is it worth bankruptcy?

vikki2k1

hi guys n girls.
well i was with my ex for a few years and as he already had a bad credit rating and owed a lot of money, most things were gotten in my name, credit cards catalogues etc.
anyway now hes left me with a huge debt, probably a minimum of 7 or 8 grand, and i have no way to pay it, i have sold most of what we had to pay some of it off, but we never had anything too expensive to start with.
but i want to know if bankruptcy would be an idea for me because im only young, i dont care about getting credit any more, its not worth all the hassle for me.
sorry its a bit long but advice of any kind would be appreciated. thanx

gratton20

Hi

Welcome to the forum! Someone with a lot more experience will be along soon, but I thought I would drop my opinion in first LOL

First of all going BR is a VERY big step and should be a final option not a first choice. Although there is no official minimum level of debt to go BR ... frankly 7 thousand or so is a bit low to be considering such drastic action. You may not care about future credit now, but as you say you are young - you may very well care a lot later on, esp if in diff circumstances you want to buy a house or a car.

There are plenty of options open to you, but first YOU MUST GET ADVICE from a charity like CAB or national debtline or CCCS ... its all free, confidential and they are experts. (Someone will post the links soon I am sure)

You need to consider if BR is really a good option for you, I went BR but I had big debts, no assets, no income ... if your circs are a lot different, if for example you own a home (or have Morg on one) own a car, are working, have kids etc ...

Personally I would be thinking, in your position of maybe an administration order (if you are in debt less than 5 thousand) or maybe a DMP ... a debt management plan ... in any event ... please get advice STRAIGHT AWAY

The experts here will be able to give detailed factual advice, we are, either BR ourselves or in serious debt or work in the voluntary sector. You will also get lots of support .. we all know how horrible and scary it feels to be in debt and being "hassled" for money you dont have!

If you have any questions, dont worry if they might sound silly .. they are not .. please ask.

Good Luck and welcome!

madoldbat

Hi Vikki2k1.Welcome to the board.
Sorry to here about your split thats hard enough without the extra debt problem.
If you are only young and debt is around the 7-8 mark it sounds a bit drastic to go BR.But if you have not got the money and no hope of getting it well it could be an option.
Please post a SOA so we can have a look and see if we can help.
Also have you spoken to CAB at all to see if they can help with creditors by talking to them on your behalf?
Ask away you will get lots of help and support from people on this board.So chin up and continue posting.

vikki2k1

yes i am going to see the CAB when i get home on wednesday.
i am going to live in another country with a friend and i dont want to leave this as it is it needs sorting, i have already left it too long as i am getting letters to go to court, as i never knew what to do as i had no one to talk to about it.
i may be able to pay a few pounds a month off each once i get registered here and get a job. would there be a way they can set it up to go from a bank account i will have to get over here each month?
my credit rating must be through the floor now! :mad:

thanks for the advice

madoldbat

Vikki well done on taking steps to sort things out .The CAB will advise and help you set things up as needs be.Having someone to talk to helps a lot.I felt a bit like a scared rat on wheel getting nowere and nothing but sleepless nights,grey hair and worry wrinkles:rolleyes: Now your doing somthing positive you will begin to feel stronger and better.
Well done again.

BAILIFFCHASER

In a way if everybody plays their cards right then they do not need to file for bankruptcy. like all games if you are stuck in the game of debt. Like these companies that offer to write your debts off it would cost you £1. per debt. So if you have 10 debts that is £10 plus 10 2nd class stamps. i know that there are certain debts like mortgages etc where you cannot. I do hope that everybody before thinking of bankruptcy goes the whole way before doing it.

gratton20

BAILIFFCHASER wrote: »

In a way if everybody plays their cards right then they do not need to file for bankruptcy. like all games if you are stuck in the game of debt. Like these companies that offer to write your debts off it would cost you £1. per debt. So if you have 10 debts that is £10 plus 10 2nd class stamps. i know that there are certain debts like mortgages etc where you cannot. I do hope that everybody before thinking of bankruptcy goes the whole way before doing it.

