A bit stuck

SGrant90
SGrant90 Posts: 8 Forumite
in Bankruptcy & living with it
So the deal is I am wanting to apply for bankruptcy. I am currently in around 30k debt and have been working(I use the term working loosly)as a self employed taxi driver. I did this profession and I suffer severely from depression and anxiety (which has gone on for long before I was even in debt) because of my disorder I struggled to hold down an actual job and this gave me the freedom to be able to work when my state allowed it.

Now the deal is the last couple of months my condition has been horrendous I have been unable to work, therefore unable to make any payments towards any creditors so now have several of then chasing me up, as well as the car I had used for work being repossessed. Now the dilemma I have is I an absolutely unable to work and therefore unable to gain the cash I need to be able to apply for bankruptcy.

How am I to do such when I can't get the money? I have looked into getting on benefits but that takes time to get processed which in the mean time I'm going to have creditors chasing me. Can j wait it out and hope one of them forces me into bankruptcy? Any help appreciated

Comments

  • Craig1981
    Craig1981 Posts: 769 Forumite
    First Anniversary
    Depending on your creditors, unlikely they will force bankruptcy

    you can apply for a grant to pay for your bankruptcy here, https://www.turn2us.org.uk/Get-Support, but this can take a while to process as well
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi sGrant90 and welcome to MSE,


    I understand this must be a very stressful time, so I would suggest doing some basics to try and get a bit of breathing space. First of all, you should make sure you are banking with a company where you have no debts. This is often referred to as having a ‘safe bank account’ and is worth doing ASAP because if you have debts with your current bank, they can access funds in the account for debts, and/or close your account with very little or no warning; so any income you receive is not safe. Once you have your new account send a hold action letter to the debts to get some breathing space - https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx


    You should de-register as self employed (if required), remember to file all of the relevant tax returns when you need to and also look at possible benefit entitlements. Although benefit applications can take time, they are worth applying for so that you have a steady source of income, and depending on the circumstances you can sometimes get an 'advance' to tide you over (obviously this will need to be paid back).


    You should also speak to one of the free debt charities to discuss bankruptcy and ensure it is the best option and that you understand all of the implications of this. We have a factsheet that may help - https://www.nationaldebtline.org/EW/factsheets/Pages/bankruptcy/how-to-go-bankrupt.aspx


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • maxmycardagain
    maxmycardagain Posts: 5,747 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    First you MUST write to each creditor (after cancelling all DDM's) and stating the facts, you can offer a token payment (£10/month) but they must grant you 30 days truce to sort your benefits, and you MUST claim JSA or UC.

    and relax....
    Now we all know how it felt to play in the band on the Titanic...
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    Ill ask a question if I may, so you apply for BR and after a certain amount of time the debts are no more but due to your state you don't work every day so whats to stop your debts from building up ?
  • Years_of_debt
    Years_of_debt Posts: 92 Forumite
    After 12 months you’re not liable for your debts.
    You won’t be able to obtain credit for a long time after as the BR cripples your credit rating.
    If you’re referring to why “they won’t learn their lesson and not get into debt again” well that’s not your problem to worry about.
    Just because someone made a mistake once doesn’t mean they are a liability financially for the rest of their life.
  • Potbellypig
    Potbellypig Posts: 775 Forumite
    First Anniversary Name Dropper First Post
    maxmycardagain wrote: »
    First you MUST write to each creditor (after cancelling all DDM's) and stating the facts, you can offer a token payment (£10/month) but they must grant you 30 days truce to sort your benefits, and you MUST claim JSA or UC.

    and relax....

    No you don't.
  • SGrant90
    SGrant90 Posts: 8 Forumite
    @Craig1981 - What else can they do? I have no income to pay, no assets to sieze/sell. I literally have nothing.

    @DCFC79 - I am not going to have any debts to build up. They will be written off. Then I have no outgoings any longer. I've already lost everything and had to move back in with family.

    Thank you for your advice guys. So basically right now get letters sent to each creditor and see what benefits I am entitled to. I feel so ashamed to even go down the benefit route I have tried for so long to get by without having to do that, but I see no other choice now.
  • maxmycardagain
    maxmycardagain Posts: 5,747 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    Potbellypig wrote: »
    No you don't.

    dont what?
    Now we all know how it felt to play in the band on the Titanic...
  • maxmycardagain
    maxmycardagain Posts: 5,747 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    SGrant90 wrote: »
    @Craig1981 - What else can they do? I have no income to pay, no assets to sieze/sell. I literally have nothing.

    @DCFC79 - I am not going to have any debts to build up. They will be written off. Then I have no outgoings any longer. I've already lost everything and had to move back in with family.

    Thank you for your advice guys. So basically right now get letters sent to each creditor and see what benefits I am entitled to. I feel so ashamed to even go down the benefit route I have tried for so long to get by without having to do that, but I see no other choice now.


    thats what i said........... good luck, its almost over!
    Now we all know how it felt to play in the band on the Titanic...
  • maxmycardagain
    maxmycardagain Posts: 5,747 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    DCFC79 wrote: »
    Ill ask a question if I may, so you apply for BR and after a certain amount of time the debts are no more but due to your state you don't work every day so whats to stop your debts from building up ?

    He has a new starting point, no DCA on his case, no baillifs no CCJ, hes clean, he can rebuild from ground zero instead of starting from a mega minus point

    "He who fights and runs away lives to fight another day"
    Now we all know how it felt to play in the band on the Titanic...
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