When creditors don't accept lower payments is Bankrupcy the best option?

turpentinekiss

As I have written on here before, I'm 26 and around £16,000 in debt.

My situation is that I am a first year Social Work Student currently doing a full time unpaid placement.

My current income is £750 per month- which is from a full student loan and a Social Work Bursary.
The Income I get covers my tuition fees, bills and rent but I don't have any money for groceries, entertainment or travel.

My debts have occurred over the past 6 years and up until starting at Coventry university I was keeping my head above water, paying off the minimum payments on credit cards and paying my loan.
When I started at University I had a full time job and I was told that they would reduce my hours to part time so I assumed I'd be able to continue making the minimum payments to my creditors. Sadly once I had accepted the place on the course I was told that as I'd be going on placement later in the academic year my employer was unwilling to reduce my hours and so I became unemployed.

Throughout my first term I looked for a part time job but the knowledge by would be employers that I was going on placement meant that I received no job offers.
I am now on a Social Work unpaid placement.


Under the advice of CCCS, Payplan and the Students Union Advice and Welfare I have contacted all my creditors and said that I cannot afford to pay them at the moment, but will be able to in the future. I send them an apologetic letter monthly stating why I cannot pay them, giving them a list of my income and expenditure.
Egg have accepted my £1 token payment.
HSBC have said 'we are sorry about your situation, send us your credit card' and issued a default notice.
Intelligent Finance, just seem to ignore the letters and instead I keep receiving harrassing phone calls every 10 days asking if I have someone else to pay my bills, and telling me that with a bad credit rating I will not be able to get a job.

So what I am saying is that my creditors are not accepting my token payments-
Whats the next route of action.

Shall I declare bankruptcy to get them off my back?

After Bankruptcy have I ever got a chance of getting credit/ a normal mortgage in the future?

xx

Broken_hearted

When they phone tell them you can't pay and they are forcing you to go bankrupt by refusing to cooperate. If they still won't listen go bankrupt.

Waspeze

turpentinekiss wrote: »

After Bankruptcy have I ever got a chance of getting credit/ a normal mortgage in the future?

Bankruptcy stays on your credit file for 6 years and after that its as if you have no credit file so you have to start from scratch. So though getting credit and a mortgage is possible it is extremely hard and usually at non preferential rates

BR should only be considered as a last resort really!

Broken_hearted

If the creditors won't settle for smaller payments they are the ones taking away the choice.

poppyg_2

I'd try writing to first direct asking them to contact you by post only about this matter and send it recorded delivery so someone has to sign for it x

devonsdreamer

I too wrote to my creditors and explained my situation and asked to be able to make reduced payment (even though I had been adviced BK) they wouldnt help so that helped me make my choice and I did go BK-

turpentinekiss

I number every letter that I send and I have requested my creditors only contact me by post as its like getting blood from a stone- I have no money to give them and so them harassing me by telephone only causes me distress.

Tomorrow when I send my monthly letters I will send them recorded delivery so hopefully they will have to pay attention.

I think I am being forced into a situation where I have to declare bankrupcy, it'll be hard but I guess in the years where I can't get credit at least I can save up a decent deposit for a house?
*trying to look for the silver lining*