Drowning not waving.

Pleasehelpmewiththis

(This post originally placed on the DFWC forum by mistake)
I've watched and listened to Martin Lewis for years and, in spite of what you're going to read, understood most of it. This is my first post so I'll get directly to the point.
I am a 52yr old single person, £80k in credit card debt and living on JSA and Housing benefits. I've been paying £1 a month to my creditors for a couple of years and they have been very good, so far, as I respond to their letters as they arrive, however my stress levels are such that I may soon falter in this as I am on medication for depression, anxiety and insomnia. Now my savings are gone, my outgoings exceed my incomings and I have nothing of any value to sell. I cannot even afford to go bankrupt and was told by a CCCS person (before they changed) that I may not be allowed to go bankrupt as I have no earnings coming in to stop me getting back into debt. Was the bankruptcy advice correct?
I have mental health problems and am terrified that if I was to die (I don't have a will and can't afford one) that my adult children, who are in their 20s and both intelligent people working long hours in low paid jobs with committments of their own, would have to pay my bereavement costs and disbursements. I have family and friends who have all lived their lives and managed their affairs properly but where would it end if I asked them for money?
I know I've been an idiot in how I've conducted my affairs but there are other factors which have prevented me getting employment, such as just losing confidence in myself and my "abilities". If I did get a minimum wage job or, as I used to have, a job with a £35k salary, how could this effect my CC debts and their attitude.
What would happen if I died without a will, £80k in debt, no cash and a small pension pot of approx £20k
I am totally ashamed of my situation and absolutely at my wits end.
I realise this is a "first world" problem and I'm lucky not to be in Syria, Liberia or Eastern Ukraine however it's still MY problem to somehow deal with.
Please advise me if I have any options as I honestly can't see any.

Tixy

Hi and welcome to the forum.

It does sound like bankruptcy may well be the right option for you. To deal with your debts, and for you then to be able to focus on yourself and your health.

In terms of your ongoing finances, you would need to demonstrate that post bankruptcy your current benefit income is sufficient to cover your essential outgoings.

So that sounds like it is what you need to work on. Benefit income should be sufficient for you to live on, albeit fairly simply. Have you worked out what your basic outgoings would be if you had no longer had any debts to service? How much of a shortfall do you have compared to your current income? It may be worth working out a detailed statement of affairs and posting on here, as people should be make suggestions as to where you can make savings / get things cheaper so as to make things balance.

If you can get that sorted, then you can think about the bankruptcy fees, and perhaps look at what charities you could possibly approach to assist with these.

so_very_confused

Hi just to add to the excellent advice from Tixy. When you were in employment did your profession have a welfare fund as they will frequently consider grants towards bankruptcy fees. This does not have to be your last employment, it is worth checking online with any previous employers as to what help they will give to ex employees. Things may appear bleak at present but there will be a way forward. First step to reiterate advice from Tixy is to post SOA for the good people on the forum to help with your budget. This will be useful as if Bankruptcy is the way forward you will need to produce an SOA for this anyway.
Goodluck

Pleasehelpmewiththis

Thanks Tixy and so very confused. No welfare fund grants available. With regard to SOA I've been producing these for 3 yrs and am now down to the knife edge on spending and income. How and where would I post a SOA on here? Thanks again.

so_very_confused

You suggest that you might be able to manage working again. Dependant on your circumstances this might improve your financial state dependant on your present benefit income, this is where an SOA would be helpful. there is a link for an SOA unfortunaltly I am unable to post hopefully someone else will be along who can.
Your creditors cannot have what you don't have if you could increase your income to cover the shortfall this would allow you to save, explore charitable grants, or worst case ask friends/family for help with bankruptcy fees.
I am concerned that you are focussing on what would happen in the event of your death. I hope you are not so despairing that you feel this is an option and that is why you Are seeking information on how this would affect them. If this is the case then please just hold on , there will be a way forward. There are plenty of people on this forum who have been where you are now experiencing all the emotions you describe who are still here. I am one of them! Keep posting and help will be available. Take care

chrisfreelander54

Hello pleasehelpmewiththis,

Welcome to the forum and well done on posting.

Below is the link you need to enable you to post up your SOA:

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

Pleasehelpmewiththis

Thankyou svc for your concern and intuition. You've hit the nail on the head. But the more I focus on that side the less chance there is of me doing something stupid as I would leave such a mess for my family to clear up. Thanks again it's good to type.

so_very_confused

No debt is worth it, it can be sorted. Can only impress to complete an SOA as being the way forward. Sometimes you can be so bogged down in your own situation it takes fresh eyes. Take care

longtermplanner

I cannot even afford to go bankrupt and was told by a CCCS person (before they changed) that I may not be allowed to go bankrupt as I have no earnings coming in to stop me getting back into debt. Was the bankruptcy advice correct?

No that advice is not correct, you can still go bankrupt. But what the adviser may have been trying to say is that if your income isn't enough for your expenses if you pay nothing to your debts, then bankruptcy doesn't solve that problem. So the important thing is to tackle that problem and then afterwards look at bankruptcy.

re not being able to pay the fees, there are charities and trust funds that can help. I suggest you should go to your local Citizens Advice ( find it here http://www.adviceguide.org.uk/england/about_this_site/contact_us.htm) and ask them about bankruptcy fees and they may also be able to help you with a full benefits review.

Pleasehelpmewiththis

Thanks longtermplanner, you're right about the advice as Stepchange clarified today.
The SOA can't be tweaked anymore or I'll be arrested for torture.:mad:
I've made a few phone calls today and got some good advice. The tsunami seems to have slowed its advance! For now!
My experience of CAB, years ago, is that the legals listen to your problem, stroke their chin after 29mins, then say "my firm can help you with that". Then you're on the meter at £150+ per hour and they've got you.

dancingfairy

Are you getting all the benefits you are entitled to? It might be worth doing a check, I know there are a few different online calculators available.
How much would you save if you didn't have to make token payments to your creditors each month? that would help a little bit surely?
Would any of your family/friends be able to help with the bankruptcy fees? It might be embarassing having to ask but if it's making you feel very depressed then surely any family/friends would help out if they could? Oh and you'd probably qualify for reduced fees as you are on benefits.
Do you have anything you could sell at all to help start you on the way? Anything to car boot or ebay?
Please keep plodding on, there'll be a way through this.
df