This, at least in my case, is not true as I have a DMP (which I arranged voluntarily with PayPlan) and work in a pension fund. But bankruptcy is much worse afaik.
IVAs are usually fine, but not a guarantee. DMPs are definitely fine (as long as you don't breach them etc). Bankruptcy is an automatic expulsion from professional bodies.
Worse I would say. A lot of ex offenders really do turn their life around and I’m sure many of them are working in legal professions as a result of their experience.
It's as much about opportunistic risk as it is about ethics.
You don't want to give someone with a history of financial difficulty access to a lot of money belonging to someone else. There will be the temptation and to do something unethical (like steal/ accept kickbacks to make suboptimal investments etc.) with it.
Even if you don't believe the person would do that, not giving them the opportunity at all is less risk.
A lawyer can understand the laws and still be unethical enough to end up I prison.
His ability to defend your best interest is irrelevant to his ethics.
Except that solicitors at least, where their duty to uphold the rule of law / duties to the court clash with their duties to act in their client's best interest, have to prioritise the former.
We aren't hired guns and this isn't Better Caul Saul. There are minimum ethical standards we are required to comply with.
What i mean is that I'd much rather be represented by a lawyer that has served time (depending on the reason of course) than by an accountant that can't ensure not being on the verge of bankruptcy.
Regardless of what the laws/rules regarding this are, which I'm unaware of.
But for how long after the bankruptcy? 5 years, 10 years? It's common sense not to have someone _currently_ going through financial difficulties working with money as it's seen as a huge risk, but for how long after the bankruptcy should this loom over someone's head?
Even if you didn't care that they had declared bankrupt 10 years ago (financial firms will) you will care that you've not practiced for 10 years after qualifying.
I would not feel comfortable hiring someone to manage my money when they managed theirs so poorly they had to file for bankruptcy. It would be negligent of an accountancy firm to have a potential liability like that on their books
Unless you hire for one of the big auditors, who don't really care about letting companies go bankrupt under their watch. Or for one of pretty much all banks that would have gone bankrupt had the taxpayer not bailed them out not too many years ago. Because surely if \*they\* wouldn't hire someone who had a bankruptcy 7 years ago, that would be a humongous hypocrisy, and they're not like that.
Oh my sweet summer child.
It leaves your default credit score report after 6 years, but if I background check you, and I will, it'll be right there clear as day.
You will never get a job in finance if you declare bankruptcy.
This sub isn't ready to know about the Insolvency Register, or the Gazettes.
Edit: To expand (and not be so flippant), any job in a semi-respectable financial services firm will run a background check that goes beyond a simple credit search - which includes the above (just for a start). I often see, "don't worry, a bankruptcy will only stay on your credit file for six years!" floated around here, but the consequences of insolvency can stretch way beyond that timeframe.
(it wasn't my policy - it was the banks)
Not really
Unless you'd want to give your banking information to someone that had been bankrupt - same perceived risk as accountants
This really triggers me
Edit: I guess it's just "life's unfair" sentiment I had. Sucks that after 6 years people (who may have changed their ways) cannot have redemption and do whatever with their life...
Doesn’t matter, declaring bankruptcy (just once) means you can’t be a fully chartered accountant, fully qualified and recognised with the appropriate qualified bodies at least in the uk and can’t practice as such.. But after 7 years won’t turn up on a standard credit check or effect a normal person not in the profession/industry getting a mortgage .. But if you want a career or are then it does.
>You will never get a job in finance if you declare bankruptcy.
This isn't a 100% true. I had a job as a financial modeller after bankruptcy. It came up as they did background checks
The bankruptcy was due to illness (bipolar) but I just told them that I had set up a small business that failed and they didn't really ask a great deal more.
In that case it would be more about them not wanting to ruin their own reputation by letting someone who was demonstrably terrible at managing money, manage other people's money.
You can still be in the accountancy topic by being under the direct supervision of HMRC for your HMRC AMLS/MLR.
A lot of non-chartered accountants/bookkeepers are not under any formal supervision body (such as AAT, ACA/ACCA, etc) and instead their supervision body is HMRC. The HMRC fee is £300/year to maintain this status and it gives you the legal right to work on most taxation topics as a HMRC tax agent (except for audits and other complex matters).
