hi, i am really contemplating bankrupcy as i do not get paid enough to cover all my debts. i only have around 7500 of debt and some of that is on a debt management plan which i have been on for around a year. i dont know if i qualify but i cant live this way. i cant buy food and im starting to get behind in rent. i have been told i dont have enough debt for an iva hence the reason i am on a debt management plan. i get paid around 250 per week. do i qualify and if not is there anymore help out there? as i feel i have run out of options.
whilst bankruptcy is an option for that level of debt you may be better served waiting until April when the new Debt Relief Orders come into being.
You must have no assets, debts of less than £15K and a monthly disposable income of no more than £50. The process will be simpler than bankruptcy and cheaper, but will have pretty much the same effect.
Not all of the details of this process are in the public domain as yet but by April I'm sure that to research this option via the web will be simple enough.
thanks for the reply, my main debt is a car i have on hire purchase and i am quite far behind on this and the rest of my debts. i have started to receive red letters and i am constantly stressed and cant sleep with worry. will the new amendment be here in time before i get into serious trouble? that is my main worry
If you want more info on the Debt Relief Rrder (DRO)scenario which seems to be the best option for you with the level of debt stated, providing you have a disposible income of less than £50 after meeting your housing costs etc You can contact the Money Advive Expert at your local Citizens Advice Bureau who can make an appointment with you to go through the process ready for 6th April. Your vehicle will have to be returned to the HP company if you go down the DRO route, this would also be the case if you were to file for bankruptcy, unless you were able to justify the need for the vehicle for work etc but usually the car would be returned and any shortfall under the gareement would come into the bankruptcy or DRO
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
thanks again for all the help. will book an appointment and get it sorted. already tried to hand the car back but company will not accept. however am goin down the legal route with this as i am well within my rights to hand thecar back. thank u for all ur time and help.
hi, i am really contemplating bankrupcy
Posted - 23 February 2009 : 14:19:34
