Hello.
I was wondering if Bankruptcy was a way out for me and therefore I was after thoughts from people who have been through this and whether it worked for them.
I owe money, more than I can afford to repay, and although I hate to admit it I am defeated. It’s getting to a point where it’s affecting life itself, I worry every day about the post, receiving phone calls, knocks on the door etc. I need relief, is bankruptcy a way out?
I do not own any assets. I do not work in finance or similar.

Please no comments about I should have been careful, my debt came about during my uni days, I was lured by the ease at which money was made available to me, I regret it now, and I shall never succumb to owning credit cards and the like again.
Any thoughts would be appreciated.

If you've got no assets, a low income and a lot of unsecured debt, it may be the best option for you. As soon as you file for bankruptcy, your creditors aren't allowed to contact you. They're discharging uncomplicated bankruptcies quickly now - a year at most, sometimes three months. I'd suggest getting some professional advice - ring Sheffield Debtline on 2555455 to discuss your options.

I know of a couple of people this has happened to and I've sent you a pm.

You should check out the Dealing with Debt board on www.fool.co.uk . Theres some very knowledgable and helpful people on that board in particular who will pile good advice onto you. Also theres some pretty inspiring stories there of people who are dragging themselves out of some pretty terrible debt situations.

Bankruptcy can be a way out, but you should make sure that there is no other more viable option before you go down that route.

Good luck.

Thank you-i shall take a look at this web site!

I'm not looking for an easy way out, I'm looking at viable options.
It would take 6 to 7 years to pay off debts and for 6 years after it would remain on my credit file. I've had enough, I've tried to pay back the money but after another debt agency phoning and demanding yesterday I realised that that is it, I cannot do this no more, they rejected an offer then told me interest is going to be charged at £50 a month, thank you i said.

I have to clear my debt, it won't go away. I'll think carefully before I decide bankruptcy, the idea is very tempting,

dont do it.
it is a cheap & cowardly way out of your own responsibilities.
advise all credit companies,include a full breakdown of income & outgoing -outgoing do not include getting ****** up every week by the way.
then ask CAB to compile a letter.
then wait.
the debt collection always starts way after you forgot what you spent the money on in the first place.they won't go away until after you start honouring new agreements.
have a note made on your credit file - giving ba summary of your problem & how you are trying to pay your way our of trouble.it helps.
it took me 10 years to get back in credit & be allowed credit cards etc.
it was hard work but i can hold my head up higher than all the 10bob millionaires declaring bankruptcy every year from the mobile in their porsche's.

the 6 years remain on file from when they are satisfied, everyones records are shown whilst live - they do now include"agreement" alongside record updates.

I owe money, more than I can afford to repay, and although I hate to admit it I am defeated. It’s getting to a point where it’s affecting life itself, I worry every day about the post, receiving phone calls, knocks on the door etc. I need relief, is bankruptcy a way out?
I do not own any assets. I do not work in finance or similar.

Please no comments about I should have been careful, my debt came about during my uni days, I was lured by the ease at which money was made available to me, I regret it now, and I shall never succumb to owning credit cards and the like again.
Any thoughts would be appreciated.

how much debt are we talking?? i have, in total, well over £20k debt but i manage it ok.. i don't have a high paying job by any means, but still manage to live on my own & maintain a flat, car, utilities, and girlfriend (by far the most expensive lol)..

can't you approach your bank about it, and get them to offer you a graduate loan (you mention the debt is from your uni days - graduate loans are available for up to 5 years after you graduate with very preferential rates)? that way, you can write off all your debt to other companies and consolidate it all into one large debt to your bank.. you will find it much easier to manage your finances, as you will know exactly how much your replayments are each month and there will be no-one knocking on your door demanding money, or adding further interest to your debt..

one of my mates declared himself bankrupt, and now it means he has terrible problems with the sort of things the rest of us take for granted.. he can't get a proper bank account, he can't get a cheque book, he can't apply for any services (phone, internet, sky, etc.).. basically, there is a file somewhere with his name on saying "DO NOT TOUCH THIS GUY FOR A MINIMUM OF 7 YEARS!!".. it's a nightmare!

at one point i had over £10k on credit cards alone (so that's before you even consider my student loan and graduate loan).. like you, i went a bit crazy when i was at uni.. now, i'm only 26, with a job that pays a modest wage, yet i found i could manage my debt by keeping track of my money flow and working out the best solution with the bank..

as previous posters have said, do a lot of research and thinking before you file for bankruptcy.. it will make it very difficult for you to do anything for the next 6 or 7 years..

you could if you ever needed still acquire credit,regardless of information on your file.with bankruptcy it will be nigh on impossible.

you could if you ever needed still acquire credit,regardless of information on your file.with bankruptcy it will be nigh on impossible.

that's essentially the point i was making.. i have a reasonable amount of debt, and presumably a poor credit rating, but i manage my responsibilities myself so when it comes to the crunch i still have options available to me..

if you declare bankruptcy, you're up sh't creek - it's not just acquiring credit that will be impossible, but simple things like applying for a phone, tv/internet service, or indeed any kind of contract..

