Should I Go Bankrupt??

RustyB

I've been in bad debt since I was 19 years old and am now 27 and still in approx 30k of debt, never missed a payment and have a good credit history.
I have always planned to pay my debt properly (it was through my own stupidity and poor money management) and have so far cleared 15k through (up until recently) working 2 jobs 7 days a week and totalling 80-90 hours minimum, I have since given the job up as spending time with my 1yo son is a higher priority now. However after having some savings which have now all but gone I am verging on needing to go back to 2 jobs which would mean not seeing my son and still not having the money for quality time with him for atleast 7 years!!
TBH I'm at the end of my tether, I am sure I have paid the debt of atleast twice over due to interest and am now quite frankly not worried about my credit score as it is looking highly unlikely that I will ever be able to save the 25-30k deposit required to get a mortgage, life is for living right? and I am fed up of living a life with debt, the sleepless nights, the constant worry, the lying to my wife that everything is ok.
I have a company car so can't have that taken from me, we rent and I have about 1k savings so nothing that can really be taken from me, is it time to bite the bullet and think of the future, go bankrupt be done with it, suck up my pride and bring the dream of being debt free closer??
Any advice would be greatly appreciated

Tixy

Hi and welcome to the forum

It could be an option to consider.

Have you spoken to any of the debt advice charities yet to talk through your options?

How much are you monthly repayments on your debts?
How much are you able to afford against the debts a month based on just having 1 job (and once your savings are all gone)?

If you are not sure of the answer to these 2 questions then it may well be worth completing a statement of affairs to see what your monthly shortfall is, and it can help you see if there may be changes you can make to your income or expenditure. We recommend this calculator, http://www.stoozing.com/calculator/soa.php and if you post the results on here people may be able to offer advice as to whether bankruptcy may be a sensible option, or what other options you may have.

Is your wife aware of your debt situation? Obviously going bankrupt would have an impact on her as well, and on how much you will be able to spend on many areas of your finances for the next few years.

longtermplanner

2 jobs 70 hours per week is ok if it will clear your debts in a year. But with a family it is not a sensible proposition for the longer term.

Bankruptcy may well be a good option for you. I suggest you talk to National Debtline about your options: https://www.nationaldebtline.org/EW/Pages/default.aspx

Kate_fixing_it

Only my opinion but I think bankruptcy is using a sledgehammer to crack a walnut.

Try the stepchange debt remedy. You say it's the interest that's killing you and you don't care about your credit rating so would a DMP be a better option? You will get defaulted on the accounts but you'll be able to fight the interest and get the debt reducing. The defaults will stay on your file for 6 years however, with 30k of debt a payment of £416 a month (I suspect that you are paying significantly more than that now to service these debts) if interest is halted you'd be debt free in those 6 years and you'll be 33/34 - just after your son starts school. That's not taking into account any potential change in circumstances that may increase income.

My other piece of advice would be to tell your wife. It won't be fun or easy but after the initial chat/explosion/shock (I can't predict how she'll react) it will make your life easier. You can't hide this forever. She WILL find out one way or another and it's better coming from you. You need the support and trust me, not rushing to the door to intercept the post is such a relief.

I wish you luck in sorting this.

Kate x

Depth_Charge

Hi RustyB

Welcome to the forum

As others have suggested, best if you could put your SOA

http://www.stoozing.com/calculator/soa.php

Citizens Advice also have a user friendly confidential online debt remedy / option resource that may give you some pointers as to what is best for you.

https://nedcab.cabmoney.org.uk/debtremedy.asp

Bankruptcy is a legitimate option like any other and can give you a fresh start rather than continued struggle and worry.

The bottom line is that you need proper independent advice on all the options available including all pros & cons, make sure you fully understand them and then decide what is best for you & your family.

There is plenty of good free advice around, maybe get a second or third opinion

Your decisions at the end of the day

Best Wishes

DC

RustyB

Wow, thanks for the replies everyone, I last looked at the DMP route and it didn't lower the payments too much so didn't see it as really being worth it.
My currently monthly outgoings on debt are £650 per month, but only to 3 debtors.
I have significantly reduced the interest rates as the years have gone on, used to have a dreaded vanquis card of which I was paying £100 per month and only clearing £15 of the debt which was nice.
My wife knows I am in debt but she doesn't quite understand how serious, my lying to her is more me saying everythings fine when in reality my head is buried in the sand and I feel like a failure to as a husband and a father.
I have learnt over the years and although I have access to around 30k on credit cards and other credit facilities I live of what I earn now days just wish someone had told me all those years ago before it got out of hand.
I'll have a look at the link you sent and post the results, thanks for all your replies.

Tixy

RustyB wrote: »

I last looked at the DMP route and it didn't lower the payments too much so didn't see it as really being worth it.

A DMP would be based on how much you could afford to pay your creditors a month after paying reasonable living costs.

Similarly with bankruptcy the amount of your 3 year IPA is based on your disposable income that you have left a month after paying reasonable living costs.