Going Bankrupt - 26 & Scared

benbay001

Moving closer to work and renting a room yet keeping the car would put you in a better position as you would have minimal fuel costs.
Would the lease company reduce your monthlies to reflect the lower mileage you would put on the car?

I paid £420 to rent a room with all bills included 4 years ago and that was in the south east.

If your parents cannot afford their mortgage without your rent payment then that is their problem and they need to look to deal with it. Youre bankrupting yourself to help your parents.

JCS1

Willing2Learn wrote: »

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



And the CAB state:

DRO would not work if the car was to be included as it would go over the £20k limit

Willing2Learn

I was thinking the car could be returned and the agreement terminated. Hannah could get a cheap runabout instead.

But if I am honest with you, I am not a debt counsellor and am therefore unsure about how this would work. I am not qualified to advise. I definitely think that bankruptcy is the wrong option though. I think that a DRO or DMP are the two options.

Hannah, I would wait for Fatbelly and sourcrates to give their advice, as they are very knowledgeable.

Hannah232

To the last two comments.

1. Yes my parents are fully aware of my situation and have been very supportive. Unfortunately no one is in a position to help me, nor do I expect anyone to help me.

2. The average cost in the area near my work to rent a room is £450-500 a month. This area is terrible for parking and a lot of places you have to pay an extra £75 a month to park, I have looked into this before believe me. So even though I would save some in petrol I may still be looking at another £100-£150 costs in other places, also I have a house to live in with a great family who are my support network, I do want to live with strangers when my family are offering me a home with parking.

The finance company cannot reduce payments, I am still paying for the £3,500 engine cost which got tied into my contract as previously stated, they already did me a favour by allowing me not to pay that in one go.

Finally, please understand that I love my family dearly, at the age of 26 I do not see a problem with paying £400 a month which is cheaper than anywhere else ( this includes all bills, heating, internet etc.) My parents do not need to deal with anything this is the agreement and as stated before this is non negotiable and I am fine with that.

My first post was really reaching out to anyone who maybe was unsure of bankruptcy and some advice on whether this was the right route to go, I have spent many months thinking about this, this wasn't a sudden thought. It has been months of stress and anxiety and really I am not just trying to plan for the future.

Hannah232

I would just like to add, you cannot simply hand the car back, it is a finance contract where I have agreed to pay a monthly fee, which I have paid every month. I am about to hit interest on 3 cards, I run out of money every month and end up paying for every day living on my card. It is snowballing now which is why I am starting to look at options.

I do appreciate the advice.

BoGoF

Out of interest, what is your job?

I would expect someone who is training people, meeting providers and attending daily meetings to be bringing in more than £1,400 a month?

It doesn't seem much more than minimum wage. Surely a minimum wage job closer to home would be better?

FtbDreaming

From reading your posts and soa you need to let the car go... its £500 a month freed up for debt repayments. Get a train to work. Also cut back on groceries too if you don't want to lose out on other things like holidays and entertainment then these are the easiest things to cut back on. Also as soon as gym membership is up find a cheaper one ( i pay £9.99) same again with phone (£10 monthly goodybag and I'm never without credit).

It’ll probably only take 2 maybe 3 year then you could get a car and things again.. if you go bankrupt then its gonna be at least 6 years that you’re credit is destroyed for.

JCS1

Hannah232 wrote: »

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.

Don't rush into anything. Take your time, and I would suggest talking to one or more of the free debt charities to go through all your options.

Hannah232

@BoGof I am not on minimum wage, before take my wage is about £21,000, I have employees where I work who are on about £16,500. I have worked very hard to get where I am and compared to a lot of my friends I am on a low wage but I am very proud to be on the wage I am. I go above and beyond in my role because I would love to have the chance for a promotion at some point but it is very hard to move up due to people staying in their roles. I work in a Local Authority so there are restrictions on pay increases so normally a lot of people do go above and beyond their job role.

@FtbDreaming
Sorry to sound stupid, but how can I let go of my car at this point when I am 1 year and 9 months into my 4 year contract? Am I missing something?
Deffo will be looking into reducing costs when I am out of contacts with phone, gym etc.
I do not see how going down to a minimum wage job would benefit me in this situation when I am passionate about my job and I enjoy my role and have goals that I am working towards?

Hannah232

Sorry this part was meant for @BoGof
I do not see how going down to a minimum wage job would benefit me in this situation when I am passionate about my job and I enjoy my role and have goals that I am working towards?