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

Moderators: TalbotWoods, JaneClack

By kkoala
#308653 Id like to make the bankruptcy, but I am afraid about all the procedure.
I currently owe just about 10 k in the few different companies.
I have got the full time job....I am not sure what the solicitor gonna take- probably my car, but I wont have anything to get to work. I am treating the depression which put me to suicide 2 years ago...all that stress now putting me back in my depression.
I am single and I live in the shared house. I am afraid if I go with bankruptcy they will take all my money what I am spending for the clothes and in the pubs to socialize just to keep my depression behind me.
I pay rent 300
bills are 150
then I pay car insurance 120
the petrol is 160 a month
food + medicine expenses are 160
clothes are 100
and I am spending 60 a week in the pub
I am earning just about 1250 a month

How do the deal with it how much they gonna take of me?
If they will cut my spendings so much that may cause my depression will come back....What shall I do?
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By JaneClack
#308883 First of all you need to see a doctor re the depression that is causing you to spend this way.

In a budget prepared for bankruptcy - which is going to cost you £700 to start - the Official Receiver will discuss with you your expenses and he may feel £100 for clothes each month and £260 for socializing each month is somewhat excessive. He would certainly allow you more for housekeeping and something for clothes, haircuts, medical expenses, household bills etc. If you have an expensive car then he may wish you to get a smaller one if it is necessary to get to work.

You need to work out a budget - as in bankruptcy on the figures you have quoted there will be some discussions with the Official Receiver and you are likely to get an income payments arrangement which will last for 36 months if you have a disposable income of over £20 per month.

You may find out that you can afford the contractual payments to these debts - unless they are payday loans etc and by paying just a little more you can actually clear them without a bankruptcy notice on your credit file for 6 years.

This is not really the place for you to discuss your budget - in Tim and my posts you will find links to places which will help you with this for free - but what is more important is to get more help with the depression you are suffering from. Spending - as a lot of us know to our cost - does not take depression away.

Good luck.
By chandjay
#308893 Hi kkoala,
I'm not sure that you are unable to service your debts(meaning you are bankrupt).. With debts of only £10k and an income of over £1200 a month, you should be able to repay your debts without suffering too much hardship.
Yes I know that 10k is a lot of money to be in debt, but there are people on here who are managing to live quite comfortably on less income and MUCH MORE DEBT than 10k. - I myself had debts totalling £72k.

Solution:- Get on a DMP, get the interest stopped on your debts, get your monthly payments down to a manageable figure, then just pay your creditors every month and get on with your life.
You are in a good position as you have no assets, so there is very little your creditors can or will do.

I know I'm making it sound easy, and to start with it will be a bit of a pain, but once you can get a DMP up and running, then it does get a lot easier, and the hassle stops.

I know you have health problems, so doing your own DMP may be out of the question, in which case get in touch with Payplan or CCCS to discuss your options(both are free).

If after all you don't fancy a DMP, and you go for bankruptcy, then there are a lot of things on your expenditure sheet you can claim for to get your surplus income down(meaning you pay less to the Official Receiver for 3 years).

Incidentally, in my own bankruptcy, the Official Receiver let me keep my car.

Good Luck.