I fear my only option is bankruptcy but I'm terrified. Can anyone advice me please?...

[Naomi76]

THIS IS MY FIRST POST.

 

Hello to all of you...

 

Right, I need to start by telling you all I am absolutely terrified and totally ashamed by my debt problems. I'm also just about ready to go into an emotional melt down with the stress of it all, its at the point that I cant cope any more.

 

It's a long story but i'll keep it as short as i can.

 

I started taking on debt at a young age; when banks first started throwing loans and credit cards at me! i have never earned great money, always just managed to keep afloat by paying minimum repayments etc. Some years later i was made redundant, i contacted my creditors when i started to struggle with the minimum repaymetns, none of them were interested in helping. I was young and this terrified me... so what did I do?.. yup, i burried my head and listened to bad advice such as 'ignore the debts the phone calls and letters, they can't chase you after 6 years'. And so on.

 

Many years on, more than 6 in most cases but not all... I am still in debt, around 25k in total and still not in a situation to pay them off, or make any payments at all. Currently and through no fault of my own i'm claiming Job Seekers Allowance. I went for a job recently and i got the job, brilliant, as long as my references came back okay. The next day I was told I couldnt have the job as I failed the credit check due to a CCJ!!! Devastated does not come close in describing how I feel.

 

So I am now wondering what my options are. I cannot afford to pay and IVA as I'm out of work. I want to go bankrupt but I'm terrified that I will lose my car (its not worth much, its 16 years old and needs work doing to it but its all i have and i cant afford another). i have a few antiques that I have been given as presents by family members over the years. Im also worried about losing any furniture as I cant afford to replace it.

 

What can happen in a bankruptcy situation like mine? I really am on my knees.

 

I beg you...Can anyone help me please?

[citizenB]

Naomi, you have nothing to be ashamed of. Well done you for being brave enough to admit you are struggling and admitting that you need help.

 

You say you have been turned down for employment because you have a CCJ. Were you not aware that you had this ? If not, then there is a chance you can get it set aside. If you were aware of it.. did you go to court, defend the claim against you. What is the CCJ for ?

 

If you can let us have a bit more information, then we can set about trying to help you out of this muddle.

[Naomi76]

Hi CitizenB,

 

Thank you so much for your kind words and speedy reply!

 

No, I was not aware of this CCJ as it was registered in May 2010 to an address I moved out of in Dec 2009. I have today registered for a free 30 day trial period with Equifax to get a copy of my credit file. It looks like it was an old overdraft that I have the CCJ for, but I cannot be 100% sure. It also turns out I have 2 other CCJs which i probably was aware of whilst burying my head in the past.

 

I have been worried about contacting any of my creditors about moving address as I have read somewhere that if you don't acknowledge a debt for 6 years then you will drop off of their radar? God I sound like a criminal, how embarrassing But this just goes to show how desperate I have become. This is just not in my nature to be like this

 

Do you think that Bankruptcy is the answer? But in the meantime maybe I can clear this CCJ in time to still get this job?

 

Thank you for your time.. it means the world to me.

[tonycee]

Hi Naomi. Although its an option, bankruptcy should only be considered as a last resort. What is it you are frightened of? The debts, or the debt collectors?

 

Dont rush into anything as you have made a step in the right direction by applying for your credit file to see what it involves. Dont forget to cancel after the free period.

 

Bankruptcy is not such a bad thing, debt is not so bad, its when it makes you ill that you have to act.

 

Get your file and see where you stand. There are lots of people in a similar situation.

 

Well done to you for taking the first steps.

[Naomi76]

Thank you. I'm frightened of it all. But mainly as I think Bankruptcy is my only solution after all these years of non payments, I am frightened of the implications of Bankruptcy and how it will affect my life, how long it will have an affect and what I will lose because of it.

[Naomi76]

PS I do think it is making me ill. I've had years of worrying about these debts and I'm certain it has affected my life/health in so many ways. Boy, what a mess!

