Where do I start

madeliene_2

An update, We went to our interview and we were lucky as the debt adviser had acancelation so she let us have it. She went through evrything and advised us our best course would be bankruptcy. A few of the details she told us have really worried us. The first was. We owe a relative a few thousand and have paid back what we can when we can. She said we wouldn't be able to givw them anything until the bankruptcy is cleared in 3 years, as it would be seen as favourititsm. Also she said the OR would probably take £50-£100 each month from us for 3 years. Plus they would have the say in where the money goes. Plus she advised us to stay with nationwide. If the account is frozen, how do we manage? If we open another account with the co-op, will we have to declare this? I don't understand how that works, and I don't want to get into trouble.

She also said that we need to pay £350 EACH to file for bankruptcy, that gobsmacked us, I thought we would only pay 1 fee. And we can't file until we have the money. That could take 4-6 months for us. I feel really stressed about what to do, I know we can't go on like this, and to make matters worse, my cooker broke today, and my husband is ill.
I realy apreciate any help anyone can give me.
Thanks

betterlatethannever

Madeline. I don't know if i can be of any help, but have you tried getting a crisis loan? you could say its for the cooker and other items, then use it for BR?
more info here http://www.jobcentreplus.gov.uk/JCP/Customers/WorkingAgeBenefits/Dev_013949.xml.html

Edit: Can someone advise if this is a good idea, will the OR not look favourable on a loan at BR and would the deductions in benefits leave the OP with enough to live on?

betterlatethannever

ohh meant to add, how about here for a cooker, just to tide you over.
http://www.freecycle.org/

madoldbat

Madeliene,
Your relative,if you list them as a creditor then they would have to be treated the same way as all your other creditors .As you have said you have paid back what you can when you can would I be correct in thinking this relative is a nice person who trusts you and accepts that they will be repaid in full when you can.If so if you explain the situation would they accept the extra wate?
we opend our COOP account as soon as we knew we were going BR and explained to Coop why we whanted to change.Had all monies transferd into this account and changed DD & SO.We stopped paying creditors and saved that cash to pay for fees,like you two lots.
Is there any chance you could post your income and expenditure for us to see if there is any advice we can give to help you ?
Sorry if things seem tough and stressful now ,but you will begin to see some light soon just keep asking and posting.

madeliene_2

Income

Income Support£336.84
Child Benefit£126.32
Incapacity Benefit£380.00
Carers Allowance£270.20
DLA £258.00
Total income £1371.36



Out goings
Gas £51.50
Electricity£51.50
Water£38.00
TV Licence£11.36
Telephone(s)£20.00
MobilePhone£30.00
Petrol/Oil/Diesel£70.00
Maintenance£30.00
Insurance£18.00
Food/laundry/household£580.00
Clothing/Footwear£100.00
Glasses£18.42
Pets£25.00
payplan £200.00
internet £25.00
catalogue £40.00

Plus I give what we can to my relative.
regarding the relative. They know what we are going through and have never presurised us, nor have they said they need it back withing a certain time. I know they won't bother about bankruptcy, I think it's more me, feeling so bad about that the fact they leant us the money and us making them wait for up to 3 years before I can give them something again.

we are tennants but live in a very large adapted house with stairlift, wider doors, walk in shower etc..
I am being treated at 2 different hospitals, and we live too far for the kids to walk to school, we don't qualify for help with travel to school, nor help with uniforms. The P.E kit is ridiculous and expensive, and has to be the schools. There is no help at all.
I hate the fact that I get looked down on when I say we are on benefits. I worked my !!!! off before I became ill, and there is nothing that I would love more than to go back out to work again. I was a civil servant within the benefits sections before. I do voluntry work and help organise fundraisng for cancer research uk. that and the internet is about all I am able to do. we don't socialise at all unless we attend family functions, but I'm fine with that.

I've got a friend's partner coming to look at the cooker in the morning, hopefully he can fix it. He doesn't want paying because I make their kids birthday cakes. I am really thankful for that.

I feel bad moaning when there are people in fair worse situations than me.

madoldbat

Hi Madeliene.
Now this is not my area of expertise and Im sure someone with in depth knowlage will advise shortly,but how many children ? how much rent?Sorry not being nosey but it might help.OR does not take some benifitts into account.
As for school uniform Grrrrrrrrrrrrrrrrrrrrrr:eek: :mad: I so agree.Pair flippin socks for pe 8.00 and all because this year they have a diff coloured band at top:mad:
Chin up some one bright will give you better advice soon.And this sight is so you can share your anger,fear,sadness and stress with others who know how it feels and want to help so dont ever feel bad about posting.

fermi

Hi.

Do you have any other household income that isn't benefits?

If you income is all or mostly benefits, you shouldn't be asked to pay anything back under an income payments agreement (IPA).

An IPA should not be sought where the bankrupt's only or main source of income is state benefit payments without any other significant source of income [note 3]. This applies even in the rare circumstances where the official receiver's analysis of the bankrupt's income and expenditure discovers sufficient surplus for an IPA arising as a result of the income received by the bankrupt which either solely or chiefly comprises state benefits. The official receiver should consider that it is always open to the bankrupt who wishes to contribute, to make voluntary payments. If the bankrupt was minded to contribute on a voluntary basis, having been informed that their income appeared to be sufficient to produce a surplus taking in to account their reasonable domestic needs, a voluntary agreement could be incorporated into an IPA, but it would have to be clearly noted that no enforcement action would be taken if the bankrupt failed to make agreed voluntary repayments.

The current BR fee's (if you only have to pay the OR's deposit as should be your case) are £335 per person, so £670 for two.

I'm not to good on I&E's, but I'm sure everyone will be able to help/suggest how to raise the fees.

debt_doctor

Hi all,
mmm... crisis loan for bankruptcy fees, thats naughty - go for it !! Actually budgeting loan may be more successful and honest as 'to repay existing debts' is allowed. Also your weekly payment would still be taken from your benefits whilst your undischarged, remaining balance written off at discharge, ( latest evolving law on this issue.

Your stated cab advice is a bit confusing. 3 years ?? you will be bankrupt a maximum of 1 year, your family debts should be included but fully understand why they are not - thats up to you, no one will know if you exclude them.

Also you will not pay ANY monthly payments to your creditors, your income is entirely made up of benefits, contribution is not possible - I worry about some things I hear form cab occassionally, poor training I fear.

pm me if you want

Best wishes

DD

fermi

Oops.:o

Just noted the Payplan @ £200 per month. If you are 100% going for BR then that can go towards the fees for starters.;)

fermi

debt_doctor wrote: »

I worry about some things I hear form cab occassionally, poor training I fear.

You see the occasional dodgy bit of advice from CCCS, Payplan, NDL etc as well.

I think things are a tad stretched everywhere at the moment, so there is sometimes a bit of experience lacking whoever you ask. Plus every advisor is human.