Are you saying that if they go about things the right way then no-one need ever go BR?? and surely you are not suggesting that one can REALLY write off debts for a pound each! Quite ridiculous assertions - Or am I missing the point here?

madoldbat

gratton20 I didnt understand that either.Dont think OP belives BR is a first choyce just needs help in finding a direction to get good advice..You have mentiond CCCS and CAB and so has OP.
Think Baliffchaser just tring to help with opinion:rolleyes:
Some further explination on 1 pound for 1 debt would be useful:rolleyes:

BAILIFFCHASER

NAME ADDRESS SELF

25 February 2007

ADDRESS OF CREDITOR

Client REF
Your reference :
Client reference :
Dear sir/madam

With reference to the above account, I am writing to confirm I am not acknowledging this debt.would you please send me a true copy of this credit agreement. I understand that under the Consumer Credit Act 1974 (Sections 77-79), I am entitled to receive a copy of my credit agreement on request and this should be supplied within 12 working days. I enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

Non-compliance with my request is a criminal offence under the above Act and will result in a report being submitted to the relevant statutory authorities.

As you are aware, a credit agreement that is not properly documented and signed by the customer is totally unenforceable under the CCA and therefore is a complete defence to any court claim that is issued.
Please note that under Section 189 you are obliged to supply these documents whether you are the original creditor or not. I await your reply.

Mr/MRS
Enc cheque number


SEND TO EVERY CREDITOR YOU OWE MONEY TO AND INCLUDE THIS LETTER. IF THEY CAN PRODUCE A CREDIT AGREEMENT FINE. IF NOT THEN THEY MUST WRITE THE ACCOUNT OFF. ONCE YOU HAVE THIS LETTER OFF THEN DO NOT COMMUNICATE WITH ANYBODY.

gratton20

BAILIFFCHASER wrote: »

NAME ADDRESS SELF

25 February 2007

ADDRESS OF CREDITOR

Client REF
Your reference :
Client reference :
Dear sir/madam

With reference to the above account, I am writing to confirm I am not acknowledging this debt.would you please send me a true copy of this credit agreement. I understand that under the Consumer Credit Act 1974 (Sections 77-79), I am entitled to receive a copy of my credit agreement on request and this should be supplied within 12 working days. I enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

Non-compliance with my request is a criminal offence under the above Act and will result in a report being submitted to the relevant statutory authorities.

As you are aware, a credit agreement that is not properly documented and signed by the customer is totally unenforceable under the CCA and therefore is a complete defence to any court claim that is issued.
Please note that under Section 189 you are obliged to supply these documents whether you are the original creditor or not. I await your reply.

Mr/MRS
Enc cheque number


SEND TO EVERY CREDITOR YOU OWE MONEY TO AND INCLUDE THIS LETTER. IF THEY CAN PRODUCE A CREDIT AGREEMENT FINE. IF NOT THEN THEY MUST WRITE THE ACCOUNT OFF. ONCE YOU HAVE THIS LETTER OFF THEN DO NOT COMMUNICATE WITH ANYBODY.

You are right up to a point, BUT ... any credit card company, bank, or other lender will almost certainly have made the borrower sign a credit agreement at the time they took out the loan, cc or whatever. They will certainly provide a copy as required by law and the debt will stand. Of course you might, as an outside shot, get lucky and the lender had a computer system crash at that time and the records were wiped but its odds on they have a paper copy in archive somewhere too.

In my opinion it is unrealistic, at best, to put this forward as a solution, even a possible solution to debt problems in this manner. It is better used as a method of finding out exactly what is owed. I would certainly be wary of giving the impression to the OP or anyone else that this is a viable option to clear debt in the manner suggested. Just my opinion tho!:rolleyes:

BAILIFFCHASER

gratton20 wrote: »

You are right up to a point, BUT ... any credit card company, bank, or other lender will almost certainly have made the borrower sign a credit agreement at the time they took out the loan, cc or whatever. They will certainly provide a copy as required by law and the debt will stand. Of course you might, as an outside shot, get lucky and the lender had a computer system crash at that time and the records were wiped but its odds on they have a paper copy in archive somewhere too.

In my opinion it is unrealistic, at best, to put this forward as a solution, even a possible solution to debt problems in this manner. It is better used as a method of finding out exactly what is owed. I would certainly be wary of giving the impression to the OP or anyone else that this is a viable option to clear debt in the manner suggested. Just my opinion tho!:rolleyes:

Get real. Scanners etc only started to be used 2 or 3 years ago. now i asked for a copy for my account which was opened last year. Guess what ? Barclays bank did not have it. What would you rather do ? Go up the wall or spend a £1 per debt to find out iof it is enforcable ? To many people give the wrong advice out and as a result many people suffer. Once bankrupt you cannot run a company,become a mp and so on. Is it really worth it ?