Bankrupt

Hi DeansDone,

Debts can be tough to manage at times, particularly with interest rates being slapped on every month. If you are working - and have a consistent income - then you may benefit from taking out insurance for the event of unemployment or illness. This would cover you financially if you have difficulties at work and with your income.

I am not entirely sure what type of debt you have, though I would suggest going to your local Citizen's Advice Bureau to ask for advice; they will be able to provide you with advice based on the type of debt you have.

If the debt in question is credit card debt, then you may be able to take advantage of 0% balance transfers. This means you you can use a new credit card to pay off the balance of an existing one, with a 0% on balance transfers for X amount of months.

Also look online about debt consolidation; there are many dent consolidation organisations out there, and this could make your debt more manageable.

If you want to stop gambling and losing money on those machines, then also consider self exclusion from ALL local betting establishments. It can be a bit embarrassing: self exclusion implies a gambling problem. It is well worth it though, and you WILL save money.

If you are gambling online too, then please also look at installing either Betfilter or Gamblock - products to prevent access to gambling websites.

You really want to avoid bankruptcy if you can - this should be a last resort. Even though it would be one way to clear your debts, it would cause horrendous damage to your credit rating. Future prospects of being able to arrange a mortgage successfully, for example, would be far more difficult.

I hope this information helps you and all the best there.

Hi,

I remember when my mother was in debt she went bankrupt after trying to pay off her debts for years she said it was the best think she's done as it released a big weight holding her down.

Bankruptcy isn't for everyone and yes while it does effect your credit rating for anything upto 15 years it can be very useful and sometimes the only option.

Only a judge can make you bankrupt so you have to file a claim at your local county court. If approved you have to pay a fee, it's around £500 and has to be paid in full and in cash only.

The judge will only make you bankrupt if there ain't other options such as debt repayment plans etc. It's not as simple as asking and getting approved.

The implications are what put people off now as stated it can affect your credit file for upto 15 years or so but usually its only for 6 years, I'm not going to explain why it varies as it's complicated. You should be aware the court can remove assets you hold, if you own a home you will most probably lose it. The court can order your goods taken away such as TVs, cars, etc. You won't be allowed any credit of any form for atleast 6 years and you may loose your bank account. You also not be allowed to operate a company; again as above time will vary on this ban but usually it's 10 years.

That's bankruptcy in a nutshell but let me assure you it's more complicated then you may think and the consequences that occur can be drastic as you have years of waiting for the order to end.

Hope that helps

Sound_advice

Debt can destroy your life and others that are around you. I went through big gambling debts our the last few years, and I've had no choice but to declare bankrupt. If i knew about all these communities and forums then, I would have been in a different position today. I did not know Free Debt Help existed.

20K of debt is certainly daunting, but it is by no means an amount that cannot be repaid. Quite simply, you must put a budget together, prioritise your payments, and go from there. You may need to cancel/get rid of luxuries such as sky, mobile contract etc. These are NOT necessities. They are monthly commitments that you elected to take. But that is an example. I'm sure you're on a decent enough wage, and with enough budgeting and willpower, you will be able to make that 20k half in 4-5 years. Yeah sure it's a long time, but at the end of the day pal, you need to pay them off. If your wages cover the payments, then tackle it head on. Simple as that. The amount of self worth you will gain from paying debts will be amazing. If your wages don't stretch far enough, try something else, call the creditors and see what you can both arrange. Bankruptcy has the be the last resort. Not only in that it will help you with your debt, but it must be the absolute end of your gambling. I myself have had my payday debts consolidated by my father. I realise the risk i have put myself into by doing this, but i am making it count. My debts are gone (minus paying my dad back, and what is that as a debt? paying a family member compared to these legalised loan sharks) and my gambling days have gone with it. I wish you all the best matey, do us all proud!

JimmyC - 10/01/14

Hello,

I have to say, I am exactly the same as you in the worry drives me mad. It affects my moods, people know something is wrong. I owe £25k. This debt grew from 5k to 8.5k to 11k to 15k to 21k ...to what I now hope to be the last increment ...25k which I did yesterday.

I think it is the fear of me not being able to pay this off, that keeps me going back to try and win it back. The stupidity of 'if I could just get one last biggie - that would be me finished for sure' ....but it wasn't and isn't. I have lost count of the times I have been shouting at my PC screen saying 'please don't do this, please don't take it all' Generally it does take it all, but there has been times when I have got very close to breaking even and said 'please just one more time and I am off' ....been within touching distance of what I started with which when you spent 4/5 grand and you have £4800 and you say '1 more spin and I may even be in profit' ...then it takes and takes ...and eventually for the sake of a small amount of money - you are out with nothing and utter devastation ensues .

I think at least twice in the past, I have won enough to pay the debt, but it has never made it to the bank. It sat there, available to me and actually even if it did make it back to the bank/credit card - I have generally spent it whilst the transaction is in process.

I know this is a bit of a ramble, considering your original question ......but in summary really the only way is hard graft, discipline and family support is going to get you out of this and however long it takes you have to think when you do get to the other side, as you will ......imagine it took me 5/6/7 however many years to pay of a debt that took me a very short time to amass and hopefully this will be a good deterrent for future - I sincerely hope I heed my own advice also as feel pretty awful right now.

All the best

Hello all,

Our links page lists many sources of free professional debt advice:

http://www.gamcare.org.uk/pages/links.html

Including the National Debtline 0808 808 4000

http://www.nationaldebtline.co.uk/

and StepChange 0800 138 1111

http://www.stepchange.org/

Take care,

Adam.

Although bankruptcy is and should be a final resort, if it what will save u from this hell and you don't have any assets they can take then I would say go for it. I have little sympathy for the banks and institutions that lend money after money when Its Unaffordable and obvious from our lending history that we couldn't afford it. I personally don't owe enough now to go down this route but it IS an option and not an easy way out at all. Yes, it majorly affects your credit file but then so does paying pennies for the rest of your life. Do what is best for you. Maybe a visit to CAB so they can give u Advice? There's lots of help out there.maybe an IVA or debt management plan might b better x

Hi Mr29

Sound-advice seams to know quite a bit about bankruptcy. Seek some counselling before you decide either way. Inform yourself of the consequences.

Personally I would agree with most of the posters here that it should be a last resort.

The bankruptcy affects your credit rating, making it very difficult if not impossible to obtain loans in the future. Also, when you do obtain loans, you will be paying more interest on those loans you are able to get because of your bankruptcy.

Best wishes

Can I just add- a friend of mine was declared bankrupt but because her house is mortgaged the debts are not simply wriitten off, they are added onto her house. Therefore when it is sold they claim their money. She is being taken to court next month, will have her house repossessed and when the creditors take their money she will be left with very little. There seems to be a misconception about bankruptcy that the debts are gone- this is not the case if you own a house. And your debts are delt with by an agency who add their fee which in this case was thousands- ridiculous when they are meant to helping someone with no money! It is not an easy way out.

It depends what way you would like to look at it.Some debts are manageable but if you were unable to receive credit for a number of years with the constant reminder of the cause of this then surely that wouldnt rid the gambling away. Just a thought. I wish you all the best

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