Should i apply for Bankruptcy?

[diwallis]

HI, i recently lost my job and since then my credit cards and bills are spiralling out of control, im living off my credit cards but the credit will soon run out. I am just about managing to pay the monthly mins, but this wont be possible for much longer. Im thinking about applying for Bankruptcy and i would rather do it sooner than later, but is it possible to apply when i am actually managing to meet payments, or do i have to wait till i actually miss payments?

Also i have a sofa and Fridge Freezer on finance, what would happen to these if i went Bankcrupt? Many thanks.

[redcrx]

i would suggest that you speak to a debt advisor at the CAB as soon as possible

http://www.citizensadvice.org.uk/

[pretty_snowdrop]

Applying for bankruptcy is a drastic step and should only be done when all else fails. It will show on your credit file for 6 years and it may reduce your chances of getting credit for an even longer period. Firstly speak to your bank and explain the situation. What are your chances of getting another job soon? What amount do you owe?

[Bbbananas]

yup - before you rush down the bankruptcy route (because it does have repurcussions for the next 6 years, despite the burden of debt being lifted) - go to your local CAB or go online to CCCS or Debtline. Be wary of those advertising themselves as bankruptcy advisers - only go to the well known reputable ones. Others may well charge you a 'fee' for their advice - advice which should be free.

[craft1948]

As your partner declared himself bankrupt I would definitely think twice about this, it's difficult enough when just one of you is bankrupt.

[diwallis]

Thanks, never thought about the CAB. I lost my job 6months ago and not come close to getting another job yet. Im currently going through tribunal for Unfair Dissmissal but its going to be a while before thats over with. I've worked out that i owe approx £7000 but that is only going to get worse the longer im unemployed. I just feel that the only way im ever going to get out of this mess is by starting afresh and clearing my debts? I've been trying for years to clear them but they just seem to be getting worse, especially now im unemployed.

[diwallis]

Craft, we are no longer together.

[pretty_snowdrop]

Have word with CAB and also your bank. Depending on all your financial circumstances they may be able to help you with consolidation loan (you have not defaulted yet, so this will be in your favour), so at least that way you know how much your are paying each month and the interest won't keep adding up. Filing for Bankruptcy for £7000 seems a drastic step at this stage.

[Bbbananas]

I agree.
I wouldn't go bankrupt for the sake of £7K - £70K yes, but 7 is workable.... you just need the correct advice and help.

[diwallis]

Thanks, i know £7k doesnt seem alot, but with no income its a scary amount that i fear i will never get rid of. I have just found that my CAB is open tomorrow so will go see what they say.

[Bbbananas]

Let us know diwallis. Most CABs have debt advisors. And believe me, they are well used to stories such as yours.

[mccfluff]

get some advice. stop using the credit cards. ring the companies up, get them to freeze them and agree a workable repayment plan.

[Bbbananas]

If you go down the payment plan route - go through the CAB, CCCS or debtline. Or even Payplan. Be aware of all others.

[diwallis]

I'll let you know what they say, thank you.

Its not as easy as just stop using them, with no income i am relying on them to put food on the table, and pay the bills every month!

[Bbbananas]

(I should say National Debtline - there are some scam companies out there who use similar names).

Can I also direct you diwallis to a site called Motley Fool? They have a great discussion forum on their debt management site. They have regular contributors who have had personal experience of debt and/or bankruptcy. There is one contributor in particular called Manzilla who is fantastically helpful (and does, or used to, work in a citizens' advice bureau in the debt section).

[mccfluff]

i know what you are say diwallis but there will come a point when the credit end, and you are unable to pay the monthly payments - your say you are already having trouble with this and then what, how will you put food on the table then. you need to speak to get some advice pronto

i feel for you i'm in fin trouble myself and i totally understand how horrible it is :-(

[diwallis]

Hi just thought you might like to know that the CAB have recommended a Debt relief order, thanks for all your advice.

[kerriesmum]

Hello i posted a simular question earlier some very useful answers have a look x