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This is where to post your first questions about any debt problems you have
By Debtor2580
#33595
Hey everyone. I've got this really unique issue with debt. My assets are: £1500 car... That's it

I'm nearly £30k in debt, mostly on personal loans and credit card debt(a lot of the debt is lost with cryptocurrency, yeah I've learned...) . I've recently started a great paying job which allows me to earn around £1400 weekly (being self employed this isn't likely to last a long time) but the issue is that I'm working 80+ hours per week and it's really exhausting me physically and mentally.
Usually I can expect around 400-800 per week depending on hours worked and wage usually with short (sometimes frequent) breaks between jobs. I'm single with not many expenses.

I will be going back into college in August, starting a two year course. So paying back this debt won't be possible for the next 2 years (at least, it's possible that I go to uni after that).

I was planning on declaring bankrupt (sequestration) when I start college but before that I would like to pay for flat rental a few months upfront. Having a really bad credit score and always living with parents there is no chance I can rent anything with just a month's deposit (right now I actually live in a car but officially with parents). I will also need things like new clothes and a laptop for college. I'm just thinking if there are any other alternatives than declaring bankruptcy. MAP isn't possible because there's no chance I'll be able to get the debt under £17k and still be able to have a roof over my head while in college. So I guess I'm just wondering what all of you think about this, also how would the OR see the situation with renting a flat and paying upfront for it. Am I right to think that he could possibly extend my BRO for this? Any help is greatly appreciated. Thanks
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By Hayden
#33596
Hi Debtor2580 Welcome to the forum

Firstly you mention Sequestration. This is the term for bankruptcy in Scotland. Are you currently living in Scotland? If so then I believe what I am saying is correct but it might be worth checking with a local money advisor in Scotland as well....

On the face of it from what you have said bankruptcy does sound like a sensible option. As you say a MAP (the equivalent of a DRO in England & Wales) is not available unless you can get your debt down to £17k which does not seem likely. Given you have no assets and you will have no income from August Sequestration is definitely the way forward. A Trust Deed would not work as you would not be able to afford monthly payments.

As far as I am aware there is nothing to stop you saving your funds now and using them to pay rent in advance on your accommodation and set yourself up for the things you need. If you then go bankrupt there is really little the Official Reciver can say about it.

You mention the possibility of getting a BRO. I do not think this is a risk. A BRO is only issued if you have made a preferential payment to a creditor or given away assets before going bankrupt which would not be the case.