Thinking about applying for bankruptcy

Kawa1

Im thinking about it but i dont really have another option but i am terrified and my debt is really affecting my mental health.

I have around 17 debtors amounting up to 20k, i was so stupid to let it get to this many and was up to date until i finished my maternity leave mid 2018 and didnt continue with work. I was in an IVA from august 2018 which i failed as I couldnt make up the payments and i have been on income support since. I am trying to look for a 16hour job as child care is so expensive but even then i dont even know how i could manage to pay that many debtors.

I feel awful, im 21 and i feel like ive complelty messed my life up with this. And thinking bankruptcy is the only way forward.

Im concerned about my belongings i have, for example a family member bought a car for me which cost £795, its a 2007 rather beaten up astra but it gets me from a to b, and losing that would mean i would struggle more to find a job. When i had a decent income i got decent appliances, like a smeg fridge but i got this 2nd hand for 270, will that get taken as i think brand new they are around 1000.

I recently went through an egg donation process, and recieved 750 compensation, which i got myself and my daughter things like clothes, etc that i wouldnt normally be able to fork out on. Would that be a reason they could decline an application as looking from an outside perspective that could have gone on my debt, but as i went through an op for that i really wanted to spoil me and my daughter a little.

Thanks in advance to anyone who can advise me

JTV93

Good afternoon!
Firstly I just want to say, I know money worries are one of the worst to have but try not let it affect your mental health, you've made a good start by trying to address your problems with the IVA, nad it is hard to keep up on payments when you have children.
The fact that you are young is a positive thing, if you start it now, it'll be all over before you're in your 30s.
I'm 26 and went bankrupt in November 2018, I have 2 young children and ended up building £30,000 by borrowing off 1 company to pay another and another and it builds up.
If you have a car in the value of under £1000, and have a need for it (traveling your daughter) then the chances are you'll be able to keep it. In my experience, they are very fair people to deal with.
As for the fridge, I don't think I ever got asked about any essencial appliances in my house, they only asked if I had any items of any worth, I.e an expensive watch.

The compensation shouldnt be an issue either, as you bought essencials, it would be a different matter if you had taken out a loan with the obvious intention of going bankrupt, but I believe compensation would be looked at differently.

My personal advice to you would be to speak to StepChange, they were helpful and I spoke to them alot through my financial difficulty.
And my experience with bankruptcy has been really good. Wasn't as stressful as I thought, as long as you're honest with them. I no longer sh*T myself when the post man comes, or when my phone rings.
Im not 100% clued up on this as some of the guys on this forum but I hope this helps
good luck

Kawa1

Thank you so much for your reply! That makes me feel so much better. I relate so much with the post man comment, i would just love to be able to answer the door or pick up an unknown number, i will defo speak to step change, thank you x

Pennysmakepounds

Do you have a partner?


Can he help with the Debt?

WhenIam64

I have around 17 debtors amounting up to 20k

"Bankruptcy" comes in many flavours. If you have less than £20K you could apply for a Debt Relief Order (DRO). Far cheaper than traditional bankruptcy and has almost the same effect - a clean sheet.

Damage to your credit is the same. There are some debts that can't be excluded but most can. Have a word with Stepchange to see if it suits.

https://www.stepchange.org/how-we-help/debt-relief-order.aspx