Bankruptcy? How tough is it?

[AZFell]

And is it any easier than the mental toll of spending around £800 per month on repayments then never having any spare cash for when an insured driver hits your car and you have resort to the credit card again? (The latest catastrophe).

I'm honestly in despair over our finances. I've defaulted and how around 30k in unsecured debt. Dh has not defaulted yet, but his total debt is also almost 30k.

He earns 40k a year. I earn 20k but my contract is ending and I'm having trouble finding another job so will have to do temp work until I can find something.

We rent, which concerns me regarding bankruptcy but what else can we do? We have no savings at all. And no assets aside from the car which is worth a grand at a push. There's no room left for balance transfers or consolidating. They're part of the reason we are in this mess.

Can anyone offer any advice? We can't afford to see a financial adviser and I'm ashamed of our situation so it's hard to talk about it. I'm just so tired of it all.

Ffs uninsured driver! If he were insured it wouldn't have been as much of a headache!

If you're working, or if you're in benefits... Go to CAB (Citizen Advise Bureau) DO NOT get financing, do not go online n search condensing debt.

Google your local CAB, and find out their times, then get there nice n early, or call (depending on local rules) asap.

My local cab, I have to get there before 8.30am, or the queue is quite long. Plus at mine its first come, first served, so prepare to sit n wait.

Go, stop sitting there, go sort it out...

Step Change will help you. I had an Individual Voluntary Arrangement (like a bankruptcy) for a lot less than you owe but it’s the only way forward. Give them a ring. It’s fabulous not being in debt.

Also look into reclaim the cost of the repairs from the motor insurers bureau under the uninsured driver's agreement.

Can also recommend Christians against poverty, they are known to give excellent advice and you dont have to have any sort of faith to use them!

Try CCCS consumer credit counselling service. I went bankrupt about 20 years ago, it was such a relief, perfectly painless. I had no other option and was on benefits though. I don't know how it would be if working.

The MoneySavingExpert forum has a specific bankruptcy forum which is really helpful. I did it some years ago, it wasn't awful. I had a private landlord who wasn't bothered (if I rented via an estate agent that might have been tougher) and my work wasn't affected as I didn't do anything money related. I would take a good look through your employment contracts just to make sure there is nothing in there that says you can't go bankrupt. They should let you keep your car if you need it for work.

What country of the U.K. do you live in?

Another one for step change here!

The organisations mentioned, Step Change, Christians against poverty have much more clout than individuals. Talk to one of them as suggested and tell them about everything, DH’s debt too.

My DS has just completed his bankruptcy, it was the best thing he could have done. Quite painless and his life really didn't change at all. He kept his car and had no trouble with renting his home. Earned a reasonable salary and only had to make some payments at the end of each financial year if he'd gone over the allowed amount.

He learned to live without credit which was a really big thing for him. Learned to save, and to say " I can't afford it" to his children who he had previously indulged .

It really didn't affect him at all except in a positive way.