Help! Im in so much debt ! Should i declare myself bankrupt?
I dont earn very much, live in London and am literally drowning in debt - have controlled it quite well but its just got all too much and its all coming on top. I owe £15,000 and im 27. Could i declare myself bankrupt and what are the implications?
Answers:
Go and seek advice from the Citizens Advice Bureau, or visit the message boards on www.thisismoney.co.uk there are some pretty clued up people on the site.
Do not contact any debt management companies that advertise in the papers etc. how do you think they make a profit?
Get the lowdown on bankruptcy here.
last resort is bankrupcy. Go to your Citizens advice beurau and they can help you with applying to credit agencies to stop the interest and set managable monthly repayments and other advise
Good luck - I have been there myself and I know how very hard and depressing it is
Only as a last resort. Have you contacted any debt management places, i would try these first. Declare bankrupt and bailiffs can take possession of your belongings, you loose your bank accounts, and have to wait ages to get credit again - which you may need later on in life.
Is higher paid employment an option?
There are plenty of places around to help - Google debt relief loads of places.
Good luck and don't despair - bankrupt as a last resort.
Bankruptcy should be a last resort. There are free non-profit debt advice agencies that can help you and you can get information about these from the Citizen's Advice Bureau. If it makes you feel any better £15,000 is not a lot compared to some people.
Well done for coping so far and doing something positive to help yourself.
do an iva www.gregorypennington.co.uk
Not neccessarily you will have the stigma attached to being bankrupt even when you are discharged! think about it before you do anything
No way! You won't be able to own a house, car or any shares, stocks, bonds for 5 yrs at least. If you were to buy a car privately and they found out it would be taken off you. Try your local CAB or try a debt solution agency but make sure it's not one where they charge you because they're just after your money they're not bothered about helping you. Don't go to GregoryPennington. Don't take out a loan to cover these debts as you'll just be adding to it. There is help for this so please don't declare yourself bankrupt. You'll thank me for this! Good luck
my son did a couple of years ago,
hes free now
go for it
yes i think you should declare yourself bankrupt as debt collecttors like you owe alot more, they will not help,with your debt. declaring yourself bankrupt cost about £550-£600 ,your living by least means possible so why not let the courts decide you may end up living on more
ps..good luck in sorting your problem out
£15,000 may seem like a lot but it is not the end of the world.
You probably have high interest rates on credit cards, etc.
I recommend get a part time job for some extra cash flow.
Destroy your credit cards.
Try try try to get a consolidation loan at a reasonable interest rate. The payment will be manageable and you should be able to get back on your feet.
go to citisens advice and they will put you in right direction, you will however have to pay the court that deals with it. could be upto £500. then you cant get credit for 3 to 5 years that includes things like a home telephone and sky t.v. so think hard before you do.
Here is some advice to do this on your own without filing bankruptcy. $15,000 UK is not too much in debt. I've heard of people getting out of debt on their own without bankruptcy and without debt consolidation companies.
First thing of course would be to cut up the credit cards and make a commitment to never charge again. Then follow the following plan.
Make a list all your debts by amount you owe from smallest to largest. Then begin by paying the "most" amount you can each month to the smallest debt with the idea of paying it off quick. Then, only pay the minimum payment on the larger debts. Continue doing this every month until you have the smallest one paid off. Everytime you pay off a debt, call the company and tell them to close the account . that you paid off the debt and that you do not want to leave the account open. They will try to talk you into leaving the account open. Don't do this as it is too convenient and you will be tempted and will sink into debt again. You then start paying the most you can on the next smallest debt in line and go on from there until you have each paid off. Every time you get any extra money, whether it be $5, $10 or more, apply it against your debt even if you have already sent in a payment. You can send in payments more than once a month. Don't go out to eat. It's "beans and rice, rice and beans" as Dave Ramsey always says which just means (very cheap meals that you can fix at home). LOL Also do things to make money like garage or yard sales, flea markets, sell on eBay, get a second job, anything to help you get money to apply toward that debt. It's not about obtaining the best credit score, it's about eliminating the debt. With bankruptcy, you live with the aftermath for 7 to 10 years or more.
You can get more help on how to accomplish this by reading and listening to Dave Ramsey. He has a talk show which you can hear on line through his archives, or live on line. Plus there is a lot of reading material on his website to get you started. In addition, he has forums from his site to get help and advice from other people who are in debt. Dave has been there (with debt) and knows what it is like and is now helping people to get out of it. There are people that have followed this method with over $100,000 in debt and have gotten it paid off without going through bankruptcy and without getting some debt help company to do it for them. Dave's website link is below.
I hope this information helps you and you get the relief you need. Best of wishes to you.
http://www.daveramsey.com
Find a non-profit or volunteer organization to help you. The ones that make you pay, at least in the states, are only after your money.
£15,000 is large or small - depends on your income.