[tonycee]

Bankruptcy itself is relatively painless, and can, for some, be quite liberating. However, it can effect your credit standing for many years in a more adverse way than the one you are in now.

 

Dont rush into anything. Get your report. See whats what.

 

Sleep well.

[rebel11]

Hi Naomi

 

As the others have said, you come to the right place. There is quite a lot that you can do. The first thing to do is to get a folder, section it off with each creditor.

That way you know who you owe monies too. Have you been mis-sold PPI on any of your products? This can be claimed back with interest. Do you have any Penalty Charges on any of your products? Credit Card charges can be claimed back with interest. Have a read of 1,2 and 3 in my signature. Also read 6 and 7.

[sequenci]

Welcome to the forums, I've written a blog on debt issues and options, you can find links within my signature - just below this text that I'm currently writing!

 

The car is not going to be considered within your bankruptcy unless its value is enough for it to be worth selling. Typically vehicles worth less than around £1,000-£1,500 are not taken away.

 

I have helped hundreds of people through the process and as Tony mentions it's actually a relatively straight forward process. The key to considering if it's the best option is to complete a financial statement and use that to work out how long it would take for the other options to get you debt-free. The actual 'bankruptcy' itself is likely to last a year whereas your credit file will be affected for six years.

 

As others have mentioned you're in the right place for support, if you fancy professional advice then National Debtline are very good: 0808 808 4000 (they are a charity by the way, their service is free)

[Naomi76]

Hello SEQUENCI and REBEL11... thank you for your replies, everyone is so helpful and kind here.

 

I have looked at my credit file and think I can see most of the debts I owe, one of which I have just received a letter for today; Lowell Financial, asking for repayment of an old Barclays bank account. This one is dating back to 2007 (the first recorded default) although the credit agreement was taken on (account opened with Barclays) in 1999.

 

I also found 3 CCJs in total. One is from Sept 2005 which is the biggest at 8k, one is from December 2006 which is the smallest at £103 and finally one from May 2010 for £418. The last one was registered to my old address after I had moved, so I didn't realise it had happened, this is also the one causing me problems with the job i have just got (or not as the case may be).

 

I have 7 creditors on my file and I owe just in excess of 25k, I dont think that even paying the £1 a month will help me out of this situation any time, will it? I have so much paperwork relating to my debts, which over the years I have just shoved into a cardboard box labelled 'debts'. It's not in any order and to be honest I have totally lost track of who is sending me what re which debt etc

 

My car is apparently worth anything up to £1,500. It looks fine (apart from rust and a badly fitted slightly chipped windscreen) and runs well but it's a 1996 306 Cabriolet which needs about £1k worth of work doing to it i.e. a new clutch, new roof, an ongoing oil leak which is possibly the head gasket and loads of other bits n bobs. Will they consider all of that when they look at it as an asset? Unless I win the lottery I am simply running it into the ground until the poor old thing gives up. But I love it all the same!

 

Would bailiffs be sent to my home if I do decide to go bankrupt? I rent by the way. A friend of mine said someone he knows did his BR online and nothing was taken away from him and nobody even visited his home.

 

I live a life far far far from luxurious or comfortable, I can only just survive with the financial support of my family at the moment. Everything I have in my home is lovely and you would never guess that I struggle so much to put food in the cupboards and to pay my bills. But my home is full of belongings that I treasure and have been given as gifts or paid pennies for over the years, and I love each and every item and cannot afford to lose any of it.

[Naomi76]

can i just apologise for going on and on ... I think it's the stress!!!

[debtinfo]

no need to appologise for going on and on, these are the things that you need to be talking about and getting off your chest, it is good that you are now talking about it.

 

Bankruptcy is a protection and a way for a fair and equitable solution to be established, whilst it is possible that you might lose some assets you wont lose any household items as long as they are reasonable and you wont have baliffs sent, alot of people dont lose anything but of course some people do, it depends on what you have or not.

