Bankruptcy - Help If Possible

[sjw]

Wondering if anyone can help me, I know its not really what this forum is for, but it couldnt hurt asking

I am 27, and owe, through my own stupidity I must add, about £20'000.

Its split between a loan and a credit card, about £10'000 each. I cant afford to pay this debt off, and even with a trust deed, I dont think I would be able to afford it.

I am considering going bankrupt, but have some issues with it....
1. I still live at my parents home, as I cant afford to move out.
2. I have the exact same name as my dad.

Can anyone answer a few questions I have....
1. If i was to go through the bankruptcy procedure, would my debtors have any claims on my parents bought house, or anything within?
2. Would it have an adverse affect on my parents credit rating?
3. Would my parents have people turning up asking for goods to the value of?

I really have nothing to show for the money, I blew it when I was at uni, I deeply regret my actions, but im struggling to cope with this now.

My parents have no idea of my problem, and wouldnt be too happy if it was made public, dont get me wrong, we are normal working class people, and I cant ask them for a shot of £200 let alone £20'000.

I am getting help from CAP, but I dont like asking for bankruptcy advice from them, its humiliating enough being in debt, let alone asking to go bankrupt. They have set me up in a way that I pay them £120 a month, and they split it between my debtors, but I cant see this as a long term answer.

I am toying with the idea of disappearing, what would happen if I did that

[Phil3822]

No one would have any claim on your parents house or any of their posessions. If you have anything of worth, such as a car and cant prove YOU NEED it, the Official Reciever could take it in simple terms.

It will not effect your parents rating, credit ratings are no longer based on the household or home. They were a while ago though. Hence the old term, blacklisting.

Once you've taken the step of going bankrupt by law no creditors can chase you or your family (unless you have joint debts, different story.) You will be free from the creditors although not free from the official reciever. (further research will explain this)

I suggest you go to this site > Debt Questions. Information regarding debt issues
They have great info and a wonderful forum.

Out of interest, have you looked into an IVA? Also, do CAP charge you for their service?

Good luck, I've been in your exact situation. Am now starting to see light.

[elsinore]

Hello sjw, well you’re in a bit of a fix, aren’t you?

First things first, forget about disappearing, you know that is not a realistic option. It would not solve anything. You can run away from home, family, friends, etc., but you can’t run away from the notion. The problem will still be with you in your head.

Secondly, you have to take a deep breath and tell your parents. It is clear from your post that your concern for your parents is at least as great as it is for yourself and that is to your credit. But, imagine how they (and you) would feel if they discovered the problem before you told them. They may not be able to help you financially (and you may not want that anyway) but the least you will get from them is support. You will feel a whole lot better and will be able to concentrate on solving the problem. They will be able to anticipate and deal better with any complications arising.

I’m unsure of any differences in bankruptcy law between England and Scotland so you may need to check out my answers to your questions:-

• No, it’s your personal assets only
• Yes, probably, that’s why you need to tell them
• No, an insolvency practitioner would deal with the creditors

It seems that you have only two creditors, the CC company and the loan company (was it a student loan?). Who are they?
What is the current situation with these two creditors? Are you being pressed for payment, threatened with court action/bankruptcy? Have you kept any correspondence from them?
Have either or both companies imposed charges for non or late payment?
Have the debts been passed to collection agencies?

Choosing bankruptcy might not be the best solution to your problem, especially as you regard it as a stigma. If you can post some more information, there might be some alternatives on offer.

Elsinore

[emijen]

Speak to an independant financial advisor, they are fantastic. I dealt with resolve and i have to say he took into consideration all my options before deciding on bankruptcy and he was so so nice, he made me feel like i am not the only one out there in this sort of mess. don't forget they deal with thousands of people with the same problems so your not on your own

[Daley]

I think you need at least 3 creditors before you can enter into an IVA.

[johnhowell]

sjw,

If you go to the Debt Free Wannabe forum of MoneySavingExpert.com ad-free, free to use, Consumer Revenge! site, there are a lot of people who will be able to help you with this situation.

John