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| T O P I C R E V I E W |
| ranchu |
Posted - 02 March 2009 : 10:14:17
Hi, I currently have debt of approx £25,000 which I have on a DMP. Due to a reduced amount in my wage this month I have not been able to pay my DMP.
In the past couple of months I have been contemplating entering into Bankruptcy as my DMP will take another 12years to pay off ( some very bad initial advice was given to me by a major credit counselling service).
My situation in the next several months is due to change & I’m unsure what to do first for the best.
Firstly I have been advised that my rolling contract of employment will not be renewed at the end of the month so I will therefore have no job. Also in several months time I am planning to move abroad within the EU to be with my partner.
So now I don’t know what I should do for the best. If i can’t afford to file for bankruptcy myself how long will it take if I do not make any payments for one of my creditors to file for my bankruptcy? My debts range from the lowest of £500 for one creditor to £6500 for the highest amount to another creditor.
Also if I was to file for bankruptcy now what would happen in a months’ time if I’m unable to find work & have no money coming in?
Any advice you can offer is much appreciated.
Many thanks.
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| 3 L A T E S T R E P L I E S (Newest First) |
| ranchu |
Posted - 02 March 2009 : 16:02:55
Thank you John & Melanie for your replies.
I currently rent the property I am living in so I guess that makes the situation a little easier.
Once again many thanks  |
| Melanie.n |
Posted - 02 March 2009 : 14:43:48
Hi there and welcome to the forum, it may be that bankruptcy is the way forward for you, the fee for filing for your petition in bankruptcy is £495 - if you were able to hang on till the end of the month and you do end up losing your job, if you claim JSA you may be entitled to a £150 reduction in the fee.
With regards to your creditors taking action, the debts appear to be low, although I fully apppreciate, that to you at the moment debts combined they seem high, for an individual creditor to make you bankrupt they will usually not take bankruptcy action as a solution until they have exhausted all other forms of collection as it costs them money to make you bankrupt.
If you file for bankruptcy and lose your job (or wait until you have lost your job before you file) you will as likely not end up with an IPO as you will not have the income to fund one, and will be able to basically walk away from the debt and have the 'fresh start' bankrtupcy is meant to provide.
You do not mention any property do you own a house or rent? as if you own a house you will need to establish the position on the possibility of equity BEFORE filing for bankruptcy - let me know do you rent or own a property? if own property, is there any equity?
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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| John |
Posted - 02 March 2009 : 14:42:48
Hi
in no particular order....
If you are made redundant then your situation one month on will be no different in bankruptcy than it would outside of bankruptcy except to say that you creditors would not be hounding you any more.
If you cannot afford the fees each creditor will continue to chase each debt. Each creditor will also carry out some checks on you to see if you have any obvious assets that could possibly be seized. Assuming you have no such assets, and the creditors have identified as such, they are unlikely to petition for your bankruptcy as it costs £1.5K minimum and with no assets they will have closed the door on any possible return.
Being bankrupt will not restrict you from moving abroad in a few months time.
John White
England Jackman & Spacey |
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