Bankruptcy or Not

SaraM_26

 Hiya  im Sara and looking for advice and peoples opinion.
In a dreadful situation with debt.
I have been plodding on now for a couple years playing small payments  and its all been ok but mentally its effecting me as i know i owe so much money and its effecting my sleep and everyday life. I spoke to step change  beginning of the week and they basically gave me 2 options a debt management plan which would take  a long long time or bankruptcy. 

Over the last few days i have gone through as many post about bankruptcy  on this forum and still  do not know what to do for the best.
Basically afraid off how bankcrupcy will effect my life in years to come. Any help or advice would be amazing
Thanks

MalMonroe

Hi, I was in a similar position a few years ago, I spoke to Stepchange and they advised a DRO for me. It appears that you may have more debt than I did, as they have recommended bankruptcy. I understand just how you are feeling because that was me a few years ago. I came through the DRO and am now debt free. It wasn't easy but I did it and so can you.

You are not alone. Many of us on this forum have been in similar situations and some are still in the position of clearing their debts. We do understand how you feel. 

I think the word 'bankruptcy' strikes fear into many people's hearts but to be honest, it's not considered to be such a disaster as it used to be in the past. It is a way for people to get themselves out of debt and on the road to financial recovery.

The bankruptcy stays on your credit files for 6 years, although it's discharged after a year. You say you're worried about the effect that bankruptcy will have on your life for years to come but your current financial situation is having an adverse effect on your life now. So there's that to consider.

I know you say you have spoken to Stepchange but have a read of their info here : https://www.stepchange.org/how-we-help/bankruptcy.aspx

If you choose bankruptcy, someone at Stepchange will be able to guide you through the process and you will have someone to talk to about it. 

Why not call them again and ask them to go through each option in greater detail? Or you could try speaking to someone at Citizens Advice for a second opinion. 

Their link - https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/

Try not to worry too much, you have taken the first and most difficult step and now you can get started. Good luck! You are on the way to recovery, though. 

SaraM_26

Hiya thank you that really helps
I managed to do  the Soa thingy if that helps.

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 2

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 0

Partners monthly income after tax....... 1480

Benefits................................ 1525

Other income............................ 0[b]

Total monthly income.................... 3005[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 700

Management charge (leasehold property).. 0

Council tax............................. 115

Electricity............................. 70

Gas..................................... 30

Oil..................................... 0

Water rates............................. 37

Telephone (land line)................... 0

Mobile phone............................ 92

TV Licence.............................. 13

Satellite/Cable TV...................... 32

Internet Services....................... 35

Groceries etc. ......................... 650

Clothing................................ 60

Petrol/diesel........................... 120

Road tax................................ 13

Car Insurance........................... 70

Car maintenance (including MOT)......... 45

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 15

Medical (prescriptions, dentist etc).... 20

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 0

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 70

Haircuts................................ 40

Entertainment........................... 70

Holiday................................. 0

Emergency fund.......................... 0

DlA..................................... 359[b]

Total monthly expenses.................. 2656[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 3500

Other assets............................ 0[b]

Total Assets............................ 3500[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Defaulted debts................54000.....0.........0[b]

Total unsecured debts..........54000.....0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 3,005

Expenses (including HP & secured debts). 2,656

Available for debt repayments........... 349

Monthly UNsecured debt repayments....... 0[b]

Amount left after debt repayments....... 349[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 3,500

Total HP & Secured debt................. -0

Total Unsecured debt.................... -54,000[b]

Net Assets.............................. -50,500[/b]

SaraM_26

Hiya   Would i have to go in some sort of payment plan if i go ahead
thank you

fatbelly

Just noticed you have partner income in there, and benefits, but no income for you. So that would indicate no Income Payment Arrangement

The car could  be an issue as the max value is £1000. You would be expected to give that for sale but if you need a car you could have £1000 to buy one.

Could it be that it's actually worth less than that? Have you checked on Parkers guide? It's a free check.

Could it actually be owned by your partner?

What are these debts?

What's DIA?

SaraM_26

Hiya i checked 3200 but its not my car its my partners would this matter.
Benefits  is universal credit carers allowance child benefit and child's disability living allowance.
Also 1 of the debts  a loan for 9000 is in joint names, could this be an issue
thank you

sourcrates

Car in your partners name is good, obviously they may require proof, a receipt been the norm.

With joint debts the bankrupt is protected from further action, the other party is not, they can be chased for the full amount, and the bankruptcy would also reflect on their credit file as well.

If your sole income is from benefits, then there would ne no IPA.

SaraM_26

Yep it came our of his bank about 10months ago.
He also as savings  would this be effected in anyway
thanks sara

fatbelly

No, his assets are unaffected - he is not going bankrupt. Just a shame there are joint products as his credit file will be affected.

But overall bankruptcy seems the sensible option - just the £680 fee to find and you're away.

Is DIA 

Driving Instructors Association

? Him, not you?

flipflopflo

@fatbelly, I think that’s DLA. 

fatbelly

flipflopflo said:

@fatbelly, I think that’s DLA. 

Being put as an 'in' and an 'out'. OK, makes sense.