I think I may try bankruptcy

A question about : I think I may try bankruptcy

Hi there,

I can see no way out of my debts,I am seriously thinking about bankruptcy.
I do not want to,but it seems like the only option.
The CAB have closed my case now,Lloyds and MBNA are saying no to token payments,and threatening bayliffs.I live with my parents,and they are saying that they must produce receipts to show that posessions are theirs and not mine....and I don't want my baby growing up into a debt ridden lifestyle.
I really thought they would issue CCJ thingies first.....:confused:
My questions are:

As I live with my parents,can my bankruptcy affect their mortgage,credit rating etc??

And when I phone these creditors up that I am currently having trouble with,do I tell them I am filing for bankruptcy in hope they will leave me alone while it goes through??

Any advice would be great.Thanks in advance.

Best answers:

• How much do you owe? Do you work?
• how much debt are you in hun?
  can you do a soa see if we can help?
• Hello and welcome
  We really can't offer much advice until we have more details such as how much is your income, what are your outgoings and a list of your debts, including limits, APRs and state of play i.e in arrears etc
  If CAB have closed your case, it may be worth speaking to CCCS or National debtline- links at the top of this page.
  Bankruptcy may appear easy but it's not and I am pretty sure the creditors will not be quiet while you are filling for it. If you do a search on this forum for bankruptcy, you will see many threads about the subject.
  Good luck and hope you post more details.
• Have to reiterate the advice of previous poster - get in touch with CCCS or Payplan asap. I've been in contact with CCCS re a DMP for a couple of years now and they have been great.
  From memory from previous posts - creditors can't send in the baliffs until they have gone to court. They will threaten you with that kind of thing - and potentially worse - but most 'eventually' start to accept DMPs.
  If you contact CCCS or Payplan they have loads of experience in dealing with credit industry. It is a double win from your point of view - they are respected by the credit industry and they also know quite how sneaky/nasty they can be. You get great impartial advice. They will be able to tell you what your options are and what the implications are. Will also be able to give you advice on any impact on your parents. Wouldn't have thought that there should be any impact on them though. Impact would be on anyone who was financially linked to them ie if you had a joint bank account/mortgage.
• Why did the CAB close your case? Usually that is if you default on an agreement you made through them?
• From personal experience I advise you very very strongly to contact an organisation called the Bankruptcy Advisory Service, who are based in Hull, speak to a lady called Gill Hankey, she is exceptionally experienced in advising where and what you should do in such circumstances, there telephone no is 01482 633034, or you could email >gill@bankruptcyadvisoryservice.co.uk
• edge barber that link doesnt work
  Is that a company??/
• yes, they are a company, and they will make money out of your debt. Dont call them - try CCCS, or Payplan links above they are free, and dopnt fund themselves and thier profits through your payments
• 1. MBNA can NOT send Bailiffs without a CCJ.
  2. If you are declared bankrupt it will not affect your parents, unless you have any joint account with them or are otherwise financially linked.
  3. Post an SOA (tell us your income and all expenditure and debts) and we will be able to advise you better.
• And dont call them to tell them you are going bankrupt *if* thats what you chose to do after speaking to Payplan or CCCS.
  It justs gets their backs up - they hear this a lot from people every day and dont bother to take it seriously, they see it as threatening and get annoyed, secondly, if they do take it seriously, you are likely to be swamped even more with with calls etc. as they will now do anything to get their money back.
• Thanks to all of you - it really helps me feel a lot better about the situation that I am in to just be able to share the problem with you.I hace copied my soa from my first post below:
  Right,here goes,it's only a rough one....
  My Salary....was around Ј800 per month,but I have been on Maternity pay since April,as of the 15th of October,I am on unpaid leave.I have an appointment at the Job Centre tomorrow to see if I can claim IS or Mat.Allowance