It sounds a lot of money but £15000 over a lifetime isn't really, what you need is to contact the national debt line (Citizen Advice) will have number. Bankruptcy is an option but I exhaust other avenues first. Are you a homeowner, if so going bankrupt means you will lose your house and your credit is impaired for quite some years. Don't panic, seek professional help. Some of debts can be written off. Good Luck
go here
http://www.daveramsey.com
Nope.
How to Avoid Bankruptcy Explained
http://www.debt-explained.com/category/h.
Don't declare yourself bankrupt, it will be something you will regret. You won't be able to have a bank account which will make getting a job really difficult, you have to tell your employers and you'll not be able to get a mortgage or anything. Contact the Consumer credit counselling service, it's a registered charity so it's all free. They have a website you can go on to get the number. They will work out a debt management plan for you where they get your creditors to reduce interest or cancel it. If the worst comes to the worst with 15000 pounds debt you'll qualify for an IVA which is where they right off 75% of your debt and you pay the rest over 5 years.This still isn't great for your credit score but it does come off your credit record after 6 years. Give them a call, I'm going to on Monday. My friend was in dire straights and they gave her loads of support and sorted her out. Good luck, I know how you feel
Bankruptcy is a last resort. It has very long lasting effects upon your life and getting away from them is difficult
Two years down the line you marry the man of your dreams and cannot get a joint mortgage due to bankruptcy - no car loan - no school fees loans, the list is endless
Many of us have experience with "Debt" at some point in our life. If you start thinking how to settle your Debt, you are on the right track. Think about the time when you will be free from debt. It is nice. Isn't it?
Some debt collection companies make annoying phone calls even at night and it would be nice to get rid of them. It is possible to get rid of them. Visit following site to learn about "Debt Guide".
http://www.makemoneyexpert.com/debtguide.
Try debt management first
First go to the CAB and take their advice. Some are retired lawyers, ask to see one.
Ask them also about any state or council benefits you may be entitled to.
Before declaring bankruptcy contact your lenders and negotiate forgiving half the debt. They will agree if you convince them nicely, that the alternative is bankruptcy and they will get nothing.
Declaring bankruptcy is not as bad as it used to be.
Find out from the CAB what the bailiffs can remove and take the most valuable of the rest to friends or family. Do not believe anything the bailiffs tell you. They are liars.
After bankruptcy you will not be able to borrow money for 4 to 5 years, but no problem. It will teach you to save the money before you spend it, like I do. The money goes much further and I am far, far, happier.
When I say Money Broker whats the first thing that comes to mind?
How can I buy a share of a big company, say British Airways?
how do i set up a business email address?
How do I get around 1390 GBP by the end of August?
Switching Careers (Social Work, Advisory Services, Counselling)?
how can i cash in a UK postal order?
My company keeps paying my salary late?
how do i build a web site that looks good?
In a job interview what do you say when they ask what your weaknesses are?
Answers:
Go and seek advice from the Citizens Advice Bureau, or visit the message boards on www.thisismoney.co.uk there are some pretty clued up people on the site.
Do not contact any debt management companies that advertise in the papers etc. how do you think they make a profit?
Get the lowdown on bankruptcy here.
last resort is bankrupcy. Go to your Citizens advice beurau and they can help you with applying to credit agencies to stop the interest and set managable monthly repayments and other advise
Good luck - I have been there myself and I know how very hard and depressing it is
Only as a last resort. Have you contacted any debt management places, i would try these first. Declare bankrupt and bailiffs can take possession of your belongings, you loose your bank accounts, and have to wait ages to get credit again - which you may need later on in life.
Is higher paid employment an option?
There are plenty of places around to help - Google debt relief loads of places.
Good luck and don't despair - bankrupt as a last resort.
Bankruptcy should be a last resort. There are free non-profit debt advice agencies that can help you and you can get information about these from the Citizen's Advice Bureau. If it makes you feel any better £15,000 is not a lot compared to some people.
Well done for coping so far and doing something positive to help yourself.
do an iva www.gregorypennington.co.uk
Not neccessarily you will have the stigma attached to being bankrupt even when you are discharged! think about it before you do anything
No way! You won't be able to own a house, car or any shares, stocks, bonds for 5 yrs at least. If you were to buy a car privately and they found out it would be taken off you. Try your local CAB or try a debt solution agency but make sure it's not one where they charge you because they're just after your money they're not bothered about helping you. Don't go to GregoryPennington. Don't take out a loan to cover these debts as you'll just be adding to it. There is help for this so please don't declare yourself bankrupt. You'll thank me for this! Good luck
my son did a couple of years ago,
hes free now
go for it
yes i think you should declare yourself bankrupt as debt collecttors like you owe alot more, they will not help,with your debt. declaring yourself bankrupt cost about £550-£600 ,your living by least means possible so why not let the courts decide you may end up living on more
ps..good luck in sorting your problem out
£15,000 may seem like a lot but it is not the end of the world.
You probably have high interest rates on credit cards, etc.
I recommend get a part time job for some extra cash flow.
Destroy your credit cards.
