possible bankruptcy

moonrakermagpie

Hi to all, My daugther has debts of around £4000, she went to the CAB some time ago, and they said that she could not apply for bankruptcy, is this so?

She is on benifit and has very little "spare" money to pay these debts

Thanks in advance. Steve.

Posthinking

She could petition but it seems such a small amount. Has she contacted the other charities listed on the stickies? Welcome anyway and there's loads of support and advice here

Kj123_2

What about an Administration Order.

A friend of ours who is on benefits entered into one of these at the back end of last year she has to pay £10 a month for 3 years (I think it's 3)

I'm certain that if you have unsecured debt of less than £5,000 then this is certainly an option. Try the CAB again and ask about this as an option for her. The person who she spoke with last time may not have been fully aware of all the options.

If her only income in benefits they I don't think she'll even have a fee to pay.

wherediditallgo

Technically, she could apply for BR, but I would strongly advise her to seek professional advice before doing so. I realise that if she's on benefits & can't see an end to them, then the amount of debt is every bit a worry to her as £30k might feel to someone else. But that's what the advisory services are for - to let her know what her options are. Apart from the CAB, there's National Debtline & the Consumer Credit Counselling Service . Going BR is a very big step, & is something she'll have to disclose in financial or insurance dealings if asked for the rest of her life. It will affect her ability to get credit for years, & I think she should be looking at things like debt management plans, asking creditors to accept reduced payments etc before going down the BR route.

backontheup

I think that BR would be like taking a sledgehammer to a walnut in this case. Get her to look into an administration order - it would be far better for her

moonrakermagpie

Big Thankyou To Everyone

Cheers Steve

tight_jock

If you are going to get advice from the CAB, Please ask for a money advisor. These guys( and girls) are paid advisors and should know their stuff inside out, as opposed to the volunteers you will contact at the front desk.:beer: