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Original poster

Seriously in debt - bankruptcy advice please!!!

24 replies

katiegiggle · 07/01/2011 16:52

To cut a long story short I am heavily in debt and really need some advice. I have 2 kids and I am separated. To make matters worse it appears that bankruptcy is my only option. I have contacted a number of organisations for advice and it appears that the quality of advice varies significantly. I seriously do not know where to turn .

My question for help is this - where do I turn to for help and advice? Has anyone here experienced bankruptcy who can tell me what it is like?

OP posts:

Chil1234 · 07/01/2011 17:18

Have you talked to the CAB?

LIZS · 07/01/2011 17:19

CAB or a funded organisation like CCCS who don't charge or deduct a fee from your monthly payments for their advice(as many that advertise do). The Money Saving Expert forum may also have some helpful advice from those who have been there too.

YetiOnAJetty · 07/01/2011 23:18

Hi katiegiggle. about to go bankrupt ourselves in a few weeks. It's been coming for a couple of years now so it's not a shock, almost a relief really. Go and have a look at Martin lewis (think that's his name!) moneysaving website. The fella that's on the breakfast tv programme. There's a section on there about bankruptcy and living with it, everything you need to know is on there and you will get some great advice from people who have been through it themselves.

Good luck.

Original poster

katiegiggle · 08/01/2011 18:31

Thanks guys I will contact the suggested links.

YetiOnAJetty - mine has been a long time coming too. It is such a worry!

OP posts:

purpleturtle · 08/01/2011 18:36

CAB is a good place to try, or you could look here for free face-to-face debt advice. The main thing is not to go to anyone who charges you for advice - although you will have to pay a fee to go bankrupt.

There are definitely MNers who have been through bankruptcy, and hopefully one or two will be along to help soon.

Original poster

katiegiggle · 08/01/2011 18:42

I hear so many forums talk about not paying for advice and to be honest this really confuses me somewhat. I understand that there are plenty of organisations trying to make money from people in debt but bankruptcy seems such a serious step to me. Surely it is worth paying a qualified solicitor for advice?

OP posts:

LIZS · 08/01/2011 18:47

That's different to lining the pockets of a "debt management" company though. You don't actually need a solicitor and indeed they may not be the first port of call for best advice as to whether you could avoid bankruptcy and handle your debt differently.

Original poster

katiegiggle · 08/01/2011 18:51

I'll have a good call around on Monday but it appears that getting help with debt is going to be a nightmare.

OP posts:

purpleturtle · 08/01/2011 19:40

You don't need a solicitor, honestly. You're not near Liverpool by any chance, are you?

WelshCerys · 08/01/2011 23:24

I went to a short course (three evenings) run by CAP, Christians Against Poverty, at a local church. A free course, excellent and absolutely not necessary to be 'religious' to attend. And no effort to convert - simply there to offer this really professional money management support.

Anway, lots of money management advice etc and, best of all, if you need it, you can call the national organisation and ask them to take over your debts so they get all the phone calls, correspondence etc and not you. You set up an account with them, not with your creditors who they deal with directly. They can deal with a full range of insolvency problems so may be worth a call, in your case, Free service. Good luck. Don't despair.

For more info and on courses near you:

www.capuk.org/home/index.php

redpanda13 · 09/01/2011 13:02

Again the money saving expert bankruptcy forum is excellent. Good advice and a nobody will judge you.
National Debtline and the CCCS also give free advice. You do not need a solicitor and pay nobody for advice. Good luck :)

Ponders · 09/01/2011 13:07

If your outgoings exceed your income, CCCS will do their best to negotiate with your creditors to freeze interest on debts & arrange a manageable monthly payment for as long as it takes to clear.

The creditors may well then sell your debt on to other agencies who will nag you but they can't make you pay more or settle.

CCCS are fantastic. \link{http://www.cccs.co.uk/\link}

You may decide bankruptcy is preferable as it's all over instead of dragging on but talk to them anyway

Good luck

CointreauVersial · 09/01/2011 13:14

A friend of mine is going through it at the moment (her small business failed). She had great advice from CAB, but she also has an accountant, which made it easier.

She has not been forced to sell her house mainly because there is so little equity in it that they judged it wouldn't be worthwhile, but she had to sell her car etc. For her, it is the relief of knowing that she'll no longer be on that treadmill of debt and she can start to get her life back.

Mountains of paperwork involved, btw. Every minute detail of your income/outgoings will be looked at. Best of luck, hope it works out OK.

addy911 · 11/01/2011 12:45

Hiya, bankruptcy may not be your only option, it depends on how much you owe, how many creditors you have and most importantly, whether you own your house or if you rent....CAB and related organisations tend to be quite long winded, and if you were to choose bankruptcy, everone would charge you as there are standard fees payable to an Insolvency Practitioner to carry out the work. Don't panic, nothing too major to worry about here, sounds like you just need showing the right direction. If you pay a debt management company, you would pay less than if you were to continue as you are now (probably) with mounting interest and presumably charges.Which part of the UK do you live in?

purpleturtle · 11/01/2011 21:41

There have been instances where Debt Management Companies have not advised bankruptcy where perhaps they should have done, though. If taking commission on someone's debt is how you make your money, you're unlikely to advise any course of action other than the most protracted.

Ponders · 11/01/2011 21:53

the only debt management companies which you should consider are the ones which don't charge, like CCCS.

There are others too I think, though I don't know their names, but steer well clear of any which require a fee (or a percentage of your monthly payments)

addy911 · 12/01/2011 14:41

Purpleturtle - I am sure you are quite correct in many instances, however, there are some more scrupulous ones who put their clients first in ALL instances. I know of one for a fact anyway, as I know somebody who has used them.

Original poster

katiegiggle · 13/01/2011 11:51

Hi everyone, thank-you for your replies. I have contacted CCCS, CAB and a bankruptcy adviser that I found on the internet. I'll let you all know how I got on! Why isn't this industry regulated. I am all up for paying and even tend to lean towards professionals but it is a nightmare finding one in this industry that isn't out to make a quick buck!

OP posts:

addy911 · 14/01/2011 00:22

My DH wouldn't dream of ripping you off and would sort out all the problems if you would let him. Contact me by mail and it will be sorted!!

expatinscotland · 14/01/2011 00:28

Honestly, go for free advice first.

Original poster

katiegiggle · 14/01/2011 11:50

Hi addy911 - with all due respect the one thing that I have learnt through all of this is to avoid the promise of "it will be sorted". However, I do appreciate that you are trying to help. Thank-you.

It has been an interesting week. Plenty of conflicting information. What scares me the most is that organisations, including charities, are quite openly telling me the legal position regarding my property and they are conflicting with each other! Has the law recently changed or something???

Something else that I have discovered is that some money I repaid to a family member recently may be questioned - bankruptcy advice (half way down) - Is this correct?? I'm going to have to seriously consider not going bankrupt if that is the case!

Another interesting fact I found out is that bankruptcy is not a complete fresh start. Again I received conflicting answers but apparently if you can afford to you have to repay for three years! What!

It does appear that bankruptcy is my best option as I do not have enough income for anything else. My main concern is my kids. If I have to move this will upset them. Anyone any ideas? Can I stay if I can prove that the children's education will be disturbed for example???

I'm going to post in Martyn's Money Saving Expert and see what they suggest also.

Thanks for any suggestions that anyone has x

OP posts:

purpleturtle · 14/01/2011 13:49

I think they might question you about the money you repaid to a family member in case you have "given" money to a family member to look after while you go bankrupt, iyswim. They might also argue that you should have shared any money you had between all your creditors, rather than preferring the family member.

higgle · 14/01/2011 14:57

katiegiggle - I was bankrupt some years ago, it was a great relief ( business venture that went wrong) and I was much better off financially once I was bankrupt as I was only assessed as having to pay a small amount towards my debts each month. They may well look at anything you are paying out now as once it is clear you cannot meet your financial committments you must not be seen to be offering any creditors preference in payment - so if you repay a debt to your family and leave others outstanding they might well seek to recover that money back.

It was a more serious matter a few years ago to be bankrupt and I did have to wait for 6 years to get a credit card again, but as I did not owe my bank anything they gave me a card bac as soon as they could, as did, strangely enough, M&S.

higgle · 14/01/2011 14:59

Just noticed a bit more of your last post - yes you do have to repay some money, but only from what is left after your living expenses are covered - my receiver was very generous about that and I earned about 55k p.a. at the time and paid £300 pcm for 3 years.

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