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I am thinking of going bankrupt as my debts are never going to go away as I owe over 100k, this was down to credit crunch of 2008 and trying everything to survive. I originally sought advice from citizens advice bureau and they told me don't go bankrupt as someone will make you bankrupt. Looking back now this was a mistake I think on their part, do I open a new bank account before I go bankrupt and move my direct debits over, or shall I do it after?0
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Hi
Thanks for posting.
Bankruptcy may be a good option for you but it would be hard to say without knowing your full financial situation.
The process for bankruptcy is now online, once the form is completed and the fee paid, then the Official Receiver (OR) will look into your finances and work out how the bankruptcy will be formed. At this stage the OR will close your bank account for approximately 2 days before reopening.
It’s important to bank with someone you don’t have any debts with when declaring bankruptcy and that the bank is happy for you to keep the account open during the bankruptcy.
Banks are much more lenient with this these days, but it’s worth checking with them before declaring bankruptcy.
If it’s been a while since you’ve had debt advice then I’d suggest having a review as there may be other options also available.
Debt advice, solutions and processes can change over time as well as your financial situation so it’s a good idea to know all your options before proceeding.
You can use the anonymous online tool Debt Remedy to get free debt advice tailored to your full financial situation.
I hope this helps.
RachaelI am thinking of going bankrupt as my debts are never going to go away as I owe over 100k, this was down to credit crunch of 2008 and trying everything to survive. I originally sought advice from citizens advice bureau and they told me don't go bankrupt as someone will make you bankrupt. Looking back now this was a mistake I think on their part, do I open a new bank account before I go bankrupt and move my direct debits over, or shall I do it after?0 -
Hi
My experience is that I bank with NatWest. I had no debts with them. They closed the account for approx 48 hours and then it was reopened as a basic bank account. Hope this helps.0 -
Hi there,
1 - Due to a change in circumstances with my girlfriend leaving me I will not have to take on all bills and cannot afford them so will be applying for Bankruptcy.
2 - Can someone please look at my SOA below and see what the examiner or OR would think, are my allowances in line to be accepted?
3 - Car is on HP so monthly costs assosiated with it will no longer be
4 - Thanks in advance for any help you might be able to give me.
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 272
Rent.................................... 695
Management charge (leasehold property).. 0
Council tax............................. 101
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 45
Mobile phone............................ 0
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 18
Car Insurance........................... 82
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 50
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 1956
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 10500....(272)......0
Total secured & HP debts...... 10500.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................2500......125.......0
Credit Card 2..................1750......61........0
Credit Card 3..................1500......55........0
Link Parking...................771.......43........0
eBay...........................250.......10........0
Wescot Credit Service..........4000......20........0
Park Motor Finance.............4000......20........0
Littlewoods....................150.......20........0
Credit Card 5..................200.......6.........0
Credit Card 4..................1500......60........0
Total unsecured debts..........16621.....420.......-
Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,956
Available for debt repayments........... -206
Monthly UNsecured debt repayments....... 420
Amount short for making debt repayments. -626
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -10,500
Total Unsecured debt.................... -16,621
Net Assets.............................. -27,121
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.0 -
TesseractWorld wrote: »Hi there,
1 - Due to a change in circumstances with my girlfriend leaving me I will not have to take on all bills and cannot afford them so will be applying for Bankruptcy.
2 - Can someone please look at my SOA below and see what the examiner or OR would think, are my allowances in line to be accepted?
3 - Car is on HP so monthly costs assosiated with it will no longer be
4 - Thanks in advance for any help you might be able to give me.
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 272
Rent.................................... 695
Management charge (leasehold property).. 0
Council tax............................. 101
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 45
Mobile phone............................ 0
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 18
Car Insurance........................... 82
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 50
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 1956
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 10500....(272)......0
Total secured & HP debts...... 10500.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................2500......125.......0
Credit Card 2..................1750......61........0
Credit Card 3..................1500......55........0
Link Parking...................771.......43........0
eBay...........................250.......10........0
Wescot Credit Service..........4000......20........0
Park Motor Finance.............4000......20........0
Littlewoods....................150.......20........0
Credit Card 5..................200.......6.........0
Credit Card 4..................1500......60........0
Total unsecured debts..........16621.....420.......-
Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,956
Available for debt repayments........... -206
Monthly UNsecured debt repayments....... 420
Amount short for making debt repayments. -626
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -10,500
Total Unsecured debt.................... -16,621
Net Assets.............................. -27,121
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.
