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Original poster

Should I go bankrupt?

47 replies

Fieryfighter · 04/12/2016 15:57

I have debts totally about 30k, I'm on a small not far off minimum wage and have been for ages (very little work here or prospects). I have two children and exh pays no maintenance (own business, earns nothing on paper - you know the story)

When exh left I could no longer pay the mortgage or all the bills on my own, my house was repossessed and once the mortgage company sold it there was a shortfall of abut 25k. There was also joint credit card debt of any 5k. My exh went bankrupt so all of the debt lies solely on my shoulders. I didn't even want to buy a house at the time as our relationship was rocky but I was caught up in a very difficult pregnancy and he was very persuasive so I just went along with things, my fault I know for not sticking up for myself but he was so difficulty to disagree with and would wear me down so much. Most of the credit card spending was his apart from near the end where I had to use them to buy food at times. It was a terrible time.

I went to payplan and set up payment arrangements with all the creditors and have for some time paid very small monthly payments to them all as agreed. My only option realistically is to go bankrupt but i never have had enough money to pay for it as we very much live hand to mouth. To be honest I've just been paying these small payments and assumed that I will do for the rest of my life.

I've recently found out that a relative plans to leave me money in their will, I'm not exactly sure how much but led to believe in the 20/30k region. They're a fit and healthy 70 years old.

I literally can't imagine how life changing this sum of money would be for us, I cried when I found out. I would be able to help the kids through uni must importantly and finally not lie in bed every night worrying about money and bills.

However I've realised in my current situation if I inherit it will literally all be swallowed up by these debts, I won't see a penny and won't be any better off monthly anyway as I pay such small amounts. It's heartbreaking, especially as half of these debts belong to exh but he's no longer liable.

Should I somehow find the money (would have to somehow borrow it) to go bankrupt now?

OP posts:
MadMadDonna · 04/12/2016 15:59

It would be immoral to do so
If you inherit you'll have to pay up unless your bankruptcy is discharged anyway

CotswoldStrife · 04/12/2016 16:07

It would affect your credit rating in the future, which may make renting a house difficult, for instance. It's not the easy option at all.

ZoFloMoFo · 04/12/2016 16:10

It would be totally immoral.

And the fit and healthy 70 year old could live for another 25 years.

Fourormore · 04/12/2016 16:15

Take some proper debt advice. It may be exactly the right thing to do. If the person dies before you are discharged from your bankruptcy (usually 12mo) then it would still go to pay off your debts.

But that aside, you owe considerably more than you earn in a year, you presumably have no assets. It might be better for you to go bankrupt. Try speaking to Stepchange or someone like that.

PigletWasPoohsFriend · 04/12/2016 16:15

I agree with pp.

Your relative could live for another 25/30 years.

timeforabrewnow · 04/12/2016 16:16

Gee - helpful and compassionate madmad

Sorry OP - someone will know something more than me and be able to give some reasonable. I can see why you'd be gutted at having to pay off debts of ex before using money elsewhere.

timeforabrewnow · 04/12/2016 16:17

*advice

Original poster
Fieryfighter · 04/12/2016 16:19

My credit rating is totally rubbish anyway, I can't get any form of credit to every attempt to build it up. It was the morality that I was questioning, I wish I didn't even know about the inheritance in a way to be honest as this past year I've been thinking I really need to somehow find the money to go bankrupt given the amount of debt and impossibility of paying it off at this rate. Citizens advice told me this way my best option earlier this year but I just did nothing.

What is terribly frustrating is the house was on the market but the only offer we had was for just under 5k less than the mortgage amount and the mortgage company wouldn't accept it. If they had accepted it I'd only owe them about 5k.

OP posts:
user1480182169 · 04/12/2016 16:24

Fuck immoral. I would go bankrupt, then work to repair credit rating (which is already in the toilet and can only be improved by either paying off debts or bankruptcy), and hope to inherit way in the future when I can keep all the cash and use it for my children.

And I couldn't care less if people think thats immoral, thats how the billionaires of the world do it, why should the poorest be the most "moral", as if that concept even applies here.

Original poster
Fieryfighter · 04/12/2016 16:25

No I have literally no assets and am in a housing association house which I was lucky to get as we were made officially homeless by the house repossession.

I'm aware my relative could live for a long time and hope they do of course but obviously I can't help thinking how much that money could help me and my kids most importantly in the future. I've literally spent the last 9 years scrimping and saving and just about getting by so can't help being upset about not seeing any of it.

OP posts:
user1480182169 · 04/12/2016 16:29

Then make sure you do see it, go bankrupt now before its an issue. You'll be discharged in 12 months and then any inheritance is yours to keep.

