Bankruptcy - consequences?

mariem_3

Hi,

I'm currently about £24,000 in debt to various credit card and loan companies... all unsecured. I have no assests worth selling really...

I'm starting to have problems keeping up with repayments - I've been repaying up until now from my wages, but then I run out of money by the middle of the month and have ended up living off credit cards until I get paid again! The problem is, I'm pretty much at the point now where I can't borrow any more and I don't know what the best option is... I contacted the debt questions website and they suggested Payplan - a company which arranges reduced repayments from creditors... the problem is, after considering my income and expenditure they've suggested a total which is only £120 a month less than what I'm paying now... which is still going to be a huge stretch!

After reading some of the posts on this forum, I'm beginning to think that bankruptcy might be the best option... since the Payplan will go on for 5 years and will be on my record for 6 years - which is the same as bankruptcy anyway!

Can anyone shed any light on the consequences of bankruptcy? I know it costs around £500 to declare yourself bankrupt... Are there other costs? Also, how much from wages are you expected to repay when you are bankrupt? At the end of the bankruptcy term do you still have to keep paying your creditors from wages, or is it written off then?

If anyone can be of any help I'd appreciate the advice. I am going to speak to the National Debtline or the CAB about it, but if I could get advice from someone that's actually been though it, or knows in detail what happens... then that would obviously help a lot more!

Mx ???

frepol

Can I do this? (I reverse linked to MSE yesterday on Fool so 1 for 1?)

There have been lots of threads recently on the Fool's Dealing with Debt message board about bankruptcy - including accounts from people who have been through it. Why not have a look at it, or post your details there as well.

http://boards.fool.co.uk/Messages.asp?bid=50079

Jen_Jen_5

There are lots of issues in Bruptcy and you should get advice - national debtline, CAB etc

re Payplan - if they have done a budet that is too tight, do your own and negotiate with creds directly. Im sure good budgeting advice will be given by MSEs if you post the details

Bankruptcy - yes you may be asked to pay some money out of your wages but it depends on what the Official Reciver/Trustee thinks you can afford after a basic standard of living (again do your budget). They can ask for payments for a total of three years by a payment arrangement or order.

The court service have a useful leaftet available from your local court and this should include some info for you to make a decision. Everybodys situation is different and you should get some free advice.

mariem_3

Hi Jen_Jen,

Thanks for your reply and advice... I have got some great advice from another website also:

https://www.debtquestions.co.uk

For anyone else in debt I thoroughly reccommend this site and the 'Ask the Expert' section in particular... the expert - Simon - gave me some great advice and I'm now looking at petitioning my own bankruptcy at the end of November and feel like a weight has been lifted already - I definitely feel a bit more in control now that I know what I'm doing!

M