Completely Skint!Pro Rata Payments or Bankruptcy?

sdbanotts

Hi Everyone,

I'm new to the forum but have been reading with interest for a while, and eveyone on here seems full of such good advice, and willing to assist.

As such, I need help and kindly ask for any advice on the following.

1.I have credit debts totalling £50,484.06.This is a settlement figure if paid in full now.

2.With interest it totals £59.617.80.

The credit debts are as follows.

1.M&S Loan
2.HSBC Loan
3.Egg Loan
4.HSBC Credit Card.
5.M&S Credit Card
6.Mint Credit Card
7.HSBC Overdraft.

I used to work in TV, but since Aug 2006 have been concentrating on writing music, as I sing and play guitar.Jobseekers allowance and housing benefit has been my sole source of income since this time.

1.Income- Jobseekers-£256, Housing Benefit-£1018.33, Mum-£135

Without even making a payment to my credit cards/loans I have £101.67 spare each month. That's if you can call it spare, as I have completed my personal budget sheet with National Debt line, and set each figure as low as possible without turning myself into a Monk.

Income=£1366.00
Outgoings=£1264.33

I have no priority debts such as mortgage as I rent.

So money left for credit debts is £101.67

I have worked out a pro rata ayment to all my creditors, outlining what I can afford to pay them per month, as for the past 2yrs I have been meeting all my payments by robbing Peter to pay Paul from my Credit Card.Not clever!!!

I am now writing to them all to accept the pro-rata payments until my circumstances improve. HSBC have already agreed.

My big question is should I just go bankrupt?, as I don't really see my circumstances improving to such an extent that I will be ever able to meet the £800 credit debts payment per month (which is how much I have to pay on all the creditors).

Advice is much needed, and warmly received.
Thank You

bank_of_slate

Hi sbda and welcome to the forum, It wouldn't harm to contact CCCS for their professional advice, they could help you to set up a payment plan!
...Linda xx

sdbanotts

Hi Linda,

thanks for your reply.

I'm talking to National Debtline about everything, and they have said that because I'm receiving Jobseekers they won't be able to set up a debt management plan, as it has to be income from a job.

Do you know if this is the same with the CCCS?

Thanks

bank_of_slate

I'm not sure I'm afraid, you can ask for nothing though!
The CAB are often helpful too.
Click on the debt free wannabee resource bar at the top of this thread for lots of info
...Linda xx

fermi

I've a feeling the minimum surplus CCCS can set up a DMP with is £100 pcm. Whether it is acceptable that this comes from benefits I'm not sure.

Have you been through the CCCS Debt Remedy online? HERE

I would give them a call ASAP to discuss your options.

Violet1

I know that CCCS deal with people whose income comes from tax credits, cos they're dealing with me! Not sure if standard benefits are included, tho.

Ring them and ask - I seriously cannot recommend them highly enough

sdbanotts

Thanks everyone,

I have just filled out the CCCS debt remedy online.It advises Bankruptcy!!!!

I will call them tomorrow as I have so many questions I need to ask.

Like.

1.In Aug 2007, I took out a loan whilst unemployed. I hadn't worked from ug 2006, but being a freelance TV producer, my work tends to come in fixed term contracts, or anything from 1 month to 4 months.

I really cannot remember what I put on the application form, but pretty sure I stated that I was working, as I did expect to start a new job in the coming weeks, although nothing concrete was on the table.

How would this affect my chances of being able to go bankrupt, as perhaps some courts may say I took money knowing I wouldnt be able to pay it back.

To me this is not the case, as when I work I earn £1000 per week, so could clear my debts relatively quickly if I did indeed have a job in the industry again.

However I am determined to give my music career a go, and have put my career on hold to do so. Much to my Dad's dismay of course!!

Anyone ever had a problem with supplying false info on a loan application before?

Candy0107

Hi,

Although I understand that you wish to go into the music business, is it worth getting any job (something in a supermarket, or in TV) to pay off some of your debt? When you are debt free, then concentrate on your music.

I am currently working in credit control to pay the bills - when I am debt free, I will do a job that I actually like/want to do.

Just a thought.

Bismarck

With Candy0107 on this one.

I'm a guitarist/ bassist/musician wannabee too but I can do that outside working hours and I've got kids....you can't tell me that you do music 24/7 and haven't got time for any job...you may get bankruptcy if that's what you really want but you won't get any sympathy if you don't try and work...either get a job back in the industry until you're some way to clearing your debts OR bank a load of the money you make to spend on repayments (less ideal) OR get some job that you can do concurrently with following your dream....many folks have written good music while working elsewhere and some of the best bands have started off doing gigs and working full-time...I believe Iron Maiden called it dedication. IS there any reason why you've not been able to work at all since 2006?

If you try and walk away from everything you owe without even trying then you will not get an easy ride and I don't see why you should.

"1.In Aug 2007, I took out a loan whilst unemployed. I hadn't worked from ug 2006, but being a freelance TV producer, my work tends to come in fixed term contracts, or anything from 1 month to 4 months.

I really cannot remember what I put on the application form, but pretty sure I stated that I was working, as I did expect to start a new job in the coming weeks, although nothing concrete was on the table."

You need to be very careful with this as it sounds like fraud.

tallyhoh

Dont you have to pay for food or bills? As you are getting housing benefit I assume that you have a tenancy. What is the £135 payment? Your outgoings stated seem too low to take bills into account.

You really need to take all of your expenses into account. It would be of little help to say you have "x" surplus when you are not even eating.

sdbanotts

Thanks to the last two posters for their advice.
Yes whilst it probably seems I'm sitting on my !!!! doing nothing but hoping to earn a living from music there are other variables I probably should have mentioned in my original post.

1.I don't expect to not pay my debts off.I'm not looking for a way out.I borrowed the money, and that is my responsibility.I have been in debt since a post grad course in 1995.Since then I have faithfully paid back £20,000 of borrowed money.I have never once missed a loan/credit pard payment, as I have always fully intended to pay what I owe.

I am just looking at feasable options given my current circumstances.

More info regarding my incomings and outgoings are as follows.

Outgoings-

The majority of my outgoings (1018.33) out of a total of £1264, is on rent.I live in a two bedroom flat in North London.My flat mate moved out before Aug 2006, when I could afford to pay the whole rent myself.

The 2nd bedroom has been advertised ever since, and no-one has wanted to move in.It's small and has a window the size of a prison window.

As a result the Housing Benefit have genourously decided to contribute £975 towards the rent per month.

My worry is that by taking full time employment (and bear in mind I haven't been offered TV work since Aug 2006), I will not simply have enough to pay all my outgoings.

I have £101.67 left after living expenses have been taken out. My loan/credit cards total £850 per month. This leaves me with -£749.00 per month, that is why I am offering pro rata payments until I can find a well paid job.

I am currently due to start the new deal for musicians scheme at the job centre.If I take a job in Tesco, I lose the right to begin this course.

I want to be able to pay my debts back at some stage.Bankruptcy is always something I never even wanted to consider, but right now my situation is proving very difficult to manage,that's why I came on this forum to discuss the possible options.

Regards