payday loans and bankruptcy

mofopants

hi all

i am considering going bankrupt - i am currently doing a dmp but this is due to run for another 25 years

i have given up work because I have had a long battle with depression and now care for my disabled child. With this in mind i have no idea when i am going to return to the workforce again and bankruptcy seems like the most viable option

I do not own my own home and have no real assets (10 yr old car paid for by husband and registered in my name)

The question I have is that i have been borrowing recently using payday loans to get by, is this something that could cause the bankruptcy to be rejected?

Thanks in advance

TheGardener

No - if you are insolvent (can't pay your debts) then BR might be the best way - talk to one of the free charities Stepchange, National Debtline etc and get advice as to whether BR is the way to go for you.
BR's are not usually refused at all in my experience on this board - but using payday loans is never going to work out long term - you need to start planning for a debt free future by making sure once you do go BR - you don't fall back into debt.

sourcrates

If you have no income then the current DMP will not be sustainable.

Bankruptcy may be the best option, can you get the fee together ?

You can pay by installments now, monthly.

I second getting some advice first, but have a feeling it may be your only option.

Pk95

I had to resort to loans as well before when I was off with depression and my bankruptcy has been approved and the OR hasn't asked to interview me any further. Try not to over worry, I know it's hard but everyone in here will most likely tell you the same thing, it will be far better once you've had that debt discharged and you can start again. Just try and not use credit again if you can avoid it.

TheGardener

BR is only the first step in a debt free future - you have to work hard at making sure that your financial life after BR isn't a case of 'rinse, repeat'.
Work on your budget - once you are BR - you HAVE to say away from the payday loans. Regular credit like bank overdrafts and credit cards are not an option for a couple of years once you have gone BR. Its what comes after you hit the 'submit' button on BR that really matters.

mofopants

hi all - thanks for the replies

i haven't used payday loans for about 4 months now although i am in arrears with 2 lenders.

I am going to speak to citizens advice today to find out how I i go on from here and if this is the best option

my main concern at the minute though is my car. Its not high value - my husband bought it for 1850 last month. He paid for it although it is registered in my name. I need it to take my son to nursery as we are 1 mile from the nearest bus route and live in a pretty rural area. My youngest child is also disabled and i need transport for her various appointments.

I don't want to get into the debt cycle again, i am hoping to establish a very strict budget and hopefully things will be a lot easier when i eventually do return to work.