Bankruptcy advice wanted ..

[Becca19962014]

Had an appointment today about my support at mental health team ending. I was told I must go bankrupt so I can afford the direct payment contribution necessary to access the direct payments for help I need. They've said I need to contribute almost all of my care element which currently is used for other medical needs (but not care).

To me this doesn't sound good. Even if I did it I have debts such as a student loan with a private firm which wouldn't be written off - I was told that's impossible all debt is wiped and you just start again but it isn't as I've contacted companies today. I do however owe a lot on credit cards and also bank loans from paying privately for mental health care because the NHS will only offer mindfulness which made my issues worse (I know it can help others just not for me).

So they've said just go bankrupt everything will be fine.

My understanding is bankruptcy is not something to do lightly, I rent privately and there's a clause about going bankrupt meaning they can evict (again told that's wrong).

I will be forced into paying back student loan if I take the direct payments as they count with this company as income - there was a long "discussion" in which the worker told me that's wrong but it isn't according to the company as they're administered locally not nationally like PIP/ESA so not excluded (ESA they include everything except support group as being income as well) it's rather complex since going over from student loans company about what is and isn't income.

I'm asking here not googling as I'm really struggling right now, so any advice (except Google! ) would be helpful and there's no CAB or similar here anymore (or I'd have tried them).

They were the ones who told me to get loans and credit cards to pay for therapy claiming it'd make me better so I could go back to work in the first place except it didn't work, all I've got is masses of debt so I'm (very) suspicious about their financial advice.

Thanks!

Just to add, I've several physical disabilities as well which severely effect my ability to work (in support group without a medical by dwp severe) which are being overlooked by mental health team and social services - which is a whole other problem but may be relevant to replies!

Not sure I can help but going through the same process. Was on the phone to step change for 2 hours who talked about bankruptcy but like you said - student loans. had an overpayment back in 2003!!!!

I have completed the bankruptcy forms but so reluctant to send them. Such a big step and like you - i private rent so it will affect that.

Try step change - they are fabulous and told me several options. I sort of went for bankruptcy as I have been paying this debt since 2009 when my marriage broke down and the husband left with the other woman., (all in my name).

In a way i feel it would be a relief to get rid of the debt but I know bankruptcy will not be without problems

Hope someone else could advise us.
Good luck OP

xx

Ive done stepchange in the past. All they could offer was helping to reduce payments which was refused on the grounds my budget was too much for things like travel (almost £200 in taxis each month) and rent should be paid in full by local housing allowance and that's not possible in populated areas of my county (so the extra was considered available for debt). Basically everyone just said no cut back on "luxuries" except due to my disability the things are necessary not luxuries, apparently they can say no to suggested payment plans. Not eligible for discretionary payments which here are strictly limited now for single people to maximum of twelve months.

I have no family, no one to rely upon to help me. Social housing here now requires credit check and guarantor so not even that would be an option. At the same time I desperately need help.

I've been looking but it honestly doesn't look like the simple, easy option they claimed it was. It looks like it costs as well and I'll lose credit cards which I rely on in emergencies if I need to go to/back from hospital (no free hospital transport here anyone more if getting US/ESA/PIP/DLA you must contribute and the local hospital barely has any services left now others are in other counties.

Don't know what to do.

I went bankrupt back in 2013. It hasn't been too difficult, but I do have family help to fall back on, and getting rid of my debts meant that I was able to use all of my income for living costs (also on disability/carer benefits) so generally budgeting is much easier these days. I don't get direct payments though - I have refused support from SS as I'm not keen on having to pay out of my benefits (for what I think is a poor quality service).

I have student loan debts and they weren't written off - I'm unlikely to ever repay them, so I'm not too bothered about that. It does sound more complex with direct payments being involved though.

I was able to get a credit card within a year of being discharged (you get discharged one year after bankruptcy), so I've been able to build up my credit record (I don't need to rely on it for budgeting luckily, I just pay off the full balance every month). You would have to manage without one for at least the first year though.

Otherwise it's not been too difficult to manage life after bankruptcy - I've been able to open (basic) bank accounts, with debit/contactless cards and internet banking. My utility/mobile bills weren't affected as I was never in arrears with those. I didn't get an income payments agreement as all my income is from benefits. The bankruptcy should fall off my credit record later this year - the time passes really quickly and it's a real relief that all my debt is cleared and behind me.

I called Stepchange for advice, but when it came to filing for bankruptcy I did all the forms myself, they just told me stuff I'd already found out through internet research, and confirmed to me that bankruptcy was the best option for me. I agree, I don't think they're particularly well-informed about the financial needs of disabled people.

Private renting can be affected by bankruptcy as you'd need a credit check if you had to get a new tenancy. I'm in council housing so that wasn't affected at all. Can your SS team support you to move into council housing before you go bankrupt, so you could pass the credit check? My CMHT supported my application for council housing, which put me in a higher priority category.

I don't have guarantor. You must have guarantor if alone to live in housing association and must accept whatever they offer its up to them what's suitable e.g. Upstairs when can't manage stairs is acceptable as I can pay for carer to carry me. It was also a lot more expensive than housing allowance, more so than where I am now.

The student loan is a problem because of it being sold. If it hadn't been then it would have been ignored.

Ive no options for help, no family or friends hence the direct payments option but I don't have the £50 or so weekly to give them towards it.

And housing association here is only for a year, you must reapply, which means guarantor being required every year as well.