Likely to go bankrupt - need to just get this off my chest

cinnabar

Thought it was finally about time I said hello!

I'm 33 years old and owe about 28K in unsecured debts plus 14K in student loans. I've recently sought advice from debt counsellors provided by AXA PPP, Payplan and have an appointment with a specialist debt counsellor ate the CAB next month. I have pretty much decided to go bankrupt but wanted to get proper advice before going ahead.

I will post an SoA at some point, I'm sure I could use some advice about where to save money, but it's been difficult to do one so far as my income has been very variable lately.

Basically I've run up debts on credit cards and then had a loan to pay them off but continued using them - until last year I was easily able to pay more than the minimum payment on all of them and even cleared one or two of them off now and again so I convinced myself the debt was manageable. if I'm honest I knew underneath that I was fooling myself and I hid it from everyone, including my partner, running up more debts buying things to demonstrate to him that I had money (I didn't, of course). Then last year it all went wrong - I split from my partner (his transgression and nothing to do with money) and went from having to pay for virtually nothing except food and my credit card/loan repayments to having to pay rent and bills etc. I'm not sure how I've managed to keep going as long as I have with the minimum repayments in the last year as my outgoings have exceeded my income most of the time - I've sold stuff off and used what little savings I had etc.

About 3 months ago I decided that I had to sort things out. One of the ways in which I've tried to do this is to try to change my career - I'm currently a cashier in a bank but I'm also a qualified teacher so I decided to get a teaching job as the money and prospects are much better. With this in mind, I dropped to part-time hours and started a refresher course for which I was receiving a bursary. The course has finished though, and I haven't yet managed to get a teaching job, so obviously that's another drop in my income. My light bulb moment was shortly after the course finished as I realised it might take me months to get a teaching job, especially with the school holidays approaching. My income at the moment barely covers rent and bills, let alone making any payment at all to my creditors. Also a discussion with a debt counsellor made me think hard about my situation as it was pointed out to me that even if I were working full time in my current job, my salary would be such that were I to do a DMP I would likely be paying it back until I was 45.

Now I know plenty of people who would say that since i spent the money I should pay back every penny. Until recently I would have agreed with them, but then I looked at what I've paid back already, including interest and charges, and I thought about how I've struggled for years with this situation hanging over me and how much I've punished myself already, and my health has suffered because of it and I just decided that I've given myself a hard enough time and no-one can possibly have a lower opinion of me in this respect than I do of myself. That I should at least consider bankruptcy, since I have no assets. Which is just about where I am now.

My situation is pretty straightforward in most respects, but it's complicated by the fact that I work for my main creditor. I have so far managed to avoid telling them about my financial problems but I have a responsibility to tell them if I become insolvent, start an IVA or have CCJs - I'm going to do just that as soon as I have decided for definite, but I do worry they might find out as one of my colleagues recently started a DMP and felt rather hassled by senior staff. I've been reading up a lot about my rights recently - in the light of the fact that I'm looking for another job, my boss asked me a few days ago if I could hand my notice in! I think she just asked to make it easier for them but it certainly made me feel a little scared and pressurised! Needless to say I said politely that I didn't feel able to resign without first having another job lined up, but it's just extra stress. Becasue of the work I do, I'm worried they may try and use my going bankrupt as an excuse for dismissing me, though I'm pretty certain that there's no real reason I can't carry on there as long as I follow the correct procedures and tell them if I do go bankrupt.

Anyway, sorry if this is long and rambling - l just needed to get it off my chest, I think. I've really picked up some useful stuff reading the posts here so far, and everyone seems really supportive :-)

Cinnabar

PixiePie

Firstly, welcome

Secondly - no-one here is going to say you're going straight to hell for going BR, or that you are a nasty person for not paying back every penny. (apart from the very rare flamer, but we just ignore them, as it's not worth talking to people in ivory towers). We're either all going BR, have gone BR, have been near BR or are understanding of BR on this forum, so don't stress about that.

