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  • FIRST POST
    • Nomoredebt40
    • By Nomoredebt40 14th May 18, 11:34 PM
    • 10Posts
    • 5Thanks
    Nomoredebt40
    Bankruptcy - the easy way out?
    • #1
    • 14th May 18, 11:34 PM
    Bankruptcy - the easy way out? 14th May 18 at 11:34 PM
    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 Ďcontactlessí and I donít 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. Itís 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 canít afford more!
    I am utterly trapped. I could work more hours but thereís no point as my trustee would take it. I know thatís a terrible attitude but I would be juggling even more for nothing.
    Anyone else feel like this? Any advise?
    I know itís all my own mess but itís so hard.
Page 1
    • sourcrates
    • By sourcrates 15th May 18, 12:07 AM
    • 14,621 Posts
    • 13,747 Thanks
    sourcrates
    • #2
    • 15th May 18, 12:07 AM
    • #2
    • 15th May 18, 12:07 AM
    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.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • luvchocolate
    • By luvchocolate 15th May 18, 8:24 AM
    • 1,572 Posts
    • 1,428 Thanks
    luvchocolate
    • #3
    • 15th May 18, 8:24 AM
    • #3
    • 15th May 18, 8:24 AM
    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
    • By fatbelly 15th May 18, 1:12 PM
    • 12,465 Posts
    • 9,512 Thanks
    fatbelly
    • #4
    • 15th May 18, 1:12 PM
    • #4
    • 15th May 18, 1:12 PM
    You should be able to get a sub-prime credit card (contactless) after discharge - just be careful with it.
    • Nomoredebt40
    • By Nomoredebt40 15th May 18, 5:40 PM
    • 10 Posts
    • 5 Thanks
    Nomoredebt40
    • #5
    • 15th May 18, 5:40 PM
    • #5
    • 15th May 18, 5:40 PM
    Thanks for your replyís. Iím in Scotland so itís sequestration.
    I donít know if itís just me and Iím 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 itís my own fault so i donít deserve any sympathy!
    My income is £1630 per month.
    My out goingís 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 doesnít 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.
    Itís 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
    • By TheGardener 15th May 18, 6:04 PM
    • 2,349 Posts
    • 2,247 Thanks
    TheGardener
    • #6
    • 15th May 18, 6:04 PM
    • #6
    • 15th May 18, 6:04 PM
    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
    • By Nomoredebt40 15th May 18, 6:58 PM
    • 10 Posts
    • 5 Thanks
    Nomoredebt40
    • #7
    • 15th May 18, 6:58 PM
    • #7
    • 15th May 18, 6:58 PM
    Iím 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?
    Iím not a thick person but I honestly donít know what happens or what Iíve 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 didnít question anything. I donít even know if they look into my finances for the 3 years after discharge so if Iíve got another 3 years of this hell.
    I honestly thought it would be easy. I thought my worries would be over. I thought that Iíd be able to start again and everything would be ok. Although the letters have stopped and I donít jump at every knock at the door, itís brought about a whole new set of problems. I assumed everyone had to have nothing when they were bankcrupt?
    • fatbelly
    • By fatbelly 15th May 18, 8:03 PM
    • 12,465 Posts
    • 9,512 Thanks
    fatbelly
    • #8
    • 15th May 18, 8:03 PM
    • #8
    • 15th May 18, 8:03 PM
    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.
    Originally posted by Nomoredebt40
    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
    Last edited by fatbelly; 15-05-2018 at 8:05 PM.
    • TheGardener
    • By TheGardener 15th May 18, 8:06 PM
    • 2,349 Posts
    • 2,247 Thanks
    TheGardener
    • #9
    • 15th May 18, 8:06 PM
    • #9
    • 15th May 18, 8:06 PM
    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
    • By luvchocolate 16th May 18, 4:51 PM
    • 1,572 Posts
    • 1,428 Thanks
    luvchocolate
    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
    • By maxmycardagain 16th May 18, 6:22 PM
    • 4,578 Posts
    • 3,717 Thanks
    maxmycardagain
    Council tax £240/month?... thats a lot
    Dont worry, be happy
    • swindiff
    • By swindiff 17th May 18, 3:09 PM
    • 327 Posts
    • 132 Thanks
    swindiff
    My first thought was the council tax. Is there a single adults discount?
    • TheGardener
    • By TheGardener 17th May 18, 4:41 PM
    • 2,349 Posts
    • 2,247 Thanks
    TheGardener
    Council tax £240/month?... thats a lot
    Originally posted by maxmycardagain
    In Scotland the local tax includes water rates but yes, still a bit pricy compared to England.
    • Butts
    • By Butts 18th May 18, 8:08 AM
    • 199 Posts
    • 80 Thanks
    Butts
    Just to clarify the major differences regarding Bankruptcy in Scotland and England from a punters perspective.

    The fee in Scotland is only about £200 odd compared to £680 south of the Border. That sounds great but there is a potentially huge price to pay....

    In both Countries you are discharged after 12 months. In England if no IPA is in force at that time you are in the clear. In Scotland that is not the case as there are a further three years from the point of discharge that you could become liable for one if your circumstances improve.

    This is the main reason I moved south to go bankrupt.
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