All other options exhausted - Bankruptcy!

Geraldine999

Hi Everyone,

Ths forum is great - thanks!

I have a worry and I think I know the answer to my question but I just need to know for sure.

I have just written the following email to ARLA (Association for Rental Letting Agents) and I am awaiting their response.

I was just wondering and hoping that maybe I could hold onto my job - but it all looks pretty bleak at the moment. First proper job in about 3 years!

The email I have sent to ARLA pretty much explains it all - does anyone have any thoughts please?

COPY OF EMAIL SENT

Hope you can give advice please.

My employer is a member of ARLA and runs a Lettings Agency.

I have recently been employed as an Accounts Clerk (dealing with Rental Income and Supplier Payments) at the Agency after a long period of unemployment.

I have tried several options regarding my debt circumstances and more recently contacted a Debt Agency Advice Company who inform me that my income is insufficient for an IVA or Debt Management Programme and have advised me to declare myself Bankrupt.

From what I understand, I would need to declare this to my employer and I am obviously concerned that this will mean I lose my job.

I have not received an Employment Contract as I am on a 6 month probationary period, do the rules governing Letting Agents mean that I will lose my job if I declare myself Bankrupt or is it down to employer discretion?

Any advice would be appreciated.

Many thanks

What do you think?

Thank you
Geraldine.

firesidemaid

could you not get a second job to boost your income? did they say how much more per annum you would need?

have you reduced your outgoings to a bare minimum to see what difference it makes?

i can't comment on your job/bankruptcy. but have you posted your incomings, outgoings and debt amount on here to see if anyone can confirm that bankruptcy is the only option?

good luck x

Geraldine999

Hi
Thanks
I will detail below my Income & Expenditure

Total Debts
£37,950.00

All are unsecured (Credit Cards/Overdraft and Loans)

Income
Mthly £850

Rent 395
Council Tax 65
Water 15
Elec 17
Gas 20
Phone/Mobile/Internet 50
Housekeeping (incl Birthday/Christmas/Clothing/Holidays) 315
Car Petrol 25
Car Service/Reps 20
Car Ins 20
Car Road Tax 16
Misc incl Insurances 44

Total Outgoings 1002

I think I might be entitled to WTC but do not want to apply for it at the moment - in case I lose my job (currently work 25 hours - to claim I need 30 hours - don't want to ask employer to increase my hours due to bankruptcy question raised earlier).

I have been looking for additional work - evening bar work would be OK - minimum wage tho' and I am no spring chicken! I cannot do weekends as I am rota'd to work one in three Saturdays. I am also worried about my health as the reason I find myself in this position is due to ill health - I had to give up a well paid position over 3 years ago because of mental health issues.

I have checked the Council Website Benefit Calculator and as a single person I am not entitled to any housing or council tax benefits.

I am sure I will have to get rid of the car (only worth 1K) as I cannot afford the running costs.

Any help would be appreciated.
Thanks again
Geraldine

Geraldine999

Hi
I think if you have children or you have claimed benefit in last 26 weeks then it is 16 hours but that does not apply to me unfortunately.
Thanks anyway.

Geraldine999

Can i ask wich company you have had advice off

Did a Payplan questionnaire and CCCS who spoke at length with me a while ago, gave me a Ref. No to quote to Creditors offering a token £1 monthly payment which I have been doing - said at the time that I could not go Bankrupt as I was still in negative on my Income/Expenditure - told me not to incur anymore debt (which unfortunately I have - living costs). Creditors obviously still chasing and are threatening all sorts of measures to give them money!

I feel I have to bite the bullet with Bankruptcy or alternatively, let the Creditors take me to court (CCJ's) and pay what the court demands for how ever long that will take.................probably at lot longer than I will be on this planet for....!

Or face the constant barrage of letters - and the possibility of them contacting me at work, hassling neighbours, friends and family and obtaining my telephone number.

Frankly, I do not know where to turn - bankruptcy might mean I will lose the tenancy of my home - not sure if Council Housing will help or not - the prospect of losing my job and facing the future as unemployed and on benefits.

My work experience is financial accounts - other than that I guess I might get minimum wage in another job not affected by bankruptcy rules. Even if I work 40 hours a week it is not going to increase my income enough.

Pretty much end of the road!

Bag lady or an appointment with God!

fermi

Bankruptcy bars you from being a 'chartered accountant' but will not automatically stop you simply working in accounts.

I know of one person who is bankrupt who works as finance officer for a large organisation, so BR is definitely not always a no-no.

Geraldine999

Yes,
Point 5
"Provided always and it is hereby agreed that if the rent etc..........(not in arrears) Ground 8 in part 1 Schedule II of Housing Ace 1988.....or if the tenant for the time shall become bankrupt the landlord or agent may at any time thereafter re-enter upon the premises and resume possession etc. etc.

Which I assume means I will be evicted.

fermi

Geraldine999 wrote: »

Which I assume means I will be evicted.

Not necessarily.

Please read this thread on another site.

http://www.debtquestions.co.uk/debt_forum/viewtopic.php?t=19182

In particular:

The reason why the bankruptcy bit is in tenancy agreements is two fold, firstly if you go bankrupt owing the landlord money you are in breach of the agreement so it is easier to get you out and secondly (in days of old), bankruptcy used to affect the property, which it doesn't anymore!

Most landlords tend to be pretty cool about bankruptcy providing there are no arrears and you carry on paying!

Geraldine999

fermi wrote: »

Not necessarily.

Please read this thread on another site.

http://www.debtquestions.co.uk/debt_forum/viewtopic.php?t=19182

In particular:

Thanks - I have read the thread - so as long as I can keep paying the rent I should be OK - only downside is if I lose my job and have to claim benefits - Housing Benefit rules that I am paying £10 a week more than they will accept for one person - which will mean I have to fund the difference from any benefit I receive, which I believe is around £55 per week.

Regarding, the job position - I am worrying that as the Letting Agent I work for is the Stakeholder for the deposits tenants pay and I will be making transactions on their behalf that will automatically bar me from the job as a Bankrupt that is why I contacted ARLA to check this out.

Thanks for all your replies.

Geraldine999

blind-as-a-bat wrote: »

Thanks for that Fermi for that It is very rare that that clause is invoked and i personaly have not read any post on here or elswhere where it has for the reasons Fermi stated so the question is are you up to date with your rent?

Yes, I am up to date with the rent.

fermi

Geraldine999 wrote: »

I am worrying that as the Letting Agent I work for is the Stakeholder for the deposits tenants pay and I will be making transactions on their behalf that will automatically bar me from the job as a Bankrupt that is why I contacted ARLA to check this out.

Again, that is not automatic. Terms and conditions of individual professional bodies and employers may preclude a bankrupt from working in a particular job, but there is nothing in the primary legislation on insolvency to bar you.

You have taken the correct approach in contacting your professional organisation.