I find myself in need of some help regarding my near uncontrolable debts. I currently have around £28,000 of debt through loans and credit cards. I cannot afford to get these debts down and find myself fighting fire with fire and not getting anywhere.
Im looking to see what options are available to me to get this sorted. Im not a homeowner if that makes any difference.
Hi Kenny and welcome to the Forum.
You should seek some free advice from an insolvency firm and all your options will be explained to you. bankruptcy does sound like an attractive option but this depends on your income and whether your job would affected.
I would suggest you open a new bank account if you have debts to your current bank as this account would be there should you need it. It may be worth listing your essential outgoings such as food, rent, travel etc and seeing what is left after these have been paid. If the amount left is less than your contractual payments to creditors you would certainly need to look at some form of arrangement with creditors.
If you have no assets then maybe Bankruptcy could be the right course of action for you. £600.00 is the cost and you may have to pay an Income Payments Order for 3 years dependant upon your disposable income. You could also try an IVA which would run for 5 years and again the payment would be based upon your disposable income. It all depends on what suits you to be honest and if you feel the obligation to pay back what you borrowed.
You can take advice from 3 different companies and go from there if you wish. Reviews can be found on www.iva.com
Your credit history is shot for 6 years regardless of what route you take
The first step is to work out the level of disposable income you may have, having allowed for all of your essential household and general expenditure - leaving some aside for social and leisure activities. An insolvency practitioner can help you work this out, and also explain the options which you have available to you.
