Going Bankrupt - 26 & Scared

suki1964

Hannah, everyone of us is trying to help you

We are just not giving you the answers you want and really thats all because theres not one of us who believe you should even think about bankruptcy

Hopefully when your SOA is posted we can offer more advice to help you see that bankruptcy isn't the way forward

sourcrates

Forget bankrupcy, who ever suggested that to you was wrong, you have not got enough debt to concider bankrupcy, you may be in Debt relief order territory, or more likley just debt managment, post up the completed SOA and we can tell you straight away the best solution.

With debt managment, you can keep your car, as its a priority debt for you, the rest of the debts are non priority unsecured borrowing, you can work out what you can afford to pay them from your disposable income, then pay them a perentage each, ask for all charges and interest to be stopped, or just wait until the accounts all default, its a much easier, more simple and straightforward way to deal with your debt problem, than opting straight away for the big one.

Where debt is concerned its absolutely vital you get good impartial advice, otherwise its like jumping out of the frying pan, straight into the fire.

DavidDAM

Hi Hannah,

I would take the advice from forum members very seriously. Please exhaust all information channels before filing for bankruptcy - I wish I did the same!

BoGoF

Like others have said I agree £400 is too much board, especially for someone on £1400 per month. If it included food then fair enough but it doesn't.

Hannah232

I finally managed to complete this. On the credit card section I only included the percentage rate on those I am now getting interest on, the others are 0%. I have now also exhausted transferring my balance.

I understand people will see that I am in debt and think rent for £400 is high but unfortunately there is no wiggle room on this and is still far cheaper than moving out. I have a family holiday coming up which was booked last year so have set some money aside for this I also have put £100 for emergencies, I have done this because if I go BR and they take my car away as it is HP agreement then I will 100% need a car for work, surely they must understand I need to somehow save for a car? £100 would take me over a year to save for a decent car so I don't even know how this would even work.

I set aside more for clothes because I sold pretty much all my clothes, shoes and bags ( not a lot) but to save some money to put towards debts, I have also lost about two stone so a lot of my clothes do not fit me, I have no winter clothes, including a coat or boots. I am happy to shop in cheap places I am not bothered about expensive clothes but in reality I do need staple clothing. On top of this in my job I do a lot of training, meeting providers and attend meetings daily so I have to look presentable which is why I need my haircut regularly. I have taken out my vape from the calculation as I doubt they will accept this?



Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 230
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 47
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 220
Clothing................................ 50
Petrol/diesel........................... 220
Road tax................................ 12
Car Insurance........................... 38
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 40
Holiday................................. 20
Emergency fund.......................... 100
Pension................................. 75
Gym..................................... 34
Dry Cleaning............................ 10
Toiletries ............................. 20
Total monthly expenses.................. 1646


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 9926.....(230)......4.2
Total secured & HP debts...... 9926......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
TSB Current Acc O/D............700.......0.........0
Tesco Credit Card..............6814......68........0
Halifax Credit Card............4304......47.3......21.95
Barclays Credit Card...........980.......25........17.68
MBNA Credit Card...............1603......25........0
TSB Credit Card................2739......42.7......18.65
Total unsecured debts..........17140.....208.......-


Monthly Budget Summary
Total monthly income.................... 1,400
Expenses (including HP & secured debts). 1,646
Available for debt repayments........... -246
Monthly UNsecured debt repayments....... 208
Amount short for making debt repayments. -454

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -9,926
Total Unsecured debt.................... -17,140
Net Assets.............................. -27,066

comeandgo

With the cost of your car and travel and rent, would it not be cheaper to move closer to your work, somewhere on the bus route?

Hannah232

The problem is I cannot hand my finance back....

Willing2Learn

I just lifted the following from StepChange's website regarding bankruptcy rules

Vehicles bought using a hire purchase or conditional sale agreement don’t belong to you until the last payment to the finance provider has been paid.

The official receiver may allow you to keep making the payments to a hire purchase or conditional sale agreement if the vehicle is essential, for example:

• You couldn’t do your job without it
• You or someone in your household needs it because of a disability
• There’s no possible way you could get to work or school without your vehicle

If the hire purchase or conditional sale agreement ends before you’re discharged, ownership of the vehicle will pass to the official receiver. They may sell it at that point or allow you keep it, depending on the value.

The hire purchase or conditional sale agreement may include a clause ending the agreement if you go bankrupt. If this happens, the lender can repossess the vehicle and sell it. Some lenders may allow you to keep the car, even if there’s clause like this in your agreement.

And the CAB state:

Bankruptcy may not be suitable for you if any of the following apply:
you owe less than £20,000 and any belongings you own (other than basic household goods and a vehicle worth less than £1,000) are not worth more than £1,000 in total - you might want to consider a debt relief order

Hannah232

Thank you for sending me this, very helpful.

I did already see this the other day, however after calling the finance company directly they stated that normally they would take the car as soon as I have filed for bankruptcy. I did state that I needed my car and they said each case is reviewed separately and they would make a decision once they are contacted by the person dealing with my BR.

This is why I am looking to apply for BR because right now I do not see light at the end of the tunnel.

I am very confused.

Sea_Shell

Have you actually sat down yet with your parents and laid your cards on the table?