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

Moderators: TalbotWoods, JaneClack

By shmikes
#2277 Hi. I'm in a situation where right now I am earning enough to barely cover my debts...i'm paying back a loan I took out to attend my brothers wedding and a graduate loan. I'll soon be moving city with my partner and haven't secured a job as I am changing careers (the job i'm in has me very unhappy and on anti-depressants). So, in a sense I can predict that once we make the move I will probably declare bankruptcy. Do you think the OC will consider my situation self inflicted, and should I mention the medical issue which played a part in my actions (actions meaning taking a lower paid job even though I knew they it wouldn't pay enough to cover my repayments)? Thanks. :roll:
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By Nicky
#2278 Everything is relevant when it comes to how you found yourself in the situation you are in. There is nothing bad in what you have said, so dont worry about the OR thinking that it was self inflicted.

Have you considered any alternate solutions? You say you are in a lower paid job at the moment and going for a career change. Have you thought about offering your creditors more affordable reduced monthly payments? I know you say you dont have a job set up at the moment, but it sounds like you do hope to find a suitable job, if so, you could offer £1 per month for a few months until you get a job and make a better offer, (this is when you are not in work, currently, you could offer more until you move).

If this is something you would like to consider, there are free debt advisory companies who can offer you an assessment to see what other options are available.

FCL Debt Clinic - http://www.fcl.org.uk 0800 716239
National Debtline - http://www.nationaldebtline.co.uk 0800 808 4000

Or you could go to your local CAB.

All these are free services, and there is no obligation to do anything they suggest.

Hope this helps.
By shmikes
#2286 thanks nicky. I have consulted some of these services, and if i were to follow the career trajectory I am on in the moment i could in theory continue to pay back my debts but what I want to do will require me to take a substantial pay cut in order to get the experience I need. I have been offered some comromise by my lenders but the monthly payment is still quite high. Bankruptcy is the most appealing option because it will give me a clean slate. I'm worried about a restricition order being imposed. I talked to my brother about the situation and he's been playing devil's advocate, i.e. saying what if the OR frowns on the fact that you left a reasonably well paid job for a less well paid job then declared bankruptcy. Also, the loan for my brother's wedding wasn't taken out very long ago... i can continue to make the payments for as long as i'm in this job but won't be able to once i move. Do you think this will be viewed as reckless?
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By JaneClack
#2290 No, I do not. You do not have to stay in a job if you do not enjoy it. Leaving a job to go on benefits might be thought of as a bit off - notice I didn't say reckless! - but you are taking another job. You didn't take the loan out too long ago and are able to pay it whilst you are in your current job. This job is making you ill and so you need to move and NOW you cannot make the payments. The OR is not going to regard this as reckless behaviour. No-one can second guess the OR but from what you have said I would think a BRO extremely unlikely. :D
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By Nicky
#2301 I agree with Sarah, I dont think you will have any problems. I dont see any form of recklessness in what you are doing. Taking a lower paid job for better job prospects is certainly not reckless. :wink:

The loan was taken in good faith on your behalf that you had every intention to pay the money back at the agreed monthly payment. Your situation is now changing which has made things difficult for you to keep to the arrangements. You dont sacrifice happiness for the sake of a monthly payment and I'm sure the OR wouldnt expect that of you either. I'm sure you will be fine.