hi im on benefits and struggling to pay my debts and struggling to pay my bills cause of these debts. if i declared bankrupcy would i be asked to try and pay some off. as i dont have anything to sell to put towards the debts
If you have any assets (property, a card worth more than £2500, etc.) then you would need to sell these in order to pay the creditors but otherwise you should be fine.
You should always make sure that you pay your rent and utility bills before you pay your credit cards, loan, etc. and also any secured loans before unsecured. Speak to the CCCS and they will be able to suggest a way forward.
If your debts are below £15k and you have no assets (other than a car under £1k) and you reside in rented accommodation or live with your parents, it may well be that you qualify for the new Debt Relief Order(DRO). This is similar to a bankruptcy but for a lower amount of debt - the fee is £90 but there is the ability to pay by installments. You need to make an appointment with your local Citizens Advice Bureau who are administer the DRO's on behalf of the Insolvency Service
If your debts are over £15k it may well be that you will need to consider bankruptcy, again make an appointment with the CAB as there are schemes for individuals on benefits to get a voucher for bankruptcy fees (this is not an advertised service, you will have to ask at the CAB)
Hope this helps
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles email me at melanienicholas@jonesgiles.co.uk
hi im on benefits and struggling to pay my debts
Posted - 30 April 2009 : 13:39:43
