Just pressed "Send" on BR application - a couple of worries

Macman82

Hi All,

Background: I've never known what its like to not be in debt. I've been in debt since I was 18. What started as living beyond my means on a low income, ended up with over commitment on credit cards and payday loans. Even as my income increased I was never able to get on top of my debts, and they have followed me around for the last 18 years. I should probably have gone bankrupt sooner, but I always had some worries which I will detail below and I hope people can offer some advice on these. I am currently not working (lost my job a year ago and am on UC).

I have been signed off with depression and anxiety and I cant take all the hundreds of letters and phone calls any more. Every time I move they just hunt me down.

I owe £27,000 to 30 creditors and have already hit send on the application form.

1) On the bankruptcy form, my outgoings are more than my incoming - is this a problem? - I have detailed I&E further down. (I put down for outgoings what I "should" be paying but as income doesnt cover things are in arrears)

2) I am paranoid that my Landlord will not renew my tenancy once he finds out im bankrupt (tenancy is up in April and no arrears) - this is my BIGGEST worry as obviously I wont be able to pass a credit check for a new rental so will be effectively homeless.

3) Will British Gas insist on a prepayment meter or just zero my account? They were applying for a warrant to fit one but ive managed to stop it by getting them to deduct from my UC.

4) Also, will gambling be a problem? It isnt the cause of any of my debt, the gambling came afterwards to try to win money to pay my debts and was never funded with credit. I have ticked the box to say some of my debt is due to gambling because there are gambling transactions on my statements. Probably about £1000 in last 2 years and significantly more prior to that.

INCOME: (£869.77)

Universal Credit £869.77

EXPENDITURE: (£1067.00)

Rent £625

TV Licence £13

Council Tax £108

Electricity £80

Water £14

Groceries £40/week (I have included cat food and litter in this)

Toiletries £2 a month

Hairdressing £14 per quarter

Internet, Phone £37

Mobile £10

Thank you guys. I probably should have done this years ago but was scared to.

Macman82

more info: Ive been on debt management plans twice but all offers were rejected by creditors and they just kept on and on putting interest etc on for years. An IVA attempt about 7 years ago was rejected.

Macman82

Anyone have any advice?

JCS1

It won't be an issue, but the question is if your outgoings are higher than your income, how will you manage when you have no forms of credit to use?

sourcrates

Well you must have a balanced budget otherwise common sense dictates its not going to be sustainable.
Take the debt away you will still be in deficit, where will you get the money from ?
I`m unsure the OR  would grant a bankruptcy to someone who is paying more out on essentials, than they have coming in, are you claiming all the benefits you can ?
What about work, is that a possibility ?
I am not an expert on bankruptcy, but I cannot see that budget pass muster to be honest with you.

Minkym00

Having an income deficiency is not a reason for the bankruptcy not be granted. It’s not the OR’s job to ensure you don’t get into future debt - you can, as long as the lender is aware you are bankrupt. (To be fair, after bankruptcy people usually want to stay well away from getting into debt again).

That said, your expenses are not sustainable but are certainly not extravagant. For your own benefit you need to address the situation. As sourcrates says, have you checked your benefits entitlements? Could you get a mate in to share the bills?

Macman82

The bankruptcy was granted. Ive already checked my benefits entitlement the only thing I don't get is any kind of sick benefit, but DWP determined I dont qualify even though I have been signed off for months. I suppose I could send the cat out to work

I do get some council tax reduction, which I forgot to include in the I&E

JonVarnas

Macman82 said:

INCOME: (£869.77)

Universal Credit £869.77

EXPENDITURE: (£1067.00)

Rent £625

...

Don't you get a housing element in your UC?

Macman82

yes, 525 of that 869 is the housing element

Minkym00

You mention above that British Gas are getting an amount from your Universal Credit. Have you shown the UC amount WITHOUT this deduction?

The OR shouldn’t contact your landlord as you have no arrears. 

Macman82

Yes the UC shows the amount without the deduction, I dont even know how much they are going to take as next month is the first month and they were unable to tell me how much they were taking