Considering bankruptcy
Options
inbigtrouble
Posts: 21 Forumite
Due to a mental health diagnosis I have landed myself into £50,000+ of unsecured debt. Figures may be slightly out, but as close as I can get. With me unable to work and partner full time carer, our only source of income is welfare benefits and there is no prospect of this changing in the foreseeable future.
The debts are all 5 years old and one of the creditors has just been successful in obtaining a CCJ. I had been burying head in sand and not dealing with things due to il-health, but now want this situation dealt with and bankruptcy seems the only via option.
Would appreciate any help/advice/suggestions
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 2038.5
Other income............................ 0
Total monthly income.................... 2038.5
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 688
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 18
Gas..................................... 18
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 450
Clothing................................ 90
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 130
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 21
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 40
Entertainment........................... 50
Holiday................................. 40
Emergency fund.......................... 20
(Unnamed monthly expense)............... 0
Healthcare (Paid for from PIP).......... 240
Total monthly expenses.................. 2026
Assets
Cash.................................... 300
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 300
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................9233.67...0.........0
Credit card....................4547.34...0.........0
Credit card....................5467.34...0.........0
Personal loan..................23540.6...0.........0
Shopping catalogue.............1754.34...0.........0
Overdraft......................4536.45...0.........0
Overdraft......................1435.45...0.........0
Total unsecured debts..........50515.19..0.........-
Monthly Budget Summary
Total monthly income.................... 2,038.5
Expenses (including HP & secured debts). 2,026
Available for debt repayments........... 12.5
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 12.5
Personal Balance Sheet Summary
Total assets (things you own)........... 300
Total HP & Secured debt................. -0
Total Unsecured debt.................... -50,515.19
Net Assets.............................. -50,215.19
Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.
The debts are all 5 years old and one of the creditors has just been successful in obtaining a CCJ. I had been burying head in sand and not dealing with things due to il-health, but now want this situation dealt with and bankruptcy seems the only via option.
Would appreciate any help/advice/suggestions
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 2038.5
Other income............................ 0
Total monthly income.................... 2038.5
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 688
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 18
Gas..................................... 18
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 450
Clothing................................ 90
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 130
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 21
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 40
Entertainment........................... 50
Holiday................................. 40
Emergency fund.......................... 20
(Unnamed monthly expense)............... 0
Healthcare (Paid for from PIP).......... 240
Total monthly expenses.................. 2026
Assets
Cash.................................... 300
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 300
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................9233.67...0.........0
Credit card....................4547.34...0.........0
Credit card....................5467.34...0.........0
Personal loan..................23540.6...0.........0
Shopping catalogue.............1754.34...0.........0
Overdraft......................4536.45...0.........0
Overdraft......................1435.45...0.........0
Total unsecured debts..........50515.19..0.........-
Monthly Budget Summary
Total monthly income.................... 2,038.5
Expenses (including HP & secured debts). 2,026
Available for debt repayments........... 12.5
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 12.5
Personal Balance Sheet Summary
Total assets (things you own)........... 300
Total HP & Secured debt................. -0
Total Unsecured debt.................... -50,515.19
Net Assets.............................. -50,215.19
Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.
0
Comments
-
Hi there
On the face of it, bankruptcy seems the obvious choice. You have no assets to speak of and if your only income is state benefits you will not be asked to make any payments towards your debts in bankruptcy.
You could also consider seeing if your creditors would write the debts off due to your mental health. If they did agree it would avoid you having to find the bankruptcy fee and going through the application process (although it sounds like that would be quite straight forward in your situation).
It's always best to talk bankruptcy through in detail before going ahead, just so you fully understand what will happen. You can get free advice from one of the debt advice agencies on this, as well as talking through a possible write off.
Best wishes
Susie
@natdebtlineWe 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 Steps0 -
Its always worth writing to your creditors first, and asking them if they will write off the debts due to your health problems, the fact your only income is benefits, your situation is unlikely to change, and you have no prospect whatsoever of been able to ever clear these accounts.
National Debtline has a template letter here, just on this particular topic :
https://www.nationaldebtline.org/EW/sampleletters/Pages/Write-off-the-debt-%28sole-name%29.aspxI’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Many thanks for all the advice
I've just won a DWP tribunal appeal so have the money to pay bankruptcy fees now and tbh, it would be such a relief not to have this hanging around my neck anymore. The creditors re all well aware of my mental health diagnosis, but have only ever hounded and harassed to make payments from benefit entitlement.
I am really grateful for the information that I would not be asked to make payments towards the debts from my benefit entitlement, I believe its called an IPA. This is contrary to the advice I was given by a particular very well known advice charity, who also tried to push me into reducing my outgoings in order to make payments to my creditors. Disgraceful that a charity set up to supposedly help people behave like that
I did have a look at the online bankruptcy application and have a few questions would really appreciate some help with please:
1) Having shredded all paperwork relating to the debts, how do I get the account/reference numbers for each debt?
2) How do I know whether an agency have bought the debt or are just acting on behalf of the original creditor?
3) When listing the debts, do I name the original creditor? (not the agency acting for them)
4) How to ensure no debts have been missed out?
5) What happens if I become aware of a debt after the bankruptcy order has been made?
Many thanks0 -
inbigtrouble wrote: »1) Having shredded all paperwork relating to the debts, how do I get the account/reference numbers for each debt?
2) How do I know whether an agency have bought the debt or are just acting on behalf of the original creditor?
3) When listing the debts, do I name the original creditor? (not the agency acting for them)
4) How to ensure no debts have been missed out?
5) What happens if I become aware of a debt after the bankruptcy order has been made?
1. As the creditors write to you, add the reference numbers. For those that don't write, put 'not known.' It won't make any difference.
2. You can check with us, and see what is recorded on your credit files. The main debt buyers are Lowell and Cabot. Again, It won't make a lot of difference. All debts are automatically covered by bankruptcy.
3. You list the present owner of the debt.
4. All debts are automatically covered by bankruptcy. It is useful to have copies of your credit report when completing the form, though
5. All debts are automatically covered by bankruptcy, provided you were liable for that debt on the date of the bankruptcy
In your case I would not waste too much time asking for write-offs. The chances of getting them all to agree are slim. If there was an advantage in getting below 20k and doing a dro, I might suggest it. But my replies to those questions would be different for a dro, and bankruptcy suits you better.0 -
Thank you
I've bitten the bullet, completed the online bankruptcy application, paid the fee and submitted.....
Words cannot adequately express how grateful I am for all the excellent help and guidance from this forum0 -
It's surprisingly simple now isn't it?
You should hear on Thursday.0 -
It is done. The bankruptcy order has been issued and adjudicator will write to me within 2 weeks. Feel like such a weight has been lifted from my shoulders
Bank account is a basic joint account which I presume will be temporarily frozen. Should/can I withdraw some cash for living expenses?0
This discussion has been closed.
Categories
- All Categories
- 343.4K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.8K Spending & Discounts
- 235.5K Work, Benefits & Business
- 608.4K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards