Debt Stress and Bankrupcy Decisons

MrC2015

Hi Guys, i'm really struggling at the minute as of what to do with my situation so thought id post on here to see if any one has an advice or can relate to my situation. Ill tell you a little bit about it. Im 23 and work offshore, im about 30k in debt at the minute and have only just got back to work after 12 months without work because of the falling oil and gas industry. I have a a few loans and credit cards which some are in arrears and now are threatening legal action so this has sent the stress levels up as im rushing into making a decision.

While i was unable to work offshore i got a job in construction which then my outgoings where £700 more than what i was making and all of my out goings where debts to all the loans and credit cards so any saving i had where quickly getting swallowed up( i live at home with my mum and pay her keep thats the only outgoing thats not going towards my debts ) I have had problems with gambling in the past and being out of work sort of increased the urge to, i didn't gamble because i loved the feeling i done it simply to try and win money to pay some bills which i couldn't but it didn't work like that.

The decision im stressing about is going bankrupt, it doesnt worry me one bit about going bankrupt as i can live with that its justs what the OR will do with my money if i do get a good run offshore. With working offshore the money is great but the work is sparse as im self employed and go from job to job, so if i got on a job i could get a big lump sum but then could be out of work for a while and that sum has to last me. I just dont no what to do, do i wait and try and see if i get a good run an save up to pay it off or do i just declare myself bankrupt. If i went bankrupt and the OR seen i had say for instance 10k in my account they will take that and put it towards my debt where as i could of just put it towards my debt myself and not be bankrupt. I could get more than that but i simply cannot predict the future so i couldn't say,i just dont want to be bankrupt and the OR taking big sums of money if i do finally get it but i cannot see another way around it. Im away from home now so cannot go to my local CAB and maybe a few weeks before i do get home and things will have only got worse.

I just want all this stress to be gone and a fresh start, im also thinking about moving to Australia which will be a complete fresh start and with going bankrupt my debts wouldn't follow me there. So im sort of seeing the bankrupt idea as the catalyst to move away and seeing bankruptcy as a start of a new life which excites me.

I hope i have explained that clear enough about the situation im in, and if any of you have any advice that would be great, Cheers.

National_Debtline

Hi MrC and welcome to the forum.


Please take this in the spirit in which it is intended - your post reads like it has been typed at 100mph (!) and you yourself admit you are in a rush to make a decision. Please don't rush this - it's the worst thing you can possibly do. There is nothing serious that your creditors can do overnight, so please don't let them panic you into making snap judgments.


There are a couple of simple steps you should take for starters. One is to work out a rough Statement of Affairs (SOA) - use this link http://www.stoozing.com/calculator/soa.php and you can paste the results here, so that we can get a clearer picture of what you have on your plate.


Secondly, it is worth getting a new bank account to pay your wages into if you already overdrawn with your existing provider. Ask for a "basic" account as black marks on your credit report should not affect your application.


Do you think you have brought your gambling problems under control now? If not, please make that a top priority. You need to address causes as well as symptoms. There are services like http://www.gamcare.org.uk/ that can offer support.


If you go bankrupt, any assets you have will be the Official Receiver's to deal with as they see fit. This includes any cash sitting in bank accounts. They won't necessarily take every last penny immediately as they will understand that your earnings can fluctuate, but anything over and above what is needed for essential living expenses risks being grabbed. In other words, it's unlikely that you would have any opportunity to save up during your bankruptcy for a relocation to Australia. Bankruptcy normally lasts 12 months but you can be asked to hand over your disposable income for up to three years.


Please also bear in mind whether bankruptcy could have any unintended consequences if you are applying for any sort of Australian visa. I don't know that it will, it's just a case of planning ahead before taking any big steps.


I think you would really benefit from contacting one of the free advice charities. You don't need to wait to come back onshore - our service and that of Stepchange, for example, offer advice over the telephone and online.


In the meantime, I hope you find the replies you get here useful.


Dennis
@natdebtline

tigerfeet2006

Very sensible advice there from Dennis. Please don't rush into anything. You need to research your options very carefully. Phone National Debtline or indeed Stepchange and get some advice. Read as much as you can on here starting with the look here first sticky and read some more, ask questions and read some more.

It's good advice to change you bank account, which ever debt solution you go for. The best ones to go for are the Co-op Cashminder (do not mention bankruptcy/insolvency etc. to them when you open the acount.) or the Barclays Cash account.