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    • ThisSucks
    • By ThisSucks 29th Dec 18, 6:14 PM
    • 24Posts
    • 34Thanks
    ThisSucks
    Urgently need advice. Considering suicide :(
    • #1
    • 29th Dec 18, 6:14 PM
    Urgently need advice. Considering suicide :( 29th Dec 18 at 6:14 PM
    Following serious mental health issues that have had me in and out of hospital for the past year, I fell into serious rental arrears. My partner left me facing the entire rent alone and without an income.
    Fast-forward.... I was just starting to get back on my feet in terms of my health. Moved into a new, affordable property. My support worker had been helping me come up with a repayment plan for the rental arrears on the old place. Now received a "Statutory Demand" from the property company at the old place telling me they are applying to make me bankrupt.

    I know absolutely nothing about bankruptcy. Can anyone let me know how it would affect my life and what I should do next?

    I'm on virtually no income at all....as I am still not well enough to go back to my old job. I can only just barely afford to eat and keep utilities on. I don't own a car, property or any assets.

    What would anyone advise doing next? The amount owed is around 7,000.

    If I am made bankrupt, will they take the clothes off my back?

    How would an IVA differ and would that be something I could request instead?
Page 3
    • ThisSucks
    • By ThisSucks 13th Jan 19, 12:12 AM
    • 24 Posts
    • 34 Thanks
    ThisSucks
    Well you've most certainly cheered me up mate. I was laughing out loud as I read through your comment.
    Actually the idea of buying an extra 3 months or so is a very good idea.
    It gives me time to possibly reduce the debt down to below 5k.
    I'm going to explore selling stuff on eBay, carboot sales etc.
    I thought I'd already sold everything of value, but not necessarily.
    I'm going to pull out all the stops to make extra cash and see what I can come up with.
    I won't be absconding abroad though LOL!

    {Edited by Forum Team}
    Originally posted by BabylonBear
    Last edited by MSE Tine; 14-01-2019 at 11:46 AM. Reason: {Edited by Forum Team}
    • luvchocolate
    • By luvchocolate 13th Jan 19, 12:32 PM
    • 1,765 Posts
    • 1,620 Thanks
    luvchocolate
    Thank goodness the O.P had the good sense to treat this with a pinch of salt!!
    • luvchocolate
    • By luvchocolate 14th Jan 19, 10:42 AM
    • 1,765 Posts
    • 1,620 Thanks
    luvchocolate
    You're just jealous that you had to pay your debts but I didn't...
    Originally posted by BabylonBear
    I would normally not rise to this but......on this board we have many qualified debt advisers who give their time to help and support.
    We would never tell anyone to lie, hide assets etc.
    The O.P is in a fragile situation and I am so pleased they took your "advice" with humour.

    You have no idea of my situation and I can promise you I have never been jealous of anyone in my life.

    Hopefully we can get this thread back on track.
    • JCS1
    • By JCS1 14th Jan 19, 12:39 PM
    • 3,832 Posts
    • 7,815 Thanks
    JCS1
    So it's difficult to see how the property company would benefit from this at all then?
    They are extremely unpleasant people but even so, I'm not sure they'd choose bankruptcy just out of pure spite. They must imagine this benefits them in some way?
    Originally posted by ThisSucks