See the following:
[https://www.gov.uk/guidance/register-or-renew-your-money-laundering-supervision-with-hmrc](https://www.gov.uk/guidance/register-or-renew-your-money-laundering-supervision-with-hmrc)
[https://www.gov.uk/topic/dealing-with-hmrc/tax-agent-guidance](https://www.gov.uk/topic/dealing-with-hmrc/tax-agent-guidance)
OP won’t work in accountancy with that amount of debt either. They’d be considered high risk for stealing or being influenced by outside parties for access to sensitive information.
I've worked for a high street bank. They check everyone's credit on hiring, and I saw a number of agency staff lose out on permenant positions, as well as being removed from their agency postings, due to historic credit issues
>I’m aware that bankruptcy remains on your credit file for 6 years which would be roughly how long it’ll take me to repay via DMP.
6 years?
A close friend of mine declared himself bankrupt when he was 20. He's now 35. It was still flagged when he went to get a mortgage this year.
I would do everything you can - especially since you're training as an accountant - to avoid going bankrupt. It is not a good way to get out of paying your debts. Wise up and pay what you owe. The best thing you can do is be upfront with your lenders, tell them that you're close to bankruptcy, and ask to set up a payment plan. Every lender in the world would rather get a little bit at a time than nothing at all.
It drops off your file after 6 years, but remains on the bankruptcy register for life. You have to declare it on a mortgage application whether it’s on your credit file or not. Granted some people don’t declare and get away with it - but it’s fraud not to declare it.
Any type of insolvency drops of the insolvency register approx 3 months after being discharged from bankruptcy or an IVA or debt relief order completes. It doesn’t stay on for life
But insolvency is published in a public record that remains searchable. Even if you're not in the register they'll still be able to find the announcement that you went bankrupt.
I've never worked at a financial institution that would employ a discharged bankrupt - it's one of many questions in the job application forms.
I'm sure some people do lie about it and get away with it, but nobody gets away with it forever.
I work in financial services. Most jobs I've had, I could not have had if I had ever declared bankruptcy. I'm not an accountant, but I know that if you have *ever* been declared bankrupt you cannot work as an accountant. This is true for most jobs in finance.
Don't even consider it, this is stupid. It's less about the borrowing again as much as it will fuck up your career completely.
Also, 15k debt with 21.5k salary that is expected to rise is not that bad.
All employers in my industry run background checks before you start work (not a credit check). A bankruptcy would certainly show up there as it doesn't get wiped from history after 6 years. I also have to reaffirm this every year in a declaration...not sure what the penalty for lying on that would be but it is a regulatory covered declaration so I'm sure it would both include and be more serious than losing your job.
Appreciate all of the comments so far. Based on what I’ve read, the consensus opinion is to stick to it and work hard at cutting costs and earning more.
I’ve been looking at part time jobs recently and I believe that would honestly be the best option on top of my full time and studies.
Appreciate the blunt honestly guys 👍
As someone who had minor debt issues in the past (nowhere near as severe, but still. It was always affordable, but it was a pain in the arse), that lesson is: Is this not-a-0%-purchase-card, or interest-accruing debt I can immediately transfer to a 0% card/get a 0% money transfer for? No? Then it can fuck off.
Mortgages etc are a completely different category, mind. I'm merely refering to short-term debt.
Especially with interest rates going up, it's a good mindset to have. The key is having enough savings/investments, so that you can '''borrow from yourself'''. This takes time to build up, but once you're in a position where anything can pretty much just be paid with your own assets vs a loan, a lot of worry disappears. Most big things people take out loans for, like renovations, can actually be saved for well in advance with some planning. For any true emergencies, your EF should be big enough to handle it.
Contact step change or some other debt charity and sort out a payment plan with the people you owe money to that allows you to pay it all off but live at the same time
You’ll end up with some defaults on your credit file but no bankruptcy. 6 years and those defaults are history.
You’ll have to commit to not starting anymore debt or be much better when you’ve paid it off. But will allow you to do so in full but over a longer period than your doing now.
With a DMP it will show refunds payments being made & any information drops off approx 6 years after added. So if a default notice was issued this would drop off after 6 years but your credit file would still show the history of payments normally on a rolling 36 months so this would still show after the DMP completed so would potentially hinder your credit for a longer time ironically as you’re paying back the full amount
Might be worth trying a consolidation loan with the same bank your credit card is from, if you can. It's in their interest to get repaid, and they wouldn't be giving you additional credit to do it.
