Am I doing the Right thing??

DozyDora

Hi Everyone,

Firstly I would like to thank everyone on this board for posting their experiences, it makes something that seems scary (for me) to face up to, less so by hearing from people who have gone through it and come through the other side.

A little something about financial me, I am approx 55k in debt with various lenders and I am somewhat ashamed to say I have nothing to show for it. After approx 12 years of credit cards and consolidation after consolidation I have reached breaking point. I really do wish I could say how I got to this point and wish that a certain high street bank and stopped me and said 'do you really think you should be doing this' before offering me a 26k consolidation loan (but that is a whole different gripe against lenders that I have). Sorry I digress, I am currently in a DMP with CCCS that will take approx 8 years(ish) to pay off and have been seriously researching the BR option. I have no assets, so nothing in that respect to lose... I have a very understanding BF who is 100% behind me going down the BR route, especially as we would like to settle down in the next few years and I can't see that being possible atm :sad:

I had a review with the CCCS at the beginning of the week and being v concious that the courts require you to seek advice before going ahead decided to broach the subject. The guy I spoke to was v nice and understanding but all he would keep saying is that the 8 years is deemed as an acceptable timescale so he couldn't recommend BR, although he also wouldn't recommend an IVA as my monthly payment is quite high so he didn't see how that would be any better. I couldn't tell if he was just saying that as he was following his guidelines (that I am sure they have), he really did say it alot which made me think that.

I am still pretty determined to go ahead and have started to fill the forms in online but was wondering when you go to court and they ask you if you have taken advice do they tend to question you any more about it or are they just interested in knowing that you have spoken to someone?

I am sorry if this seems a little patchy in details, I am at work atm :shhh:

I am sure I will have more questions and thank you all in advance for your patience in reading my msg..

Take Care

DozyDora xx

fermi

Welcome

DozyDora wrote: »

I am still pretty determined to go ahead and have started to fill the forms in online but was wondering when you go to court and they ask you if you have taken advice do they tend to question you any more about it or are they just interested in knowing that you have spoken to someone?

Pretty much the latter. We do try to emphasise that you will be asked, but you won't get an interrogation on that exact point.

You will however have to make a legal declaration that "I cannot pay my debts", and give reasons for your insolvency on your SOA. Although it's not something that seems to happen too often, you should give some thought as to what you will say if asked why you could not simply follow through the DMP to it's end. I certainly not saying that the BR might be refused, just bear in mind that you may be asked why you have now opted for bankruptcy.

gratton20

Hi Dora

Welcome to the forum! I am not qualified to offer advice as such, if I was I wouldnt have gone BR myself a few days ago LOL, but what i can say is that you will soon have some practical advice here from the "brains" of this forum ... don't worry you will get lots of support.

My personal view is that if you are unhappy with the advice given to you by CCCS then you are quite entitled to ask for advice elsewhere, the CAB or National Debtline for example. I see no reason why you should not have a "second opinion" in a finance case as you would in a medical matter do you?

No-one can STOP you from applying to be made bankrupt, but it may not be the best option, thats why you need to take advice, possibly advice from more than one source - but advice anyway. The judge at court would certainly require that you have before he would grant an order of BR.

I am sure, as I said that the "brains" of this forum will soon be along to guide you, but dont worry ... trust them and dont be afraid to ask anything, even if you think it sounds daft .. that was what I thought and its really not a problem.

Good Luck!

gratton20

Aha ... One the "brains" has already beat me to it LOL Hi Fermi!:D

DozyDora

Hi Fermi,

fermi wrote: »

You will however have to make a legal declaration that "I cannot pay my debts", and give reasons for your insolvency on your SOA. Although it's not something that seems to happen too often, you should give some thought as to what you will say if asked why you could not simply follow through the DMP to it's end. I certainly not saying that the BR might be refused, just bear in mind that you may be asked why you have now opted for bankruptcy.

I really have given this alot of thought and considered the IVA option, but because the chance of children in the next couple of years is quite high I know I would end up down the BR route at that point. But hazarding a guess I am thinking that it isn't an acceptable reason :undecided

Take Care

DozyDora xx

fermi

The thing that strikes me (on reflection) is that that you say that you would currently be able to clear 55K worth of debts in 8 years under a DMP, which means that you must have at the very least £550-600 per month free in your current I&E to achieve this.

While this isn't as much as your old contractual obligations on your debts would have required (hence the DMP), it is still a sizeable surplus. While you may anticipate circumstances changing in the medium term, I'm not quite sure how the court/judge might view this if you go for BR now.

I think that gratton20 is right that perhaps a second opinion may be in order if you can get one.

Others on this forum may have a different take, so see what they say later as well.

DozyDora

fermi wrote: »

The thing that strikes me (on reflection) is that that you say that you would currently be able to clear 55K worth of debts in 8 years under a DMP, which means that you must have at the very least £550-600 per month free in your current I&E to achieve this.

While this isn't as much as your old contractual obligations on your debts would have required (hence the DMP), it is still a sizeable surplus. While you may anticipate circumstances changing in the medium term, I'm not quite sure how the court/judge might view this if you go for BR now.

Hi Fermi,

You are spot on I am currently paying £550 which is half of what i was previously paying, although i do think I have left myself a little short on my SOA... I think what really worries me is that I can't really get on with my life until this is sorted one way or the other and I can't afford to wait the 8 years. I think I may call someone for a second opinion, would the insolvency helpline be able to advise on this??

Take Care

DozyDora xx

DozyDora

DozyDora wrote: »

I think I may call someone for a second opinion, would the insolvency helpline be able to advise on this??

Actually scrap that, I am going to call the National Helpline as they are open til 9pm and some others only seem available during working hours. This isn't a conversation I want to have in the office where there aren't many places I can go off to that are private..

debt_doctor

Hi DD,Bankruptcy is a choice you can legally make as a way to deal with a debt problem, but it is not a right. The DJ will want to know if you have taken proffessional advice.I have never personally had someone who petitioned for bankruptcy refused. The DJ will not know about your DMP,its not required on the forms.
Guidlines to DJ's state that where someone petitions for BR and has assetts of 4K or more and less than 40K debt they should be considered for refferral for a low cost IVA. Neither of these apply to you, and I have had a fair few people who it did apply to - and they were all made bankrupt any way !!

Best wishes

DD

DozyDora

Hi DD,

debt_doctor wrote: »

Hi DD,Bankruptcy is a choice you can legally make as a way to deal with a debt problem, but it is not a right. The DJ will want to know if you have taken proffessional advice.I have never personally had someone who petitioned for bankruptcy refused. The DJ will not know about your DMP,its not required on the forms.
Guidlines to DJ's state that where someone petitions for BR and has assetts of 4K or more and less than 40K debt they should be considered for refferral for a low cost IVA. Neither of these apply to you, and I have had a fair few people who it did apply to - and they were all made bankrupt any way !!

Thank you for this, I definately don't think or BR as a right but the only way I am going to be able to deal with this situation I am in. This is something I really have thought long and hard over...

I did consider an IVA a couple of years ago but after I had gone through my SOA with a lady on the phone she told me that I didn't qualify. I never seem to be in quite enough trouble financially even tho I had been trying to avoid the inevitable. If I had been able to have gone through with the IVA then I would have at least been on the road to sorting this out.

Sorry for the mini monday rant, I have been thinking about this all weekend and get so frustrated, I am feeling a little better now...

Take Care

DozyDora xx