Bankruptcy advice

MidlandsBen

Hi everyone!

Thanks firstly for reading my post.

After reading all the great support on here, I’ve decided to post about my current story and see what advice you all have for me.

I am currently employed, with debts amounting around 28k, I have recently started defaulting with my 2 x credit cards, however everything else is up to date.
However, me and my partner are in the process of splitting up and she is moving out, therefore I will be responsible for all the household bills which means that I am going to struggle to keep up with any payments towards my debts. I have looked at options of moving with family etc but they have all been exhausted. IVA will not be an option as I have no remaining income.

I feel bankruptcy will be an appropriate option for me. My questions are:

1) i am currently in the process of reducing my hours at work (as per occupational Health advice) and my income will drastically reduce, not ideal but I will be able to work extra to make up any lapse of income for the month. Will this negatively effect me? As I plan to apply for bankruptcy soon will they go off my current income or the forecasted income due to change next month
1a) my income will fluctuate a bit as I earn extra dependent on unsocialable hours I work, how will I report this fluctuation to the OR?

2) with regard to my expenditures, my income will be a lot lower than my outgoings that i have calculated as essential on my SOA. Do i keep it as it is, or reduce my budgets. Obviously some things on the list will have to go without as I don’t have enough to meet it. (There is an option for me to work extra shifts as able)

3) I have a pcp Deal car, do i declare this on my bankruptcy, as I imagine there will be excess mileage’s etc due when they take the car back etc (it would have averaged out over the 3 year agreement) as I’m worried about oweing more post bankruptcy

Hope this makes sense

Thanks I’m advance
Ben

sourcrates

Hi Ben,


Ben, you seem to be moving at 100 miles an hour here, you have not even missed any payments yet, and you seem too keen to declare bankrupcy, slow down, take your time, you could stop paying all your debts today, then come back on here in 3 years time, with no further enforcment action having been taken, debt collection can be a very long and slow process, dont rush into things too quickly.


Wait until your situation has stabelized, bankrupcy encompasses all your debts at the time its declared, so the car would go, and any debt associated with it would go into the bankrupcy.

MidlandsBen

Thank you so much for the reply and advice,

I missed out that I am behind on last years council tax arrears with is currently with a debt collection company and I am unable to pay. (Quite crucial Information missed sorry, I was writing fast)

Completely appreciate that I might be moving too fast, but yes I’m 3 months behind with my credit cards and this month I will be unable to pay any of my other financial debts as I am not going to have the extra income. My “shared bills” will become entirely mine (my name only on the tenancy) and I am reducing my hours at work unfortunately - cannot see my situation becoming any better for the foreseeable. Feel like it’s better to face facts as I don’t want to go x many months down the line being chased by more credits/debt collectors