Urgently need advice. Considering suicide :(

ThisSucks

Following serious mental health issues that have had me in and out of hospital for the past year, I fell into serious rental arrears. My partner left me facing the entire rent alone and without an income.
Fast-forward.... I was just starting to get back on my feet in terms of my health. Moved into a new, affordable property. My support worker had been helping me come up with a repayment plan for the rental arrears on the old place. Now received a "Statutory Demand" from the property company at the old place telling me they are applying to make me bankrupt.

I know absolutely nothing about bankruptcy. Can anyone let me know how it would affect my life and what I should do next?

I'm on virtually no income at all....as I am still not well enough to go back to my old job. I can only just barely afford to eat and keep utilities on. I don't own a car, property or any assets.

What would anyone advise doing next? The amount owed is around £7,000.

If I am made bankrupt, will they take the clothes off my back?

How would an IVA differ and would that be something I could request instead?

kezzygirl

Hi this sucks, firstly, I hope you are able to speak to your worker/ health professionals about how you are feeling. It's important to be honest so that they can help you. It's important to see what benefits you may be entitled to- are you in receipt of esa and pip? Would it be possible to request a letter from the ward consultant to verify your inpatient admissions and the impact this has had on your ability to pay your rent? I don't know if you have a cpn but perhaps they can help you with this.

belldit18

ThisSucks wrote: »

Following serious mental health issues that have had me in and out of hospital for the past year, I fell into serious rental arrears. My partner left me facing the entire rent alone and without an income.
Fast-forward.... I was just starting to get back on my feet in terms of my health. Moved into a new, affordable property. My support worker had been helping me come up with a repayment plan for the rental arrears on the old place. Now received a "Statutory Demand" from the property company at the old place telling me they are applying to make me bankrupt.

I know absolutely nothing about bankruptcy. Can anyone let me know how it would affect my life and what I should do next?

I'm on virtually no income at all....as I am still not well enough to go back to my old job. I can only just barely afford to eat and keep utilities on. I don't own a car, property or any assets.

What would anyone advise doing next? The amount owed is around £7,000.

If I am made bankrupt, will they take the clothes off my back?

How would an IVA differ and would that be something I could request instead?

Hi thissucks,
First of all, absolutely no debt is worth taking your life for. You are very important to your friends and family. Also, ALL debt can be dealt with.
I went bankrupt in the early 2002 and I owed about £24,000. I paid a set (small) amount each month for a period of time. It was 3 years then but I think its 1 year now. They set it in line with what income you have. They dont take ANYTHING unless you're driving around in a porsche or have anything of REAL value.
is this the only debt you have? if ur on Facebook, join Tenancy Matters UK group and they will give you specialist advice.
Honestly, (and I dont want this to sound flippant at all) but this can be dealt with.
xxxxxxx sending big hugs to you xxxxxxxxxx

PurpleFairy26

First of all, everything can be sorted in time. Please, if you are contemplating suicide deal - Call the Samaritans 116 123 if you are in the uk to seek urgent help.

sourcrates

Hi,

Don’t panic here, a statutory demand is a double edged sword, mainly used as a threat to get money out of you, look at it logically, why would they spend £680 in bankruptcy fees to make you bankrupt and get nothing in return, I assume you have no money or significant assets ?

They will get nothing out of it will they, it’s a bluff.

Statutory demands can be addressed with the right advice.

Bankruptcy releases you from (almost) all your debts, it’s not something to be afraid of to be honest, they may even be doing you a favour, your shirt is quite safe, only assets of significant value are taken to be sold, so if you have a couple of Picasso paintings on your wall, start worrying, if not, it won’t affect you, they will take nothing.

Do you have other debts at all ?

You have 18 days to respond to the SD, but to be honest, I don’t think setting it aside will be an option, I doubt very much they will proceed to bankruptcy, but if they did it may be the best thing for you given your circumstances.

cado1

If this was debt owed against regulated credit e.g mortgages, loans, credit cards you would be considered a vulnerable customer under FCA rules, and your creditors would have to follow rules in respect of recovering the debt.

