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Category: Law
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I need help to sort out my finances. I have 2 credit cards

Customer Question

I need help to sort out my finances.
I have 2 credit cards which it will take me ages to clear, if at all possible (£ 3000 approx. and £ 4000 approx.).
I am on a state pension and a very small working pension and am 68 years old. I have no assets.
Is it indicated for me at this stage to declare myself bankrupt ?
If so, what would I need to do?
Thank you!
Tamara Callea
Submitted: 11 days ago.
Category: Law
Expert:  Jim1079 replied 11 days ago.

Hello, thank you for the question.

There are various options open to you and it would depend which is preferred.

If you want to wipe out the debts, an IVA can be set up which is not as significant as a bankruptcy order. An IVA is a plan and you pay a certain amount usually for 5 years after which the debts are wiped out.

However, bankruptcy means that after 1 year, the debts are wiped out and you start afresh, however, your credit rating is affected for up to 6 years afterwards.

You can apply for bankruptcy online now and it costs £680 to do. The website to do this is here:

https://www.gov.uk/bankruptcy

The other options would be enter in to a debt management plan with your creditors where they agree to reduced payments and possibly a longer repayment term to clear the debts but the problem with this is it would take years to clear off.

If you want a company to speak to your creditors for you or to handle your bankruptcy for you, you can contact Step Change who will help you with this - https://www.stepchange.org/

I hope this helps - if you can please accept the answer and give me a star rating, Just Answer will credit me and I can offer unlimited follow up Q&A's at no extra charge

Kind regards,

Jim

Expert:  Jim1079 replied 10 days ago.
Hello, if you can accept the answer and give me a star rating, JustAnswer will credit me and I can offer unlimited follow up Q&A’s at no extra chargeKind regardsJim