Going Bankrupt - 26 & Scared

BoGoF

Hannah232 wrote: »

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?

My thinking was if you had a lesser paid job closer to home you wouldn't have the high commuting costs you currently have.

£21,000 per annum is around £1485 per month so I assume the £1400 you quote is perhaps after pensiom contributions seeing as you work for a local authority?

Have you considered temporarily opting out of the pension scheme? Normally not advised but if it's the difference betwern bankruptcy or not......

warby68

£21000 is £1484pm after tax - you only state £1400 on your SoA. Is the difference your pension contribution which you also put in expenses? If it is, the income figure should be higher. If not what is the reason?

Just looking at fuel and maintenance of £330pm v rail ticket,£100, you could be saving £230pm just by leaving the car at home even if you can't get rid of the finance just yet. That is a significant amount.

£230 + £84+ say £50 off your food bill gives you £364pm back. This covers your current reported shortfall AND gives a chunk towards debts.

Bankruptcy doesn't look anywhere near the best fit for you at the moment.

Your current pattern of spending with disproportionate amounts for car and rent plus food needs to be tackled if you are to get straighter in the long run. Bankruptcy won't solve this.

Hannah232

It is my parking costs at work which is about £65 a month, after that I take home £1,400, the parking costs. I factored £85 pension into my outgoings because I want to start paying into the pension but this probably won't be possible.

I understand your logic but I live in a very small town and there are not many jobs in my town which pay a good wage or that is in my career field which is why most people do have to go further afield. The biggest towns either side of me are both about 30-40 minute drive away where the jobs are.

I appreciate the thought though but I would like to work my way up if possible. I would be willing to sacrifice the petrol costs and car for a period of time but I do use the car a lot for work and the trains are very unreliable, always cancelled etc. The only issue is I cannot hand the car back which is obviously my biggest problem which is why I saw my only way out as BR

Hannah232

@WARBY sorry only saw this after I posted, this is actually very helpful.

If I left my car at home would I still have to pay towards insurance and tax?

I have a 13 months to go until I can hand the car back as I would have paid half of the car off ( I am not sure if I can do this but I have heard of people who have)?

warby68

Again, why can't you swap to train for a while and save another £65pm in parking? Your car/travel costs really are over the top for your income.

warby68

Hannah232 wrote: »

@WARBY sorry only saw this after I posted, this is actually very helpful.

If I left my car at home would I still have to pay towards insurance and tax?

I have a 13 months to go until I can hand the car back as I would have paid half of the car off ( I am not sure if I can do this but I have heard of people who have)?

I suspect the finance conditions will mean you have to insure and tax it and SORN not a possibility. Happy to be proved wrong though.

Jonathan_Kelvin

SweetPotatoPie wrote: »

Do your parents know about your debt? 400 pound per month seems ridiculously high for living with parents? X

Really? I think it sounds very reasonable.

OP, why such a low wage? It seems a bit crazy to think about becoming g bankrupt rather than cutting back on the spending for a while and finding ways to increase your earnings.

comeandgo

Would you be able to keep your job if you were made bankrupt?

BoGoF

comeandgo wrote: »

Would you be able to keep your job if you were made bankrupt?

Was just thinking the same, may not affect current role but bankruptcy could rule out future jobs.

No offence OP but I don't think you fully understand the full ramifications of bankruptcy. Even getting credit for insurance will be difficult.

suki1964

Hannah, Ok so Im a bit older then you, but I was earning what you are earning back in 1999 and I lived in London with London rents and then mortgage payments and I struggled, certainly could not afford a car ( NHS)

Your wage is very low if you don't mind me saying, for someone who has a post where they have to be respectably dressed and look the part

Your outgoings are well in excess of your earnings, as you are well realising

You don't want to leave home - understandable

You now have to find a second Job. At your age I worked three jobs to keep the roof over my head and the wolf from the door, and to be able to have some semblance of a social life ( most important as a single woman living alone ) As for your goals and aims in your job, you cant finance your lifestyle on goals, maybe its the time to move on?

The car has to go at the soonest possible moment, you could never afford that

You can shave more of your food shopping, I don't spend that much and I feed three adults. Theres a great board on here - oldstyle, the posters there can survive on fresh air and dust when they have to. They can advise on how to make every penny spent do the work of 5

You don't need new winter coats and boots, you drive everywhere. Charity shops are your friends when you do need new clothes. Don't knock them, read the charity shopping thread on the Oldstyle board to see what bargains we find

I don't know the ins and outs of DMPs and IVAs, but seriously I do know that a bankruptcy is going to mess your life up for 6 years minimum and tbh, unless you learn to live within your means, you will be back in unmanageable debt the minute you get access to a full bank account again

Going bankrupt you can say goodbye to the luxury of paying your parents what you feel is right. The OR will allow you the going rate for a single room. You need to discuss with your parents on cutting your board by half for a year to have that money to throw at debt. You also cant afford an emergency fund right now and you also cant afford to be putting that money in your pension right now. You need at least a solid year of cutting every penny to the bone and get this debt sorted before you can think about these luxuries ( and right now, with your income/outgoings, they are luxuries )