Bankruptcy advice

clogsd

Im 23 and have some how amassed a debt of £40000 in credit cards and loans one of them being an american express card which i have £4000 on. My predicament is that I work for American Express and im worried that by filing for bankruptcy im going to lose my job. Has anybody had any similar experiences? I really cannot say how ive run up so much debt i dont have any problems like gambling i just think that i cant live within my means. Ive tried shaws insolvancy but they say an IVA is no good because of the amount of rent that i pay which is £400 by the way I earn £1300 a month the only other thing that they offerd me was a payplan but they said that they could no guarentee the creditors freezing interest of taking legal action against me(what kind of action?) Im pretty sure that bankruptcy is the only way to go to really sort my self out and get my life back together. Iwould appriciate some advice.

Thanks

Chris

pbeck174

Chris

I doubt you'd lose your job if you went bankrupt, but my suggestion is: get a friend of yours to call the Amex Personnel Department and get them to say without revealing your name that they have a friend in your position, would he lose his job ?

You can do an IVA if you've got at least £300 left at the end of each month after payment of your living costs, but be aware that IVAs generally last for 5 years, so bankruptcy would be cheaper.

If you're interested in IVAs, get more information from my website https://www.freeivaadvice.co.uk.

Philip Beck

newfunk

IMO for what its worth, providing you can't lose your job, which I really dont think you would! I would file for bankruptcy if in your position, unless you can get all your creditors to some way right part of the debt off! They would rather receive some, than nothing at all! Why dont you contact all your creditors yourself, and propose a payment plan?

clogsd

Thanks for the advice i really appriciate it!!!! Next thing is what are the steps that i have to take to file for bankruptcy??

pbeck174

Go to your local Co-unty Court, or the High Court in the Strand if you live in London, ask to speak to the bankruptcy clerk, say you want to go bankrupt, pay the fees in cash (I think they're around £460), and if a Judge is available he'll make you bankrupt there and then. You have to have a list of your asets and liabilities and personal income and expenditure so that you can fill in the statement of affairs, otherwise you'll have to collect the forms and do it at home.

clogsd

Thanks Philip for the the help I can feel the weight coming off my shoulders already

Sigh of relief!! pheww

pug_in_a_bed

If you really want to do it, I'd get the forms in advance and fill them in then make your appointment. You need to work out stuff like how much you need to live on and if you're at court and nervous you may not be thinking straight.

As a bankrupt myself, i can't talk really but there are people on this board in even more debt than you who aren't going bankrupt though some are. There are things you can do instead. Just don't go into it blind. Explore all options first - go to CAB for instance who may be able to arrange payment plans and such.

Post all you outgoings and ingoings, what you owe and interest rates in a list and you may find the suggestions you get will change your mind?

Just a thought

clogsd

I have explored all options and believe that bankruptcy is the route for me considering my situation. But I really do appriciate all the help people have given me!! I plan to go to the county court in Kingston upon Thames to get the forms. From what ive read all accounts that i have will be closed as soon as I am decleared bankrupt but what do I do to regrds to a bank account to pay my wages into at this very moment I have got an account with lloyds tsb which i have never ever used no money has gone in or out not even 1p, will that account stay open? I lost the card at home somewhere and have never really bothered to get a new one. Do you think ill still be able to use it after i have been decleared bankrupt?

pug_in_a_bed

If you're not in the red with Lloyds then they will likely be willing to let you use the account but I suspect you will have to downgrade it to basic (ie no cheques, overdraft, basic cash card). This is a good idea in itself to help you get back on track. Go in and speak to them now and find out. If you have enver defaulted with them or anything like that then I think it'll be ok.

Be honest with them about what you're planning because if its an account with, say an overdraft facility, and you don't tell them you're bankrupt, you'll be in trouble!

If they won't take you apply for a basic bank account at other banks. I'm with the co-op which gives a debit card (some only give a cash card).

Make sure you get any cash out of other accounts for basic living now (the OR will expect this), becasue on the day, consider all other accounts closed.

If you can use your Lloyds account inform work of the change now. I had a nightmare when work suddenly, despite months after being informed and after paying into my new account, paid my wages into the closed account - ie, the bank i owed money to. It was nigh impossible to get back (as the OR wil tell you, any cash would be regarded as payment on the debts you owe), thankfully my employer took full responsibility and got it back!

Remember photocopy any forms you fill out before you hand them over as you'll prrobably need at some point in the months coming to fill in other catch-up forms so, for example, you'll need to know what you worked out as your budget.

The OR will look at your situation as will the judge and a judgement will be made as to the length of the order. I have only heard of one person lately (a friend) who was given more than the one year for personal bankruptcy. He was given three years as the judge decided he had run up debts wrecklessly (believe me it was).

Good luck, let us know how it goes with the bank

clogsd

Well im half way there got all my papers to fill in and at first glance it dosnt look that bad(filling them in that is!!) reckon I will be bankrupt by the beginning of August as I have missed cut off date with work regarding wages getting paid into another account so i wanna try and delay the whole thing for a few weeks so the above dosnt happen.