I have an unsecured debt of £20K. I used to live at my parents but moved out due to family conflicts in the last 2 months. I am loding now and my rent is £400/month. My monthly net income is £990 and expenditure in the region of £980. Income over expenditure leaves with a surplus of about £10. For the last couple of months I have been borrwoing from frineds to pay my credit cards that I am having difficuites to cope with. Is bankruptcy is the right option form me?
We're going to need more information. How much are your credit outgoings? How much money do you have left after paying food, bills and travel to/from work.
Depending upon your answers your options could be:
Debt Management Plan (DMP) - You pay whatever you can afford to your creditors until the debt is paid off. If you don't have much DI (Disposable Income i.e. money left over after bills, food, etc.) then this can take 10+ years to complete.
Individual Voluntary Agreement (IVA) - You normally need to have £200 DI to enter into an IVA but some companies do accept £100 DI. This lasts for 5 yrs and you pay all of your DI to your creditors.
Bankruptcy - You are BR for 12 months and all of your debts are written off. If you have more than £99 DI you pay a certain percentage (between 50% and 70%) to the OR for 36 months.
I have an unsecured debt of £20K.
Posted - 24 February 2010 : 15:57:26
