Bankruptcy advice

Mrtoast

Hi, firstly this is my first post here so I'm not sure if I'm posting in the right place


I'm on the verge of bankruptcy and wanted to clarify a couple of things before I go ahead


I've been financially stupid for a number of years and I'm now in £13000 worth of debt


I was in a dmp but struggled with the repayments and found myself borrowing from payday lenders, vicious circle, I have got to the point where I feel bankruptcy is my best option to wipe the slate clean and move on with my life, at 47 it's not something I'm proud of



I have made the application listing all my creditors, enclosing bank, 4 mobile phone contracts and various other debts that I just can't maintain


I haven't as yet made the payment of £680 but intend to by the end of the week


I have opened a basic bank account that I haven't listed on the bankruptcy, it was opened after I filled in all the forms on line, the basic bank account I have opened is for the sole purpose of my wages being paid into and essential bill paying


From what I understand my bank accounts will be frozen at the time of bankruptcy, will my new basic bank account be frozen also


I would appreciate any advice at all


Many thanks

utterly_ashamed

I’m no expert but bankruptcy seems extreme for what is a relatively small amount of debt. Have you taken advice from a debt charity or similar?

Also - I think it would be worth looking into DROs instead of bankruptcy if you haven’t already.

Mrtoast

I'm just tired of sleepless night, waiting for a knock at the door and I want it all over with so I can continue with life



I failed at a dmp as I found myself short every month and continued to borrow



I have no assets and I don't own a property


My concern is that the basic account I have opened for wages ect will also be frozen

DCFC79

Mrtoast wrote: »

I'm just tired of sleepless night, waiting for a knock at the door and I want it all over with so I can continue with life

I failed at a dmp as I found myself short every month and continued to borrow

I have no assets and I don't own a property

My concern is that the basic account I have opened for wages ect will also be frozen

Why were you short each month ?


Did you reduce your spending ?


Who was the dmp with ?



Its a small amount for bankruptcy but if that's what you want then go ahead.

Mrtoast

I earn 16k a year, I had a marriage breakdown two years ago, I pay maintenance for 3 children, I found myslef short some months and to eat I borrowed more whilst in a dmp with step change



I got into the vicious circle of borrowing again, I have 4 mobile contracts costing me almost £200 a month, I have 3 payday loans and 9 older creditors to payback,



It's my own fault im. In this mess but it's impacting my life on a daily basis


I got paid on the 25th of last month and after I payed everything excluding the Dmp I was left with £40 to live on and I just can't go on like this


It's affecting my work and my health

Grumpelstiltskin

OP Don't pay yet until you have received more advice from the people on here.

Who was your DMP with?

Why was the payment so high that you couldn't afford to live?

Have you tried to reduce your payments?

I guess you are paying for your children's phones, it is unlikely the OR will allow those payments.


Who has advised you that bankruptcy is the best way forward?


Don't rush in until you have done more research.

Mrtoast

The phones are all mine and in my name
The Dmp was with step change, I haven't paid since july
I have 14 creditors in total, and kept borrowing month on month to survive due to paying out more every month
I live in private accomethat I pay rent for

Grumpelstiltskin

Did you ask Stepchange if you could reduce the payments?

Why do you have 4 phone contracts?

Have Stepchange advised you Bankrupcy is an option.

You do realise if you have an excess you will be paying for 3 years?

Mrtoast

Yes all 4 contracts are mine


Stephanie have advised bankruptcy

DCFC79

Mrtoast wrote: »

Yes all 4 contracts are mine


Stephanie have advised bankruptcy

StepChange

Mrtoast

Sorry yes stepchange dam auto correct



Is there a chance a bankruptcy application can be denied