Imminent bancruptcy
Discussion
Hello fellow PHers. I've not posted in this section before so my apologies if I'm in the wrong place but I need urgent advice about my position.
I've not worked for several months and wasn't getting paid much when I was working, with the result that I have been living on savings for the last few years, and now it's almost gone. I've been literally scared to check the bank balance but, because filling in a housing benefit form this week meant I needed to find out, I checked with the bank yesterday, and it's nearly empty.
My income (JSA) doesn't cover expenditure. I have no way of covering the shortfall as my credit card is maxed out and I've no assets worth a damn except the house, which is co-owned by my brother who has his own house so I'm the only person living here. (I pay my brother a small sum each month to compensate him for the interest he would get on his share of the money were the house to be sold.) I'm selling everything I can but that won't cover the shortfall either, and will eventually dry up in any case, when I'm living in an empty house.
My brother, who knows infinitely more than I do about such things, says I should I see my bank manager and ask him to loan me a few thousand against the sale of the house but even if he agrees, this is unlikely to happen overnight. (House isn't even on the market yet anyway, brother only suggested this in the last few days.)
So within weeks or most probably days my bank account will be empty. So soon the bills will stop being paid. Electricity, gas, water rates, council tax, home and mobile phones, broadband - how soon before these get cut off? How many times does a direct debit or standing order fail before it's cancelled completely?
How do you avoid starvation when you can no longer buy food?
Has anyone out there been in this situation, or know any one who has? What happened? Any advice as to what to do nest?
And please keep it simple, as I'm not the sharpest knife in the box, because if I were, I'd be working and wouldn't have this problem.
I've not worked for several months and wasn't getting paid much when I was working, with the result that I have been living on savings for the last few years, and now it's almost gone. I've been literally scared to check the bank balance but, because filling in a housing benefit form this week meant I needed to find out, I checked with the bank yesterday, and it's nearly empty.
My income (JSA) doesn't cover expenditure. I have no way of covering the shortfall as my credit card is maxed out and I've no assets worth a damn except the house, which is co-owned by my brother who has his own house so I'm the only person living here. (I pay my brother a small sum each month to compensate him for the interest he would get on his share of the money were the house to be sold.) I'm selling everything I can but that won't cover the shortfall either, and will eventually dry up in any case, when I'm living in an empty house.
My brother, who knows infinitely more than I do about such things, says I should I see my bank manager and ask him to loan me a few thousand against the sale of the house but even if he agrees, this is unlikely to happen overnight. (House isn't even on the market yet anyway, brother only suggested this in the last few days.)
So within weeks or most probably days my bank account will be empty. So soon the bills will stop being paid. Electricity, gas, water rates, council tax, home and mobile phones, broadband - how soon before these get cut off? How many times does a direct debit or standing order fail before it's cancelled completely?
How do you avoid starvation when you can no longer buy food?
Has anyone out there been in this situation, or know any one who has? What happened? Any advice as to what to do nest?
And please keep it simple, as I'm not the sharpest knife in the box, because if I were, I'd be working and wouldn't have this problem.
Call these people, tell them everything
https://www.nationaldebtline.org/EW/Pages/default....
It may not be as bad as you fear, they are independent and will not charge
https://www.nationaldebtline.org/EW/Pages/default....
It may not be as bad as you fear, they are independent and will not charge
It's not much fun but I wouldn't say that you are near bankruptcy yet. Speak to all of those that you owe money to and see if you can find reduced/revised payment agreements. It's not in their interest for you to go bankrupt as they will lose everything rather than helping you to get back on your feet, at which point they can get their money back
Unfortunately I can't see the bank lending you the money in your circumstances as the promise of repayment is a touch "what if"
Speak to stepchange would be a good plan - I believe that these are the guys who are free. Don't get involved with any debt management companies as they take an amount to pay off your debts but usually take a cut of some sort. When I found myself in a hole a few years ago due to divorce/enforced job move (it's a very long story) I was able to get reduced payments on mortgage/credit card/loans just by writing to the people concerned. I am still on some of those reduced payments now although almost in a position to start paying in full again now having sold the house. They can also freeze interest in these circumstances.
As for food - I lived off my mums "get one free" stuff. She buys all the offers even though it's only her and dad and she used to give me a bag of food every week to see me through - all the money I had was needed to pay petrol so that I could get to work to pay the bills and my maintenance etc.
