About to go bankrupt

Team_AA

I am seriously considering Bankruptcy.
Breakdown of my situation is as follows.
Was married for a number of years, have two small children. Split up with my husband, leaving myself in a lot of debt. Our marital home was sold as I couldn't afford the mortgage on my own and my parents had put money into the property which they needed back. Am currently in rented accommodation, with two children, I work and receive tax credits. Each month more and more of the general household expenditure is going on my credit cards. With the debt that my ex built up in my name and living on my cards my total debt is at nearly 40k. I have recently sold my car so have no assets or savings.
Can anyone advise if bankruptcy is a good option for me. I am not trying to run away from debts and know I will receive an IPA, but just need to see some light at the end of the tunnel. As it stands I am paying £1200 a month in debt repayment.

National_Debtline

Hi

Welcome to the forum.

From what you've said about your situation it sounds like bankruptcy could be a viable option for you to get a fresh start. There are implications which affect some people such as the potential effect on some private rental tenancies and jobs so it's worth looking into bankruptcy in more detail. Overall it's best to contact a free debt advice charity to discuss your whole situation.

There is a factsheet on bankruptcy here which covers the main points:
www.nationaldebtline.org/EW/factsheets/Pages/bankruptcy/howtogobankrupt.aspx

James
@natdebtline

Team_AA

My rental property is through a friend so that shouldn't be a problem. Regarding my job, I work in an accountants. I am not an accountant just prepare the papers, VAT returns etc. I think I will have to discuss my situation with the Partners.

Team_AA

When the house was sold I received £12k. This was two years ago. I purchased a car, paid some off of my debts and had to buy new furniture etc for the house. Will this be taken into consideration? I do not have any of this money left but will it affect bankruptcy, I know I have been extremely rubbish with money, but will they see this as a reason for not allowing me to make a fresh start?

tigerfeet2006

No they will not see this as a reason to deny you a fresh start. The worst you will get is a BRU. You will be discharged after 12 months but the restrictions of BR may be extended for a few years.

Please give National Debtline a ring and discuss your situation, it will help enourmously. They are open until 8pm.

Also if you want to pop up your SoA then we can look at it as an OR may look at it.

http://www.stoozing.com/calculator/soa.php

stuart30

Team_AA wrote: »

When the house was sold I received £12k. This was two years ago. I purchased a car, paid some off of my debts and had to buy new furniture etc for the house. Will this be taken into consideration? I do not have any of this money left but will it affect bankruptcy, I know I have been extremely rubbish with money, but will they see this as a reason for not allowing me to make a fresh start?

Hang your head in shame...blimey don't be so hard on yourself,life deals us some pretty dire hands sometimes,we make the best with what we have.


Have you seen some of these huge companies going bust...what chance have we the little people got.


Can only speak from experience and I found in the long run Bankruptcy for us was the best thing we ever done.


Might not be the quickest route to sort debts as the 6 yrs will have an effect on your credit...but the huge weight that's taken off when its all signed and sealed for us was worth it.


Six years have quite literaly flown past...

National_Debtline

As you used the money for essential things or debts, and if you had no intention of going bankrupt at that point it shouldn't be an issue. Even if it was an issue it wouldn't stop you going bankrupt, you just might be given a BRU as tigerfeet mentioned.

You should definitely check whether bankruptcy will be a problem with your employers.

James
@natdebtline

Team_AA

Thank you all for your kind replies. I will do my SOA later and post it on here. Any feedback will be gratefully received.

Team_AA

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 0 ( Parents are willing to buy me a cheap run around)
Monthly Income Details[/b]
Monthly income after tax................ 951
Partners monthly income after tax....... 0
Benefits................................ 1200 (WTC CTC CB & HB)
Other income............................ 400 (Maintenance
Total monthly income.................... 2551
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 700
Management charge (leasehold property).. 0
Council tax............................. 91
Electricity............................. 50
Gas..................................... 40
Oil..................................... 0
Water rates............................. 41.57
Telephone (land line)................... 20
Mobile phone............................ 47
TV Licence.............................. 12.12
Satellite/Cable TV...................... 20
Internet Services....................... 20
Groceries etc. ......................... 450
Clothing................................ 150
Petrol/diesel........................... 100
Road tax................................ 13
Car Insurance........................... 40
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 130
Other child related expenses............ 45
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 30
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 30
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 60
Total monthly expenses.................. 2149.69

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
CC.............................12000.....280.......0
CC.............................7000......160.......0
CC.............................1000......30........0
OD.............................700.......700.......0
OD.............................300.......300.......0
Loan...........................17800.....534.......0
CC.............................1000......60........0
Total unsecured debts..........39800.....2064......-

Monthly Budget Summary
Total monthly income.................... 2,551
Expenses (including HP & secured debts). 2,149.69
Available for debt repayments........... 401.31
Monthly UNsecured debt repayments....... 2,064
Amount short for making debt repayments. -1,662.69
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -39,800
Net Assets.............................. -39,800

A4445

I had a BRU for 3.5 years it was no big deal nothing to worry about.

tigerfeet2006

Team_AA wrote: »

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 0 ( Parents are willing to buy me a cheap run around)
Monthly Income Details[/b]
Monthly income after tax................ 951
Partners monthly income after tax....... 0
Benefits................................ 1200 (WTC CTC CB & HB)
Other income............................ 400 (Maintenance
Total monthly income.................... 2551
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 700
Management charge (leasehold property).. 0
Council tax............................. 91
Electricity............................. 50 Will this cover winter payments?
Gas..................................... 40Will this cover winter payments?
Oil..................................... 0
Water rates............................. 41.57
Telephone (land line)................... 20 I take it telephone, satellite and internet are a package eg: sky
Mobile phone............................ 47
TV Licence.............................. 12.12
Satellite/Cable TV...................... 20
Internet Services....................... 20
Groceries etc. ......................... 450 I would try for £500 the OR can always reduce if he feels it is too much.
Clothing................................ 150 This may be pushing it on clothes 90/120 is more like it.
Petrol/diesel........................... 100
Road tax................................ 13
Car Insurance........................... 40
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 130
Other child related expenses............ 45 Put £5 a week per child for activitea and if you have a child at school then £2 a day for school dinners.
Medical (prescriptions, dentist etc).... 0 £25
Pet insurance/vet bills................. 30
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 Some ORs allow, some don't so leave and see
Haircuts................................ 30
Entertainment........................... 20 Some ORs allow, some don't so leave and see
Holiday................................. 0 £60
Emergency fund.......................... 60 £30
Total monthly expenses.................. 2149.69

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
CC.............................12000.....280.......0
CC.............................7000......160.......0
CC.............................1000......30........0
OD.............................700.......700.......0
OD.............................300.......300.......0
Loan...........................17800.....534.......0
CC.............................1000......60........0
Total unsecured debts..........39800.....2064......-

Monthly Budget Summary
Total monthly income.................... 2,551
Expenses (including HP & secured debts). 2,149.69
Available for debt repayments........... 401.31
Monthly UNsecured debt repayments....... 2,064
Amount short for making debt repayments. -1,662.69
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -39,800
Net Assets.............................. -39,800

Look at getting breakdown cover for the car.

When your parents get a car make sure they are on the sale paperwork and the money comes from their account. Don't put the money in your account.