With regards to the job thing - I know it's late in the day what with schools breaking up this week, but is it possible to look into summer school teaching perhaps? Obviously there isn't any normal school or supply work what with schools being out, but there are the foreign language schools that are all over the place that always seem to be advertising, and the crammer schools as well (generally centred on Oxford, Cambridge, London, Brum etc from what I can work out there though). Alternatively, is there anyway you can do tutoring through the summer? AGain, not a huge market over the hols but if you live anywhere near a very affluent area, the parents will pay for little johnny to go back in Sept knowing more maths/french/english/IT than little Samantha next door, especially if they are SAT etc years. Theres a lot of info on specifics of these on the TES website forums

Sorry if I'm teaching grandma to suck eggs - I'm a teacher too and had been thinking about what I could do over summer possibly - but don't know how much in the teaching head space you are again yet

At the end of the day, is it possible for you to go on JSA/Housing Benifit/Council Tax benefit whilst looking for a teaching job - stop paying the debts if you have decided to go BR, so that's those outgoings not needed any more, and removes the stress of the bank (you're stronger than I, don't think I could do that - one little DCA calls me and I crumble!) and if you're looking for work as a teacher for Sept and get a job over summer you can still claim until you start in Sept, as long as you are looking for a temporary position to fill the time until you start.

Don' know if any of that is helpful or just telling you what you already thought of, but at least you know we're here for you to talk to if you want, and as always - get advice as you say from either CAB, National Debt Line, or CSSS.

mushroom1982

Hello cinnabar I just wanted to wish you luck in whatever you decide to do. It good you have been seeking professional advice. I have been talking to national debtline over the phone and I have found them very helpful if you are ever seeking an alternative.

tigerfeet2006

Welcome to the boards. Pixie and Cinnebar it must be something about Teachers as my DH is a teacher and we are putting the money together to go BR lol. What subjects do you teach? Cinnebar if you haven't got a job before September make sure you join a couple of teachers temp agencies, my MIL gets quite a bit of work like that. If you have a specialist subject make sure you get cards out into all the shops within a decent driving distance from you for tutoring, you can make quite a bit doing that. Also see if there are any private tutoring agencies near you that have positions ie like Kumon. Just put tutoring in Yell.com and see what comes up, it's surprising,

Now for the usual spiel from us.....

Your first port of call should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only. CCCS operate a system of telephone appointments that are designed to be flexible and don’t require you to attend an office based interview. At the CAB you will need to make an appointment with a specialist Financial Advisor; other advisors may not have the specialist knowledge you’ll need.

http://www.cccs.co.uk/

http://www.nationaldebtline.co.uk/

http://www.citizensadvice.org.uk/index.htm

If you’re advised that bankruptcy is the most suitable solution to your financial problems then we can offer the best support and anecdotal advice that you’ll find anywhere on the Web.

For more specific advice and support, in an environment that is managed by people with first hand experience of bankruptcy, and moderated to ensure that no deliberately inflammatory or abusive posts are made then please visit:

http://bankruptcysupportersclub.co.uk/default.aspx

Just remember, as desperate as you may feel at the moment, we have all experienced what you are going through at the moment and with the right support and advice things will improve. It’s not an easy route to take but it is a route that will put you back in control of your life rather than just reacting to events.

cinnabar

Thanks for the replies :-)

PixiePie - I have thought of some (but not all) of those things but am not sure I am that much in the teaching head space as you put it! Been meaning to do some tutoring but I haven't really known where to start - have found it difficult to find the time for it too but that's a bit of an excuse in some ways. I have made a claim for housing benefit but unfortunately can't go the route of JSA etc as I'm pretty certain you get nothing if you leave your last job voluntarily - maybe I should get myself sacked? (Joke!) Certainly CAB told me not to hand my notice in.

It's rather funny really, although work want to know when I'm leaving and have asked me several times if I've found another job yet and how long I think it will take me, and I know that my manager is unhappy with my performance as I'm not generating very many sales leads for them (I'd like to see her asking people to consider taking out loans/credit cards and looking at ways to make rich customers even richer if she had the financial problems I do LOL!), they keep on asking me to overtime, and I do wonder if it occurs to them that if I work extra for them I don't actually have much time to find another job!
I have though about looking for another job to tide me over till I get a teaching position or some supply work in September but in some ways my position re work is reasonably good as I've been there for a few years - I've been careful to find out as much as I can about my rights with regard to how BR affects my job etc. and even joined the union the other day! There is a little protection in working for someone for a couple of years or more after all.