Original poster
Fieryfighter · 04/12/2016 16:31

Oh and not only has exh gone bankrupt and but liquidated 3 companies since, he gets away with so much, closes a company and starts another similar, no idea how he gets away with it. It does grate when every month I'm paying tiny bits of a joint debt

OP posts:
mumonashoestring · 04/12/2016 16:32

Asked DH about this (used to work in debt management) - can you handle a few months of door knocking/phone calls from your creditors? Because if you stop making payments your mortgage company etc. will take you to court to have you declared bankrupt. If you just stop making payments, cheerfully announce that you can't afford repayments whenever they ask, all the court costs etc. will fall to them when the case goes to court.

If you can't cope with the hassle then yes, borrow whatever you need to get through the court hearing then start repairing your credit rating in baby steps - if you inherit, lovely. If you don't, you'll still be no worse off.

Original poster
Fieryfighter · 04/12/2016 16:43

mumonashoestring I already her harassed by companies I am already paying off as they phone me SO often trying to get me to pay more and do income/expenditure every month it feels like. It's got so bad I don't pick up the house phone. The mortgage company are the worst and often make me feel so bad on the phone I'v ended up in tears after.

I don't get any visits to the house though and I don't think I could face that plus my eldest is often home on his own after school or if I'm out with the youngest and i couldn't have him face that.

OP posts:
SusanneLinder · 04/12/2016 16:43

I live North of the Border so laws on debt are slightly different here. Although I am a Debt Advisor, am only going to give general advice as not qualified in England/ Wales.
Yes you could go bankrupt, but it will affect your credit rating for min 6 years( and often a lot longer, as that question pops up in many situations).Fees for filing bankruptcy are about 600 quid. Also if your relative dies before your bankruptcy is discharged the OR will take the full amount of your inheritance , pay your creditors plus their fees and give you the balance.If you chose not to down the bankruptcy route, your creditors can't recover their debt unless they have a CCJ awarded against you. However, you owe it, so you would pay it, and could negotiate Full and Final settlements, usually because your creditors have sold the debt on for pennies to a Debt Buying Agency.
However as someone said, your relative could survive for many years. Could you get a better job and try and repay sooner? Or chase your ex for maintenance through CMEC?
I would also ask on Money Saving Expert boards, these guys are pretty shit hot at all things debt related.

Original poster
Fieryfighter · 04/12/2016 16:45

Would they send bailiffs round?

OP posts:
SusanneLinder · 04/12/2016 16:48

Sorry OP, just reread your post on ex and job prospects. It might be an idea to consider bankruptcy. MSE are great for supporting people through the process.
If creditors are harassing you when you are paying them, they are actually breaking debt guidance by bypassing appointed 3rd party eg Payplan. You can make a complaint.
Change your house phone number too, its easy to do.

SusanneLinder · 04/12/2016 16:50

They cant send baillifs unless they have a CCJ against you. Even if they do, you dont have to let them in.

JiltedJohnsJulie · 04/12/2016 16:51

Is there a charity that would pay? For example your water board's Trust Fund or a charity related to your old job?

You haven't heard this from me but some people have been known to take out a payday loan to pay for the fee...

SusanneLinder · 04/12/2016 16:53

Check Turn 2 Us, they have a lot of charities listed that you could look at for help with fee.

Reality16 · 04/12/2016 16:57

If you inherit and have to use the money to pay the debts would that be such a bad thing? You will still be better off every single week by not having the payments to make?

Original poster
Fieryfighter · 04/12/2016 16:57

SusanneLinder so I could negotiate a smaller sum to pay off a debt if I had a lump sum? Is that what you mean?

I spent 2 years going through official routes to try and get maintenance, on paper he earns nothing and is extremely cunning, I have so much proof of what he had and his expenditures which didn't add up at all to what he declared he was earning but got absolutely nowhere.

Believe me I'm always looking for a better job but my area is really dire I occasionally pick up a bit of extra work but that is put aside to pay for school trips, musical tuition, kids activities, birthdays etc as I literally have nothing spare

OP posts:
Original poster
Fieryfighter · 04/12/2016 16:59

reality16 not really as my monthly payments are less than £30

OP posts:
Original poster
Fieryfighter · 04/12/2016 17:00

That's a great idea about seeing if I can get help to pay for it, I'll look into that

OP posts:
Wolverbamptonwanderer · 04/12/2016 17:00

Yes do it now. This is exactly what bankruptcy is for an ignore anyone who tells you it is immoral because they have NO IDEA what they are talking about, or what you have been through

Please do this straight away.