So many issues...where to start?

Matt8977

Hi folks

I wondered if any of you could point me in the right direction? It's not that I don't know what to do, it's that I don't know what to do FIRST.

I owe multiple amounts (circa £20k - all unsecured) and owe a large amount (circa £10k) to HMRC in back tax. I have one CCJ for council tax (£1800) which I'm pretty sure I could go to prison for not paying?

I put all of this into the stepchange website and it said I needed to declare myself bankrupt, but I don't even have the money to do that.

I have no lending options, no family to give me money etc...

I have lived "under the radar" for the last year but I can't go on like this.

I have been signed off work for the last year with stress, depression and suicidal impulses and currently only receive ESA payments once a fortnight totalling £500 a month, all of which go to my gf who I live with. This in no way makes up 50% of the bills, rent etc, but it's all I can do.

Where do I begin?

Thanks in advance...

Matt

debt_doctor

Hi,
First you need to get advice from a debt charity.

Is it total of £20k or £20k plus £10k for the Revenue?

You might scrape in to a DRO with £20k of debt (subject to qualifying conditions) or need BR as a fresh start.
If you do neither then you need to sort out your priority debts;
Council tax - on your income - £3.70 pw towards the arrears, plus any ongoing liability.
Talk to the IR about the tax situation, tell them your circs, and the other debts (credit cards/ loans/ catalogues/phones etc probably offer £1 per month in payment to those.
There is a lot that can be done - but first step - get that advice, perhaps from CAB or National Debtline.
DD

Matt8977

Hi DD

I chose to use Stepchange as I thought they were the charity that everyone approved of (as they don't charge for their advice), I will happily talk to the National Debtline and see what they say though.

It's £20k in unsecured debt PLUS £10k to HMRC. I am pretty sure that at £500 a month I'm in line for a bankruptcy filing but right now I can't even afford the court costs to do that. Ironic that I need multiple hundreds of pounds to declare I have no money. If I had that I could afford to eat a little more often.

Looking at the regulations changing regarding DRO's tomorrow I might hang fire today and give them a call in the morning and see what they have to say.

Thanks for your help, it's good to finally share this with someone.

Matt

antrobus

Matt8977 wrote: »

...It's £20k in unsecured debt PLUS £10k to HMRC....

Then one option would be not to pay HMRC anything, and wait for them to petition for bankruptcy. They have a tendency to do that if you exhibit no signs of paying them.

National_Debtline

Hi Matt

Stepchange are certainly a good source of free advice, as are CAB, or you’re welcome to call National Debtline. I think Debt Doctor meant that you should actually speak to an adviser so you can go through advice in more detail, rather than just using an online tool.

You need to owe under £20,000 to qualify for a DRO but bankruptcy could be viable if you don’t have any valuable assets. I think there’s a thread on the forum which lists charities which might help you out with a grant for paying bankruptcy fees, or you can check with Turn2us:

www.turn2us.org.uk/Find-Benefits-Grants


James
@natdebtline