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leeroy
Starting Member
4 Posts |
 Posted - 26 August 2009 : 02:36:22
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Hi,
I have an appointment booked for this Thursday (27th Aug) to go BK, and I'm in two mind if to do it or not.
I'm 28 and have around 30K of debt which has built up over the last 8 years. In the last 3 years I have been trying to clear it by using all my wages, but what has happened is my wife has ended up taking a loan, credit card and borrowing from family to cover different costs.
My wife wants me to go Bk and is backing me all the way, along with my in-laws. However, I do think they want me to do it because my brother-in-laws went BK a couple of years back. Where my parents are againsts it and believe I should reduce my payments and review the situ every 6 months.
A family member has helped my wife complete a budget planner for after the BK and I'm being told after all bills are paid we will be left with £500 to clear the debts in my wife's name and also save.
To add to the situ, I currently work for a high street bank as a branch based customer advisor. They have told me either way (BK or DMP) my job is safe. I'm worried if I do go BK, as it will clear some debt I have with my employer, it might affect my position later on.
WHAT DO I DO - Do as the wife asks and go BK, dealing with any problems from my employer as they come about??? Also the fact that I could be made to make further payments by the OR!!!
Or reduce my payments to £100 (this still leaving us £400 from this new budget plan), reviewing the situ every 6 months and just being aware its going to be a long process???
PLEASE HELP |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 26 August 2009 : 07:36:36
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If you are not 100% sure that BR is the right option for you then do not do it. You should seek additional professional advice from the CCCS, CAB, National Debtline or one of the below companies that post on this board:
Reviva UK: http://www.revivauk.com/
Jones Giles - http://www.jonesgiles.co.uk/
Declaring BR is a big step and something you should only do if you are 100% sure that it is the right option for your situation. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 26 August 2009 : 07:59:56
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Hi there
like 'gettingoutofdebt' suggests I would strongly advise you speak to an Insolvency practitioner, either one of the ones recommended by Gettingoutofdebt or by looking on www.iva.com which is an IVA comparison site.
It may well be that bankruptcy is the option for you but not because your brother in law went bankrupt...each situation is different and without independant advice you cannot be sure you are taking the right steps. There are many companies out there who offer this service but ensure you contact one which offers free advice
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
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RHB
Senior Member
1159 Posts |
Posted - 26 August 2009 : 08:36:16
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Maybe your wife could go bankrupt if her family are so keen on the idea?
I think you do need to get some proper advice before the appointment. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 26 August 2009 : 11:17:24
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Please don't rush into any solution.
You need to tack stock, get proper advice and then reflect on ALL of your options and consequences.
There are several solutions to debt and you do need to consider the whole debt position at home rather than just half of it.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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leeroy
Starting Member
4 Posts |
Posted - 26 August 2009 : 16:32:57
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So I have spent the afternoon on the phone, talking to Nationaldebtline and CCCS, and now have to make a decision about tomorrow.
Nb. I am still waiting for my letting agent to get back to me and advise if there is a bankruptcy clause in my rental contact. However, the agreement will be finishing in December, we already have a property to move into which will be rented from my parents and all payments are up-to-date for the household so I'm not that bothered. But I do share a property and dont really want to muck the contract up for my housemates.
Both companies gave me the same options:
Option 1 - DMP £120 per month, which will take about 20 - 25 years to clear everything. Long process, debt will be there but all will be paid back in the very end.
Option 2 - Bankruptcy. Go to the appointment tomorrow and get it over and done with. Clear everything, status removed from credit file in 6 years, disadvantage being the best mortgage rate may not be available. |
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jmjs1986
Starting Member
34 Posts |
Posted - 26 August 2009 : 16:39:07
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| if i was you i would pick option 2 good luck in what ever route you take let us know what you decide. |
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leeroy
Starting Member
4 Posts |
Posted - 28 August 2009 : 15:54:56
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So I decided not to do it, pulled out at the last minutes as couldn't face going through the process.
I have now completed a number of different budget planners and came to my final one. Current repayments of £250 which will take 10 years to clear the debt. However, I will be reviewing my situation every 6 months to look to increase the payments.
Today I'm feeling glad that I didn't go through with it. Made me realise I need to take responsibility for my finances, my spending, and the situation I got myself into. Feeling so much better about everything. |
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RHB
Senior Member
1159 Posts |
Posted - 28 August 2009 : 17:47:25
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| Sounds a good plan to me. Worse thing you could have done is to go bk just because you felt pressured to, it has to be a decision you feel entirely settled on. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 28 August 2009 : 18:37:47
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Good luck leeroy, Debt Management Plans (I presume this is what you are now in) are no easy undertaking but I think you made the right decision in not declaring yourself bankrupt.
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Topic |
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Do it or Don't do it - Which is correct???
