should I go bankrupt

sian18

I am 27 and want to move in my my partner and daughter as I currently live with my parents. I have a car finance and still owe 20,000 and have credit cards and contract mobile phones and catalogues, so I may not be able to get a loan. I won't be able to move in until I get rid of my car as I pay over 400 a month just on the car finance. Is the best way to go bankrupt or get a loan as the garage said I would have to pay 6,000 pound plus the car as I owe so much. Is going bankrupt the answer?

Herbalus

I don't even know what to say to that.

You need proper advice. Going bankrupt is quite serious and the internet -where people don't have to live with the consequences of what they say - might not be the best place for it. I would go and see citizens advice or a debt charity.

I would guess that very few people go bankrupt on as little as £20k debt though.

grumbler

If only it were that simple.
Start with reading MSE article: Debt solutions

>> Bankruptcy - the last resort

You'll need to handover any spare income. If you have spare income after meeting essential living costs, you'll also have to pay this over to your bankruptcy trustee, who will distribute it among your creditors. This arrangement, called an income payment agreement (IPA), can last up to three years, even if your bankruptcy only lasts one.

I am no expert, but I'd think about giving the car back and defaulting on the finance. Let them bankrupt you if they wish.

CLAPTON

sian18 wrote: »

I am 27 and want to move in my my partner and daughter as I currently live with my parents. I have a car finance and still owe 20,000 and have credit cards and contract mobile phones and catalogues, so I may not be able to get a loan. I won't be able to move in until I get rid of my car as I pay over 400 a month just on the car finance. Is the best way to go bankrupt or get a loan as the garage said I would have to pay 6,000 pound plus the car as I owe so much. Is going bankrupt the answer?

depends upon your income
and your total debts
and possibly on what job you have

Norfolk_Jim

Try the Debtfree Wanabee board or the Bankruptcy board instead

nomoneytoday

Can you VT the car, and then afford the payments on the rest?