Considering Bankruptcy - What do you think?

LLM

Just looking for advice really.

I am 22 years old, and I owe over 30k on credit cards, loans and store cards!

Moved in to a rented house with my partner in June, we have joint bank accounts, but no joint financial commitments.

Struggling to pay all of the bills at the moment as things have spiralled out of control, I manage to pay most of the creditors but have to use my credit cards to buy things like food, pay some of the other things like phone bills, car insurance etc... so as you can see, it's never going to go away!

Have considered an IVA but feel like this would be a difficult option as I have a lot of creditors and I am still young and worry that 5 years is such a long time and circumstance can change etc (like if I decide to have children, my financial situation will affect this) and if I can become debt free, i'd rather do it sooner than later without having my debts hanging over my head for another 5 years?

I've recently started a new job and got talking to someone there who has recently gone through bankruptcy and said that our work and manager have been very supportive despite working in the finance department.

I have the full support of my partner whatever I decide to do and feel that if i'm going to do this, it should be sooner rather than later... what do you think?

betterlatethannever

Hi LLM,
the first thing you must do is seek some advice.
Professional, free and impartial advice on debt problems can be obtained from several charitable organisations. They never make a penny from the advice they give, which means it will be given with only your best interests at heart.
You can contact:
Your local CAB Office and ask to speak to a 'money advisor'.
The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111
National Debtline - Tel: 0808 808 4000
Payplan - Tel: 0800 917 7823.
or visit
http://www.cccs.co.uk/
http://www.nationaldebtline.co.uk/
http://www.citizensadvice.org.uk/index.htm


see what they have to say then if you have any more questions pop back.
Good luck

tight_jock

Seek advice..if you are advised that this is the best option then get it done as soon as possible..

remember that the sooner you start, the sooner you will be debt free.

Good luck

G-G_4

I've just gone bankrupt, i'm 24 and thought it would mean the end of the world..

I had about 43,000 in debt from various credit cards and a loan.

It was a very hard decision, but the way I saw it was that if I did it then by the time I was 30 it would be all over and done with and off my credit file. Could be worse. I wish I had done it when I was 21.

Me and my boyfriend finally are able to think of having children. Luckily we don't have any financial involvement, and our home of 6 yrs is just in his name, so that was fine.

If you have a good job and will be able to keep it, have nothing to lose but your pride, then please don't think it will ruin your life, it won't.

Have you spoke to your boyfriend about it?

& Why do you think it will impact have children? Like I said earlier, I can finally see a way out now, without all the debts etc I no longer need to work if I don't want to and can have time to raise a family. Never would have been able to do that before the Bankruptcy..

x

G-G_4

Sorry, just re-read your post and realised you were talking about 5 years for the IVA...

I too thought about an IVA and decided against it for the very same reasons, I just wanted a fresh start and I thought well, an IVA will ruin my credit file for 6yrs aswell anyway, even longer if it on your file for 6yrs after the IVA finishes, so more like 11 yrs! ahh!

squizz_2

Hello

I was 23 when I went bankrupt. I owed £28k on two credit cards and a consolidation loan.

Things will only get worse if you do nothing, go to the CAB who can talk you through your finances, write to your creditors to get them to back off and help you with the court forms. When I went to court it took no time at all and the judge was really kind (she was the only person in the room, it isn't like open court) when I left the court I really felt like I was starting again. Yes you have a 6-year credit problem afterwards but borrowing money again is the last thing on your mind. I am so happy that my credit record will be restored by the time I am 30 which gives me three years to save for a deposit for a home.

To be honest, a string of missed/late payments on your credit record is just about as bad as a bankruptcy. There's nothing to be afraid of. I would check with the CAB about your bank account - might be better to sever your account with your other half because insolvent's accounts are usually frozen at least temporarily and your boyfriend wants to get paid!

Good luck!

Squizz x

rog2

Nothing to add to the above advice - just talk it over with one of the debt charities. If they agree that bankruptcy is, indeed, the best solution for your debts, they will discuss the implications that bankruptcy may have on your life and the fnal decision will be yours.
We will be pleased to support your decision, whatever it is, and will help, and guide, you through the process.
Don't think that we are being at all negative in suggesting that you seek professional advice first - the judge will ask you if you have taken advice.
Good luck.

LLM

Thanks for all the advice guys.

Been talking things over with my boyfriend and I'm going to contact PayPlan as my friend has used them herself and says they were really helpful.

We want to get a mortgage but we're going to try this all in my boyfriends name and see how things go there.

I'm not bothered about not being able to get credit for 5/6 years, it will do me good I think.

Thanks again for the advice, I'm off to contact payplan!

debt_doctor

payplan are a commercial organisation not a debt charity. Go to CAB, National Debtline or CCCS.

Best

DD

Richard_S

debt_doctor wrote: »

payplan are a commercial organisation not a debt charity. Go to CAB, National Debtline or CCCS.

Best

DD

I'll second that. People do speak highly of Payplan, but I think one of the Debt Charities are far more likely to be impartial.

LLM

Thanks for the advice, I didn;t realise that they weren't a charity, Just presumed they were as they were free.

Thanks again, shall contact one of the others