where to start

fishfinger1

sourcrates wrote: »

Have you given up on the idea of Bankrupcy ?

Things are changing from April, everything is done online, and there is no longer a requirement to appear in court, the fee is also changing, and it can be paid in instalments.

If you have no assets, and you don't work in a job where this would be a problem, it's certainly worth looking into.

http://m.stepchange.org/debt-information/debtsolutions/Bankruptcy-changes

No point spending years and years on a DMP when you don't have to.

I've spent all week reading these forums and just cant seem to come to a decisive decision. The idea of bankruptcy worries me so much for some reason. I know i have nothing to lose and will never have a job that it will affect. It seems such an easy option to become debt free but is it really that simple.

so_very_confused

Keep reading ....as in certain circumstances it is that easy.

sourcrates

fishfinger1 wrote: »

I've spent all week reading these forums and just cant seem to come to a decisive decision. The idea of bankruptcy worries me so much for some reason. I know i have nothing to lose and will never have a job that it will affect. It seems such an easy option to become debt free but is it really that simple.

Can be yes, you may have to pay into the Bankrupcy for up to 3 years, dependant on your income, but the Bankrupcy itself will be discharged normally after a year.

The new rules meaning you don't have to attend court make it much, much simpler, you basically fill in a form, pay the fee, the official receiver decides if they should grant the Bankrupcy or not, they inform you of the decision, that's it, your name appears on the insolvency register, same as in an IVA, (no big deal) for 6 years.

Job done, all debt written off, fresh start for you.

fishfinger1

sourcrates wrote: »

Can be yes, you may have to pay into the Bankrupcy for up to 3 years, dependant on your income, but the Bankrupcy itself will be discharged normally after a year.

The new rules meaning you don't have to attend court make it much, much simpler, you basically fill in a form, pay the fee, the official receiver decides if they should grant the Bankrupcy or not, they inform you of the decision, that's it, your name appears on the insolvency register, same as in an IVA, (no big deal) for 6 years.

Job done, all debt written off, fresh start for you.

What happens if I fill in the forms pay the fee and then the official receiver decides that I cannot go bankrupt. Do I lose the fee and then go back to arranging a Dmp. I do appreciate your input sourcrates

sourcrates

fishfinger1 wrote: »

What happens if I fill in the forms pay the fee and then the official receiver decides that I cannot go bankrupt. Do I lose the fee and then go back to arranging a Dmp. I do appreciate your input sourcrates

As long as you cooperate with the OR, as you have no assets, there's no other acceptance criteria, plenty of info on National Debtline website, I'd certainly concider it, but wait till after April if you do choose to go down that road.

downhillfast

Bankruptcy is not an easy option but it exists for a reason. If you are not financially connected to your partner in any way and have no assets then you should really seriously consider it.
Generally speaking the allowable expenses whilst bankrupt are usually a little more generous than when in a DMP too so you may find with your income that you might not have to pay into an IPA (this is where any 'spare' money from your budget gets paid to the OR for 3 years).

With a DMP you will pay for however many years it takes and your credit history will be trashed for 6 years from the latest account that defaults...

With bankruptcy you will pay for either 0 or 3 years (5 occasionally if the OR feels you haven't been cooperative - but this rarely happens) and your credit history is trashed for 6 years from the date of the bankruptcy order - although if asked you must answer honestly if you have ever been bankrupt.

Bankruptcy will generally only be refused if the judge doesn't think you have had professional advice about what you are undertaking - this forum does not qualify but talking through it with Stepchange or National Debtline does.

Bankruptcy is not to be taken lightly but it really isn't as bad as people would have you believe. Treat it as a fresh start for you and your family and learn from your mistakes, everyone deserves a second chance and nobody should have to live with the weight of serious debt on their shoulders for any longer than necessary.

fishfinger1

downhillfast wrote: »

Bankruptcy is not an easy option but it exists for a reason. If you are not financially connected to your partner in any way and have no assets then you should really seriously consider it.
Generally speaking the allowable expenses whilst bankrupt are usually a little more generous than when in a DMP too so you may find with your income that you might not have to pay into an IPA (this is where any 'spare' money from your budget gets paid to the OR for 3 years).

With a DMP you will pay for however many years it takes and your credit history will be trashed for 6 years from the latest account that defaults...

With bankruptcy you will pay for either 0 or 3 years (5 occasionally if the OR feels you haven't been cooperative - but this rarely happens) and your credit history is trashed for 6 years from the date of the bankruptcy order - although if asked you must answer honestly if you have ever been bankrupt.

Bankruptcy will generally only be refused if the judge doesn't think you have had professional advice about what you are undertaking - this forum does not qualify but talking through it with Stepchange or National Debtline does.

Bankruptcy is not to be taken lightly but it really isn't as bad as people would have you believe. Treat it as a fresh start for you and your family and learn from your mistakes, everyone deserves a second chance and nobody should have to live with the weight of serious debt on their shoulders for any longer than necessary.

Will bankruptcy put an end to any hope of ever being able to get a mortgage in the future

fishfinger1

Another day of constant worry and not knowing what to do for the best. Would anybody like to give me a kick up the backside

MERFE

Have you contacted stepchange or National debtline yet, if not speak to them today. If you have, what have they suggested?

Brock_and_Roll

fishfinger1 wrote: »

Will bankruptcy put an end to any hope of ever being able to get a mortgage in the future

No, absolutely not.


However, given that you will be defaulting one way or another, we are talking quite a long time down the road.