Bankrupcy- how to do it and is it the best ting to do, Help pls

[jellyjelly]

I am writting for a friend.

She has 2 children one is very young. She has a large amount of debt which started as loans, etc. Maybe 25k but doesnt know exact.

She is unable to pay it back and wants to go b/rupt. We dont know how to do it and just want some guidance on it. I know there is an alternative being an iva. She is not working as on maternity.

We dont need to be told off for accumulating the debt as it was started a very long time ago.

Please give me an ideas that i can pass to her.

Thanks in advance.

Can you direct her to the Insolvency service so she can read up on it - much better than going to an IVA company - while they should give you unbiased advice they do get whopping fees from arranging IVAs!

www.insolvency.gov.uk/

If she finds that site too irksome (it is) try www.nationaldebtline.co.uk/england_wales/

There is a new procedure coming in in April I think. Best for her to go to CAB or National Debtline for full advice. Neither organisation will judge her either for her debst nor for her current expenditure.

www.moneysavingexpert.co.uk has a great section called 'bankruptcy and living with it' in its forum, which will tell you everything you could possibly want to know and more.

Regardless of what she decides, no judge will make her bankrupt unless she has had professional advice telling her it is her best or only option. So she will need to contact either National debtline, CCCS, or the CAB.

The new procedure LadyMuck refers to is Debt Relief Orders. However, these are only available to people with less than £15,000 of debt, no more than £50pm surplus income and minimal assets.

If your friend's debts are £25k then she will need to go for bankruptcy. She will have to pay to petition for her own bankruptcy. Of course, she could choose to stop paying her debts and wait for a creditor to make her bankrupt! Not saying I'd recommend that, though.

If she wishes to petition for her own bankruptcy she will have to complete a Statement of Affairs and apply to court. She needs to speak to the CAB or National DebtLine or the Consumer Credit Counselling Service. The Insolvency Service will not give her advice - they will deal with her case after the bankruptcy order is made.