21 and Bankrupt?

LaLa21_2

Hello,

I have another account on here that I use for other things.

I'm 21 years old. I don't want to post too much but basically I briefly saw a CAB adviser when I was in a psychiatric hospital the other week. She advised me that I would probably have no choice but to go bankrupt. I do have a further appointment but it's not for over a week.

I have debts totalling around £28,000. All severely defaulted. This does not include money that I owe to family members, and possibly open university debt that I am unsure of.

I don't have a job. I have depression and severe anxiety and take a lot of medication. So my income is literally zilch.

Is bankruptcy really the only way out? And if so, can anybody explain to me how this would effect me in the future? Could I try to get a job while bankrupt or no? I'm sorry if these are stupid questions. I have no one else to ask.

TheGardener

Hi and welcome. It sounds like you have got a lot to deal with. Based on the information you have given, it does sound like BR is an option. There is lot to get your head round but all the information you need is here on this board - start with the sticky posts a the top of thee board.
To answer the questions you have asked so far:
BR isn't necessarily the only way but without an income, your options are limited.
BR would wipe out all your debts (there are a couple of exception around fines and overpaid benefits) If you have not committed any sort of fraud, have not gambled or drunk the money away then you should be discharged as a BR in 12 months time. You absolutely can look for a job and work and, depending on how much you earn you may have to make some payments under an income payment agreement for up to 3 years but you would need to earn more than you need to live on for that to happen.
BR may also affect in some cases, what work you can do for e.g. police or some areas of financial work.
The obvious affect is that it is unlikely you will be able to have access to any credit for the foreseeable future. You will also need a basic bank account - the only high street banks that will accept you are Barclays (even if you have debt with them) or the co-op, but if you go with the co-op you will need to open the account before you go BR.
That's probably enough to be going on with - keep reading the posts on this board and come back and ask any more questions you need answer for

alastairq

You absolutely can look for a job and work and, depending on how much you earn you may have to make some payments under an income payment agreement for up to 3 years but you would need to earn more than you need to live on for that to happen.

To add to what Gardener has said reference the above quote......the Income Payment Agreement [IPA] can only be started/agreed, during the 12 months the BAnkrupt is Undischarged. [in normal circumstances]....once Automatic Discharge is achieved, you can have as much surplus income as you want......no payments will be sought by the Official Receiver.

LaLa21_2

Thank you for your answers and I will read all the sticky posts. I'm more worried now though because I have a gambling addiction, does that mean I couldn't go bankrupt? Sorry if It's a stupid question.

tigerfeet2006

No, it doesn't mean you can't go BR. It MAY mean you are given a BRO/U.You will have to show you are seeking treatment and are trying to help yourself. Have a read of Amiga's diary.
It is inspirational how he came through it all.

https://forums.moneysavingexpert.com/discussion/1802595

lindsaygalaxy

I was 23 when I went bankrupt. At the time I saw no way out-i worked but had a young child. Sometimes I think I made the wrong choice, but at the time I felt like I was trapped and it was one too many things to cope with. 7 years on - time goes fast. We are looking for a mortgage, have a good career and fairly normal life. It's not the end of the world and doesn't make you a bad person. Do what's right for you.

Amiga

Hi LaLa

I will be 100% honest with you, it isn't a pleasant experience but going through it all is not as bad as you think. The fear of the unknown is worse than the actual thing itself. You will be ok, I was ok even though it was horrible at the time. If you ever need anything please message me! One more thing, have you stopped Gambling now?