time to go bankrupt?

newfunk

Couldnt you contact a local paper and ask if they need anyone to help write any articles, or local magazines? There must be loads of places that need people with the skills to write.....

norserose

"Going bankrupt over such a small sum (comparatively) is just barmy, it really is....Think of the £16K as the price you're paying for the career that you now have. I'm sure many people would love to work as a writer full time and avoid the drudgery of office life."

It's actually more like £20k, all interest taken into account, which may be a paltry amount to some, but to me it's crippling; I have £55pw coming in and £100 a week going out.

And in response, I don't have a career at the moment. I'm writing a play which, at this stage, I'm not being paid for, and possibly never will be.

"By all means negotiate lower repayments whilst you're looking for work, but you've now been unemployed for four months, if you've not found work in your chosen field, then maybe it's time to start broadening your horizons?"

Believe me, I've tried. I'm applying for around 8 jobs per week, all kinds of jobs, and getting nowhere. But doesn't applying for lower payments wreck your credit rating anyway? I was told that if I miss the next payment on my loan, my rating will be marred for the next 6 years anyway. So looks like bankrupt or not, my nice clean slate's had it. Making it difficult to buy a house anyway - but surely not impossible? I thought you could still get a mortgage, granted at a worse rate of interest.

Does anyone know what happens if I'm bankrupt and try to get a joint mortgage with my boyfriend? Does it affect his rating also?

meanmachine_2

If you're writing a play for which you're not being paid, that isn't a career. It's a hobby (sorry if I'm sounding like a parent).

I used to write for a living, and made very little from it. But to allow me to do it, I made the sacrifice of moving back in with my parents (poor things!).

The other option was to write during the day and work at nights, or vice versa.

It would never have occured to me to build up debts then go bankrupt. But that's just me.

You have to do what you feel is right for you, after you've made yourself fully aware of the consequences.

Good luck!

norserose

meanmachine wrote:

If you're writing a play for which you're not being paid, that isn't a career. It's a hobby (sorry if I'm sounding like a parent).


As I wrote previously - it's not a career! At no point did I say it was a career. I just have an ironically titled career development loan! I'm not being all precious pretending to write a novel and refusing to scrub toilets in McDonalds. I have an interview for a job on Tuesday, but even if i get it, I'll be paid £10k pa, and £200 per month of that's going to go on transport. How am I supposed to make repayments from what's left, and still have money to eat?!


"It would never have occured to me to build up debts then go bankrupt. But that's just me."

It's not like I've frivolously run up my debts - like most students, I worked for a year to fund my course, but this had to be topped up with a career development loan, which over the last 3 years has grown in interest, and suddenly I find myself here - without work and unable to even get a job harassing people from a call centre. Most students these days are horrifically in debt, more so than me even, but I think it's fair to say that many of us had no idea that the money you have to borrow to go to university grows at such a terrifying rate, and that it would be so difficult to pay it back.


Sorry if I sound frustrated. It's because I am! I'm not looking for sympathy, just trying to explain the sitaution I'm in. I can't cut back any further, I already live at home, and even if I land this job I'll be commuting for 2 hours a day, unable to take evening work because of this, and still short.

mrcow

Hi norserose,

Firstly, don't worry about how you sound!

I'm just looking at the figures that you've posted (mainly as I just can't get my head round your situation) and I can't work it out.

How much debt do you have? As it started as £16k, then £18.5k and now £20k. That's a 20% discrepancy. Also, in your initial post, you said that you took the loan out two years ago, but have just said that you've been paying interest on it for three years. Is there more to this than the career development loan?

Also, you've stated that your repayments are £400 per month, but over seven years, the total repayments would come out at £33600! Who is the career development loan with? How much is it for? And what are the terms/APR? What (if any) other debts are there?

If all you owe is the £16000, then you can look to negotiate much lower repayments with alternate lenders once you've started work.

Good luck with the interview BTW.

mrcow

meanmachine_2

I'm very sorry if I didn't sound sympathetic. I am - as a fellow writer i know how hard it can be.

But now you've given more details, I understand your position more.

I can only go by what you tell me.

But I still maintain that a debt of £16K, £18K or £20K is no reason to go bankrupt.

As you point out, students are now leaving college with debts as large as yours. It's a terrible thing, and will only drag this country down. A whole generation saddled with horrendous debts? Awful.

We'll all suffer as a consequence, I feel.

I would say, don't bother applying for jobs that will leave you further in debt, especially if there's no hope of promotion.

Best bet is to cut your expenses to the bone, which will allow you time to wait for a better prospect to come along.

jen_jen_2

you lot are sounding a bit harsh here, the OP has come for some information and assistance, the reason for the debt is irrelevant she has come for support and is doing her best to sort this out.

the figures keep going up - but perhaps that is panic at what the real situation is, 16k at present, 18k in 2 years??

norserose give us the details of who and what APR and you may get some other alternatives to bankruptcy if thats what you want

dont get a job - sorry completely disagree, how can she be worse off, perhaps break even and not be able to make a dent in the debt but surely not worse off than £55 per week? get a job even if its not what your after, it is much easier to change to a new job than get the first.

good luck with the writing and perhaps try some voluntary work in the meantime rather than nothing, this will give you skills and relevant experience, probably will pay expenses and you will get out and about and so less worry about debt.

the joint account/mortgage - if you become financially linked your credit history (the bankruptcy) will appear on your partners file. however possible for him to get mortgage on own and you pay towards it - risky because nothing in your name, how much can you trust him really?

and again bankruptcy wont affect your credit rating more than a CCJ which is possible consequence of not paying contractual installment, you need to consider what is right for you. spend some time reading the other threads about bankruptcy some posters are regretful they ever did it, some want to avoid at all costs and some are greatly releived they took that step - we are all different.

have you called CCCS or spoken to CAB for some indepth advice.

mrcow

Hi jen jen

No one's trying to come over as harsh here. There's absolutely no point. We've all been there before and are just trying to understand the situation. Maybe it's because we're not all agreeing that bankrupcy is the best solution that you feel this way? I would always consider it the last resort.

If the OP doesn't understand what's owed, and what's being paid to whom under what terms, then that's the first thing that needs to be addressed, and quickly. You say that she's doing the best to sort this out, but how can she if she can't say for sure what she owes?

I'd absolutely agree with you, no job would be worth turning down. The OP mentioned working for example in McDonalds, well at minimum wage levels, she'd earn £200 per week pre deductions for 40 hours per week, which has to be better than claiming £55 per week income support.

Perhaps the Job Centre could be a little more helpful to her with finding suitable employment?

mrcow

jen_jen_2

no offence meant, im not pushing for bankruptcy just helping her see the options available and i am happy we disagree because its a more helpful discussion that way, and we also agree bankrupcy is the last resort.

just didnt want the effort the OP has already made to be ruined by our forthright opinions. (there should be a spellcheck on here - i am a child of 70's education system!!)

meanmachine_2

The OP is considering taking a £10K job.

Okay....

But as she points out, that isn't going to help her present situation and might exacerbate the debt.

If she takes any old job now she might miss a much better post more suited to her talents.

She strikes me as being articulate and intelligent and shouldn't sell herself short.

Just my opinion.

Anyway, as mrcow states, the OP should first get a handle on the exact debt total as it stands today and all other details before any of us can give informed advice.

The worst type of advice, imo, is to encourage someone to become a bankrupt if it can possibly be avoided.