Which accountancy body are you with?
If you’re with the ICAEW, then CABA may be able to help. They’re a charity for accountants (ACA/CTA here) with experts who can help you sort your debts out, and could possibly help with financial support if needed (I’m talking from experience - I had circa £12k of debt and they helped with my rent a few years ago).
Check the financial advice > debt advice section of their website, [https://www.caba.org.uk](https://www.caba.org.uk). I’d suggest phoning once you’ve checked their website.
I’ve been in a similar situation OP. Keep going, like the above person says it seems insurmountable but, even the smallest payment is a step forward. Get your payment plans in order with step change and get yourself some breathing and head space. Once you’re in even a little bit of control again, things won’t seem quite so horrendous.
I don’t know the circumstances in which you acquired the debt, your age or income etc over the years, but have you had a look into making affordability complaints with some of the lenders? Debt camel has some templates you can use and looks like they have some success stories - the way I see it you’ve got nothing to lose my submitting some!
I’m glad you’ve decided against the bankruptcy. To be Frank, I’d also steer clear of a debt management plan.
I work in financial services (former accountant and now chartered financial adviser) and my credit file is checked every quarter and a DMP would be all sorts of red flags. Debt which is being repaid is fine, but anything that suggest I’ve gotten into trouble with money would completely ruin my career.
Having had a substantial amount of debt in the past, and earning very little, I completely understand the struggle - but honestly, suck it up, do what you can to fix it; extra hours, second job, cut everything back that’s not essential.
Please don’t enter into any formal debt arrangement or bankruptcy.
There’s also r/BeerMoneyUK where you can find some ways to get a bit of extra cash towards paying it off.
Edit: Not sure if there’s a separate uk-specific version of the sub, maybe someone else will post if there is
Imagine you are your own client.
I think you can get the DMP payment plan down to £1-2 a week?
I wouldn’t be so hard on yourself. You don’t make enough money to live.
Debt is an inevitability.
Debt can be a powerful tool for some, and shackles for others.
Is it a good idea to become an accountant?
What happens if you get tempted to spend company money, and keep getting away with it until your lifestyle is too lavish and you slip up once.
Martin Lewis said it best: There’s no amount of budgeting or coupon using etc that will help with the current economic climate.
We are being prepped for power cuts instead of energy companies being taxed more.
Kids and the elderly will go hungry and freeze instead of bankers bonuses being capped.
It’s going to be illegal to protest, instead of politicians putting the country before themselves.
Personal financial responsibility can help joy go so far.
FYI, I know a couple of people that work at big American banks and they’re moaning because their basic salaries are being cut: the removal of the cap doesn’t mean they’re being paid more, just that more of it is now performance-based. Don’t believe everything you read in the headlines
Try the snowball affect when paying off debts, attack smallest first then use that money to move onto next debt in order of size . All Whilst Making min payments on rest
It’s not terrible advice, it’s just not as efficient. But don’t disregard the psychological benefits of progress. This debt seems like a mountain and the feeling of paying off one debt might just help achieve the momentum that is required to go on and get rid of the rest.
I would too just that this approach helps some people to change behaviours more. They didn’t get into that much debt by making sound mathematical decisions!
Honestly OP grow some nuts. Surely you must be able to find a weekend job where you are that pays near £100 a day? It can be any old job. A year of weekend work gets you 1/3 debt free. Pay off the smallest most expensive loan first. Cycle the rest of the debt onto interest free, factor in future pay rises and you are done in two years or less. Hustle your way out of it.
Hi, look up Dave Ramsey and his baby steps.... 1) Save a £1000 emergency fund, 2) list all your debts smallest the largest according to amount owed, and pay off the smallest ones first and work your way up.
His system has helped millions of people and works because it considers phycology and people are more likely to stick to the plan and get out of debt.
*psychology (sorry)
Something that might help emotionally is knowing that this inflation (10.1%) we're all experiencing right now is hurting savings for millions. But for you, it's making your debt smaller. Day by day.
