Bankruptcy

[ChocolateMarvel]

OK so I have no idea if this is even possible but I have a lot of debts and I would rather like them to bugger off as they have followed me round for ages but due to poor budgeting and mental health making work hard they haven't been paid off.

I just seem to be accumulating more and more debts and was wondering if (apologies for my phrasing) I could just be bankrupt, they write off my debts, I can no longer get credit therefore have to learn to budget better? If that makes sense?

I know some people see bankruptcy as a bad thing but for me I feel it would be a huge relief!

Um yeah I guess I was just wondering about peoples experiences of this? And opinions on it?

[squirrelspit]

this link might help: http://www.direct.gov.uk/en/moneytax...ptcy/dg_187323


have you considered debt consolidation at all?

[The One Who]

I suggest you give this a read: http://www.adviceguide.org.uk/englan...bankruptcy.htm, as well as looking at information on the CCCS site, here.

Bankruptcy isn't something to consider lightly, it will come back to haunt you for several years down the line, and can possibly stop you from getting certain jobs.

I really suggest you go to a local Citizens Advice Bureau, or similar advice centre and see if they can help you. When you go, take a list of all your creditors and how much you owe to them. They'll fill out a detailed income/expenditure sheet (down to the last penny!) with you and then see if they can help. Often they'll contact the creditors and ask for them to freeze any interest on the debt and to set up a repayment plan that is affordable to your circumstances.

[Ballerina123]

Have you tried something like a debt management scheme. There are some religious ones that provide counselling too so you learn to cope with your money even when you are unwell. X

[talaiporia]

My mum says, re: severe debt, that when she worked at Lloyds, if CAB wrote the financial management plan to the debt recovery unit, saying "agree to write off X% off debts, reduce interest and repayments and this person won't default, else they'll go bankrupt and you'll get no money" then the bank always agreed because it wasn't worth the hassle not to - if it had been written 'professionaly' by CAB.

If you feel that there is no possible way out, bankruptcy is an option, but if it's moderate-severe debt, that will take a while to pay off, it's probably better to get CAB's hel.

[ChocolateMarvel]

Sorry I have been away from the internet and rather distracted!

Thank you for all the replies!

I need to look into debt consolidation, hoping to get some support with this stuff as I am really rubbish at the moment- scared to go to CAB on my own but there is an organisation that do housing-related support which includes help with budgeting and stuff round here and I am having an assessment with them on Friday.

From reading a little of the link Charlie and The One Who (Claire?) posted and reading comments, I think bankruptcy is perhaps not the right option. I just want it all to go away! :(

Thanks for all the ideas and advice though!

[The One Who]

Why are you scared? You could always take someone with you, if you are comfortable talking about that sort of stuff in front of them, or just leave them at the waiting area.

I know you just want it to go away, but it won't go away by itself, and sticking your head in the sand only makes things worse. It's easy to say that you should tackle it head on, but in my experience most people who do feel like a weight has been lifted a bit.

[ChocolateMarvel]

I went to the CAB on Monday for an assessment and had an appointment today to see an advisor who is helping me to sort out money stuff- I am probably going to get a Debt Relief Order as that seems the most sensible option. Its all rather overwhelming and I keep getting scared and stuff but I am trying to keep going doing stuff. So over the weekend I need to fill in the Housing Benefit form and Monday I need to put in a claim for JSA to rectify my lack of income! :/ But yeah I am making progress.