conflicting information Stepchange VS National debt line

DebtFreeTime

i posted on here a few weeks back regarding my situation and was advised by many to do a SOA. which i did with help of CAB, i also went on the step change website and did the debt remedy. broke all my spending down to the necessities.

To keep it short step change have advised i offer a token payment of £1 a month and National debt line have advised i go bankrupt.

I have 42 debts and all my debts total £41,030 (rounded up to the nearest pound) ALOT more than i initially worked out, but a lot of digging was done and going to old addresses etc to get that figure.

my monthly incoming is £602 (139x52/12)
my monthly outgoings are £778 (179.68x52/12)
leaving a 176 shortfall each month

because of this shortfall step change said i shouldn't go bankrupt as its not a good solution long term, only short term to cover current debts but ill still be getting in to debt in the future because of the shortfall and its best for me to offer a £1 token monthly payment to all my creditors until my situation "gets better" a temporary payment arrangement.

With 42 different creditors, (paying out an extra £42 a` month, when I'm already over spending by £176) doesn't make sense to me. also if I'm in this situation all my life, that £42 a month would take almost 1000 months (83 years) to clear the debt :huh: why would that be a smart option??? i get i would be showing I'm acknowledging my debts and contributing something over nothing but that would mean ill never be debt free.

also unless i come in to a lump some, my situation isn't getting any better until April 2018 when i will be qualified and can start working (if i get a job in April).

also when i got my step change pack after my phonemail with them, it only had my priority debts (magistrates fines etc) included. not any of the smaller ones...is there any particular reason for this?

i spoke to national debt line earlier today and they advised me that i should go bankrupt because of the fact that my situation isn't likely to change in the near future and although its a short term solution for the £41k i would stop paying HMRC their £150pm (as it'll be included in the BR) leaving my shortfall at just £26 a month... definitely easier to find £26 a month than (£176+42) £218pm.

i understand my credit will take a beating with the BR but I've never taken out a credit card or a loan etc anyway, the only reason i want my credit to increase is so i can get a mortgage in the future. And surely paying £42 a month off of a £42k debt would not improve my credit significantly anyway!?

as both the top recommended charities have given me different information is it better i just go for the BR as personally i feel this makes more sense but I'm not an expert.

:question::question::huh::huh:

forgotmyname

I think the issue is your going to fill the paperwork in for bankruptcy which will show your living beyond your means and potentially a risk to be going bankrupt a 2nd time.

You need to do a SOA, because your fines wont be going away.

Getting a mortgage with a bankruptcy on your file will likely cost you more also.

Its something that doesnt really go away. Your always on the gazette register.

tigerfeet2006

Giving debt advice is not an exact science and different people can see a situation slightly differently.

If you go BR you are going to have to show how you are going manage after you go BR. How are you going to manage after BR if you have a deficit each month? You cannot overspend as you will not have any credit to do so. The OR will want to see how you are going to manage.

tigerfeet2006

forgotmyname wrote: »

I think the issue is your going to fill the paperwork in for bankruptcy which will show your living beyond your means and potentially a risk to be going bankrupt a 2nd time.

You need to do a SOA, because your fines wont be going away.

If you are talking about the HMRC debt, it will be covered in BR.

Getting a mortgage with a bankruptcy on your file will likely cost you more also.

Once the BR drops off the credit file it isn't impossible to get a normal mortgage with a decent deposit. There are quite a few on here who have.

Its something that doesnt really go away. Your always on the gazette register.

Yes it is you are correct but it is not a life sentance now a days.

debt_doctor

Hi,
Can you explain more about the shortfall please? Wouldn't the remaining £26 pm shortfall be dealt with by perhaps reducing your housekeeping still further - not ideal but sometimes an only choice.
DD

forgotmyname

tigerfeet2006 wrote: »

Yes it is you are correct but it is not a life sentance now a days.

Not a life sentence until a potential employer asks the question or does a search.

I had had insurance companies ask the question when getting quotes also. Pretty sure FD asked when opening a bank account?

ToxtethO'Grady

I know it's confusing and I think they are just both giving you the options you have not telling you to do anything. This is your decision and for you to think about. People on here will help a lot.

You say your situation will, hopefully, improve in April 2018 when you qualify. If you start now and have all your information, the fee and the OR deals with you quickly you could still be undischarged in April 2018. What job will you be qualified for? Have you checked what the professional body you would be part of would view BR?

