How Do I Go Bankrupt (and should I?)

I can't give you are hardcore facts because you are in the UK and I only understand the USA rules, but I do suggest you get credit counseling before doing anything. You might also want to look up Dave Ramsey on the web or find some of his books at the library, he tells people how to get out of debt. My girlfriend was in the hole for $100,000 dollars after a bad divorce and by following his advice she was able to pay it off in about 4 years. It's a tough love program, not a get rich quick scheme.

Thanks Greenwitch

x

Explore all of the options before claiming bankruptcy. That's your absolute last resort.

Again, here in the US, several years ago I was able to clear many debts, credit card especially, by gathering up enough cash to immediately pay half the total, fifty cents on the dollar. I was working fulltime tho' and the debts were over five years old. Just a thought...

I know of two different people who declared bankruptcy and their lives changed for the better. Talk to people in Britain because the laws are different.

Browse through the many pages of advice and tips for getting out of debt and avoiding bankruptcy on Oprah's website. She's done several shows on the subject and has some sound concepts and advice that is probably translatable to the UK.

http://www2.oprah.com/money/debtdiet/money_debtdiet_main.jhtml

Have a look at these.

http://www.dfes.gov.uk/studentsupport/

http://www.dfes.gov.uk/financialhelp/index_flash.html

Dont forget you didnt get into trouble overnight so its gonna take a while to fix it.

In my opinion, you're not in enough debt to justify bankruptcy. Like mentioned above(at least in the US), you can work with the creditors to pay off debts without paying the whole amount. Here, it will show on your credit bureau it was "settled," but it's better than the alternative of never paying it.

Re: How Do I Go Bankrupt (and should I?)


The bank or whoever repossessed your car cannot send you a letter
demanding a certain amount without proper documentation. Usually
the bank will obtain a deficiency judgement for an amount determined
by the court. Until such judgement is reached, I would not do anything,
Dorothy. Who is to say that you indeed owe them £3,900?

As for your other debt, I agree with Slappy, it is not enough to file
bankruptcy. Cut up your credit cards and from now on pay with cash only.
I don't know how much you can overdraw your account at the bank,
but take whatever amount you can get and pay off your credit cards,
as their interest rates are the highest. Once you succeeded with that,
start paying down on your bank overdraft.

You might consider becoming a part-time student and work part-time,
to pay off the debt sooner.

Good luck, Dorothy!

Yes - what eoe said.
Go to Citizen Advice, good online start here: Debt in England- but don't use of those obscure, advertising "debt counsellors" you can find in the papers: that will bring you just more down (at one place, though). Mostly at least.

(I've worked for a couple of years as debt counsellor with a charity and with the probation office.)

I would get bancrupt - as others already said.
You can do it ... with someone's help it's relatively easy.

dorothy parker; My wife is a practicing financial councillor here in Australia.
Her advice is to approach your Citizens advice bureau. You should not put this off, do it as soon as possible. The longer you wait the harder it will be to remove these debts. It may surprise you what can be achieved.

The money you supposedly owe on your car may or may not be legally owed it depends on the contract you signed. Only a debt councillor will be able to sort this out correctly.

Citizens advice bureau

Many water and fuel companies have trusts or hardship schemes which offer financial help to vulnerable people with water and fuel debts. There's a new booklet which gives details of many of these schemes. You can download a copy of the booklet from the British Gas Energy Trust website at www.britishgasenergytrust.org.uk.

The booklet doesn't include all existing schemes. If your water or fuel company isn't included in the booklet, you'll need to contact your company directly to see if they offer a hardship scheme.

http://www.britishgasenergytrust.org.uk/documents/UtilityTrustsandSchemesforVulnerableCustomersDec06.pdf

What I said in the previous post :wink:

Though I would not start "wild" on myslef but wait, what they at the Citizen Advice say. (And you really should get a date there as soon as possible.)

I was backing you up Walter.

If two professinals are saying the same there must be some benefit in listening and acting on that advice.

Many thanks kind people for your valuable advice. Much appreciated. Need to sort this out soon and I had no idea where to start.

Begin by calling your credit card company and ask if your interest rate can be reduced.

And do cut up your card: I will never have one of those things. A debit card does almost everthing a credit card does.

Cut them up now. Even if you think you need them. You are only digging yourself a deeper hole by using them.

Keep one for DIRE emergencies. Like if your child gets sick and you need it for ER or something. Lock it up and don't carry it with you. I'd say cut them all up but when you have no money and something really bad happens, you need some sort of security.

I'd seriously consider part time school, full time work. You can go back to school full time when you are able.

Good luck.

This is a tough road to travel.

You need to sort this out NOW! not in a week or two. make appointments today or on monday.

Sweet with the lectures.

People need groceries.

If a person finds they must pay a 25% interest rate on their groceries they should consider going to a food pantry instead and perhaps apply for food stamps. Food is one of the easiest things to acquire for free or very low cost in a first world country.

Fruit and Vegetables are so cheap.

Subsistance living is around $8.00/day, (food only). Utilities $10.00 (ball park single person) $AUDI$


....No phone, no pool, no pets, aint got no ciggarettes,
just 2 hours of pushin broom buys an 8 by 12 4 bit room,
I'm a man of means by no means
King of the road.