Is bankruptcy the answer?

Debtworry_2

Hi everyone,

Could do with some advice if possible please.

I had a Credit card that had over a 4k limit, i went over and was paying £100 a month but this was just paying the interest and the debt wasn't reducing, my bank then gave me a loan to pay the credit card of, but i spent again on the credit card so i had double the debt.

I wrote to my credit card lender and explained the situation, and for the past yr ish, i have been paying £20 a month, and the interest has been froze, but as you can imagine it's taking ages to reduce the debt.

I pay £136 a month to my loan, and 9 times out of 10 i have to borrow the money for this as i can't afford to pay myself.

I also have a capital one card which only has a £600 limit, and i spent upto £500 and i dont use the card anymore and pay them £30 a month, interest is roughly £20 so only a tenner of this is going to the debt.


I'm currently signed of work (have been for a few yrs) for depression and anxiety, and only get £149 a fortnight.


WOuld it be easier for me to declare myself bankrupt and start again? i never have any money to myself, i just dont know what to do anymore :mad:

rayday2

I take it you don't own your own house, its an option. Have you put the question onto the bankrupcy board see what they say?

Debtworry_2

rayday2 wrote: »

I take it you don't own your own house, its an option. Have you put the question onto the bankrupcy board see what they say?

No i live with parents after myself and my Ex partner split, i didn't realise there was an bankruptcy board?

Thanks

rayday2

No problem sorry I can't help more.

fermi

What are your prospects for getting back to work? If you are going to be off work long term with a low income BR could be the best option.

But bankruptcy is a very serious step which you need to get professional advice on (the court would ask if you've done this).

[SIZE=-1] You can contact:
[/SIZE]

• [SIZE=-1] Your local CAB Office and ask to speak to a 'money advisor'.[/SIZE]
• [SIZE=-1]The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111 [/SIZE]
• [SIZE=-1]National Debtline - Tel: 0808 808 4000 [/SIZE]
• [SIZE=-1]Payplan - Tel: 0800 917 7823.[/SIZE]

These organisations will also discuss with you any other options that might be available to you.

Can you itemise for us the debts that you have?

EDIT: The bankruptcy board is here: http://forums.moneysavingexpert.com/forumdisplay.html?f=136

Herbie21

I normally stick to answering bailiff queries, but here goes.

The repayments of £20 per month should be easy to reduce down to £5 per month. We have many clients paying this amount. In addition, the loan payment should be possible to reduce down to £20 per month at most.

It would appear that you are having to pay approx: £190 per month against these debts. With so little money coming in this is crazy. I would bet that poor Mum does not receive any money from you for food etc!!!

I am also curious about the amount that you are receiving. You say that you are receiving £149.00 per 2 weeks as you have been signed off work for a few years for depression and anxiety. In that case I woud have thought that you should by now be entitled to the long term Incapacity Benefit which should be £81.35 per week ( £163 per 2 weeks) Not a lot extra, but if the debts can be reduced this additional money could come in very handy.

It is also worth considering talking with Job Centre Plus to see if you are entitled to an additional payment which is called "age addition" payment. To qualify you must have been UNDER 45 YEARS OLD when you became ill AND be in receipt of the long term basic rate of Incapacity Benefit.

I need to get up to speed again on benefits but I think that you are also entitled to receive a small amount of income support. Job Centre Plus will look into this for you.

chloebelle

herbie21 - what is long term incapacity benefit?

my other half has been on incapacity benefit for 18 months due to depression, he literally doesn't have a penny as his benefit is just swallowed up into overdraft. Part of my debt is the result of giving him the odd tenner just so he can eat!!

After this length of time, is there further benefit he could seek?

Herbie21

. Incapacity Benefit is usually paid at three basic rates:

• short-term (lower rate) for the first 28 weeks £61.35 per week

• short-term (higher rate) from the 29th to 52nd week; £72.55 per week

• long-term rate from the 53rd week at £81.35 per week.