Bankruptcy advice

[The Loaf]

I shall be calling CCCS but would like an idea of what to expect, my situation may be fairly unique.

 

I have about 20k of unsecured debt

I've buried my head in the sand (I know this is completely the wrong thing and has allowed things to escalate, I don't need to hear it again )

 

About 2 years ago I had time off for depression, it has been a real struggle to try and get some direction again but in doing so I quit my office job as it was making me ill. I have had little work since.

 

I am currently a mature student at a college around 30 miles from home.

 

I am inelegible for benefits because of this, it's a full time course but 2.5 days a week.

 

I have been looking for secure work to fit in with the hours I can offer outside of college with no success.

 

I have to be careful as to what job I do as if I'm miserable in work it sends me on a downward spiral of depression again, it's been incredibly hard to get a direction in life again so I don't want to risk it again. Just to make it clear, I do want to work and this is not a cop out. Up until that point 2 years ago I was regularly employed.

 

I have a year of the course to go.

 

I have no earnings/income at present. I will be applying for a job on Monday from the local paper though.

 

My only asset as such is my car, registered in my name but bought by my mum, it's registered in my name as I am the main user so for insurance it's easier. Also, fronting is illegal and had the car been in my mums name and insurance I would have been breaking the law.

 

With college 30 miles away I have to drive, I can not risk losing my car as public transport isn't an option for fiscal and practicality reasons. I also have to take my grandad to places during the week.

 

Over the last year I have lost 2 grandparents and my uncle has been treated for cancer, my elderly grandfather lives with me and my mum and dad now and requires a lot of looking after.

 

I have no idea how these things will affect me filing for bankruptcy, the thought of losing my car and consequently my education is too much to bare. If that happens I may as well give up all together and be a dole bludger on disability. I don't want much, just a chance to try and give me an opportunity of a career that won't make me ill and to get back to a normal life again.

 

I am really struggling to cope with the stress of everything at the moment, it's making me ill.

 

Where do I stand on the above as far as bankruptcy goes? Would it be easier if I was in some employment? Temp work, and work in general locally I suppose, is not secure enough to commit to a 6-8 month bankruptcy term of repayments. What happens if a temp job, or any job, gets cut short and I can't meet bankruptcy payments to creditors?

 

Any advice you can give will be greatly appreciated, as I'm sure you can see I'm in a tricky situation that I don't know what to do about.

[honey5]

hello

 

sorry to hear that youve been poorly and of your losses

 

would it be possible to list your creditors and also the amounts outstanding? that way people may be able to better advise

 

take care, youre in safe hands here

 

honey x

[The Loaf]

Currently house and cat sitting for a friend so don't have details to hand so it'll be a rough guesstimate;

 

HSBC Loan - 12k currently getting calls from equidebt, they actually tried getting hold of my dad about it.

HSBC credit card - 3k, with debt recovery firm

Capital one - 1k

Egg - 2k I think, with debt recovery

GE Capital - 600ish

 

Estimates, not accurate.

 

Thanks for the kind words.

[PriorityOne]

Please can you also state which debt recovery firms are currently chasing your for payment, or who you are currently paying ?.... and how old these accounts are, approximately ?

[reduk054]

Hi The Loaf,

sorry to hear of your situation and problems too.

I know that you are considering your options, and I would like to ask you about your car, which appears to be your only asset. Do you know the current market value? Under BR (bankruptcy) if your car is worth less than £2k, then you would be able to keep it. If it's market value is more than this, then your Official Receiver- (in charge of your BR issues/debts/repayments) could force you to sell it, and give you an allowance of £2k in which to buy another car with. Seeing as you would use a car to go to and from work, and for family reasons, it would be deemed that you do not need a car of high value.

As for your work situation, I am not sure how the Official Receiver would decide upon your repayments, especially as you say if work was temporary, and that your income would change. It may be worthwhile contacting your local Citizen's Advice Bureau and ask the question. I spoke to a local Insolvency Practioner, however they do charge you.

I hope that this helps slightly!

It is a big decision to make, but for lots of people BR is a means of starting all over again.

Red

Edited July 26, 2008 by reduk054
missed out value!

[The Loaf]

I'm currently unable to pay anything due to ineligibilty for benefit and unemployment.

 

I can't remember what firms are chasing, I'm currently housesitting so don't have access to my paperwork.

 

My car is worth £650-950 according to parkers.

 

I just want a fresh start and bankruptcy may give me that. For the record, I don't want to owe anyone money ever again. Hindsight is a wonderful thing.