Think that maybe I should take your suggestion about tutoring and look into it seriously - my specialist subject is maths and I know I could probably make a bit of money from that - guess I'm just scared (story of my life!)

Cinnabar

beelucky

cinnabar,
hello,
dont be too hard on yourself,im not excusing anyone for running up debts and just walking away, from what i have read on this forum i dont think anyone falls into that category.

but if it helps, this is my take on the morals of going b/rupt..........every day companies go bust and no one bats an eye lid, but when an individual goes bust they are made to feel as if they are a criminal. we live in a very unjust society with people in "the city" taking wages home in wheel barrows, while at the other end of the scale there are people on the bread line. then we have banks doing takeovers costing BILLIONS of £s. and every time you open a paper or switch on the telly, they try their hardest to snare people with more debt.their latest wheeze is equity release for the retired, lending money on propertys that people have worked all their life to pay for and when some misfortune happens the bank steps in and takes posession of the house. nice work if you can get it.

i dont feel sorry for banks, its their greed that puts people in trouble, and their losses are built into the interest rates they charge people. i wont loose any sleep over them.
good luck.

owetoomuch

Cinnabar sorry to be the bearer of bad news but your union wont be able to represent you for 3 months.

On the teaching front, depending on where you live there can be a lot of work out there, some agency teachers where I know of also do Learning Mentoring for the agencies until a teaching vacancy turns up, money a little less but money all the same. Register with more than 1 agency as the pay can differ to up to £10 per day. Good luck with whatever you decide, come on here for loads of support, there are some really good people on here, wont name then as I am bound to forget a few but they are really good.

PixiePie

owetoomuch wrote: »

Cinnabar sorry to be the bearer of bad news but your union wont be able to represent you for 3 months.

Is this for all unions OTM, or just specific unions? Rather worried as I won't have been a member for more than three months and theres a) no point paying the huge union fees if I'm not covered and b) It's seriously stupid to enter a classroom or school premisses nowadays without union cover. Do you know where I can find out more about this please?

owetoomuch wrote: »

On the teaching front, depending on where you live there can be a lot of work out there, some agency teachers where I know of also do Learning Mentoring for the agencies until a teaching vacancy turns up, money a little less but money all the same. Register with more than 1 agency as the pay can differ to up to £10 per day.

Something to remember with that though (sorry OTM, not having a go at you) is now you need a CRB for each and every supply agency you sign with-and YOU have to pay for this 99% of the time unlike a job in a school, and to be honest, this isn't likely to come through for the summer hols now - However as there isn't any supply in the hols this isn't the pressing thing - and as a Maths teacher I wouldn't have thought it hard to get a full time job in Sept (from what's on TES/in the schools I see/my teacher friends). Granted there is a difference between a job and a job in a nice school you want to stay at , lol but money is money Good luck, let us know what you come up with (and yes, sorry Cin, I forgot you had to heve been made redundant rather than left for benefits - can you go for unfair dismissal? :rotfl: (note:I'm not usually militant nor into benefits nor into suing people, however just throwing mad ideas into the pot incase it sparks something else..)

owetoomuch

PixiePie I think this is for all unions but check any documentation you may have, I know it applies to Unison, GMB, TGWU and some social workers unions, this is to safeguard the unions from people joining to get union cover and leaving when union have done particular job for them.

Didn't know agencies charged for CRB checks, with most of the London Agencies they are crying out for staff so I would have thought this would be a way for people to go with them instead of the competition.

Would also advise to check websites of the relevant LEAs as they would not only have jobs available but I know most like to keep a bank of teachers available rather than go through agencies. You might be able to get yourself on this bank and if and when you find a school you really like they might have a full time vacancy in the near future, the LEA would then pay for CRB.