Should i go bankrupt?

Amethyst1968

I am about £30,000 in debt with credit card companies, loans etc. Payplan are managing all the companies for me, and I pay £150 per month by direct debit for them to distribute. I've been doing it for nearly 2 years now, and its not even scratching the surface of the debts. Should I just give up on Payplan and go bankrupt and have done with it? I am worried about my job if I do, I am training to be a nurse, would it effect that? Also, when I qualify, would the creditors expect more money from me if I kept with Payplan? I am also worried that if I ever do become sorted out that I won't be able to get a mortgage. I am still getting the odd hassle if Payplan are late paying my creditors, who then phone me up and are very unpleasant and quite rude to me, even though I have paid Payplan the money already.

Not sure what to do - Plod on with Payplan or go bankrupt? What do you think?

psycrow57

Hi there

I doubt that going bankrupt would affect your nursing training but I don't know for sure - not sure if the CAB could advise you on this?

I was thinking of setting up a DMP but when I did the maths I realised it would take more than 20 years to pay off my debts at a rate I could afford. So I decided to go bankrupt. Now, once it clears from my credit history, I have a chance of one day getting a mortgage and being able to support my family properly.

In terms of what you'll have to pay, that depends on what you earn and what your outgoings are. The bankruptcy forms are available online, so have a look at the page on outgoings. If you have a large excess you will have to pay that. However, if you have a large excess you should be able to afford it, so I'm guessing you don't. The OR told me that they will often let you off if you have an excess of less than £100, but if it's more you'll have to pay it.

As far as I know, once the bankruptcy is discharged, the BR stays on your credit file for 5 years, so you should be able to get a mortgage after that.

I know that you must be struggling financially as a student nurse (my debt problems occurred whilst at uni) but it's entirely your choice. I doubt you'd afford an IVA, as apparently you need to be able to afford at least £200 a month. All I can say is that it's the best thing I've ever done, especially since I had no assets to speak of so couldn't lose anything other than the ability to get credit, and I never want any again!

wherediditallgo

Hi,

None of us can tell you whether going BR is the best option for you - only you can know the depth of your circumstances. In the first instance, you should contact one of the charities that give free advice, as they're impartial & will give you constructive non-judgemental advice based on the info you give them. The ones you'll see recommended most here are:

National Debtline
Consumer Credit Counselling Service
Citizens Advice Bureau

You can also discuss going BR with PayPlan, as you're already with them.

Good luck.

debt_doctor

Bankruptcy is an option best suited to people who have no assetts, are overwhelmed by debt, and a moderate income. We dont know enough about you but if you post up your income and expenditure on here we can start to help

Best wishes

ps Your job should not be affected.

BrandNewDay

Amethyst1968 wrote: »

I am about £30,000 in debt with credit card companies, loans etc. Payplan are managing all the companies for me, and I pay £150 per month by direct debit for them to distribute. I've been doing it for nearly 2 years now, and its not even scratching the surface of the debts. Should I just give up on Payplan and go bankrupt and have done with it? I am worried about my job if I do, I am training to be a nurse, would it effect that? Also, when I qualify, would the creditors expect more money from me if I kept with Payplan? I am also worried that if I ever do become sorted out that I won't be able to get a mortgage. I am still getting the odd hassle if Payplan are late paying my creditors, who then phone me up and are very unpleasant and quite rude to me, even though I have paid Payplan the money already.

Not sure what to do - Plod on with Payplan or go bankrupt? What do you think?

Your job will not be effected.
You won't be able to get much credit for some time, but you can start to rebuild your credit a year or so after you're discharged. There will be some hassle with getting a bank account, but nothing insurmountable.

You're more likely to get a mortgage in five years if you go bankrupt than if you don't, to be honest. Your credit report is likely already in shambles.

If you want a fresh start, bankruptcy can give you that. But, there will be restrictions. No more credit cards, overdrafts, or shopping from catalogs for a couple of years, at least. Most bankrupts I know are grateful for this, to be honest. You will need to learn new money habits, whichever route you take.

Edited to add: my advice was based on certain assumptions. Namely, that you're still rather young, so you don't have a decent income or any assets to speak of.