Am approx £90k in debt. Debt arose due to living lavish lifestyle and also financing myself for 10 months when not working a few years ago (outgoings £3k per month). About a third of the debt arose due to gambling.
Was made redundant in Decemeber from a job that was paying £80k a year and there is no possibility of work on the horizon in the imminent future as my specialist industry is in decline. Had entered into a DMP in December 2007 paying £900 a month. £300 of this went to RBS but they refused to stop interest and charges which were about £450 per month. Continued via DMP route as BR would mean I couldnt practice in my profession. I have also paid the DMP this Jan and Feb from my redundancy money but cannot do so for March. My DMP company is proposing to offer each of my creditors £1 token payments until I find a job, as they say that there isnt anything that creditors can do except call me as I have no house, no car, no assets etc. The advantage of this would be that I would be able to work when I find a job in my profession. When I do find a job they will propose an IVA to my creditors.
I am married and my wife does not work or get any benefits. We married last year and none of the debt arose due to her (ie I was in a DMP using no credit when we met etc).
I need to make a decision as to whether keep trying to get a job in my area of expertise, which recruitment consultants advise is unlikley for at least this year, and make £1 token payments to creditors (having to put up with the hassle creditors give me) OR go bankrupt. Any advoce would be appreciated. I would then not be able to get a job in my area until I was discharged - and this is where the issue lies. Would I get a BRU/BRO and if so for how long? Could I plead with the OR to take into account that I couldnt work until I was discharged as I have only ever worked and trained to work for one specific job. (am sure that the OR would say that I could get a lesser paid job doing something else). Any advice would be a godsend.
As a basic idea - if there is not much likelyhood of employment in your field within the next year, you perhaps should consider bankruptcy as this would be over in a maximum of 12 months. The only hiccup to that is you mention gambling, may i ask when this took place, have you been free of gambling for at least 6 months? have you sought help? approx what amount of your debt would you attribute to gambling? These are important questions - if gambling had been taking place until recently and you have not sought help you run the risk of a Bankruptcy Restriction Order which may extend your bankrupty by for example 3 yaers (cannot be specific as it all depends on particular circumstances but in reality they rarely extend past 3 years)
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
Help Needed
Posted - 04 March 2009 : 18:20:29
