Going Bankrupt - 26 & Scared

comeandgo

Do you only work part time?

Hannah232

Sorry, I realise I wrote ' I am working my part time job'

Let me correct that, I am currently working my full time job.

HampshireH

1. Yes the rent seems high but for a 26 year old who is also trying to support her parents through a hard time, considering this includes water, electric, internet, and roof over my head, a garden and a parking space compared to if found a one bedroom shared house which would probably cost £500-550 with no parking space and most likely no garden, and sharing with other people I don't really see an issue in this.!

Where do you live? Its not your responsibility to support your parents. It is however to pay your way. £100 a week is excessive considering you are buying cleaning products and food. Have a conversation with them.

2. Food - I batch cook a lot but I have to eat mainly gluten and dairy free food which is more expensive sometimes, even the basics can be at a higher cost that is why I do spend a little more but I am trying hard to source the cheapest staples online

Online isn't always cheapest.
As above aldi/lidl are great and provide these alternatives. Do you live gluten/dairy free due to allergies? Your food shop is at least a 3rd more than mine for 2 people

3. My phone contract still has another year to go!
4. My gym contract has another 6 months to go ( I have just got this reduced from £38 to £34 through a work discount)!

How often do you use it.
Are you making the most out of it and getting value for money

5. Petrol is expensive because I drive to get to my job and back, petrol is not something that work covers, I travel that far because I live in a very small town with hardly any jobs

Use stations with incentives like Shell where you get money off vouchers back the more you spend

6. I can take the criticism for vaping but I think the comment about the gym is unnecessary, I do not think concentrating on my health is counter productive when advised to do so by the doctor to join a gym last year and to work on dealing with my stress, plus I already stated that I was tied into a contract so I don't feel like the comment was needed.

I read it as vaping and gym are counter productive if you are doing both. Not that your health wasnt important.

Silvertabby

“ 1. Yes the rent seems high but for a 26 year old who is also trying to support her parents through a hard time, considering this includes water, electric, internet, and roof over my head, a garden and a parking space compared to if found a one bedroom shared house which would probably cost £500-550 with no parking space and most likely no garden, and sharing with other people I don't really see an issue in this.!

Where do you live? Its not your responsibility to support your parents. It is however to pay your way. £100 a week is excessive considering you are buying cleaning products and food. Have a conversation with them.

If you do opt for bankruptcy, then the official receiver almost certainly won't accept the financial support of your parents as a necessary expenditure. Discuss this with them now - if reducing your 'rent' by half (and other savings) means that you would be able to avoid bankruptcy, then you'll all benefit.

Hannah232

You are correct that is not my responsibility to support my parents and I do not feel that £400 is supporting them much in there very high mortgage payments on top of other expenses they have, I believe I am paying my way, I would be paying double this and more if I moved out on my own and had to pay for bills, council tax etc. so I am actually very grateful I have a roof over my head and that I am happy where I am living, £100 a week for board isn't expensive, most other people just pay a very cheap cost for board.

Yes that is correct I am allergic and the doctor said to cut these things out which I have done, I try to look online because the supermarkets have very limited foods which cut out certain products, I have found in the last 6 months that supermarkets are getting better but they still come at a hefty price again which is why I try to batch cook.

I use the gym 6 times a week and it includes classes and the gym, as soon as I am out of contract I will move to a cheaper gym or if not give up all together as I won't mind in the summer time as I can go to parks etc.

I didn't realise that garages even offered vouchers - I normally avoid Shell as it's the most expensive but I will 100% look at this scheme

Vaping is my source of de-stressing along with the gym, I don't ever drink alcohol so I kind of use this to replace it. The doctor is aware and he is helping me to eventually stop.

Most of my issues are stupidity of getting into contracts and finance but I was young and I guess stupid but I am learning from my mistakes now.

girlatplay

If you complete the SOA we can see exactly your outgoings including debt repayments, interest rates, minimum payments, etc. Based on what you have said, I personally think you could avoid bankruptcy just by cutting back. Getting rid of the car would be the biggest relief for your finances. You say you could get the train whilst saving for another car. If you go bankrupt then you'll lose the car anyway so bite the bullet and get the train for the next couple of years.

Even with dietary health issues your grocery spend is huge for one person.

Even though you're considering bankruptcy I don't think you've truly had your lightbulb moment.

In a couple of years you still won't have reached 30, you could be debt free, no bankruptcy, loving life. Car, holiday, etc (all budgeted for).

We want to help so fill in the SOA and we'll give our best advice.

haras_nosirrah

The obvious issue is the car.

It is taking nearly half your monthly income (finance, petrol, maintenance, tax and insurance)

The other half is going on board and food leaving no room for anything else even if you went bankrupt

If the train is 100 a month that would be over 500 a month saving.

You need to ditch the car, you can't afford it

Grumpelstiltskin

Back to one of your original questions.

You will lose your car.

The OR will allow you your train fare to work but they will not allow you an allowance to save for another car.

What you need to do is a proper SOA ( format it for MSE )

Make sure you include all your debts in full detail ARPs etc then when we see the full picture we can advise you.

Hannah232

Okay thanks everyone you are being super super helpful, this is just what I needed!

I am in the middle of filling it in now.

Also I would just like to add I am 100% aware that half of my money is going on my car so will just explain in more detail.

About 4 years ago I got my first car finance and it was £80 a month on a used car, I thin the deal was 3/4 years. I was very young and silly and didn't get my all my car services done and did not realise I had to do these as part of my finance contract. 2 months before I reached the end of my contract my engine went on my car costing me £3,500. I either had to pay them the £3,500 to leave at the end of my finance deal which I did not have or roll into another contract but at the hefty price of £230 a month. Which I decided to to.

I am only 1 year and 9 months in at the moment and no where near half of the total cost of the car so I cannot give up the car yet. I understand that going BR they would take my car but if I do not go BR then I do not have the option of giving back the car....

Louoffofsparkle

Don’t take this as people having a go at you, honestly it’s just to make sure that you get the best option for you.
What you need to do is write your soa for what you are actually spending each month not what you think it should be.
If you go bankrupt then your parents won’t get money off you each month so speak to them.

What advice did step change give you? How did you come to the conclusion that bankruptcy would be best?