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DavidK
Starting Member
United Kingdom
6 Posts |
 Posted - 01 December 2010 : 13:50:17
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Hi everyone,
I ran up some debts at University, a long time ago, and since then they have steadily increased as I tried to keep up with repayments while living "normally" i.e. beyond my means.
A couple of years ago, with debts of £28,000 (six creditors), I started a DMP with CCCS. This has been going fine, although it has been difficult at times to make the monthly payment. I deliberately made the monthly payment as high as I could afford so that I could clear the debt faster, which means I set my budget for leisure/clothing/maintenance etc. lower than perhaps I should have. I've felt like my life is on hold and I have years left to go.
I have £16k left to pay, but this week I was suspended from work pending an inquiry for gross misconduct. I am pretty sure I will be fired, sure enough that I'm considering handing my notice in first so I don't have to tell prospective employers about what happened.
No matter if I quit or get fired I will (as I understand it) be ineligible for benefits, so until I find another job my income will be zero.
I currently live with my parents, paying them £50 per week. They will let me stay for free until I get another job.
I will have to contact CCCS and tell them I can't make payments for a while, but I'm starting to think that bankruptcy would be a better option. I have no assets at all, except for my car which is worth less than £1000. Will I be discharged after 12 months even though my debts are due to being young and foolish, and then taking too long to wise up? I have after all been making payments to CCCS for two years, so I can't be accused of rushing to bankruptcy as an easy escape.
Is bankruptcy a good option for me? Even if by some miracle I keep my job, bankruptcy seems like a good option so I can get on with my life.
I have a Natwest bank account that I opened when I started the DMP. It is pretty basic but it has a chequebook and a Visa debit card (not Electron) so would this account be frozen if I went bankrupt? I have read about people opening Co-Op accounts which I can certainly do, but I don't owe Natwest any money and the account has no overdraft facility so it might be okay.
Thanks for any advice. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 01 December 2010 : 14:02:08
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Hi there and welcome to the forum
If you have lost your job/income then you would be unable to continue with your DMP with CCCS and therefore bankruptcy would then be your better option.
Please note though that any Student Loan debts are not included in bankruptcy, as they are exempt.
You would be able to continue with the Natwest account, but don't list it on the bankruptcy forms. You can let the OR know when you have your telephone chat that you have an account for income/benefit etc (that way you save the hassle of having to wait until it is 'un frozen' as the OR will freeze all accounts listed on the forms.
In your situation it is more than likely that you would only be bankrupt for around 6 months, as you would probably be eligible for an 'erly discharge'
Hope this helps, Melanie
Melanie Nicholas
29 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
telephone 01792 899996
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DavidK
Starting Member
United Kingdom
6 Posts |
Posted - 01 December 2010 : 14:06:52
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Hi, Melanie.
Thanks for the reply, that helps a lot. I paid my student loan a long time ago, so no worries there. |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 01 December 2010 : 14:24:41
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Hi DavidK,
I can't add to anything to what Mel has said, but I would add all of your debts up and find out the exact amount as I had a client recently who thought she had £18k of debt and it turned out she only had £14k and she qualified for the Debt Relief Order.
My apologies if you know the exact amount of your debt, but just thought it's something you could check with you being so close to the £15k criteria.
Good luck and keep posting.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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DavidK
Starting Member
United Kingdom
6 Posts |
Posted - 01 December 2010 : 14:45:08
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Hi, Viki.
Thanks for that. A Debt Relief Order looks much better than bankruptcy, but unfortunately my debts are over 16k. So close yet so far! |
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RHB
Senior Member
1159 Posts |
Posted - 01 December 2010 : 18:38:25
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Could your parent perhaps pay some off for you to get it under 15,000?
As to your job, are you in a union? |
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DavidK
Starting Member
United Kingdom
6 Posts |
Posted - 02 December 2010 : 09:46:18
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Hi, RHB.
I could possibly ask my parents for more help, but they've done a lot to help me already and I'm hesitant to ask for even more.
I'm not in a union unfortunately. I've almost made up my mind that I will resign, in fact I would probably have taken a letter of resignation in already if snowmageddon hadn't descended on this part of the country yesterday, preventing me from travelling. It's a dead-end retail job and I had been intending to leave and pursue my dream to be a writer. There are a lot of freelance writing jobs available online, although the pay can be extremely poor, especially for people just starting out. Wiping out my debts would give me breathing room to try and make a living doing something I enjoy. |
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DavidK
Starting Member
United Kingdom
6 Posts |
Posted - 02 December 2010 : 10:21:53
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| One more thing: would I have to inform Natwest about my bankruptcy/DRO? Is there a chance they would decide to freeze my bank account if I do. Maybe I should open a Co=Op account as a backup. |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 02 December 2010 : 12:27:08
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Hi David,
If your Nat West account has no overdraft there is no reason why it should be frozen( as Melanie said don't disclose it on your forms, leave that until the telephone interview and the OR would write to them asking that you be allowed to keep the account open to receive income etc. ultimately it's up to Nat West whether it stays open), however Nat West are one of those banks that you cannot say for certain will close the account, so it may be worth having the Co-op account open as backup( I have one open for that reason)
Big Al |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 02 December 2010 : 12:27:22
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If you have the basic account, then I would just run it by NatWest and tell them your intentions.
The Co-op Cashminder is a great account so you could always get that one open anyway. That won't be frozen.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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Viki.W
forum expert
United Kingdom
2211 Posts |
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DavidK
Starting Member
United Kingdom
6 Posts |
Posted - 05 March 2011 : 14:16:46
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I thought I'd better post an update.
The bankruptcy went smoothly. I spent a couple of hours at the court, but most of that was waiting. Everyone was extremely helpful, and I was called in to see the judge for 60 seconds (no exaggeration) so he could check I had taken advice and knew what I was getting myself into.
The OR rang later that day and arranged a telephone interview a few days later. The interview was pretty straightforward, and I made sure I had all my paperwork, letters and statements to hand so it was over pretty fast. I was told they would not be taking my rubbish old car and my Natwest account.
I opened a Co-Op account as a backup but I haven't needed it. I still have the same Natwest account and if they froze it any point they didn't tell me. I wonder if they even know I'm backrupt, and if I should tell them or keep quiet.
Thanks to everyone here who helped me. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 05 March 2011 : 15:06:47
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Excellent news David, glad everything went ok.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 06 March 2011 : 21:07:12
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congratulations David
welcome to a debt free future
Richard |
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glafy
forum expert
436 Posts |
Posted - 06 March 2011 : 21:35:29
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Well done dealing with the court and OR interview.
Glad it all went well.
"Good things come to those who wait".....I'm a patient person but this is taking the Mickey!! |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 06 March 2011 : 21:43:42
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I'm glad it went well David.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Should I go backrupt now?
