Bankruptcy Help

Fresh269

Hey all. Ive got debts of about 20k and ive recently lost my job. Some of these debts are recent while others are from a few years ago. I get letters everyday saying bailiffs may be calling and its really starting to worry me. Ive looked at bankruptcy before but never went through with it, but im confident i want to go through with it this time.

I live in the UK with my mother and have very little personal possessions.

Where do i start with it? and is there anything i should do before starting the process? Ive done a google search and theres so many companies out there, i dont know which are legitimate or not.

Thank you for any advice

UncannyScot

Firstly, forget the companies...
Seek out your local Citizens Advice Bureau and use their FREE Debt Advisory Service
Or
StepChange...
Or any other organisation/charity that helps folks for FREE...

luvchocolate

Hi not sure what companies you mean, but there is no need to pay for advice, contact stepchange and talk to them.
Read all the stickies on this site and the Insolvency webpage.
Read as much as you can on this board.

National_Debtline

Hi Fresh269 and 2welcome to MSE,

Firstly, the key issue is do you owe more than £20k or slightly less. If it is slightly less you may be able to do a Debt Relief Order, depending on your other circumstances. However, if it is over £20k it will have to be bankruptcy (if repayment plans are unsuitable/ not what you want to do).


Bankruptcy costs £680 and you can apply online. There is no need to use any company that will charge you for assistance, you can do it all yourself. Once the forms are submitted the adjudicator has 28days to decide whether the application is successful. If you are declared bankrupt then it will normally last for 12months and you will have certain restrictions on you during that time. Any assets such as property, vehicles, savings etc. would be at risk. Bankruptcy is obviously also very damaging to a persons’ credit file. It would be particularly damaged for 6 years but can affect your ability to get credit in the future.

In bankruptcy your income and expenses will be assessed – if you have more than £20per month disposable money then they can take 100% of the disposable money for up to 3 years under an Income Payment Arrangement (IPA). We also have a factsheet about bankruptcy that you may wish to read, good luck,

Laura
@natdebtline