    Some companies do it as a way of closing their file, HMRC used to do this too.
    • Creetown Billy
    • By Creetown Billy 14th Jan 19, 2:42 PM
    • 3 Posts
    • 3 Thanks
    Creetown Billy
    Mate, DO NOT do it , there's always a way out.
    Talk.
    • ThisSucks
    • By ThisSucks 23rd Feb 19, 1:51 AM
    • 24 Posts
    • 34 Thanks
    ThisSucks
    They've agreed to drop the bankruptcy idea and have accepted a voluntary payment plan.
    Yay!!!!!
    • broaps
    • By broaps 23rd Feb 19, 11:27 AM
    • 84 Posts
    • 56 Thanks
    broaps
    They've agreed to drop the bankruptcy idea and have accepted a voluntary payment plan.
    Yay!!!!!
    Originally posted by ThisSucks
    This is great news. Well done for sticking with it through your problems.
    • thevdm
    • By thevdm 23rd Feb 19, 12:39 PM
    • 31 Posts
    • 3 Thanks
    thevdm
    Hi, I suffer with mental health difficulties felt very panicked a few months ago when dealing with debts. My bankruptcy was approved on Monday (18th February) after I submitted the forms over the weekend. I had a brief interview with the OR over the phone on Tuesday and received the paperwork to sign on Friday. As long as none of my circumstances change in the next 12 months then that is the last contact I will have with them unitl it's done.


    When you go bankrupt they are only interested in (and only ask you to list) assetts that are worth 500 or more at their second hand value, in most households this is absolutly nothing. If you're unsure about the value of a specific item, check out what they are selling for on ebay to get an idea for if it's worth more than 500 or not. The only real exception to this is cars, you have to list any car on there and generally if it's worth more than 1,000 you'll have to sell it. Check out the used prices given by the Parkers price guide to see what it's likely worth (https://www.parkers.co.uk/car-valuation/).


    They can ask you to make an IPA (Income Payments Arrangement) for 3 years if you have spare income. The IPA payments cannot exceed the level of certain types of income such as wages or private pension. If all of your income is from benefits (not including pension), i.e. housing benefit, ESA, JSA, Tax Credits, PIP/DLA then they cannot ask you to make payments towards an IPA, even if you have excess income. Even if they did ask you to, you can say no and they will be unable to apply for an IPO (Income Payments Order) as you need to have wages or pension (there are other types of income too, but it doesn't include benefits).


    I see you mentioned an IVA, personally I really don't like IVAs, they are based on somebody (a company or debt charity) makeing profit from your debts. As you say you have a low income you will likely be worse off with an IVA for 5 plus years. Although they are advertised as lasting 5 years, many continue longer due to breaks etc... An IVA will also take money from benefit payments and if it's failed within the term you will most likely find you still owe a ton of money to creditors.


    From what I understand certain jobs in law positions will be harder to get into if you are bankrupt, although I'm sure many of the restrictions are lifted once you are discharged (this may not be true for all positions, so would be worth investigating). From what I've read an IVA can affect you in a very similar way to bankruptcy for certain jobs.



    If you receive student finance for fees this will not be classed as income, but student finance for living expenses may well be and could result in an IPA. I study with the Open University and only receive tuition fee loans so haven't done much research past that.


    If the DMP works for you then that would be the way to go as it shouldn't affect your ability to work in certain jobs.



    I know I'm a little late to the game and you have answers to many of your questions but thought I would add this in the offchance that it helps anyone in any way.
    • luvchocolate
    • By luvchocolate 23rd Feb 19, 12:58 PM
    • 1,765 Posts
    • 1,620 Thanks
    luvchocolate
    They've agreed to drop the bankruptcy idea and have accepted a voluntary payment plan.
    Yay!!!!!
    Originally posted by ThisSucks
    Hi I really hope this is the start of a better life for you.
    Good luck and best wishes
    • ThisSucks
    • By ThisSucks 23rd Feb 19, 10:49 PM
    • 24 Posts
    • 34 Thanks
    ThisSucks
    Thank you very much.
    Things are slowly and surely picking up. My health is getting a bit better and I'm managing to make a nice amount of freelance income now.
    • nuttyp
    • By nuttyp 28th Feb 19, 12:24 PM
    • 2,005 Posts
    • 15,025 Thanks
    nuttyp
    Honestly the best thing we ever did.... life is so much better now we are debt free
    BSC member 137

    BR 26/10/07 Discharged 09/05/08 !!!

    Onwards and upwards - no looking back....
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