what happens when the money runs out: the outcome is obvious...
Is there a 'right' time to enter bancrupcy?
Debts amount to around 25k
Currently pay out around 600 PCM to cover these but the 0% interest on my 9k cc runs out in jan. I have applied for a cc to do a balance transfer but they only gave me 1k limit so.....0 -
Sunrise2010 wrote: »Thanks all- the insurance is a great idea - money wise, sort term pain for long term gain. Thanks you...
Yeah am getting a small amount for childcare tax credits. Not a huge amount though due to my earnings.
The reason I have found myself in this situation is because have gone from 2 income household income to just me. I haven't missed a payment yet amazingly on any of my debts as I had some savings which I am using to pay as much as I can for as long as I can.. But what happens when the money runs out: the outcome is obvious...
Is there a 'right' time to enter bancrupcy?
Debts amount to around 25k
Currently pay out around 600 PCM to cover these but the 0% interest on my 9k cc runs out in jan. I have applied for a cc to do a balance transfer but they only gave me 1k limit so.....
At the end of the day you are insolvent. Make yourself bankrupt before you get into difficulty. Best to catch your creditors by surprise so they don't start giving you grief.0 -
Hi - you are in a very similar position to me and I battled on for nearly 4 years living hand to mouth and paying the debts when in reality it was never going to work. So - think how hard the next few years will be if nothing changes and the reality is that BR - although a huge decision with lasting consequences and never to be taken lightly - will be no harder and you will be giving yourself and your family a light at the end of the tunnel.
Its not as scary as you think and if I'm honest... I wish I'd done it years ago.0 -
The right time to go bankrupt would be when you have no realistic prospect of things improving in a reasonable time I guess. Hoping for a lottery win doesn't count!
I'm not sure if you have dropped to a single income because you have separated (are you getting maintenance?), or one of you has been made redundant or stopped work to look after child. ie is this going to be permanent, or might it change in a few months or a couple of years?
25k is a lot of debt, but you could still have a debt management plan if things have a decent chance of improving.0 -
My OH lost his job and like you we continued to pay our debts from our savings until they ran out. We didn't want to face the reality of insolvency and prayed he would find another job in time. However, reality was that we were never going to pay off our debts in a reasonable amount of time even with 2 wages.
Sometimes it's just best to bite the bullet and make the decision to sort it all out, the sooner it's done, the sooner you can move on with your life. As you will read on his forum, BR is not an easy option, financially or emotionally but for some of us it is the right move.0
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