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suetw
Starting Member
2 Posts |
 Posted - 02 March 2009 : 13:30:36
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| I have debts of £6000 and have been paying mostly interest for the past year due to the downturn in the economy, would the solution be to go bankrupt, sue |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 02 March 2009 : 14:30:58
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Hi Suetw, and welcome to the forum,from 6th April this year there comes into being a new solution called the Debt Relief Order (DRO) which is aimed at people with debts under £15k Under a DRO provided you have a disposable income of less than £50 per month no assets and a vehicle under £1k (after all your costs such as rent/utilities'food/travel etc) To see whether or not you qualify for a DRO make an appointment in your local Citizens Advice Bureau as they are processing the DRO applications - the good news is the fees for the DRO are £90 not £495 as in bankruptcy.
If i can be of further help please ask
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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pix1
Average Member
689 Posts |
Posted - 02 March 2009 : 17:39:10
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| Yes, it would be a shame to go bankrupt for only £6000 however difficult it is making payments on your credit. Other options may exist. |
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suetw
Starting Member
2 Posts |
Posted - 03 March 2009 : 08:30:35
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Hi Melanie,
thanks for your prompt reply what docs are required as I am self employed?quote:
Originally posted by Melanie.n
Hi Suetw, and welcome to the forum,from 6th April this year there comes into being a new solution called the Debt Relief Order (DRO) which is aimed at people with debts under £15k Under a DRO provided you have a disposable income of less than £50 per month no assets and a vehicle under £1k (after all your costs such as rent/utilities'food/travel etc) To see whether or not you qualify for a DRO make an appointment in your local Citizens Advice Bureau as they are processing the DRO applications - the good news is the fees for the DRO are £90 not £495 as in bankruptcy.
If i can be of further help please ask
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 03 March 2009 : 08:36:31
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If you are self employed check your outstadning tax liability etc as this may put you over the threshold for a DRO and bankruptcy may be your only option. You obtain the docs for bankruptcy by contacting your local court, ask to speak to the bankruptcy clerk and reueste a pack to be sent to you for filing for bankruptcy (at this stage they will only want your name and address for sending the pack) it is a good time however when on the phone asking when their next available appointment is, some courts will fit you in within a week - other courts there is up to 4 week delay, so it would be best to book the appointment whilst on the phone. You will need for the OR all your paperwork regarding your debts plus accounts for your trading etc
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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I have debts of £6000
