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cocoalush
Starting Member
7 Posts |
 Posted - 28 December 2009 : 07:08:39
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Hi,
I really would like some advice. I'm a student at university, 22 and not working. I have debts totalling £12,000. The only income I have is my student loan and grant, i get paid in three installments during the year (£2800 each installment). Here's my story:
2007: started university, receiving the student loan was a new thing to me, I wasn't used to a lump sum and I took every opportunity TO withdrew or spend on credit cards and overdrafts from 3 student bank accounts.
2008: I started shopping online with littlewoods etc who offer buy now pay later. I was able to meet payment to my creditors but it was a struggle surviving a little then during the end of 2008 I couldn't keep up with the minimum payments of all my creditors.
Jan 2009: I couldn't keep up with all the payments to my creditors so I seeked advice from a debt management plan. I was still struggling a little especially because I was overspending on shopping and my ex at the time was skint so I gave him money out of kindness not as a loan, in total I gave him around £2000 in sepreate sums during the year 2009. I was able to give it because I wasn't insolvent then, I gave him the money from my student grant money. I also brought him an item for his car totalling £1800 from ebay, though he sold his car after,i brought it for him from my loan money and I was still meeting payments to my DMP but I was struggling.
Oct 2009: I was struggling, I started to suffer from depression and panic attacks, I depended on taxis to travel as my attacks were set of on public transport, I couldn't keep up with the payments to the DMP, I gambled few times on online sites. I was close to skint, I needed money to survive. In the past I took out two payday loans just before my student loan was due so I could pay them off then. I took out two payday loans in nov 2009, I extended the loan til jan 2009. However now I am skint, I can't afford to keep up with the DMP, I have budgeted my I&E carefully and I cannot afford it, I am left with £80 at the end of the month, I budgeted that my income is £550 a month and expenditure roughly £470. I spoke to the CCCS who said that bankruptcy is my only option since my £80 won't cover all my creditors, I am happy going down this route and I am aware of all the implications. I don't ever wish to take out credit ever again. I have some Q's to ask regarding my problem:
If I am declared bankrupt would the OR ask about me giving money to my ex? Would they ask for it back? I did give it during the time I was up-to-date with my DMP. I split up with him don't wish to see him ever again.
Would the OR question about the ebay car accessories gift? he no longer has them as he sold it.
Would the OR get angry about the payday loan I took out? I did intend to pay it back next month but after doing my I&E, I realised I will struggle big time during the next few months.
I am happy to go bankrupt and I know this would enable me to start fresh with no credit. I have no assets. Hope to hear your advice. |
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RHB
Senior Member
1159 Posts |
Posted - 28 December 2009 : 08:19:24
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If you were in a DMP then yes you were insolvent. You gave your ex half of your loan/grant as a gift! Not many people would give half their salary away!!!
If your debt is only 12000 in total & YOU HAVE NO ASSETS then a Debt Relief Order might be a better option.
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cocoalush
Starting Member
7 Posts |
Posted - 28 December 2009 : 08:42:50
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It was a foolish mistake giving my money to my,I regret it now but I can't turn back time, I'm the kind of person who can't see people I care about struggle I know that's now a good enough excuse. I'm not eligible for the debt relief order becuase I have £80 left over after my expenditure which isn't enough for the DRO which requires you to have £50 or under left after expenditure.
When you receive the student loan and grant its really hard to budget because you get paid in installments. I've recently only set a realistic budget for myself. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 28 December 2009 : 10:58:32
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Have you included everything in your expenditure. Don't get me wrong, I'm not encouraging you to lie, but it's amazing what we forget when we are trying to live on a budget.
It might be worth going through your expenditure again - post it on here if you want some advice.
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/
29 IPA payments made, 7 to go - in single figures! |
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cocoalush
Starting Member
7 Posts |
Posted - 28 December 2009 : 11:54:34
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You mentioned the DRO. Since I get my student loan in three installments (Sep 2009, Jan 2010 and May 2010) it's very hard to set a realistic budget for a month, I get £2800 in each installment, so if i divide that by four my monthly budget would be £700 (at first my monthly budget for Jan 2010 was set between £500-580 only because I thought that I would withdraw £522 for my bankruptcy fees) My expenditure is as follows, it totals to £480:
Housekeeping £150
Telephone £30
Travel £100 (this includes travelcards and taxis - which I use when I fear to get on public transport, it has been a life saver to me)
Clothing £40
University books and stationary £80
Contact Lens £60 (prescription)
Medicine £20
I did speak to the CCCS about DRO few months ago but they said that I was better suited to the DMP as I received £700 a month and my expenditure was around £500 leaving me with £200 left over. Yes at the time they made sense and I was with the DMP then but I was also struggling, because I would go shopping to make myself better, I would buy presents for friends and I gave money to my ex. So the DMP didn't go to plan with me, because I had that lump sum in my account the £2800 was easier to spend. At the moment I won't be able to hold down a job, I tried to get a temp job but after 2 weeks I had to quit because of my panic attacks and depression. Some day's I can go out but other day's it's just awful, going to university is also a struggle due to it. After uni I plan to take a year's rest then try to get a job, I am visiting the mental health team regularly. My worry is that even though I could easily get rejected for a DRO because of the £200 extra left over, what would happen when I leave uni during june? I won't have money to stay on a DMP forever. I just wish for my debts to be wiped off and for me to have a fresh start and never get credit again in my life. |
Edited by - cocoalush on 28 December 2009 11:55:18 |
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RHB
Senior Member
1159 Posts |
Posted - 28 December 2009 : 16:00:23
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| What about course fees? Rent? |
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