Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By shmikes
#2108 I have a graduate loan of £10,000, a credit card maxed to £1,000, and an overdraft maxed to £2,000. Whilst this may not seem like much in comparison to some....it is causing me to struggle and I've had to borrow from family on a few occassiions. The problem is, i've just started a job with a £15k basic. There were a few months a while back when if I had know about bankruptcy I would not have hesitated because I was totally unable to make repayments. Now I barely can, but I want to do a PGCE in 2005, and when the time comes, I'll be totally unable to make repayments once again. If I petition now, what is the likelyhood of being given an IPO, and would I be better off petitioning when I start my PGCE? I hate my job and i'm only doing it because it was the only thing that paid almost enough to enable me to make repayments. I'm tempted to quit and get something I like better, with less pay, so I can petition and be assured i'm not earning enough to be given an IPO. Anybody have any advice for me? Thanks!
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By JaneClack
#2131 Basically when you have your interview with the Official Receiver you will go through a budget which allows him to see if you have surplus money available. £15,000 per annum whilst living with parents is likely to leave quite a bit spare and he could take up to 100% of it but more likely 50-60% for three years unless your circumstances changed i.e you started a PGCE and your income disappeared. However, £15,000 per annum and living alone in rented accommodation would mean the surplus income was much lower! The other thing to consider - if you hate your job and are considering bankrupty - is to get a job you like even if it pays less - that way an income payments arrangement (which we would all prefer to an order) is unlikely to be made anyway. Why wait until you start your PGCE when without it you could be probably be discharged from bankruptcy anyway as many simple bankruptcies are being discharged in six to seven months? Just one thing - remember that Student Loans cannot be included.