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Bankruptcy...any advice

Discussion in 'Personal' started by vikingmaid, Aug 4, 2011.

  1. Having struggle with debt I am wondering whether to go for bankruptcy. We have been paying a debt management plan for 6 years now and have barely made any mark on reducing the debt, the company we do it through have worked out it will take 23 years at this rate to clear!
    This has put our marrage under pressure and with 2 kids we have both struggled with stress related illness. As we are renting and have no real assets I feel for the sake of all concerned we should go for it. But would apprieciate your advice...before you ask debt occurred due to OH returning to education for a degree and PGCE and not a playboy life style!

     
  2. Having struggle with debt I am wondering whether to go for bankruptcy. We have been paying a debt management plan for 6 years now and have barely made any mark on reducing the debt, the company we do it through have worked out it will take 23 years at this rate to clear!
    This has put our marrage under pressure and with 2 kids we have both struggled with stress related illness. As we are renting and have no real assets I feel for the sake of all concerned we should go for it. But would apprieciate your advice...before you ask debt occurred due to OH returning to education for a degree and PGCE and not a playboy life style!

     
  3. Bankruptcy should always be seen as a last resort as it impacts on so many areas.
    You say you have a debt management plan so you should have seen a significant difference in 6 years. Look carefully at why this hasn't happened. You also mention a debt management company. Have you been paying them huge fees? If so it's not surprising that you aren't making headway.
    If your OH did a degree and PGCE then is he working now? Are you working?
    I cannot see why you haven't made better inroads into the debt if he is now working but wasn't before.
    Without knowing more details it is very difficult to give better advice but what I would suggest you do asap is visit the CAB. They have debt counsellors and their advice is free. Make sure any credit card debt is transferred to a 0% one, there are several fairly long term ones available at the moment. Any student debt does not count as debt in normal circumstances so can be disregarded. Make sure you have the best deal for energy companies and all insurances by using comparison sites. I wil ltake it for granted that you have already cut your spending as much as you sensibly can. There are some very good money sites on the web to get good advice from.
    Good luck. I hope you find a way through this.
     
  4. gergil4

    gergil4 New commenter

    No personal experience to work from, but - consult CAB/solicitor/google to find long term effects - credit rating etc. Can you rejig your debt/take it to a better deal elsewhere? What are your/OH's employment prospects?
    I wish you luck, it must be a really tough problem.
     
  5. DaisysLot

    DaisysLot Senior commenter

    As others have said, without knowing details difficult to say, but obviously if you chose this route any assets will be ceased first including house, car and any hidden cash savings or investments. It's not as simple as opting for this route and then picking up afterwards as credit for mortgages etc will be a no go for a fair few years afterwards.
     
  6. jacob

    jacob Lead commenter

    The government has a FREE service for debt management, if you are with a company they rake off their fees first. there have been many items on TV about this. See the CAB site above.
     
  7. moonpenny

    moonpenny Occasional commenter

    Vikingaid: ring the CSSS today and ask for an appointment to speak to an adviser over the phone about your situation. They give excellent,independent advice and will sned you the inforation they have spoken about afterwards. They really sorted me out.
     
  8. moonpenny

    moonpenny Occasional commenter

  9. phatsals

    phatsals Occasional commenter

    There are advantages and disadvantages to bankruptcy, but it is there for a purpose, namely to be able to get on with your lives.
    If you had gone/been declared bankrupt 6 years ago you would now be debt free and Statute of Limitations would mean you would now have a clear record, ie it would not come up in searches.
    The National Debtline is where you need to look
    http://www.nationaldebtline.co.uk/
    Their advice is free and second to none. They have full details of what bankruptcy is, how it works and how it will affect you. They have many self help guides and standard letters for you to use.
    The problem with DMPs is that a fee is charged and quite frankly 23 years is unacceptable. You may have been better going for an IVA although there are some upfront costs associated with these, running into thousands.
    I was a CAB Money Advisor before teaching, by all means approach them for help but there is a long waiting list. The best source is National Debtline and threre is a phone number to call. No-one can advise you to go bankrupt, this would have to be your decision but at the end of the day no-one should drown in debt. Sometimes the best thing is to put it behind you and move on.

     
  10. For some real-life experiences, advice and support, there is a dedicated board on the MoneySavingExpert site:
    http://forums.moneysavingexpert.com/forumdisplay.php?f=136 where you can get to grips with all the implications of the decision and some idea of what the decision making process entails.

    Not sure why that isn't a link - sorry!
     

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