Author Topic: Would Bankruptcy Be The Answer  (Read 2128 times)

ritch

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Would Bankruptcy Be The Answer
« on: May 09, 2008, 08:48:10 AM »
Due to a number of circumstance I defaulted in a number of personal loans and credit cards around 6 years ago, since then I have endeavoured to make some form of payment to my creditors, starting off very small but reviewing them on a regular basis, to the point where I have been paying all of my disposable income to them each month.

However on 13 Feb I lost my job, but am now working again but at a seriously reduced income.  I still owe around £26,000 plus about 400 gas and electric arrears and have once again started to miss payments to creditors.  I was going to write to them all asking if I could make a token payment for the next couple of months, but I am now at the point that even at the level of payments I was making it was going to take me about 30 years to pay this money back, god knows what it would be if I started at reduced levels of payment again.

I have a total income of around £1300 per month, but after rent and other living expenses I have about £150 I could pay to creditors.

Would this be a case where bankruptcy would be an option, or with that level of disposable income would the court be inclined to think that I could continue to pay my debts.

Grateful for any comments.

cuteadder

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Re: Would Bankruptcy Be The Answer
« Reply #1 on: May 12, 2008, 04:11:24 PM »
First of all, only £150 disposable out of £1300 - unless you live in London on your own you need to look at how much your spending monthly, possibly even look at where you live...

Your situation may change, you never know... do you really want to blacklist your credit rating?

Work out how much you can afford to pay and ask them to freeze the interest.

Also talk to CCCS, really good free advise...