I'm 25. Is bankruptcy right for me?

tmnsam

Backstory
I was living at home working for an agency in Newcastle for my first job. I was there three years on relatively low page, so accepted a job in 2016 in Leeds on higher pay. My first mistake is choosing an expensive flat, which left me short most months and eventually taking out a credit card, then a loan to consolidate that credit card.

The job was horrendous. I hated every second, and that combined with events in my family meant I moved home six months later. I had a temporary three month role at a company when I returned. Stupidly, thinking I was comfortable work-wise as I had offers at the time, I took out finance on a car for £225/month. Easily payable with a decent wage. Unfortunately, the contract came to an end, and I spend the next year struggling to find work.

During this year I maxed out my credit card again, struggled to keep on top of the loan payments, which eventually went to a credit agency.

As of just over a year ago, I'm working and the job security is very much in place (long notice period etc.) However, with the car, loan and credit card payments, I have very little payment for rent.

Added to that. Last year living with my parents was very tough mentally. I'm at the age where I want to be away from them, and I struggle coming back to my childhood bed every night while my friends are all moved out.

My frustration is at the moment there's no way I could afford rent. But without all this debt I'm earning a very comfortable wage with which I think starting fresh would be an ideal way to begin saving for the future and living away from my parents. It seems like I'm just putting out fires at the moment with my debts. Making small dents in them but not really getting anywhere.

I'm not too clued up on the pros and cons of bankruptcy, and what it could mean for someone my age. Curious as to what any advice would be.

Thanks in advance.

A4445

Would you be able to give an idea of what your debts are and your income.

There is not debt problem that can’t be solved.

[Deleted User]

I doubt bankruptcy is for someone in your current position, such a radical move has far-reaching implications in the future and it's a decision not to be taken lightly when you are so young unless you are totally overwhelmed with debt.
Look for other debt solutions first..

TheGardener

I think knowing the size of the debt and you current income would be the first bits of info we would need to give you an opinion?

If you don't want to share here - try the 'Debt Remedy' online tool on the Stepchange website.

fatbelly

It's not easy to work with the information you have given but it sounds like

• you have a fairly good and regular income
  
• you have no fixed housing costs and do not own property
  
• you have a car on some form of hire purchase
  
• you have a collection of non-priority debts of which some of them have defaulted
  
• you can afford your contractual payments but there is little surplus with which to overpay.

That isn't enough info to decide which debt strategy would be best for you. I'd say they are all on the table but bankruptcy would only be the preferred one if your debts are very large, it's going to take many years to repay them, you don't need the car, and a bankruptcy will not affect your career