Should I declare Bankruptcy Now?!

karmikdebt

( I hope I`m entering this correctly as I`m brand new to this site, & not very computer literate !)
My situation is basically this: I owe approx £ 11,600. to 3 different creditors, i.e., 3 different credit card companies & a £ 1000. bank overdraft. I work on call as a Nurse for an agency, & so have no regular income. Two years ago I became quite ill, & went to see my Gp.who ultimately decided there was nothing wrong! I continued to feel ill, & I decided to consult a private Dr. who subsequently gave me a diagnosis of M.E., among other things. This private Dr. is very expensive, ( £200 consulting fees), & I paid for this treatment by credit card as I have barely worked in the last 2 years. My recent P60 form shows an income of less than £ 5000. I am living with my partner who has been very supportive and has not been charging me rent etc., & has been helping me pay my minimum payments each month ,but this will now stop as we have both agreed.I have talked to cccs., National Debtline, Debt Free Direct, Shaws Insolvency, who all feel I should consider Bankruptcy as I have no regular income & don`t qualify for an IVA or a payment plan. Citizen`s advice has advised me to either declare Bankruptcy or offer creditors token payments, although could end up in court further down the line with collection agencies hassling me, & CCJ`s which would have a negative impact on my health no doubt, as a lot of my health problems have a stress component. I don`t have any assets, I came to this country with a suitcase full of clothes & personal effects. I don`t own property or own a car. I am willing to undergo the stigma & inconvenience of Bankruptcy. Do you think my petition would be accepted by the Judge at court? Or would I be turned away? ( one of the chat forum members (R. Cosgrove? ) said you have to prove to the Judge that you have exhausted all other options? What kind of proof do you have to produce? Is this the experience of others who have declared Bankruptcy? I would appreciate your advice in this matter, especially from those who have experience in Bankruptcy.
Thanks,
karmikdebt

Turning_into_scrooge

I'm actually on a debt management plan with CCCS at the moment and i have found them to be extreamly helpful with their advise. What i'm trying to say really is that in my opinion they know what they're talking about and if they have said to go for bankrupcy i personnaly would seriously consider it. Having said that i don't know a great deal on bankrupcy but i do know that it is far easy to do these days that it used to be but i am sure those who have been down that path will be along to help soon. Maybe in the meantime you could post all your incomming and outgoiong for them to see. I am quite sure that you have been down the route of cutting back etc but if you post it there may be some help available:)

pug_in_a_bed

Gosh I can really sympathise as my mother (was also a nurse funnily enough) was also diagnosed with ME around ten years ago and she also found the only treatment she could get was from a heftyily priced harley street consultant. She has pretty much recovered now so i sincerely hope you get well.

I am also a declared bankrupt and am due to be discharged from this soon.

You say that:
'I am willing to undergo the stigma & inconvenience of Bankruptcy.'

It isn't the stigma it once was especially with the length of time now down from three years to one. But it can be inconvienient, what with not ebingable to get credit for a good long time and so on and that it takes some getting used to living with cash and not cards - ultimately this is a good thing and will teach you good habits in the future. I will never ever ever have a credit card again or an overdraft if i can help it!

The moving banks (as on the day you declare consider all bank accounts frozen) is a bit irritating. You will have to get a basic bank account (cash card, no cheques, overdraft but can have direct debits) which I have found great actually.

No one has to know if you don't want them to, although your name is registered on a national database available online if anyone wanted to look. You don't have to tell your employer , just people, like banks, that you have financial dealings with. You are, at least, living with your partner so can rely on havig somewhere to live and so on.

If you exhausted every option I can't see why the judge would rejectyour application - i don't believe this happens very often at all. The only thing I had done was pay the CAB a visit, they were great but i was a bit too far gone to help by then, otherwise I may have gone for an IVA (mydebtwas significantly larger than yours). On the other hand there are other options like IVA's which may be a better option and see you debt free in a few years.

As turning_into_scrooge says, post all yur incomings and outgoings in a list with whatyou're paying/interest etc and i'm sure some people will give you somegreat sugestions which may possibly steer you away from bankruptcy.

Hope this helps and good luck

delboypass

You may have to tell your employer if you signed a discalimer that you have been bankrupt. In the disclaimer it will have a sentence that you have to update information with you HR department when anything considerable changes. Although bankrupcy shouldnt affect normal 9-5 jobs. i believe companies are scared in case things go missing to pay for debts etc.

Nicky_3

I have read lots of peoples stories about them going bankrupt, and not once heard that you have to prove you have exhausted every avenue. In any case, you have just listed off a number of companies who have all suggested the best course of action is Bankruptcy.

If Bankruptcy is the way to go, then thats what you should do. Its no good trying to struggle along, adding more pressure on yourself by trying to pay if you have no money to do so. If you do have any form of surplus income, your creditors may be awarded that as your contribution, its unlikely in your circumstances that you do, so that probably wont affect you anyway.

Get the forms for bankruptcy, fill them in and make your petition, then you can start afresh without all this financial worry on your shoulders.

Good luck.

eml_3

I know this won't particularly help with the debt, but have you looked into claiming Disability Living Allowance? It can be tricky with a condition like ME which can fluctuate so your best bet would be to go to a CAB/Advice Centre and get some help filling in the forms. You haven't got anything to lose by applying and the extra money could be helpful.

wullieb1

I was declared bankrupt approx 4 years ago. I was discharged last year.

If i'm truly honest the fact i could get credit went to my head and i ended up in too much debt, approx £20000, with a wife and four young kids. I was on a not too bad wage, it was the only wage coming into the house at thetime, but tried every option i could think of before i went bankrupt. I came to agreements and they would accept it for a month then phone and demand increases from me. Unfortuantely i never knew about this site then.

Today i'm getting back on the credit ladder with the Capital One secured card, i have a better paying job now and my wife also works, kids are older, more free cash lying around. It will take time to build up the trust between me and creditors again but it'll be worth it in the long run. I can now manage my money alot better than i ever could. I spend what i need to get along.

Would i look back - NEVER.

I can honestly say i have learned my lesson. I will NEVER get into that kind of trouble again. Heck i even open an ISA to go to OZ on holiday.

Good luck in your quest and i hope all goes well for you.

pug_in_a_bed

eml wrote:

I know this won't particularly help with the debt, but have you looked into claiming Disability Living Allowance? It can be tricky with a condition like ME which can fluctuate so your best bet would be to go to a CAB/Advice Centre and get some help filling in the forms. You haven't got anything to lose by applying and the extra money could be helpful.

Good point. I am pretty sure my mum got incapacity benefit whilst she was ill with ME (she's away so I can't check). You should definately look into this if you haven't already.