Bankruptcy - the easy way out?

Nomoredebt40 · 14 May 2018 at 11:34PM

Hi, I was awarded bankcrupty 9 months ago after seeking help for my mountain of debts. The debts were all my fault. I was in a bad relationship and had to pay all the bills etc, and having 4 children was only able to work a limited number of hours. I fell into the trap of payday loans, got myself into huge arrears with utilities, birdied my head in the sand while I got out of the relationship, struggled even more on my own with the children... and the debt drowned me. On my own with 4 children. And being the sole provider proved pretty tricky financially.
Anyway, after years of avoiding letters, phone calls and even personal visits from debt collection agencies, I applied for bankcrupty and was awarded it.
I naively thought that would be it, things would be easier. Nothing can be worse than jumping every time the door goes or hiding letters? Or can it.
I feel completely trapped by my bankcrupty. Everything from having a basic bank account and feeling ashamed when a shop wants me to use ‘contactless’ and I don’t have it, to feeling like I am not able to provide for my children.
I have a strict budget and pay my trustee £90 every month. I am constastantly juggling things. The children always seem to have a birthday party to go to that requires a present, need something new, want things, they have clubs and activities. I worry every day about bills and money. It’s so bad that friends come round for the children after school and I walk into the kitchen to find them having a snack, I look in horror as the fruit or biscuits vanish and think, but I only bought enough for 4 and I can’t afford more!
I am utterly trapped. I could work more hours but there’s no point as my trustee would take it. I know that’s a terrible attitude but I would be juggling even more for nothing.
Anyone else feel like this? Any advise?
I know it’s all my own mess but it’s so hard.

sourcrates · 15 May 2018 at 12:07AM

Hi,

Things should get better soon, you will be discharged in 3 months.

How long is your IPA for ?

If its proving hard, tell the OR and get your budget looked at again, make sure you claim for absolutely everything you are allowed to claim for.

luvchocolate · 15 May 2018 at 8:24AM

Hi and welcome.
You really should not be struggling that much
Can you post your S.O.A up so we can look? Your I.P.A will last for three years but you can have this adjusted if your circumstances change.
After we have a look at it and hopefully we can help you can then contact your trustee and complete a new one.
Just a thought are you in England?

fatbelly · 15 May 2018 at 1:12PM

You should be able to get a sub-prime credit card (contactless) after discharge - just be careful with it.

Nomoredebt40 · 15 May 2018 at 5:40PM

Thanks for your reply’s. I’m in Scotland so it’s sequestration.
I don’t know if it’s just me and I’m wanting too much or if I have wildly underestimated my budget. When I was awarded I paid £23 per month and at my 6 month review it was increased to £93 despite my income not changing. I have to watch every single penny which is so hard with 4 primary school age children who just seem to have a never ending list of wants. I feel so down that there is nothing I can do to change the situation. I do know it’s my own fault so i don’t deserve any sympathy!
My income is £1630 per month.
My out going’s per month are -
gas/electric - £150.50
Council tax - £240
Transport (work, I live in a rural area) - £250
Tv licence - £16
Phone (mobile) - £32
Tv - £44
Rent - £500
Bankcrupty- £93
Which leaves around £400 per month for food and any extras for myself and 4 children. It doesn’t go far. £100 a week sounds fine... until they want to go swimming, or I pay for brownies, or they have a friends birthday or they need new shoes.
It’s so so hard. I constantly worry and have been in tears about it a lot of the time.
It sounds so pathetic to be so upset about it when I have a house, I have my children and I can just about live, which is more than some.

TheGardener · 15 May 2018 at 6:04PM

You need to get this IPA (is that what they are called in Scotland?)looked at again. Its outrageous that you have one at all. I don't know the Scottish system but this is ridiculous. Even without an IPA you would struggle with such a large family.
Where can you go for free financial advice - someone needs to look at this again.

Nomoredebt40 · 15 May 2018 at 6:58PM

I’m not sure what an ipa is! I have an accountant in bankcrupty who works out my budget and tells me what to pay. I think I am discharged after one year but have to pay for 4 years. Does that sound right?
I’m not a thick person but I honestly don’t know what happens or what I’ve got myself into. I was in such a pickle with debt at the time I applied for sequestration, signed what needed to be signed, agreed to whatever they wanted and didn’t question anything. I don’t even know if they look into my finances for the 3 years after discharge so if I’ve got another 3 years of this hell.
I honestly thought it would be easy. I thought my worries would be over. I thought that I’d be able to start again and everything would be ok. Although the letters have stopped and I don’t jump at every knock at the door, it’s brought about a whole new set of problems. I assumed everyone had to have nothing when they were bankcrupt?

fatbelly · 15 May 2018 at 8:03PM

Nomoredebt40 wrote: »

My income is £1630 per month.
My out going!!!8217;s per month are -
gas/electric - £150.50
Council tax - £240
Transport (work, I live in a rural area) - £250
Tv licence - £16
Phone (mobile) - £32
Tv - £44
Rent - £500
Bankcrupty- £93
Which leaves around £400 per month for food and any extras for myself and 4 children. It doesn!!!8217;t go far. £100 a week sounds fine... until they want to go swimming, or I pay for brownies, or they have a friends birthday or they need new shoes.

An IPA is an income payments agreement in English law. Scotland has a !!!8216;debtor contribution order!!!8217; (DCO).

I'm reluctant to advise on Scottish matters because I don't know the legal system well enough. But those figures seem low, and they don't add up

I would want to see

Food etc £115 per week (500 per month) as a minimum
clothing £20 per week (87 per month) as a minimum
something for holidays
something for 'sundries'
maybe £25 per month for hairdressing
something for dentist & prescriptions

Try National Debtline Scotland for advice

TheGardener · 15 May 2018 at 8:06PM

An IPA is basically what you pay to the Trustee - its just called something different in Scotland. In England an IPA is whatever the official receiver believes is 'surplus' income and is paid for 3 years. In England someone on your income with such a large family would not be considered to have a surplus.
Can you get some further advice from Stepchange Scotland - look here
https://www.stepchange.org/DebtadviceinScotland.aspx. Explain the circumstances and see if they can help.

You need to get some help - your position is not sustainable. It sounds as though you are in a Trust deed which isn't quite the same as Bankruptcy - but the Scottish system is different and not so many of us have experience of it

luvchocolate · 16 May 2018 at 4:51PM

I really hope you take further advice on this its crazy that you have to struggle.
Please do let us know how you get on.

maxmycardagain · 16 May 2018 at 6:22PM

Council tax £240/month?... thats a lot

Bankruptcy - the easy way out?

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