Can't decide if I should do it or not

Lombok

I took some advice from a family member and took out 2 personal loans to invest in something that has now gone down the drain. Part of the investment was they paid the loan repayments so I've never had to pay.

Cutting a long story short I owe about 15k and I can't afford to pay it back. I'm in a medium paid job, I rent a room, I don't own property or a flash car. I have thought about an Iva but don't want to spend my 40's paying off this debt.

I could use some advice please

MUMZ2BEE

Do you have anything in writing to state that the family member was to make the loan payments?

If not, then you should seek some legal advice.

I would go into the citizens advice bureau and speak to their debt adviser.

I personall think that you should either apply for a Debt Relief Order or full bankruptcy.

As you have no assets, this should not be a problem.

Good luck xx

longtermplanner

You need to find out if you owe under 15k in total. If you do, then you may meet the strict conditions for a Debt Relief Order and you should look at this option.

How much can you afford to pay off per month? If you go bankrupt you may have to make monthly payments for 3 years.

Do you need your car for your work? How much is it worth?

tigerfeet2006

The court/judge will normally ask whether you have taken professional advice that bankruptcy is in your best interest. If they believe you have not taken proper or sufficient advice then your bankruptcy may be refused. There are many places and organisations that you can get advice from, but the ones that people on this board have found most useful are listed below:

Main recommended sources of help:

• StepChange Debt Charity - Website: StepChange Telephone: 0800 138 1111
• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

For general queries about bankruptcy you can contact:

The Insolvency Service Enquiry Line - Tel: 0845 602 9848 - Email: [EMAIL="insolvency.enquiryline@insolvency.gsi.gov.uk"]insolvency.enquiryline@insolvency.gsi.gov.uk[/EMAIL]

(Please be aware that the enquiry line cannot give debt advice or counselling or advise you whether you should go bankrupt. They can only answer general/technical questions on bankruptcy)

Many people find that debt and bankruptcy is the cause or result of a period of great distress and anxiety in their lives. For some this can reach a stage where it is difficult to cope. So I would remind you that The Samaritans are available to help you through your troubles if the emotional side threatens to become overwhelming.


Please also read the info on Debt Relief Orders.

Citizens Advice Bureu: Debt relief orders

National Debtline factsheet: Debt Relief Orders

afrofringe23

i did a debt relief order in september and went into my natwest bank in february and all my accounts have been closed and it was a basic one. it was awful i had no warning and my benefits and housing benefit had been sent back. i had nothing to live off. luckily for me my friend let me get my benefits into his account which took time and i am now in the process of opening a basic account somewhere else if i would of known this i could of planned but noon told me.

alastairq

i am now in the process of opening a basic account somewhere else if i would of known this i could of planned but no one told me.

Glad to see you have realised something needed to be done...try Barclays?

The poster above demonstrates a classic example of where prior preparation is vitally important before entering any kind of Insolvency procedure.

Research is incredibly important before considering a DRO or BR.....ask above as Tigerfeet says, and take heed of afro's timely warning?

{If only more folk confronting the above situations would find this forum, come on & ask?]