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Hi

I have a friend who has just come to me abot her debt options.
She is £10,000 in debt with 3 creditos as well as this she has 3 phone contracts and can't reduce/cancel them yet as the contract is not over and to reduce them the phone company wants to charge her for reducing them. She earns about £1100 a month. Do you think that Bankruptcy would be the way forward for her as she has got the bayliffs threatning her and have been round the the flat. And she is now a month behind on her payments.

Please help!

Hi Sarah

If your friend has no disposable income at all to offer to creditors, then bankruptcy may be her only option to escape from creditor pressure. If she has got some ability to repay, then a Debt Management Programme is also an option - but she will need to deal with the creditor who is using bailiffs to ensure that they will agree to an extended repayment programme.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk