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Littlest Hobo
Starting Member
United Kingdom
2 Posts |
 Posted - 20 July 2011 : 05:12:38
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Hello,
i have been in debt since I was 18. I am now 40. I pay back over £200 per week, but the debt just satys where it is (£35000 - 6 creditors, loans and credit cards. I work as a contractor, so although my money is good when i'm earning, when the contract ends, I am without money at all. I live in a rented house, but have PC, Laptop, Tv's etc. I am not working at present, and cannot pay my debts. I need some advice and quick, would appreciate any comments.
Thanks |
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 20 July 2011 : 08:14:39
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Hi Littlest.Hobo
It sounds as if bankruptcy may be the best bet as all your debts, from the sounds of them, will be written off. You live in rented accommodation, have very little income, so you have nothing to lose. Your household effects are excluded from the bankruptcy. The only downside, from what I can see, is the cost. It will cost you £525 to make yourself bankrupt if you are on certain benefits and outside London, £700 otherwise.
Hope all goes well and do not hesitate to post a further message if you have any queries.
John Blackadder
Bankruptcy365
For help and advice on the easiest and most effective way to a debt free future, please go to www.bankruptcy365.co.uk. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 20 July 2011 : 09:19:49
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Hi there
If you are not working, then may i suggest you make an appointment with the Money Adviser at your local Citizens Advice Bureau, not only can they help you with your bankruptcy , but there are schemes available for those on benefit income to help with the costs of bankruptcy
Hope this helps, Melanie
Melanie Nicholas CertDR
30 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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Littlest Hobo
Starting Member
United Kingdom
2 Posts |
Posted - 20 July 2011 : 10:15:56
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Thankyou for response,
If I decide to go BR, how will I pay household bills if I have no bank account?
When I get a job, will I hand all the money to the OR??
Will it affect my car etc??
Thanks
quote:
Originally posted by Blackie
Hi Littlest.Hobo
It sounds as if bankruptcy may be the best bet as all your debts, from the sounds of them, will be written off. You live in rented accommodation, have very little income, so you have nothing to lose. Your household effects are excluded from the bankruptcy. The only downside, from what I can see, is the cost. It will cost you £525 to make yourself bankrupt if you are on certain benefits and outside London, £700 otherwise.
Hope all goes well and do not hesitate to post a further message if you have any queries.
John Blackadder
Bankruptcy365
For help and advice on the easiest and most effective way to a debt free future, please go to www.bankruptcy365.co.uk.
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glafy
forum expert
436 Posts |
Posted - 20 July 2011 : 11:19:48
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Hi Littlest Hobo & Welcome to the site.
Re Bank accounts, I can recommend the Co-Op Cashminder account. They are BR friendly & the OR's know of these accounts and will not freeze them. Open the account before BR and set up any DD's,SO's etc as you will have enough to think about during your BR application.
Hope this helps.
"Good things come to those who wait".....I'm a patient person but this is taking the Mickey!! |
Edited by - glafy on 20 July 2011 11:20:39 |
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 21 July 2011 : 07:26:01
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Hi Littlest Hobo
As Glafy points out, the Co op Cashminder account is the best account and you should have no problems applying for one.
When you get a job presumably your outgoings will increase due to the extra expense of travelling, lunches etc. Your income and expenditure would have to be re-assessed. Admittedly any disposable income will be taken by the OR. It might be worth your while taking a low paid job so that you never have any disposable income during your bankruptcy period.
Your car will not be taken if it is of low value, worth under £2,000, or necessary for your employment.
All the best
John Blackadder
For help and advice on the easiest and most effective way to a debt free future, please go to www.bankruptcy365.co.uk. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 21 July 2011 : 09:51:04
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I have to disagree about taking a low paid job just to avoid an IPA, and while individuals may feel that way it's not the view of this forum.
It really isn't worth missing out on an opportunity to avoid paying an IPA, you really need to think about the long term. If I was looking for a job and a position that I really wanted came up then I wouldn't let an IPA stop me taking the job. That opportunity might not come along again.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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moodybluetwo
Junior Member
156 Posts |
Posted - 21 July 2011 : 11:00:48
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| Whatever job you take for whatever reason is a personal choice in my opinion. As long as you are being lawful and playing by the bankruptcy laws I cannot see a problem. If you get an IPA/IPO that will last for 3 years from the date it was started…..that could mean in certain circumstances 3 years after your bankruptcy ended. If you took a low paid job you might very well avoid an IPA/IPO but you would still be paying tax and national insurance and not be on the dole taking money from the state. Most of us on this site have gone BR because of overspending in some way…..and by going BR we are facing up to facts of our financial situation. What we are looking forward to is starting afresh as soon as possible and having no disposable income for 3 years certainly makes this more difficult. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 21 July 2011 : 11:47:14
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If you read my post I said that some individuals may think it's worth it.
Personally I think my future is more important and I wouldn't want to miss an opportunity that I may never get again just so that I didn't have to pay back anything.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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moodybluetwo
Junior Member
156 Posts |
Posted - 21 July 2011 : 12:03:45
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| I said in my post it was a personal choice in my opinion. Everybody’s future is important to them and it’s up to the individual to make their own choice for their own future. This forum is here to offer advice and support ….and whilst personal views are welcome …the choices others make should be accepted. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 21 July 2011 : 12:11:59
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I agree Moodybluetwo, but no one should suggest to someone that they should try and avoid paying an IPA.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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moodybluetwo
Junior Member
156 Posts |
Posted - 21 July 2011 : 12:42:29
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| No one is suggesting you take a low paid job just to avoid an IPA/IPO….only that the consequence of taking a lower paid job may be that you do not get one. |
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donememoney
Junior Member
United Kingdom
195 Posts |
Posted - 21 July 2011 : 14:32:55
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Hi Littlest Hobo
My thoughts on Bankruptcy are well known on this Forum!
OK, OK Before anyone starts I know BR is not right for everyone BUT anyone in substancial debt who has no assets and is just feeding the money sucking bankers and debt collectors has nothing whatsoever to fear from BR The only things that change are...
1) You lose all debts and start again!
2) Legally no more demands, calls ,letters or knocks on the door. (this may take a few weeks to achieve)
3) You are no worse of credit rating wise as your current rating would be trash and will remain for at least 6 years. With a payment plan this can go on and on as the lender updates your credit file.
As for low paid work. How about getting a job at all to start, (not an easy task at the moment), then deduct all reasonable living expenses etc. If there is any left it would only be for a maximum of 3 years. The way you are going at the moment is never will end.
Play the -ankers at their own game!. When they went to the wall they whined and moaned and the government bailed them out. They now have the gall to act like gods and refuse to invest!
BR is one very effective way to fight back and zero your debts but only IF you have no assets
Good luck! |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 21 July 2011 : 17:22:20
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I have to agree with Tracey here - you may not have been suggesting that moodybluetwo, but others have been.
Donememoney - we are equally to blame for taking the credit when it was offered. I have never blamed the banks - I wanted it so I schemed and planned and managed to get it - usually by lying through my teeth!
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
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Topic |
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Hello, i have been in debt since I was 18. Now 40