Try try try to get a consolidation loan at a reasonable interest rate. The payment will be manageable and you should be able to get back on your feet.
go to citisens advice and they will put you in right direction, you will however have to pay the court that deals with it. could be upto £500. then you cant get credit for 3 to 5 years that includes things like a home telephone and sky t.v. so think hard before you do.
Here is some advice to do this on your own without filing bankruptcy. $15,000 UK is not too much in debt. I've heard of people getting out of debt on their own without bankruptcy and without debt consolidation companies.
First thing of course would be to cut up the credit cards and make a commitment to never charge again. Then follow the following plan.
Make a list all your debts by amount you owe from smallest to largest. Then begin by paying the "most" amount you can each month to the smallest debt with the idea of paying it off quick. Then, only pay the minimum payment on the larger debts. Continue doing this every month until you have the smallest one paid off. Everytime you pay off a debt, call the company and tell them to close the account . that you paid off the debt and that you do not want to leave the account open. They will try to talk you into leaving the account open. Don't do this as it is too convenient and you will be tempted and will sink into debt again. You then start paying the most you can on the next smallest debt in line and go on from there until you have each paid off. Every time you get any extra money, whether it be $5, $10 or more, apply it against your debt even if you have already sent in a payment. You can send in payments more than once a month. Don't go out to eat. It's "beans and rice, rice and beans" as Dave Ramsey always says which just means (very cheap meals that you can fix at home). LOL Also do things to make money like garage or yard sales, flea markets, sell on eBay, get a second job, anything to help you get money to apply toward that debt. It's not about obtaining the best credit score, it's about eliminating the debt. With bankruptcy, you live with the aftermath for 7 to 10 years or more.
You can get more help on how to accomplish this by reading and listening to Dave Ramsey. He has a talk show which you can hear on line through his archives, or live on line. Plus there is a lot of reading material on his website to get you started. In addition, he has forums from his site to get help and advice from other people who are in debt. Dave has been there (with debt) and knows what it is like and is now helping people to get out of it. There are people that have followed this method with over $100,000 in debt and have gotten it paid off without going through bankruptcy and without getting some debt help company to do it for them. Dave's website link is below.
I hope this information helps you and you get the relief you need. Best of wishes to you.
http://www.daveramsey.com
Find a non-profit or volunteer organization to help you. The ones that make you pay, at least in the states, are only after your money.
£15,000 is large or small - depends on your income.
It sounds a lot of money but £15000 over a lifetime isn't really, what you need is to contact the national debt line (Citizen Advice) will have number. Bankruptcy is an option but I exhaust other avenues first. Are you a homeowner, if so going bankrupt means you will lose your house and your credit is impaired for quite some years. Don't panic, seek professional help. Some of debts can be written off. Good Luck
go here
http://www.daveramsey.com
Nope.
How to Avoid Bankruptcy Explained
http://www.debt-explained.com/category/h.
Don't declare yourself bankrupt, it will be something you will regret. You won't be able to have a bank account which will make getting a job really difficult, you have to tell your employers and you'll not be able to get a mortgage or anything. Contact the Consumer credit counselling service, it's a registered charity so it's all free. They have a website you can go on to get the number. They will work out a debt management plan for you where they get your creditors to reduce interest or cancel it. If the worst comes to the worst with 15000 pounds debt you'll qualify for an IVA which is where they right off 75% of your debt and you pay the rest over 5 years.This still isn't great for your credit score but it does come off your credit record after 6 years. Give them a call, I'm going to on Monday. My friend was in dire straights and they gave her loads of support and sorted her out. Good luck, I know how you feel
Bankruptcy is a last resort. It has very long lasting effects upon your life and getting away from them is difficult
Two years down the line you marry the man of your dreams and cannot get a joint mortgage due to bankruptcy - no car loan - no school fees loans, the list is endless
Many of us have experience with "Debt" at some point in our life. If you start thinking how to settle your Debt, you are on the right track. Think about the time when you will be free from debt. It is nice. Isn't it?
Some debt collection companies make annoying phone calls even at night and it would be nice to get rid of them. It is possible to get rid of them. Visit following site to learn about "Debt Guide".
http://www.makemoneyexpert.com/debtguide.
Try debt management first
First go to the CAB and take their advice. Some are retired lawyers, ask to see one.
Ask them also about any state or council benefits you may be entitled to.
Before declaring bankruptcy contact your lenders and negotiate forgiving half the debt. They will agree if you convince them nicely, that the alternative is bankruptcy and they will get nothing.
Declaring bankruptcy is not as bad as it used to be.
Find out from the CAB what the bailiffs can remove and take the most valuable of the rest to friends or family. Do not believe anything the bailiffs tell you. They are liars.
After bankruptcy you will not be able to borrow money for 4 to 5 years, but no problem. It will teach you to save the money before you spend it, like I do. The money goes much further and I am far, far, happier.
The answers post by the user, for information only, UKQnA.com does not guarantee the right.