You're not the first to be there and certainly won't be the last but my advice is "don't bury your head in the sand" as that is the surest way to get taken to court over your debts. Face it head on and deal with it (this is also a much better way to deal with it from the side of your mental wellbeing as well)
What benefits are you getting? What are the prospects of finding work? I was lucky to have a job and also had a second job working in a bar that gave me my petrol money every week
It's a dark place but one that you can recover from. I look back about 3 1/2 years and the difference is huge (although I still have plenty to deal with). My ex ran all the bills up in my name and then left with the parting words "I was sick of working to pay off your debts" - she walked out with 40 bin bags of clothes and 100 pairs of shoes, and even had the cheek to collect her stuff when I was out and brought the other bloke around to help her lift my f
ing tumble dryer
In short, don't ignore it - it won't go away! And stay strong as you can, and will, get through it
Unfortunately I can't see the bank lending you the money in your circumstances as the promise of repayment is a touch "what if"
Speak to stepchange would be a good plan - I believe that these are the guys who are free. Don't get involved with any debt management companies as they take an amount to pay off your debts but usually take a cut of some sort. When I found myself in a hole a few years ago due to divorce/enforced job move (it's a very long story) I was able to get reduced payments on mortgage/credit card/loans just by writing to the people concerned. I am still on some of those reduced payments now although almost in a position to start paying in full again now having sold the house. They can also freeze interest in these circumstances.
As for food - I lived off my mums "get one free" stuff. She buys all the offers even though it's only her and dad and she used to give me a bag of food every week to see me through - all the money I had was needed to pay petrol so that I could get to work to pay the bills and my maintenance etc.
You're not the first to be there and certainly won't be the last but my advice is "don't bury your head in the sand" as that is the surest way to get taken to court over your debts. Face it head on and deal with it (this is also a much better way to deal with it from the side of your mental wellbeing as well)
What benefits are you getting? What are the prospects of finding work? I was lucky to have a job and also had a second job working in a bar that gave me my petrol money every week
It's a dark place but one that you can recover from. I look back about 3 1/2 years and the difference is huge (although I still have plenty to deal with). My ex ran all the bills up in my name and then left with the parting words "I was sick of working to pay off your debts" - she walked out with 40 bin bags of clothes and 100 pairs of shoes, and even had the cheek to collect her stuff when I was out and brought the other bloke around to help her lift my f
ing tumble dryerIn short, don't ignore it - it won't go away! And stay strong as you can, and will, get through it
Bankruptcy won't help the main problem, Day to day living.
If you weren't paying the Credit card and other loans would you be able to survive on the JSA?
The first thing to do is a Financial statement, Income vs Outgoings. Sometimes actually writing these things down will show you exactly what is needed and where the problem lies.
Prioritise what you pay. You and your household bills are number 1.
Loans and Credit cards are not a priority, they may jump up and down and shout a bit, but you know what they say? 'Empty vessels make most noise'
If you want some free impartial advice PM me, this is my business. Anything said is in total confidentiality and I can point you in the right direction.
Max
If you weren't paying the Credit card and other loans would you be able to survive on the JSA?
The first thing to do is a Financial statement, Income vs Outgoings. Sometimes actually writing these things down will show you exactly what is needed and where the problem lies.
Prioritise what you pay. You and your household bills are number 1.
Loans and Credit cards are not a priority, they may jump up and down and shout a bit, but you know what they say? 'Empty vessels make most noise'
If you want some free impartial advice PM me, this is my business. Anything said is in total confidentiality and I can point you in the right direction.
Max
Gentlemen, thank you all for your advice and positive thoughts. At difficult times such as this, it means a lot to know that friends are only a mouse click away.
HOWEVER!! I learned just this morning that I start a new job next week! So when I see the bank manager I can tell him, I'm not out of the woods yet, but I won't need the loan.
We're still looking at selling the house, but at least it's now something for the long term, rather than pressingly urgent.
HOWEVER!! I learned just this morning that I start a new job next week! So when I see the bank manager I can tell him, I'm not out of the woods yet, but I won't need the loan.
We're still looking at selling the house, but at least it's now something for the long term, rather than pressingly urgent.
Good news OP but as has been suggested speak to the debt people sooner rather than later.
Yes you have employment
but if I were you id much rather speak to these people and see if you can get reduced payments for a while so you can regain your savings a little to give you a little breathing space etc.
I assume the job will cover all your out goings now then, from your last post?
Yes you have employment
but if I were you id much rather speak to these people and see if you can get reduced payments for a while so you can regain your savings a little to give you a little breathing space etc. I assume the job will cover all your out goings now then, from your last post?
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