Hi there
Thanks for your message.
I've had a look at your figures, and if you remove all the vehicle-related costs your expenses go down to £1,384/month, leaving £366/month for your debts. Although you'd still be eligible for bankruptcy, it may not necessarily be your best debt solution.
I'd recommend you register with us free of charge, put a budget together with us and we can then advise of all your available debt solutions. Whichever one you choose, we'll explain all the ins and outs and let you know if your budget is an issue anywhere.
You can register either online or on the phone, with details of how to get started here: www.stepchange.org/Contactus
I hope this is helpful.
AllenI work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.
Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.0 -
Good evening all my first post so go easy on me
Well after a few silly mistakes in my past I filed for bankrucpty my order date was 10th August 2017
I have just been payed this month from my employer and I have a NT tax code ( no tax to be paid ) so I have not paid any tax and I beleave I don’t until the start of the new tax year next year
Does this mean I ow the tax man load of money next year I’m a bit lost on how this works am I ment to send what I was paying in tax to my O.R
Also no one has been in contact about me paying any money to my OR every month
Could some one please help0 -
where is this online SOA calculator please?Now we all know how it felt to play in the band on the Titanic...0
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Good morning and thanks for posting.
That’s correct, when you file for bankruptcy you won’t pay tax until the following April (new tax year) or unless you change jobs, whichever comes first.
The Official Receiver (OR) should have been in contact within 2 weeks of filing for bankruptcy for an interview, usually over the phone. At this stage you should have been made aware of having to make an income payment arrangement (IPA) each month towards the bankruptcy.
If you’ve money left over after you’ve paid your household bills and general living costs then the OR will set an IPA. If your income increases while your not paying tax then this would be included in an IPA payment.
The OR can set an IPA at any time within the moratorium period, the 12 months before discharge. You won't have to pay anything after being discharged from bankruptcy because of the change in your tax code.
If you’ve not heard from the OR since you filed for bankruptcy then I’d suggest contacting them.
You can also contact the Insolvency Service for more help.
Thanks
RachaelDarrenm325 wrote: »Good evening all my first post so go easy on me
Well after a few silly mistakes in my past I filed for bankrucpty my order date was 10th August 2017
I have just been payed this month from my employer and I have a NT tax code ( no tax to be paid ) so I have not paid any tax and I beleave I don’t until the start of the new tax year next year
Does this mean I ow the tax man load of money next year I’m a bit lost on how this works am I ment to send what I was paying in tax to my O.R
Also no one has been in contact about me paying any money to my OR every month
Could some one please help0 -
Hi
Thanks for posting.
I’m not sure where you’d find the SOA calculator; hopefully someone else on the forum may be able to help with your query.
If you’d like to complete a budget to access debt advice then you can locate the online Debt Remedy tool here.
Thanks
Rachaelmaxmycardagain wrote: »where is this online SOA calculator please?0 -
Hi there,
I'm helping a member of my wife's family deal with a serious debt issue. She owes over £35000 mostly in 2 car finance deals with some associated parking issues. She was persuaded to sign up for the finance by someone who should know better and has never driven let alone benefitted from the cars she has agreed the finance on.
Her monthly wages are just about enough for rent and normal bills (take home £1200 rent £600) and she has no savings or assets. Once her bills are paid she is left with no more than £200 for food, bus fares and other essentials.
I have been in touch with the main creditors who say they are preparared to consider an affordable offer from their client. She can't really afford to make any offer other than the most token sum of a few pounds.
I feel that bankruptcy is the best solution for her as long as this will not affect her housing association tenancy. The trouble is that she does not have the £680 fee and this will probably take a few months to get together.
I'm wondering if there is any value in making the best offer she can afford (virtually zero) or if it is a viable position to tell the creditors that in 4/5 months she will go bankrupt once she has saved up for the fee.
Any thoughts gratefully received.0
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