I have got debts around£40000 and can not pay them back my income is not covering my monthely going out.
2006-10-11 22:55:28 · 8 answers · asked by SAYID H 1 in Business & Finance ➔ Credit
I hope this helps you:
Strategies to Reduce Debt Quickly
http://www.complete-debt-info.com/category/Strategies-to-Reduce-Debt-Quickly.html
2006-10-12 00:58:40 · answer #1 · answered by sing i 2 · 0⤊ 0⤋
It will still cost you money to declare yourself bankrupt and with debts of that amount is not necessary - contact the CCCS (consumer credit counselling service) - they are a national charity, supported by the government - they are not-for-profit organisation (and so DO NOT charge you ANYTHING) - they will go through all your debts, look at your assets and income and will advise of the best course of action.
This may be bankruptcy, but it's unlikely. There are other options such as an IVA - but this still costs around £7k to set up - better options are DMP (debt management plans) - they will work out finances and then, on your behalf, negotiate with ALL your creditors to work out a monthly payment you can afford. They can usually get all interest and other charges stopped so the debts dont increase.
A friend of mine is £47k in debt - she contacted them and in now on a DMP which means in total (across 14 creditors, bank, credit cards, store cards etc) she pays £600 a month and has the rest of her income to live on. She's better off than she has been in years and will be completely debt free within 6yrs, without such serious long term consequences as bankruptcy.
Talk to them!
2006-10-12 06:14:13 · answer #2 · answered by Pington 3 · 0⤊ 0⤋
ignore previous comments about taking the bankruptcy fee off your credit card. 1 it is illegal as you are knowingly "stealing" the money because you have no intention of paying it back, and 2 they only accept cash.
Your first point of call needs to be your local Citizens Advice. They will have a debt expert who can go through all the options with you. They will also help you fill in the application form if bankruptcy is recommended and will phone the court so you arrive at a time you are likely to be seen, rather than chancing it and waiting around all day.
Bankruptcy is a last resort. you will lose EVERYTHING. if you have a decent car you will be forced to sell it. you will be forced to sell your house. if their is someone else living there (wife, partner etc) they will try to arrange it so they sell it to them, but you have to pay them an admin fee to do that. And the house is no longer legally yours, so if you split up, you lose it anyway. If you have kids they will give your other half a year to get out if they dont buy it, after that they can sell it out from under you.
Any assetts will have to be sold. They seriously made me cash in my £2 worth of premium bonds (an assett) although they let me keep the £30 cash in my wallet (you go figure!!!!)
no bank will give you an account (even though they are supposed to legally, just without an overdraft facility) so your best bet is nationwide flex-account. runs like a bank account (standing orders / direct debits) but only with a cash point card.
no credit without telling them you are bankrupt (that means its illegal for you to fail to mention it) and after you come out the other end get yourself a secured credit card and make regular repayments so that you rebuild a credit history.
and after all this they assess your income / expenditure (they do this from day 1) every year and make you make some sort of partial repayments anyway, so you dont get off scott free. You are left with basic subsistance living level (same as income support) after outgoings. I spent 3 years living off £30 a week for food / clothes etc be prepare to shop everyday and buy the "reduced" items that are about to go out of date.
It has been known for people to apply for another credit card just before going bankrupt. So it doesnt show on the radar when you go bankrupt but arrives the week after. You put max £200 a month on it and pay it off in full, this way you rebuild a credit history as you go. this is classed as not assisting your trustee and as such is a criminal act and not worth doing. I decided not to do this, the risks are just too great.
talk to CAB - there might be better options for you.
oh and an IVA is as restrictive as bankruptcy, just you dont tend to lose your house / car
2006-10-12 07:38:13 · answer #3 · answered by alatoruk 5 · 0⤊ 0⤋
bankruptcy should be your last option. Talk to the national debt help line. Don't whatever you do borrow more money to help you out. There are other options, keep your head up you'll get there. you have made the biggest and best move by admitting you have a problem. Good luck
2006-10-12 06:06:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Pay a visit to the Citizens Advice Bureau, or call the National Debtline.
2006-10-12 06:00:26 · answer #5 · answered by RRM 4 · 0⤊ 0⤋
You have to get a little deeper in debt by getting a bancrupcy lawyer.
Now I will give you some advice which you might not like, but it's free.
In my whole life, I got loans just twice. My first car and my house. The advice is PAY YOUR BILLS FIRST, AND HAVE FUN WITH WHATEVER IS LEFT OVER. Maybe you don't realise what bancruptcy does... it ruins your credit.
2006-10-12 06:10:20 · answer #6 · answered by luosechi 駱士基 6 · 0⤊ 1⤋
Bankrupt? contact your local citizens advice bureau, they will give you the advice you need and the pros cons. Also I believe it costs around £400 so take that off your credit card ;)
2006-10-12 05:59:37 · answer #7 · answered by Monkeyy 2 · 0⤊ 0⤋
see a solicitor who deals with debt. You will be left with nothing but your clothes. You will not be allowed a bank account or any property.
2006-10-12 05:59:21 · answer #8 · answered by Tabbyfur aka patchy puss 5 · 0⤊ 1⤋