Considering bankruptcy

Morning everyone.

I am about to leave a toxic workplace due to mental health issues. Unfortunately I have 15k in unsecured debt and considering bankruptcy.

I have a few questions that I hope you can help with:

1. Should I stop paying towards my debts now, knowing that I will be leaving my job very soon and applying for bankruptcy?

2. I live full time in a campervan. Can the bankruptcy take my home? I will need to potentially use some of the held back debt payments for urgent campervan maintenance ( my home)

3. I have some work related tools that I could potentially use for self employment. Can the bankruptcy take these?

I have lots of other questions but these are my main concerns. Any help or advice will be great.

Thank you
Pete



Comments

  • Pete Welcome to the board.

    Firstly don't rush into any solution until you have researched fully your options.

    Have you contacted one of the debt charities for help?

    Normally £15.000 is a very low amount to declare bankruptcy for.

    There are other solutions.

    I would suggest going across to the Debtfee Wannabe board.

    https://forums.moneysavingexpert.com/categories/debt-free-wannabe

    Read the threads at the beginning and maybe post on there.
    If you go down to the woods today you better not go alone.
  • RAS
    RAS Posts: 32,460
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    What income will you have when you leave the job? If benefits only and living on savings, will your monthly expenditure be such that you have less than £75 left from your income.

    With only £15k debt, you may be eligible for a DRO but need a stable financial situation for one year, until discharge. Or do a self managed Debt Management Plan with minimal payments until you get back into work.
    The person who has not made a mistake, has made nothing
  • sourcrates
    sourcrates Posts: 28,526
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    15k of debt is not an amount of money I would want to go bankrupt for Pete.

    Lets look at this realistically, you don`t really need do anything, you are soon to be out of employed work, you live in a campervan, and are likely to have self employed income going forward.

    I can say this with some degree of certainty, there will be absolutely nothing your creditors can do to you.

    You won`t have an employed income to garnish, you have no house or assets to seize, honestly, forget about bankruptcy, that`s not necessary, there is nothing your creditors can do to you.

    In fact your best bet is to write to them all, informing them of your health and work situation, and asking them on that basis if they will take a commercial decision and write the debts off.

    You don`t need bankruptcy my friend.

    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • sourcrates
    sourcrates Posts: 28,526
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    @peterb1969uk,

    I`ll answer your message on your thread if you don`t mind, it can serve to help others in similar situations.

    Creditors/debt collectors, will attempt to contact you at the last known address they have on file for you, if that is your Brothers address, then they will address letters to you, there.

    Debts are attributed to individuals, not addresses, so your debts will not affect your Brother, although post intended for you, will still go to him, unless you update your preferences.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • fatbelly
    fatbelly Posts: 20,224
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    Your campervan is an asset that would be considered in bankruptcy, or a DRO.

    I don't think you need either.

    Pop over to the debt-free wannabe board and post a statement of affairs

    https://www.lemonfool.co.uk/financecalculators/soa.php
  • Ive spoken to a few debt charities and that would be my advise in the first instance as you might be entitled for a debt releif order.

    From my discussion with these charities, dont go bankrupt over £15K.  Consider other options first and reach out to a charity (debt advise line)
  • fatbelly
    fatbelly Posts: 20,224
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    It's not clear whether the op is going to be moving to a new job, or giving up work entirely. It's premature to be considering any form of insolvency. There is no rush. Get your life into a stable situation, then look at the debts.
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