  I recieve child benefit,Ј69 per month and Child Tax Credit of around Ј250 - can't remember exactly because I was getting WTC,and it was paid altogether,but that has stopped now.
  My partner buys everything that baby needs - we are very much together,but live at different addressess - he lives with his Nan,I am still with parents.
  Board money Ј100 PM
  Car Ins. Ј30 PM
  Car tax every 6months Ј97(I think)
  Petrol Ј30 PM
  Pet insurance Ј25PM
  Pet supplies Ј35PM
  food Ј120 PM
  personal care items Ј15 PM
  Mobile phone Ј5 PM
  Internet Ј15 PM
  Why can't I think of anything else.......!
  What I owe
  2 bank loans with Lloyds
  1@Ј8533.83 ,1@Ј6092.03
  mbna credit cards x 3
  1@Ј876,1@Ј1092.22,1@1143
  lloyds card Ј5953.54
  egg card Ј3713.29
  capital one card Ј2807.01
  citi card Ј832.42
  barclaycard Ј874.34
  Some of these amounts may have risen,I am copying from the sheet the CAB gave to me back in April,and as I said,MBNA and Lloyds aren't being co-operative.
  So sorry if this isn't enough info - I'm trying to find it all out,type it in and feed baby at same time!!
  I don't know at this time any of the interest rates(I'm too scared to phone them in case they ask for the money)
  I just want to be debt free,the payments that I am making are no where near to getting me free of my debts.Thanks again to all of you.The CAB told me that they close all cases after 6 months,something to do with it being voluntary,and I have to wait another 6 months before I can apply again.I have never defaulted on any of my token payments,and pay these every month.In total,I am in around Ј31000 of debt...I would there to be an alternative for me....thanks again you are all so helpful....
• I cant add much more than the above but it is very hard with debt and a new baby.
  Have you checked that your taxcredits are correct?
  Is it posible to get a parttime job and you should get working tax credit
  I just want to wish you good luk on what ever you choose
• From what you have said I'd strongly recommend getting in touch with CCCS or Payplan. They are very experienced in their field and will be able to give you unbiased advice.
• The problem that the CAB have is that we don't 'manage' cases in the same way as CCCS/Payplan. We just try to get the offers accepted, then hand it over to you to make the payments.
  On the positive side, both CCCS and Payplan have minimum payment amounts. We don't. If you're in £1 per month territory, they probably could't accept you on a dmp.
  We do have problems with LTSB in that their timescales are about ten times longer than anyone else (only a slight exaggeration!) and there is pressure to close files. I am just getting acceptances through on my February cases, so you may still find that their Brighton office will accept the CAB's offer in a couple of months.
  Looking at your soa, I'm a bit surprised that the CAB didn't recommend bankruptcy. Was any reason given?
• Bankruptcy was suggested along with the token payments,I chose the latter due to not knowing much about it at the time and being a very stressed out 8months pregnant!!
  I am still unsure as what to do - I still can't believe I have so much debt.
  I am going to try CCCS or payplan and see if they can help me anymore.
• I would think that CCCS would reccomend bankruptcy, as you do not have sufficient disposable income for a DMP. However, this is NOT the end of the world, and you would, effectively, be given a fresh start. It will be difficult to get credit, but you would probably be better off without it anyway.
  The Bankruptcy period lasts, normally, for 12 months, and you will be so busy with your new baby that that time will soon pass.
  Why not have a look through the Bankruptcy Club thread and see how others have coped.
  Good luck.
  Rog2
• Out of intrest, what did you spend the money on? Not being judgmental, but thats a lot of debt, especially when compared to your salary at the time. I can't believe the amount of credit that banks are willing to extend to people these days. I remember when I was about 18 (I'm 37 now) & I went overdrawn at LTSB by about £100 just before I went on holiday. By the time I got back I had a pile of the nastiest letters you could imagine - these days they'd probably have been sending me loan applications!
• I really can't justify why I am in this much debt,and that's the worst part of it for me - I have nothing to show for the mess that I am in.I have never paid my credit card bill of completely,just minimum amounts,and I suppose 16 years of this has added to the problem.I have just got in touch with CCCS,just waiting now to see what they suggest.
  Thanks again everyone.