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lee.01
Starting Member
3 Posts |
 Posted - 12 June 2010 : 18:23:57
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I still live at home with family and am 25 years old. I would like to move out but would not be able to afford to do so after payment to my Creditor's each month. Therefore, although I CAN actually afford to pay my Creditor's each month and can afford to live reasonably and I don't have my own accommodation to pay for at present, would I still have a good case for application for bankruptcy seeing as I would LIKE to be able to afford my own accommodation of some description? So basically, although I can afford to make my payments, by doing this I'm unable to even consider moving out of the family home unless I were to be successfully made bankrupt but am unsure as to whether my case would qualify?
Thanks
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 12 June 2010 : 21:46:35
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hi LEE
welcome to the forum
what we would all like and what we can achieve are often miles apart.
Please donot consider bankruptcy lightly it is not a quick fix solution.
have you considered a DMP. may be more appropraite before things get really serious have a chat with one of the experts they may be able to help you out of your hole before you have to petition for bankruptcy.
i do not know all of your circumstances but from what you have typed you do not qualify for bankruptcy.
regards Richard |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 13 June 2010 : 09:29:57
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Richard i have to disagree, if you owe more than you own you are officially insolvent and can declare BR
Lee as has been said it is not something to rush into and other debt solutions should be at least considered before decidimg what to do.
BR is one of the quicker solutions but everything comes with a price.
I would suggest having a free no obligation chat with one of the forum's professional experts.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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debtinfo
forum expert
2826 Posts |
Posted - 13 June 2010 : 09:44:52
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Hi Chester, the measure that the judge's use is that "you cannot pay your debts as they fall due" so the OP cannot declare bankruptcy at the moment.
If hypothetically though, his parents asked him for a reasonable contribution to rent and bills or if he moved into his own accomodation now, it would seem that he would not be able to pay his debts as they fell due and so could go bankrupt then. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 13 June 2010 : 09:58:57
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judges tend to be pragmatic and if you owe more than you own you are insolvent . I have known judges question when it is not apparent because the person can "pay debts as they fall due" and simply put just because a person can do that should not exclude them from being able to start afresh without the stress of debt as they are officially insolvent and it is a legal right to be able to declare BR if you are insolvent.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 13 June 2010 : 09:59:55
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Hi,
My view is that as you can meet your creditors at the moment, you are not insolvent - therefore you are not eligible for BR.
take some advice and review your position. The DJ would not allow you to petition as I see it at present.
Good luck, Richard
"There are no problems - only solutions" |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 13 June 2010 : 10:18:48
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using the criteria of being able to pay debts as they fall due a lot of people should not be declared BR as they can pay their debts but choose not to or even choose to eat out instead.
You are insolvent if you owe more than your assets are worth.
I don't want to argue semantics but it would only take a conscious decision to not pay one debt, be served with a default notice that requires full payment of that debt and then it would be the case that you apply, unable to pay debts as they fall due.
Judges are well aware of this and WILL declare people who are "not insolvent" by your definition.
I know of more than one person who should not be BR by your definition.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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RHB
Senior Member
1159 Posts |
Posted - 13 June 2010 : 10:19:37
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| Might be worth seeing how quickly you can pay your debts off to enable you to move.Bankruptcy has to be declared all through your life & therefore is best avoided if at all possible. |
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lee.01
Starting Member
3 Posts |
Posted - 13 June 2010 : 10:25:57
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Thanks for all your input so far.
I understand all the points raised but this is where my confusion lies as there seem to be a number of different answers around in every place I research.
You are right in saying that in theory I can actually afford to pay my debts each month, but then this is largely due to the amount of help I receive from my parents, as in I only pay towards the rent etc perhaps not even half as much as what I should be able to offer them. But then this situation is likely to change in the near future as my Mom has just been made redundant and she is the one I live with and whom is responsible for paying the rent and bills/shopping etc each month. It may sound extreme but if ever my Mom was to decide she could no longer afford to pay the rent and decided that she would have to live with her Partner elsewhere then in effect I would be homeless.
But with this debt, although I can afford it at the moment, it is debt that I would be paying off for years to come and would therefore never be able to live on my own or at least with a friend/partner whereby we shared bills. Also, I am only able to afford these monthly repayments now as I am currently paying reduced installments to each of my Creditors anyway after a visit to CAB who then liaised with my Creditors on my behalf.
Also, how do I get in touch with the experts on here and who do you advise I should be going to in order to discuss my possibilities of BR?
Thanks again :)
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 13 June 2010 : 10:54:17
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on the left hand side of the page is a link to the experts i personally would recommend Paul Johns at RevivaUK www.revivauk.com he is very well thought of.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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lee.01
Starting Member
3 Posts |
Posted - 13 June 2010 : 11:15:51
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Thank you very much, do you have to pay any fees to these people and if so when?
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 13 June 2010 : 11:26:42
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initial telepone or email advice is free with Reviva if you want them to proide you with a full BR service there will be a charge but there may be other options available to you which is why you should speak to them.
Paul Johns is good at finding ways for people to pay the fees and court fees that most people would ot consider, it is worthwhile giving them a call.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 14 June 2010 : 10:28:16
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Just to clarify, there are two general definitions of insolvency, one is the inability to pay a debt when it falls due, and the other is when the liabilities exceed the value of the assets.
Either circumstance can be applied when filing for bankruptcy, and, although some judges may query it, technically it is irrelevant if you can pay your ongoing debts - paying the monthly minimum amount on a credit card is not paying your debts as they fall due - the debt is the balance you owe, not the monthly repayment.
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
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debtinfo
forum expert
2826 Posts |
Posted - 14 June 2010 : 10:43:05
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| But the amount that is due is the monthly amount as that is what is contractually required. If you were to default on any agreement the whole amount becomes what is due as per the contract |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 14 June 2010 : 10:56:59
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That's true, but it doesn't alter the fact that, at least as far as credit cards are concerned, the debt falling due each month is the full amount outstanding - notwithstanding the fact that the card company allows you to repay an agreed minimum monthly amount
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
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am unsure as to whether my case would qualify?
