Bankrupt

[charchar23]

Hi,

I hope someone can help.

I was made redundant last year and am currently on JSA but I am up to my eyeballs in debt with so many people I cant afford to even make the minimum fee with everyone so I've decided to go bankrupt.

They will allow a fee remission of 150 but I must still pay the 335 official receivers fee (I think) the thing is I honestly can't get to this sort of cash, the only way I can get it is to apply for a loan from Provident. But again I wont be able to pay them everything maybe only a few weeks.

So my question is should I get the Provident loan then put it down on my bankruptcy papers?

Please please help.

[terambulan]

sell that pc for a start

[charchar23]

It's not even mine. idiot

[bednobs]

there are charitable places that can help with getting the money together for a bankruptcy. if you go to the CAB they may be able to put you in touch.

can you sell anything?
Can you borrow the money frm family?

[bednobs]

Also, it's unlikely you will be able to get a loan if you dont have an income and lots of creditors already

[charchar23]

Hi bednobs,

There is no one I can ask and as for selling things. I've sold most of my things i.e computer, ipod, cd's, dvd's and other stuff just to live on. JSA only pay 47 quid a week and thats just not enough.

Do you know how long it would take if I went to the CAB? I need to go bankrupt ASAP

[bednobs]

no, i'm sorry i dont

[charchar23]

No probs I might call them 2moro and see if they can help.

As with the loan thing Provident would definately give me one.

Thanks for your answers

[Buenchico]

Taking out a loan, in the knowledge that you're not going to pay it back, immediately prior to bankruptcy might lead to a lot of problems for you. (You could be committing the criminal offence of 'fraud by false representation' by telling the lender that they'll get their money back when you know full well that they won't. Such an action might also prevent the court from allowing you to go bankrupt).

From the start of the new tax year (6th April) there will be a much cheaper version of bankruptcy available, which might well be relevant to your situation. It's called a Debt Relief Order. Please see my post here:
http://www.theanswerbank.co.uk/Law/Question723 042.html

Chris

[Meg888]

If what Buenchico's post is correct I would wait until then. I've heard there are charitable institutions that help with the fees. As for the need to do it asap, if you don't own any assets - your creditors will just file defaults / CCJ's etc against you until such time that you do. If you were to get a loan with the Provident, you would then be filed as something along the lines of an "irresponsible bankruptcy", which if I'm not mistaken may lead to a longer discharge period. It's not a v nice situ that you're in & I hope things turn around for you soon. PS something to bear in mind for when you do get back into employment, bankruptcy can have an effect on certain proffessions ie police/accountants - you can check it out on the insolvency website.

[charchar23]

Thanks for your answer Meg. Spoke to the CAB today and they didnt help at all just said I had to find the money somehow.

They told me about debt relief and all they are going to do is send me info in post

[Ermieox]

It's an horrendous catch 22 position. Your best hope is to find a friend or family member who would be prepared to loan the money to you.
I am currently on a Debt Management Plan as I do have some 'surplus' income after expenses each month altho this isn't anything like what I actually should be paying my creditors.
If you own your own house then Bankruptcy is not a good option. Even as a tenant, your Landlord will be advised of the Bankruptcy and so you need to explore all other options first. I found the Consumer Credit Counselling Service very helpful (and completely free)
Good Luck. I know how frustrating and depressing it can be.