Bankruptcy........Can any one help?

[Tracy-ely]

I have debts totaling around £20k. I have always made sure the payments are met and never defaulted. The problem I have is that I am struggling now due to cost of living increasing and no salary increase.

Can I go bankrupt if I have always paid the minimum amounts due on my debts? I do not want to pay the £700 to be told they wont alow it.

Also I have recently bought something on credit, will this go against me for filing for bankruptcy?

I do not own my own house but have a car that is worth less than £1k. Will I have to coninue paying my debtors for 3years if I am made bankrupt?

Hope someone can help.

[swinman]

Might not be exactly what you need, but the Martin Lewis website (I think it's moneysavingexpert.com) will give you lots of helpful advice if some of your creditors start to get awkward. It's very useful for all things financial.

[swinman]

PS Good luck!!

[themas]

At the moment, technically you are not insolvent so bankruptcy might well be queried. However, if you miss payments on some of your debts the situation will change so that is what you should do if you are certain bankruptcy is the best solution. You ought to get some free independent advice before taking that step - your local CAB or other free debt advice agency should be able to help, or ring CCCS.

Don't worry about having bought something on credit (unless it is an enormous expense!) - you didn't realise when you bought it that you weren't going to be able to cope financially.

It's possible that the car will be at risk unless it is essential for work (eg travelling to & from work at unsocial hours when there is little or no public transport) unless someone (friend or relative) could afford to buy it & let you go on using it. Again, you need advice.

Whether you will have to pay for 3 years depends on your income & the assessment that will be made of your reasonable domestic expenditure needs. If you are deemed to have a surplus of £20 per month or more (i.e. income £20+ above assessed expenditure) then a 3 year payment will be set up.

[CaelinCarter]

I think bank management give you a notice then take an action according to your reply on notice. You should save money to pay out your loan.