Some advice needed - am so worried :(

ShrewsfanIC

OK... I want to be as honest as I can here so that I can achieve the right advice from all of you lovely, knowledgeable and supportive folk. I can't tell you how sick I feel inside writing this, but I need to ask the questions and consider this as a serious option now.

I have debts of around £18k which I have been paying for through a DMP (Payplan) since 2009, at a very small rate. I currently work full time, but will be going back to university very shortly and so my income will be minimal and I just can't see a solution that's going to get me out of this any time soon. The study is self-funded because I want to progress a potential academic career and the course has been paid for. I will be living in student halls, as a mature student, for the duration of my course (2ish years).

I have no assets (other than the usual - computer / blu ray / tv but these are linked directly to my studies / subject) and my general possessions; no house; no car; no furniture etc.

I'm worried that these circumstances would lead to me being turned down for bankruptcy potentially, or worse still, having those possession I do have taken away from me, when actually they are key to me being able to complete my qualification.

I also worry so much about the future - being able to rent a house; maybe buy one further down the line... am I unduly worrying about this, or is it really as horribly difficult and degrading and anxiety inducing as I think it will be?

Do you still have to declare your bankruptcy after the 6 years are up? Or does the slate literally wipe clean and you can start again (albeit sensibly) to rebuild your life?

Sorry - my thoughts are all over the place and I'm down just re-reading all of this. I feel totally lost and worried about my future and some help / advice / guidance would be so much appreciated.

alastairq

Do you still have to declare your bankruptcy after the 6 years are up?

You do, if specifically asked, 'have you ever been Bankrupt?'

You now need to contact one of the debt charities, like Stepchange, NAtional Debt line, or book for a meet with CAB.

They will look at your present, and future intended circumstances, and proffer advice based on that information.

If you decide to petition for BAnkruptcy, not having consulted these folk will possibly result in the petition being set aside until advice has been sought.

[The Judge is simply being assured the BR petitioner has in fact been made aware of the full implications of BAnkruptcy.....which is quite hard to undo, if subsequently they don't like BR.]

I'm worried that these circumstances would lead to me being turned down for bankruptcy potentially, or worse still, having those possession I do have taken away from me, when actually they are key to me being able to complete my qualification.

With Bankruptcy, the above certainly does not happen. If you are insolvent, there is no reason fo a BR petition to be turned down [unless as above?}

The Official Receiver does not turn up on your doorstep, you are allowed household possessions, and are allowed a 'reasonable standard of living'....from your income.

For a better understanding of Bankruptcy, read the stickies at the top of this forum, then come back and ask more questions.

National_Debtline

Hi Shrewsfan


I would echo alistairq's advice to speak directly with one of the free advice services, for two main reasons:


(a) It's normally expected that you seek some advice on bankruptcy from a recognised source before taking the plunge;


(b) It sounds as if you could also do with the reassurance that such a conversation would offer, as well as the practical guidance.


A debt adviser would be able to go through all the potential implications bankruptcy might have for you - and just as importantly, could help dispel some of the scarier stories and myths that you may have heard.


Good luck, and in the meantime I recommend that you read our guide to bankruptcy:


https://www.nationaldebtline.org/EW/factsheets/Pages/01%20EW%20Bankruptcy/Default.aspx


Dennis
@natdebtline

debt_doctor

Hi,


With debts of £18k you may well be better off waiting until October and obtaining a Debt Relief Order (debt level in October £20k) as it is much cheaper at £90 rather than a BR at £525 - £705.00 and has less consequences (no IPA, no auto investigation, car allowed up to £1k,no London Gazette etc)
DD

mum2one

debt_doctor wrote: »

Hi,


With debts of £18k you may well be better off waiting until October and obtaining a Debt Relief Order (debt level in October £20k) as it is much cheaper at £90 rather than a BR at £525 - £705.00 and has less consequences (no IPA, no auto investigation, car allowed up to £1k,no London Gazette etc)
DD

Was about to suggest holding out for the Oct changes, as to be honest if my income level changes then its a route I hope to use.

debt_doctor

mum2one wrote: »

Was about to suggest holding out for the Oct changes, as to be honest if my income level changes then its a route I hope to use.

You might be surprised on how the £50 pm disposable income is calculated.
I have put through DROs where the same client would have received an IPA in bankruptcy of hundreds of pounds per month.
DD

ShrewsfanIC

so how would a DRO work with my assets? I have a laptop for my studies worth £700, a blu ray player a monitor (also for my studies, yes, really!) but little else... are these counted?

To be honest, with my circumstances as they are due to be for the foreseeable future, it might be an option, but the thing is, I will have money in the bank because its been saved for me to be able to pay my living costs at uni, as ill have no income..

on that basis, im guessing that wouldnt look twice at me?

alastairq

so how would a DRO work with my assets? I have a laptop for my studies worth £700, a blu ray player a monitor (also for my studies, yes, really!) but little else... are these counted?

No....and they wouldn't have much value anyway.

TAke a quick look at the link below, for a better understanding of what a DRO is, and involves?

http://debtcamel.co.uk/debt-options/dro/

mum2one

Just a thought is there guidelines to what income / expenditure is allowed on a dro? x