If you have a level of debt and never default on any payments then you will probably have a better credit rating than someone who's never had any debt.

If you have a level of debt and never default on any payments then you will probably have a better credit rating than someone who's never had any debt.


just like me then!!

i agree with machievelli and everybody else who has said do your research.

im in a horrible amount of debt on paper, however, it is manageable and all the immediate bills get paid.

i have almost £10k in unsecured personal loans (will be paid of this time in 5 years- hangover from credit card madness and uni days), a couple of £100 on a credit card and 4 years worth of student loans dating back to 1997 (approx £10k and growing annually with interest).

i pay £350 a month on my immediate debts, but i dont actually earn enough either in practice (or on paper according to the student loans people) to pay back my student loans.

if i could i would love to pay these off and be entirely debt free. however, the longer i can put them off the better. im in the process of looking for a house at the moment and the repayments i would have to make on them would significantly reduce the mortgage i would be eligible for.

as has been said, bankruptcy isnt the easy way out as in the long term it will probably cause you even more bother.

i would also recommend trying to see the citizens advice bureau- im sure they offer a free debt advice service.

i dont know what money saving tips youre employing, but there are some that have really worked for me.

1) get a second job- i work in a pub part time at weekends as well as working full time in an office.

2) go veggie

3) cook curries/stews/lasagne etc in bulk then freeze in meal size portions. saves on washing up, saves on food costs and preparation time. one lasagne can last for 4 to 6 meals depending how big the dish is.

4) take your own lunch to work

5) dont go to the supermarket when youre hungry- youll buy expensive junk food.

i hope you manage to come up with a workable solution, but i do think its important that you take responsibility for your past spending and if theres a way to manage the debt, you should do that rather than write it off through bankruptcy.

sophie
x

Hi- thank you for all your replies.
If I don't respond to replies after this one it's due to me being away from the office untill Tuesday. I will however read all thats written and take advice and ponder the options.

I made a few mistakes that need resolving.
The debt agencies are so agressive and one even refused an offer of repayment instead they wanted £1000 a month. I said I will send in an expenses form showing outgoings etc and their reply was, and I couldn't believe this, DON'T BOTHER DOING THAT WE WANT £1000 TODAY.

I offered, and I haste to add, a not so megre offer of payment, they turned me down. Whats left to do?

im in a horrible amount of debt on paper...4 years worth of student loans dating back to 1997...but i dont actually earn enough either in practice (or on paper according to the student loans people) to pay back my student loans.

didn't you start uni when we had the pleasure of a tory government though, or did you take a year out?

i started uni the year before labour blagged their way into power, so i don't really have to worry about my loan.. i don't have to pay it back until i'm earning about £22k, and that threshold goes up every year to reflect inflation.. so once i actually hit the threshold, i'd like to think i'll be in a financial position to be able to give the student loans company a few quid every month!

what i'm getting at is, i don't really class my student debt as "real" debt, as it has absolutely no effect on my day to day life, or indeed my immediate future..

i dont know what money saving tips youre employing, but there are some that have really worked for me.

1) get a second job- i work in a pub part time at weekends as well as working full time in an office.

2) go veggie

3) cook curries/stews/lasagne etc in bulk then freeze in meal size portions. saves on washing up, saves on food costs and preparation time. one lasagne can last for 4 to 6 meals depending how big the dish is.

4) take your own lunch to work

5) dont go to the supermarket when youre hungry- youll buy expensive junk food.

jesus wept soph, you do all that?? you poor thing! i do almost the exact opposite of everything you've listed and still manage to get by (and i've got a car & a missus to support)!

all that money you save must go straight down your neck in liquid form ;)

anyway, to get the thread back on track - jumperjohn, unless you have very extreme circumstances (i.e. your total debt is >£20k and you are struggling to find a job paying at least £14k) i wouldn't really consider bankruptcy as an option.. as sophie mentioned, there is plenty of free advice available, from trained and experienced professionals, so i would recommend that they are your first port of call..

good luck with it all, though.. i think, in some capacity, we can all relate to how horrible and all-consuming debt can be!

tell them to take you to court, after you've sent them a reasonable offer by recorded post.
If you've made genuine efforts to resolve the situation they won't be able to get a judgement against you.

I take my own lunch to work because of cost, and i'm not particularly short of cash. It's amazing how fast £2.50 every day 5 days a week adds up.

