Im in serious debt, im thinking of declaring myself bancrupt?

Question

i have debts of over 20,000, i dont own any property, except my car which i need to get to work, me and my families living expenses are only just covered by my wages. i have debt collectors knocking on my door, the court require £500 to declare myself bankcrupt. is this my best way out? advice please

Answer 1

Please please PLEASE contact the CCCS - they are a specialist charity who offer very detailed debt advice, entirely for free. They are exceptionally well trained and well informed, and utterly non-judgemental, and they should be able to talk you through ALL of the many options open to you, including bankruptcy. They have strong relationships with banks and lenders, and will perhaps be able to negiotiate reduced payments and/or reduced debts. Anyway. Check their website it has loads of useful advice on it:

http://www.cccs.co.uk

Good luck!

Answer 2

Do it. It's your best way out and they won't touch your car. Believe me, you'll feel free of the worry and no one will hassle you anymore.

Answer 3

With debts of over £20,000 (assuming you are in England or Wales) with few assets bankruptcy is an option.

The things to bear in mind - how old are you?

What do you do for a living?  Would you mind your employer finding out?   Do you have plans to change careers?  Are you expecting to inherit anything?  Do you mind your name being made public in the newspaper and on the net?

You may lose your car if it is of excessive value.

Remember, you can old really do it once and get away with a 12 month discharge.  You might end up making payments towards your debts for 3 years.

If you can't think of a reason not to do, it then consider it.  Bankruptcy in England is much better than it used to be.

Answer 4

I agree with the first answer - but don't go straight for the bankrupt option cos it seems like the best one - discuss your options with the Citizens' Advice Bureau first. There may be ways to make simple monthly payments to repay the debt you owe.

Answer 5

Bankruptcy works. It is fine for your situation. If you haven't been deliberately fraudulent, or deceptive the period should be no more than 12 months. More likely shortened to 6 months. Be honest and co-operative with the Official Receiver and the whole thing will be relatively painless. Keep an eye on your Income Tax as often they stop taking it for the Bankruptcy period, then hit you for it when you are discharged, which can be a nasty surprise!

Answer 6

Find yourself a person who knows invidual economic issues...And talk to you lawyer...And find out the people have same problem on the net and see how they solved the problem...

Answer 7

sell the car . buy a moped / scooter , speak to bank , cut back NOW , don't go bust , use your head , DIvorce an option ? who ran up the debt , if you go bust there is no more credit except high interest .

Answer 8

The Official Receiver can sell any of your assets, this includes your family home, your car and any of your household effects (if they are deemed to be of excessive value).

Answer 9

DO NOT DO IT!

The people who say it's OK are uninformed. Bankruptcy will mess up your life in the long run.

$20,000 isn't that bad. You can get rid of that in just a few years. If you file then it will be harder to obtain any loans and those loans will have much higher interest rates.

Put your mind to it and do it. Don't try to find the easy way out. Work hard at it. It will build your character too.

If you file you will regret it for the rest of your life!

Answer 10

Yes, agree with the two above. Citizens Advice. They will tell you if bankruptcy is the best way to go.

Answer 11

That'll be "bankrupt" It's no big deal nowadays is it!

Contact the citizens advice they'll advise you of whats best.

Answer 12

Go bankrupt. MY mate did it and was the best thing he did. Why go through all that? What's the point? Just go do it and start sleeping again. Start fresh.