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inthemuff
Starting Member
2 Posts |
 Posted - 14 February 2009 : 00:10:50
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hi there everybody, im really struggling at the moment financially, im currently living with my parents in order to reduce the cost of living after loosing my job in construction.
my parents are having a hard time with each other and my mum is seriously considering a divorce.
I have a multitude of depts which are currently being paid out of my overdraft because jobseekers allowance just doesnt cover the repayments, i am really hoping that i can get a job soon to keep my head above water but its not looking good. With a view to possibly declaring myself bancrupt, do you think it would be a good idea to pay my overdraft with my credit card in the hope that i will secure a job soon. thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 14 February 2009 : 01:03:07
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Hi
I can't see the advantage of doing so.
If you declare bankruptcy then all debts, including overdrafts and credit cards are written off.
If your thought process is that you want to keep the account during and post bankruptcy I'm afraid most, but not all, high street banks will close the account anyway on learning of your bankruptcy.
timendi causa est nescire
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pix1
Average Member
689 Posts |
Posted - 14 February 2009 : 16:10:11
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Sorry to hear of your family problems.
A lot depends on your level of debt. how much do you owe? It needs to be around £12000 or more to make bankruptcy the best option, although this partly depends on whether oyu are in work. At the moement you are not but if you found work soon and you did owe less than say £12000 then it would be a pity to go down the bankruptcy route as there is a procedure called an administration order which is an alternative to bankruptcy, but oyu would need to be working.
If bankruptcy is right for you then you would need to open an alternative bank account preferably before declaring bankruptcy. This would be a Coop cashminder account or a Nationwide account. These are bankruptcy-friendly accounts.
Please go to the Insolvency Service websie to consider your options. You can search it for information.
http://www.insolvency.gov.uk/
Ignorance is the cause of fear
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pix1
Average Member
689 Posts |
Posted - 14 February 2009 : 16:14:37
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Update:
Sorry, i was slightly wrong with my original reply.
To qualify for an Administration Order you must have:
1) At least one County Court (or High Court) Judgement issued against you
2) At least 2 creditors
3) Your total debt must be less than £5,000.
N.B. You may not need to be working to qualify.
Anything over £5000 and bankruptcy may be best option. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 14 February 2009 : 21:50:40
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There are the debt relief orders coming in April
Melanie has a thread on this which is worth reading.
Up to 15k of debt
£50 or less disposable income
No assets
Car valued at under £1000
etc
Firstly never rush into a solution as this is not recomended.
If you believe that you will get a job soon or in the next 6 - 12 months ( and the level of debt is not too large ) then you may consider a Debt Management Plan until a job comes along.
How muc money do you owe in total?
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 15 February 2009 : 13:56:10
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Unfortunately Nationwide are no longer BR friendly. The only accounts available to undischarged bankrupts are the Co-op Cashminder and the Barclaycard cash account.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
20 IPA payments made, 16 to go - on the home straight! |
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hi there everybody, im really struggling