With the HMRC debt is this tax credits? Have you asked HMRC if they will reduce the payment? If it is tax credits did they class it as fraudulent? It's how they have reported it and if they have it would not be included in BR, you'd get a break and then they would start recovery after your discharge.

Sorry for asking so many questions, trying to cover all the angles for you to help with your decision.

EdwardB

DebtFreeTime wrote: »

i posted on here a few weeks back regarding my situation and was advised by many to do a SOA. which i did with help of CAB, i also went on the step change website and did the debt remedy. broke all my spending down to the necessities.

To keep it short step change have advised i offer a token payment of £1 a month and National debt line have advised i go bankrupt.

I have 42 debts and all my debts total £41,030 (rounded up to the nearest pound) ALOT more than i initially worked out, but a lot of digging was done and going to old addresses etc to get that figure.

my monthly incoming is £602 (139x52/12)
my monthly outgoings are £778 (179.68x52/12)
leaving a 176 shortfall each month

because of this shortfall step change said i shouldn't go bankrupt as its not a good solution long term, only short term to cover current debts but ill still be getting in to debt in the future because of the shortfall and its best for me to offer a £1 token monthly payment to all my creditors until my situation "gets better" a temporary payment arrangement.

With 42 different creditors, (paying out an extra £42 a` month, when I'm already over spending by £176) doesn't make sense to me. also if I'm in this situation all my life, that £42 a month would take almost 1000 months (83 years) to clear the debt :huh: why would that be a smart option??? i get i would be showing I'm acknowledging my debts and contributing something over nothing but that would mean ill never be debt free.

also unless i come in to a lump some, my situation isn't getting any better until April 2018 when i will be qualified and can start working (if i get a job in April).

also when i got my step change pack after my phonemail with them, it only had my priority debts (magistrates fines etc) included. not any of the smaller ones...is there any particular reason for this?

i spoke to national debt line earlier today and they advised me that i should go bankrupt because of the fact that my situation isn't likely to change in the near future and although its a short term solution for the £41k i would stop paying HMRC their £150pm (as it'll be included in the BR) leaving my shortfall at just £26 a month... definitely easier to find £26 a month than (£176+42) £218pm.

i understand my credit will take a beating with the BR but I've never taken out a credit card or a loan etc anyway, the only reason i want my credit to increase is so i can get a mortgage in the future. And surely paying £42 a month off of a £42k debt would not improve my credit significantly anyway!?

as both the top recommended charities have given me different information is it better i just go for the BR as personally i feel this makes more sense but I'm not an expert.

:question::question::huh::huh:

I am a novice in this but I have read a lot in preparation.

There is no way you are going to ever be able to pay of £42k.

As I understand it, the issue is whether you own your own home, in which case a charge may be put on it.

You absolutely MUST list EVERY debt you want bankruptcy protection from, I think magistrate fines and state type debts persist beyond Bankruptcy, but you can always ASK for them to be varied or cancelled.

The alternative is that you wait 6 years for the debts to go off statute, but if any non consumer debt takes a debt to CCJ it can be enforced beyond the 6 years IF they apply to the Court and IF they can show good reason for not enforcing it within the 6 years. It is quite expensive to do that so only pig headed basts do that but there are a few of those around.

With regard to your overheads, you need to cut back, if it is your rent that is beyond your means then you need to move.

I did a review of my last year and was £1500 over budget, mostly it is from paying back a former business colleague but that will stop. It was also unexpected car repairs, I may not be able to run a car after mine or I could suggest that it was unexpected and the actual running costs now are lower.

It makes me laugh when people say "you might have problems getting a mortgage", the reality is that unless you are very young and wait 12 to 18 years you are pretty much screwed as far as credit is concerned.

Everyone is encouraged to own their own home, but for what, so they can sell it to pay for a care home when you get old? No thanks. Same applied to all credit, it is possible to live without credit, in fact I prefer it.

Welcome to the underclass.

stuart30

forgotmyname wrote: »

I think the issue is your going to fill the paperwork in for bankruptcy which will show your living beyond your means and potentially a risk to be going bankrupt a 2nd time.

You need to do a SOA, because your fines wont be going away.

Getting a mortgage with a bankruptcy on your file will likely cost you more also.

Its something that doesnt really go away. Your always on the gazette register.

odd ive just searched myself and im not on there.:(

Bankruptcy is a big thing..but the relief when you know its been dealt with can be life changing.:)