| Author |
 Topic  |
|
|
myself
Starting Member
United Kingdom
3 Posts |
 Posted - 09 August 2009 : 20:59:42
|
hi,
my situation is that ive been paying all my debts on time and have never defaulted in my life.i had to give up work after falling ill and im not on benefits and it looks like i will never be able to work again.
i got a new bed on buy now pay later and is not due for payment in full until june next year.if i go bankrupt beforehand can this be included in the bankruptcy?
also i am about to start defaulting on my credit card payments .should i pay them what i can or nothing at all.my total debts are 12000. thankyou |
|
|
gettingoutofdebt
forum expert
2418 Posts |
Posted - 10 August 2009 : 09:48:18
|
If your debts are £12k then a Debt Relief Order (DRO) may be a better option than BR provided you meet the criteria:
# The debtor’s total unsecured liabilities must not exceed £15,000;
# The debtor’s total gross assets must not exceed £300 (Cars are allowed up to £1000);
# The debtor’s disposable income, following deduction of normal household expenses, must not exceed £50 per month.
DRO's are administered by the CAB and they will be able to provide more information.
All debts can be written off in the BR so the bed should be written off as well.
It is up to you whether you pay a token amount to your credit cards however if you do then you should pay a token amount to all of your creditors so there is no favouritism.
When I decided to declare BR I never bothered paying a token amount to my creditors are they are only happy with the full payment and will probably still chase you for the extra money.
|
 |
|
|
sjbyron
Average Member
United Kingdom
746 Posts |
Posted - 10 August 2009 : 11:15:52
|
Hi
Get an appointment with cab, ask about DROs and also any benefits that you may be entitled too
Stu J Byron |
|
|
|
Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 10 August 2009 : 11:22:22
|
You are not able to apply for a DRO if you are a home owner, even if the property is in negative equity.
Also, Baines and Earnst are also administering DRO's so they might be worth a call as well as the CAB can get extremely busy and have long waiting lists.
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/
25 IPA payments made, 11 to go - on the home straight! |
|
|
|
Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 11 August 2009 : 12:39:23
|
Just to add as well that a DRO lasts for 12 months and will cost you £90 as opposed to BR which will cost £510.
You have to make sure that during the whole twelve months your disposable income does not rise about £50 per month.
The glimmer gets brighter all the time
Jan
xx |
|
|
|
myself
Starting Member
United Kingdom
3 Posts |
Posted - 12 August 2009 : 20:02:27
|
| thankyou for all your help.im sorry to sound stupid but when you say disposable income must not be above 50 pounds do you mean after the debts have been written off or while you are paying them?also you said it lasts for 12 months,do you get a certificate for the DRO like bankruptcy to keep debtors away and it stays on the credit file for 6 years?is there a court involved? |
|
|
|
myself
Starting Member
United Kingdom
3 Posts |
Posted - 12 August 2009 : 20:05:23
|
| sorry ,i meant to say that my only income is incapacity benefit and dla etc.how can you ensure that 50 is not exceeded once the debts have gone~? |
|
|
| |
Topic |
|
buy now pay later and bankruptcy?
