Bankrupty in Scotland advice needed please

[sick of it all]

Hi,

Here's my story

Made redundant in August 2008, went on a debt management plan with Payplan in November 2008. Paying £25 per week towards my debt but will take me 50 years and am struggling badly to pay that amount.

Got divorced in 2009 (after a six year separation) and had to move house, which put my bills up considerably. I have a new partner and two children, and now live in a house owned by my mother.

The only income I have is from JSA, child tax credits, child benefit and child maintenance. I get council tax benefit too. My partner doesn't work, and one of my children leaves school in June, and thankfully will have a full time job from August. But my income will drop at the same time by more than I could ask her to pay from her low paid job.

I'm trying hard to find work, I am on a waiting list for a job which fingers crossed I should get before the six months on the list expires. That would pay me around £100 more a week than I am getting now but that would just mean I can eat, and be warm.

I'm fed up being hungry, cold and stressed out by debt.

I have looked into things but am very worried by Trust Deeds and by bankruptcy, it keeps me up at night with worry as they are so official.

 

I intend to go to the citizens advice and get their help.

 

I have heard of 'low assets low income', just how bad is it to go through this? Thinking maybe I should just struggle for another few years and go down the Trust deed route.

 

How does bankruptcy affect house insurance? I'm a tennant of my mothers and I don't want to let her know about any bankruptcy, but that was a question on the insurance form.

Is it true that you can't be the electricity account holder anymore?

Loose your phone supplier etc?

Also the job I'm hoping to get also asked on the form if I was a bankrupt. So I'm worried about that too. It was with the DWP. Does anyone know if you can't work for them if you are bankrupt or if they would sack you if you become so while working for them?

My partner has a car, worth around £3000. As he isn't working, (he's a writer) I pay his car bills and get to use his car. Can I count these as outgoings, even though I don't own the car?

What counts as my assets? Is it just my things or my families items too as I pay all the bills.

I opened a basic bank account with Northern Rock in anticipation of going bankrupt but, I have £10 in it, will that get closed as well? Should I have waited till after the bankruptcy?

 

We watch every penny, we have to, and lead a very fruggle lifstyle. We don't smoke, go out etc and we have tried really hard to keep the DMP going and pay back what I owe but it's just got too hard.

 

There is a lot to this, I think you have to get your mind around all of these niggles first before you can go through with official debt help or I would end up more of a wreck than I am.

 

Can anyone offer some advice, answer the questions, point me towards further reading/help etc or can just tell me of their own experiences.

 

Thank you.