bankrupcy

[viali]

i am going to be made bankrupt for �5000 on may the30th ,i dont want to go bankrupt,i have no money thru being a carer for my terminally ill brother but i can borrow �1000 to offer them as final payment.do they have to accept this,i have no property or assets?

[Joe_the_Lion]

Have you considered an IVA as an alternative?

[Paulst30]

I would strongly advise that you fight against becoming bankrupt because you would be simply cast to the financial unknown for the next 10 years. 6 years for the bankruptcy and 4 to rebuild your credit reference.

Its not worth getting it done over �5000 thats for sure, and i would also try your best to agree with the company to defer or even freeze the interest until you start working again.

An IVa isnt any better because your debt gets handed over to a trustee (accountant) and your legally bound to adhere to their terms and you must pay a contribution to the trustee, however if you are on benefits they dont ask for it.

At the end of the IVA you become bankrupt anyway, and before people start slating my advice, STOP because for the last 5 years i have been going through this exact process for �19,000 and i really wish i'd have just paid it all like i can now.

Anyway, fight it now and be happy later.

Good Luck

[Whickerman]

Folks, in Ireland we have Credit Unions. When you open an account you become a member, and no matter what they will never allow a situation like this develop. (It's pretty much like a bank, but you're a part owner - run by the communityfor the community). Simply everyone here has an account, and when you are in a good position people generally allow their savings build (gains interest) rather than moving it to shares etc. Is there nothing like that in the UK?
Link to a typical credit union: http://www.creditunion.ie/publisher/index.jsp? re=0&pID=93&nID=594

They've pretty much removed poverty and money-lending from communities. There must be something similar there?????

[Kathyan]

You can't enter into an IVA unless you have at least �15000 worth of debts and you are in full time employment. You are not automatically made bankrupt at the end of the IVA either. You pay what you can afford and the rest is written off.

[themas]

You need to get urgent independent advice. Ring CCCS or National Debtline, or go to your local CAB.

Also, look at the Insolvency Service website - they have a lot of leaflets etc. on bankruptcy. (I'm assuming you are in England or Wales - Scotland is different). As you have no assets or property bankruptcy may not be as bad for you as you fear - in fact it could be the best way of ridding yourself of debt. However, it is a bit surprising that the creditor is going to do this as it seems from what you say that they will not get their money back if they do bankrupt you.

You can make a full and final payment offer but they don't have to accept it, & it is best done through a third party such as CAB. If you do this it must be made clear that the offer is not from your own money, but from you borrowing it from a friend etc. And if they accept make sure they confirm IN WRITING that they have accepted before the payment is made.