I offered, and I haste to add, a not so megre offer of payment, they turned me down. Whats left to do?

get some professional advice asap- if they are that aggressive, you will need all the backing you can find.

in the mean time- awful as it sounds, possibly a stock take of your current possessions and some sales might be in order?

i know this seems a horribly impersonal thing to say, but if its a case of generating some cash asap, this may be one of the few options available to you on your own.

i really feel for you.

sophie
x

if they won't accept genuine offers ask them to get a court judgement against you, the court asks for all documnetary proof and allows you to make an offer based on your ability.
the companies do not have to accept it but generally do.

if you havent done so yet contact the customer services of each company by phone & writing and ask them to defer or freeze interest payments, this stop s the debt growing.

The debt agencies are so agressive and one even refused an offer of repayment instead they wanted £1000 a month. I said I will send in an expenses form showing outgoings etc and their reply was, and I couldn't believe this, DON'T BOTHER DOING THAT WE WANT £1000 TODAY

who the hell are you borrowing off, the mafia?? lol..

i may be wrong (it has been known), but i'm fairly sure that there is some law or legislation with regards to debt collection that says they can't refuse any reasonable offer of payment made in good faith, depending on your circumstances.. as mentioned before, seek out professional advice.. bottom line, bullying and harrassment is illegal and if you feel you are being intimidated then they are doing nothing more than adding weight to your case.. don't let the buggers drag you down!



is bugger considering swearing on here? i guess we'll find out when i press the Submit Reply button!

didn't you start uni when we had the pleasure of a tory government though, or did you take a year out?

i started 1997 the last year before fees and the double whammy loans kicked in, but my salary has been under the threshold to pay the loans back every year since 2002 (the first feb after i graduated). when i got the paperwork the other month i was earning £800 per MONTH less than the SLC have decided my threshold is. i dont think ill ever catch up with my threshold- pretty scary.

like you say though- i dont really class them a 'real' debt because they dont impact on my monthly budget.

jesus wept soph, you do all that?? you poor thing! i do almost the exact opposite of everything you've listed and still manage to get by (and i've got a car & a missus to support)!

all that money you save must go straight down your neck in liquid form ;)

i just wish i was drinking it all- i probably go out once a month if im lucky and i dont even keep any booze in the house. i dont have a car, i dont have a partner (would love to know when id have time to see them!), yet my monthly debt is more than my rent is. hence why i have the second job which is why i cant enjoy the bank holiday shenanigans this weekend.

the only reason im househunting is because my parents have very kindly decided to give me my inheritance early to put towards a house (and so i dont have to pay 40% on it when they cark it). maybe it would be better to put it towards clearing my debts completely, but those are manageable and i dont think house prices are going to drop in the very near future, so it really is more useful to put it towards a home.

sophie
x

Have a look around this site and see if they can help you.
http://www.nationaldebtline.co.uk/england_wales/

you could also try these guys...

have you considered a debt management plan? maybe worth considering, but its a plan administered by the cccs for people unable to pay their creditors the full contractual payments - they are not a debt consolidation company.

http://www.cccs.co.uk/

hi
me and my partner are in the same situation as you through no fault of our own admitidly.

we owe money to at least 10 different creditors ranging from bank loans,personal loans and finance
we have contacted a few companys who offer debt management plans but we have found that they all offer conflicting advice so we have decided against this option....the next step was considering bankruptcy is it worth it....NO i don't think so

After many a sleepless night and countless ideas at how we can earn money to repay all the debts (including robbing a bank selling mine or his bodies lol joke)
I decided the best option was to contact the debt companys again and negociate a more reasonable and affordable repayment plan as some of them were expecting us to pay between £80-£100 pounds even though they have a full income and expenditure formfrom us clearly showing that that would leave us penniless for the month.
so far just today i have contacted 5 of the debt companys and managed after admittedly being very forceful and honest(was proud of myself for standing my ground and gettin it on my terms not theres)to get repayments totalling £130 instead of the £265 that it was before (for just these 5) in total we were repaying just short of £500 a month on these debts .(5 down 5 to go)

i know i've waffled on a bit but i feel like a huge weight has been lifted off my shoulders knowing that we arn't going to get bailiffs knocking on our door and that the problem has eased a little if not much but i'm sure i'll sleep well for the 1st time in ages.

think you can understand my point , because i've totally lost what i was going to say lol whoops:loopy:

wishing you all the luck for the future i'll shut up now

It sounds as though the companies are being totally unreasonable.
I would go to the Citizen's Advice Bureau and they can definitely help.
Don't forget that you have the upper hand and that there is little that they can do if you do not pay. In end effect you can get no more credit, and no mortgage.
I would search the internet to also see what options are available.

Be careful with bankruptcy, as it can remove your right to credit for a long period of time.

Your best bet is to state to each creditor you can not afford to pay the money back , but are prepared to attempt to pay the initial capital back, if they refund the interest. This should help a long way, as a lot of your debt is probably interest.
In addition a lot of bank charges are illegal, and these can be claimed back.

Just make sure that you make an informed decision.