I'm not sure if rental arrears or any legal action in respect of this have the same classification, I would suggest speaking to someone at CAB who may be able to help you find a way forward.

Good luck

ThisSucks

Thanks for your replies everyone. I am in an absolutely dreadful state and sitting here shaking and unable to breathe normally.
The nature of my mental health issues means I am very easily terrified, and the threat of bankruptcy is obviously something serious enough to be terrified of.
I don't desperately want to die. It's more that I am in such a dreadful state mentally that I can't cope with one more thing. It's been the most horrific year imaginable and it's included rape and domestic violence. I actually can't take anymore. Just as I thought I had a chance of getting back on my feet.
I've been reading up on bankruptcy and stuff this past hour or so.
I actually don't see what the property company could hope to gain from making me bankrupt. After I've paid my rent and utilities and scraped together some food I have around £15 left per month, and that's in a good month.
I realise now that I was in such a state that I never even arranged for the security deposit I paid (6 weeks rent) to just be given to the property company. I can get that sorted on Monday.
Moving forward, I just don't really see how this even benefits the property company. How will they get actual money out of putting me through this procedure???
It sounds like it would even cost them over £1000 just to get the bankruptcy order.
Assuming that their preference would be to simply to get their money, I am hoping something can be worked out. All bankruptcy will do is probably send me back to hospital with the stress, and obtain no money whatsoever for the property company. So I don't really quite understand
The only "asset" I own is a 5 year old laptop that I need for work, and a fairly bog standard phone.

SusieT

Try to relax although I know that will be hard for you after getting that sort of letter. With the assets you have it is very very unlikely that you would lose them IF they decided to go through with bankruptcy. They would get nothing from it as the debt and any others you have would be written off, and from what you have written, the low income that you have would be insufficient to require you to pay anything, so IF they went ahead you would have a talk to the OR and they would go through your expenditure, then thats the formalities done. Try to see it as being daft of them to be threatening it as they will lose both the rent and the cost of the petition, and a positive in that you will get a fresh start without them being able to hassle you or keep chasing you for money you do not have. The OR is not a demon who you need to be scared of as long as you are truthful, so the reality would not be as scary as when you first saw the letter and it sent you into panic.

debtfreeforlife

Hi,


Firstly, I am so sorry that you are facing this. I'm sure a number of people will come along with sensible financial advice shortly to add to the very useful guidance above, but I wanted to emphasise the advice to contact your support worker and the Samaritans (116 123 - it's a free number) if you feel it would be helpful. The company are just trying to bully you into paying, and as you say, there is no benefit to them in taking this course of action.



Please let us know how you are doing - I hope that everything gets sorted out for you.

enthusiasticsaver

First of all this can be sorted so please don't commit suicide.

If you have no assets I very much doubt they will make you bankrupt. It is a bluff or a scare technique. You have no assets so they cannot get blood out of a stone. Speak to your support worker but respond to your old property company stating you have mental health issues, low income and no assets. It will cost them to make you bankrupt and to what end? It makes no sense. If it did proceed the debt is effectively written off so not the worst thing in the world. Unless you have a car or a house there is no advantage to them so I strongly suspect that this is a standard response to their debtors and when you respond with your asset and finance information it will be dropped.

ThisSucks

Thanks once again.
@Enthusiastic, you are quite right in that it doesn't seem to make sense for them to take this course of action given that it would have zero impact on them getting their money back.
I am thinking maybe it's important to confirm to them that I have zero assets and zero disposable income for the foreseeable future and that I'm unwell.
There used to be a sort of charity called something like Community Legal Advice. I will see if they still exist and could write a letter on my behalf.
I'm trying to calm down and realise that at the end of the day it's unlikely the property company has some kind of personal vendetta against me or cares about me either way. They just want to get their money. And if they really want their money, it doesn't look like making me bankrupt would be the best way for them to get it.
It's so strange to me how so many horrible things can happen at once. 2018 has been like a horror story for me. Everything bad that could possibly happen, did happen.