 

In particluar your car, the primary thing that the OR has to look at is not the value but for what reason you need it, the best reason is for work or to look for work, another is for your basic domestic need. To give you an example i have had a case where a person worked so you might think ahh they would get to keep it and they asked to, it came out though that the resteraunt they worked at was below where they lived hence they were not allowed to keep the car. Wheras someone who was disabled and just needed it to say do shoping may be allowed to keep it

[matt5983]

no need to appologise for going on and on, these are the things that you need to be talking about and getting off your chest, it is good that you are now talking about it.

 

Bankruptcy is a protection and a way for a fair and equitable solution to be established, whilst it is possible that you might lose some assets you wont lose any household items as long as they are reasonable and you wont have baliffs sent, alot of people dont lose anything but of course some people do, it depends on what you have or not.

 

In particluar your car, the primary thing that the OR has to look at is not the value but for what reason you need it, the best reason is for work or to look for work, another is for your basic domestic need. To give you an example i have had a case where a person worked so you might think ahh they would get to keep it and they asked to, it came out though that the resteraunt they worked at was below where they lived hence they were not allowed to keep the car. Wheras someone who was disabled and just needed it to say do shoping may be allowed to keep it

 

Same as myself, where i live there is no public transport and i work nights, i was allowed to keep the car due to work but also my 3 year old has to go playgroup in another village with no public transport and my wife cannot use public transport due to her illness so for trips, shopping or appointments i was allowed to keep it. My OR is a very nice women.

[Naomi76]

no need to appologise for going on and on, these are the things that you need to be talking about and getting off your chest, it is good that you are now talking about it.

 

Bankruptcy is a protection and a way for a fair and equitable solution to be established, whilst it is possible that you might lose some assets you wont lose any household items as long as they are reasonable and you wont have baliffs sent, alot of people dont lose anything but of course some people do, it depends on what you have or not.

 

In particluar your car, the primary thing that the OR has to look at is not the value but for what reason you need it, the best reason is for work or to look for work, another is for your basic domestic need. To give you an example i have had a case where a person worked so you might think ahh they would get to keep it and they asked to, it came out though that the resteraunt they worked at was below where they lived hence they were not allowed to keep the car. Wheras someone who was disabled and just needed it to say do shoping may be allowed to keep it

 

:) its such a relief to hear you say that they wont send the bailiffs in!!! The thought of that was making me sick. Its not like I am trying to get out of paying my debts, I just don't see any other way any more. I've been considering BR for about 5 yrs, so I'm not taking it lightly.

 

I am out of work and currently attending interviews, sometimes I may attend 2 in one day.. would this be something the OR may look at in my favour re my car? I l ive in London, although there is allot of transport it can take up to an hour to travel what may take only 20 mins in my car, so in that sense my car is a god send.

[Happyhippy1959]

Naomi,,

 

All above is correct... If you decide on the BR route it is very straight forward. Even if you have been a fast and loose spender the OR is only there to sort out not to be judgemental. I myself am or will probably end up going BR, i owe over £40k of unsecured debt have a mortgage and Secured loan and Mrs Hippy gone her own merry way. The only reason I am hanging on to the house is one of sentimental reasons me thinks,,, also dear ones are only 14 and 17 so it is a bit of security for them if Mrs ex hippy rented accommodation goes breasts up. 79% of my salary is paid on my loan and mortgage I am in neg equity or just even. I have about £80 left for food and electric and gas now that my overtime has been stopped.. God knows what happens if me teeth go...

 

I have been paying my token payments of £1.00 for over two years, Cabot have now purchased the biggest of £14k so I expect they will want more but hey I have nothing. I hope they go for a SD, I would welcome it with open arms.... Please, BR is not what it use to be..... It could give you a clean start for the rest of your life.

 

One thing I have learnt in the last three years.. I don't need credit, I never ever ever again want credit... It is so liberating to be able to live off one's own cash...