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Faye.85
Starting Member
1 Posts |
 Posted - 14 November 2011 : 16:29:19
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I am considering bankrupcy as I am struggling to repay my debt of approx £12000 and only earning £800 a month. I have a car that I bought this year with a loan, i bought the car for £4,000 but do not know the value of it now. I am 25 years old and am getting married in 9months, which my partner is currently paying for.
Would I be better off declairing bankrupcy at this stage? I am struggling and do not know what to do. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 14 November 2011 : 16:46:43
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Hello there, have you considered a debt management plan? If not i would strongly recommend that you talk to a Debt management complany such as the Consumer Credit Counselling Service (CCCS 0800 1381111) they will go through your options with you - at not costs as this is a charity based company.
It is always sensible to look at all the options available to you - as you have a car, ehich no doubt you require for work, it would be better to look at other options before deciding upon bankruptcy. You would not qualify for a Debt Relief Order (Similar to bankruptcy for debts under £15k as you have a car over £1,000 in value)
Bankruptcy is going to incur costs of £700 - so you would be better off considering options such as a low cost DMP through one of the charity providers such as CCCS or PAYPLAN (0800 716239) which would enable you to keep the vehicle - if you could free up funds each month to pay towards your debt..
You have nothing to lose by having a chat with them - if after reviewingyour circumstances they recommend bankruptcy, please do not hesitate to come back as we will be more than happy to help - but explore your options first!
Melanie Nicholas CertDR
30 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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debtinfo
forum expert
2826 Posts |
Posted - 14 November 2011 : 17:56:58
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| although if you sold the car and replaced it with a cheaper one using the remainder to pay to your creditors you would then perhaps qualify for a DRO, but as meanie says, take advice and look at all options |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 15 November 2011 : 12:55:53
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Hi Faye
At 25 years of age just starting out in a relationship I would certainly echo exploring the debt management route, bankruptcy in the mid twenties with debts of around 12k should in my opinion be the last resort and if at all possible avoided. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 15 November 2011 : 13:12:01
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I think I'd consider either a DMP or DRO as well.
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I am considering bankrupcy as I am struggling to repay my debt
