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:

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?

(This is a repeat of my post on DFW.)

Debtworry_2

Thanks for the reply,

I really dont want to go bankrupt, as you say it's a very big step and i feel i got myself in this debt, i should get myself out of it, but it's been years now and i feel enough is enough.

I contacted CCCS and they were the people who told me to write to my credit card, haven't spoke to them about bankruptcy tho.

At present my debt is as follows:

£4471 - Lloyds credit card
£2765 - Lloyds Loan
£518 - Capital One
£250 O.D limit - LloydsTSB


And considering the only money i recieve is £149 a fortnight

fermi

If you are having to borrow money to make payments on your current commitments and you have such a low income (despite living with your folks), then that is an unsustainable position.

Even if you could throw 100% of your income at these debts with no interest it would take 2 years + to pay back. Plus the money you are receiving is really intended to meet your basic living expenses, not service debts.

If bankruptcy is not something to consider then at the very least you need to renegotiate with any creditors who are still applying interest. A formal DMP with CCCS or Payplan perhaps?

I would talk to CCCS again and emphasise your current position. Or perhaps get a second opinion from one of the other organisations. There will be a way to solve this.

tigerfeet2006

I agree with Fermi. Spot on advice as normal.

Also go to www.entitledto.com to check you are recieving all the benefits you should be.

Debtworry_2

Thanks for the replies, and thanks for the link, will have a look through that shortly.

Just another question, if i were to go bankrupt, do creditors sell assets (sp) to try to get there money? the only asset i have is acar which was bought for me but was 5k, as i have to collect my son every fortnight for contact (this is what made me depressed in the beginning or the court orders etc)



Thanks

fermi

Debtworry wrote: »

Just another question, if i were to go bankrupt, do creditors sell assets (sp) to try to get there money? the only asset i have is acar which was bought for me but was 5k, as i have to collect my son every fortnight for contact (this is what made me depressed in the beginning or the court orders etc)

Any significant assets that you own can be claimed for your estate by the Official Receiver, and this can include cars depending on the circumstances.

The important thing is who owns the car?

Just being the 'registered keeper' is not the same as legal ownership.
Who paid for the car, and who made the purchase?
If you can show that you are not the legal owner, then this would make the car much safer.

Debtworry_2

My parents gave me the money, but as never drive i chose it and collected it, and am the registered keeper