[reduk054]

Hi again

with regard to your repayments should you go BR, you can be asked to enter a voluntary agreement with your Official Reciever or trustee, which will be based upon surplus money, ie what you have left after living expenses. The agreement ie the amount to be paid, is able to be varied should your circustances change (ie from job change/income change). You would normally have to pay towards your debt for a period of 3 years.

So in summary, the repayments can be flexible to your circumstances!

Red

[reduk054]

The Loaf, if there is no surplus money, which in your situation appears to be the case, then your OR will not be able to ask you to enter a repayment agreement, however you would need to advise your OR/trustee if your circumstances change within the first year of your BR.

[PriorityOne]

Have you looked into the Adult Maintenance Grant.... run by the same people who do EMA for teenagers ? It's worth £30 week. I'm not sure about anything else at this point.... although a 'phone call/trip to the DWP or CAB would be a good place to start, if you haven't already done it.

 

Also.. have you considered challenging these debt collectors with CCA requests, rather than going down the bankruptcy route ?

 

[The Loaf]

I shall be requesting CCAs to verify their legal entitlement to chase me for my debt, I'm not sure of the timeframes to provide me with these and the consequences if they can't. Also then where would I stand with bankruptcy if my original creditor was to claim for my debt?

 

Given my current unemployed and unearning status can I claim bankruptcy?

My parents have been very supportive of me over the last 2 years but my dad retired last month so they are on a reduced income, I would want to pay 30-40 a week rent once I'm earning again as they keep me fed, watered, a roof over my head and help with my petrol costs.

 

I find the whole area a bit confusing especially with so many creditors, or people purporting to be creditors.

[PriorityOne]

I shall be requesting CCAs to verify their legal entitlement to chase me for my debt, I'm not sure of the timeframes to provide me with these and the consequences if they can't. Also then where would I stand with bankruptcy if my original creditor was to claim for my debt? If they don't respond within 12 working days from receipt of your request, you can then withhold all payments on the account until they do. A lot of companies don't have a CCA.... and some will try and fob you off with an Application... just come back on here for advice if/when you get something back.... and we'll go from there. Don't have anything to do with these companies on the 'phone though.... it has to be in writing only.

Send all requests by rec. delivery and enclose a £1 postal order inside each one. Do not sign the request either... just initial it.

 

Given my current unemployed and unearning status can I claim bankruptcy? There's nothing to stop you, but there are better things to spend your money on.... especially when some/all of these accounts may be unenforceable anyway.

My parents have been very supportive of me over the last 2 years but my dad retired last month so they are on a reduced income, I would want to pay 30-40 a week rent once I'm earning again as they keep me fed, watered, a roof over my head and help with my petrol costs. I'm sure they know you're doing your best. Find out about that Adult Maintenance Grant though.... an internet search should throw it up. Also, if one or both of your parents are receiving DLA or Attendance Allowance, you could put in a claim for Carer's Allowance yourself.

 

I find the whole area a bit confusing especially with so many creditors, or people purporting to be creditors. It is confusing, but you'll learn about these things as time goes on...

 

 

[The Loaf]

I'll be nipping home tomorrow to draft some letters for a CCA and we'll see what happens.

 

I'll report back with replies as and when they come.

 

Thanks to everyone for the advice given so far, I'm sure I'll need more in the near future but at least I've got a clue of where to start.

[BARROWPIG]

Hi Loaf, Speaking from personal experience... Firstly withdraw ALL your money from every avenue that you can - this includes totally abusing any credit facility available on your credit cards. Get as much money together IN CASH as you can. Bankruptcy costs around £500 nowadays and unless you can pay that then forget about planning a 'new start'. Leave IVA's well alone - they are a con and if you research the net result of taking out one you will find that the MAJORITY of people that use this facility end up going bankrupt anyway. HSBC are one of the worst people to owe money to, they simply are a disgrace no matter what they tell you over the phone. (I owed them circa K£20 alone). Bankruptcy is not an easy option but it IS a legal way to get yourself back on your feet. It offers you protection in an otherwise hopeless situation. I recommend it if all else fails but remember that your Official Receiver is also your best friend, don't try to con him/her and be honest to a fault. The consequence of giving false information in a bankruptcy is ultimately Imprisonment. That is because if you chose that route you are messing with The Crown - bad move. Anyway, mate, good luck and there is light at the end of the tunnel, believe me! Peter.

[DZZ]

I wouldnt advise abusing your credit facilities if you are still able to use them as i discussed this with my OR (i didnt do it my debts was all old) and they advised me they can issue a BRU against you.