she lives in a council house has no job the bank gave her an overdraftand a visa card which has got her into serious debt which she cant repay
2006-10-22 08:14:28 · 25 answers · asked by chelsea 1 in Business & Finance ➔ Personal Finance
It will cost her £300 to go bankrupt & it only takes 1 year to clear your name afterwards.
Tell her to call National Debtline on 0800 808 4000 They will definatley help her.
Tell her to cut up her card & not to even think of getting a loan to ease the strain as it will only make matters worse.
Its way too easy to get into debt but its bloody hard to get out of it.
2006-10-22 08:20:46 · answer #1 · answered by Looby 2 · 2⤊ 0⤋
Bankruptcy is always an option and is her right under the law. It's important to understand the implications.
There has been recent changes in the bankruptcy code such that not all debts are necessarily removed form the person.
I would start by reading this: http://www.legalzoom.com/articles/article_content/article13587.html It's a reasonable view of the situation and implications.
FWIW, it is always better to try and work through a debt situation without going bankrupt. With recent changes in the federal code, bankruptcy has more "teeth" and consequences than it used to have. It will be more painful most likely than even 3 years ago. So, it may be the answer but it won't be a pleasurable experience.
I hope this was helpful.
Good Luck,
TBG
2006-10-22 15:24:24 · answer #2 · answered by techbankguy 4 · 0⤊ 0⤋
Bankruptcy should be the last resort, it's not good and affects your ability to get credit/bank accouts, etc for 6-10 years. The bank are irrespsonsible giving her the overdraft, given her situation, but that's done and dusted so time to move on.
Get her to speak to the people she owes money to and see if they'll agree a minimum payment per month until she's back on her feet. They like people willing to try to make payments, not those that ignore it until it spirals out of control and the bailiffs get involved. At least it's a council house. They can't take that.
It costs £370 to get a petition for bankruptcy to go through the courts, some people I know have said it's the best thing they've ever done, some people the polar opposite.
Look here: http://www.insolvencyhelpline.co.uk/bankruptcy/what_is_bankruptcy.htm
But as I said, unless noone's willing to give some leeway on payments, it should be the last resort.
2006-10-22 15:21:30 · answer #3 · answered by nert 4 · 2⤊ 0⤋
It all depend on how much she owes. If it is a lot of money, going bankrupt is the best choice. However, if she wants to be a lawyer, CPA, or a job that requred her to be bonded, then, she better think twice.
One thing good about bankruptcy is that, she will have a fresh start. She can apply for a secured credit card and reestablish her credit. If she have a steady job and have never missed another payment again, she should have no problem to get a loan later on.
2006-10-22 15:40:18 · answer #4 · answered by Anonymous · 0⤊ 0⤋
First: cut up the visa card and cancel the account. That still leaves the debt but at least she can't charge on it any more. She needs to go see a debt consolidation counselor. He can help her sort out her finances and they will consolidate all her bills into one payment every month. If she declares bankruptcy she will have no credit at all for at least 7 years. That should be her very last resort. Hopefully the debt consolidator will help her, but she will have to change her spending habits as well to help get herself out of debt.
2006-10-22 15:24:58 · answer #5 · answered by blondee 5 · 0⤊ 0⤋
The bank that she owes the money to will almost definately be prepared to negotiate on the monthly repayment and reduce it to something that she can afford.
Believe it or not the bank would want your sister to go bankrupt even less than she would.
A debt management company would be able to contact the bank on your sisters behalf and negotiate lower monthly repayments for her.
Try http://www.debt-line.org.uk
2006-10-22 15:22:08 · answer #6 · answered by Anonymous · 1⤊ 0⤋
I blame the bank for letting her get into the situation. However bankrupcy can have serious affects for her especially in the future. If she and her and any potential husband wish to get a mortgage or credit for cars ect they may find impossible to get finance. She needs to think long and hard about it.
2006-10-22 15:32:13 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Get her to talk to the bank as soon as possible. They will help her work out a repayment plan.
As she has no job, she can apply for a variety of benefits tyhat will help. They will pay council tax, rent, etc, and she could get jobseekers allowance while lookig for a job.
2006-10-22 15:18:03 · answer #8 · answered by Anonymous · 1⤊ 0⤋
First off she nees to get rid of the card and find a job, bankrupt's is with you all your life so she needs to try to avoid that at all costs!
2006-10-26 13:15:51 · answer #9 · answered by superstar 5 · 0⤊ 0⤋
Get her to speak to one of the FREE debt counselling services set up by the government (e.g. CCCS). Also contact Citizens Advice Bureau.
All the best!
2006-10-22 15:22:49 · answer #10 · answered by thegodfather 2 · 0⤊ 0⤋