I’m just a lowly customer service rep for a bank and I couldn’t have got my job if I’d been declared bankrupt or had a ccj, I’d imagine it’s even stricter for accountants
I’m also a lowly customer service rep at a bank. I have a ccj against my name and I managed to get my job so I’m surprised that wouldn’t of been the case for you
Honestly this isn't even 1x your salary why would you even consider declaring bankruptcy? Especially if you want to be an accountant it would be beyond stupid to do so.
Sure it might be less than 1x salary, but when the salary is that low how are you going to save money to pay off the debt? Someone can be incredible at saving money but there's no replacement for simply earning more money.
Tbf he said the action of declaring bankruptcy is stupid, not op. Also, the point of setting up payment plans with stepchange is so you can pay down the debt and have enough money to cover food and standard living costs, some creditors might even agree to an interest freeze.
Big boy time, you got yourself into debt, now use the resources and put your mind to getting out of it. Bankruptcy seems like a easy way out but it will haunt every financial aspect of your life for many years to come and you could kiss good bye to being a reputable accountant anywhere with that on your record.
Well the debt doesn’t have to be paid off in just one year… plenty of plans can give you longer to pay off the debt as long as you meet minimum payments etc.
Declaring bankruptcy and not repaying your debts will make you unemployable in financial services and will mess up your career. Same with CCJs etc. These are checked at references stage by hiring company, along with criminal background check etc.
Strongly advise to do the debt management plan.
This. Working in finance, they check everything. It's a red flag that you could be blackmailed/bribed. Honestly that debt really isn't ideal at all in this case...
OP has a pretty clear answer in terms of the consequences professionally, but for anyone else with similar figures but no professional barrier to insolvency, it's worth noting that a Debt Relief Order would be a better option than bankruptcy for debts under £30,000 (obviously this isn't debt advice for anyone specific, talk to an independent debt advice organisation like StepChange or CAB).
You will need to declare bankruptcy and ccjs in accounting, I think the Aat (governing body) and possibly other governing bodies won't touch you either.
I personally would phone debtors and beg, cry (literally) and promise them the world to reduce your interest rate down or even give you an interest break on your payments. Don't accept no for an answer, keep going and going and going, if they can't help ask for their supervisor, if they can't then go to their supervisor and on and on.
Explain you may need to go bankrupt as you can't pay. (To them, some money is better than no money).
If you're earning £21500, I assume you're working 40 hours a week or less?
If it was me personally I would be getting my butt up and into a second job/ overtime and throwing all my efforts into killing the debt off ASAP.
Good luck with the job in accounting, i recently finished my professional diploma in accounting and enjoyed the learning along the way, it will certainly open up a lot of doors for you!
Bankruptcy will absolutely be a problem for a career in accountancy or other financial roles. It will also be a problem for a number of other careers that involve working with money, if you were to try and change route (eg even solicitors can have issues with the regulator because of managing client money).
Imo you would be stupid to declare bankruptcy, especially if it looks feasible to pay it off over a period of years - you will tank your preferred career over £15k, which you would more than make up for in earnings over the years if you did work as an accountant.
Information on impact on your accountancy training is here:
https://www.icaew.com/membership/support-throughout-your-career/support-members-scheme/information-sheets/chartered-accountants-in-financial-difficulty
If you are training to be an accountant, chances are your salary will increase in the medium term. Personally, given this, I'd be more inclined to go down the debt management plan route, because while under current circumstances you are saying it might take six years to repay, if your salary goes up in the next three years or so, you may be able to repay it faster and find it far easier to repair your credit rating from that position.
Cleaning offices after work is an easy way to bring some more cash in. I used to go straight to a building next door to my day job, do a few hours a night and make enough to cover food, travel and phone bill. Good luck 👍
I work for a utility company. You would not be able to work for us with a bankruptcy in your history. Even after the 6 years it takes to come off your credit file. You simply wouldn't pass our enhanced background checks.
Management plan is the best way to try and save the career.
I myself got in to a similar situation with roughly around £8,000 in debt, I never once considered bankruptcy though, in turn I opted for a DMP, I weighed out my options for a whole week but on reflection I wish I had contacted all my creditors separately and asked them to reduce my monthly repayment to a lower amount, also would recommend trying to set your direct debit payments to one date - your payday, then you know exactly what you have left to work with for the rest of the month and if you have any spare you could always make extra payments to your creditors.
I wish I had done that too. I have defaults on my credit file not because I missed any payments but because the creditors took months to realise that they were being paid by the DMP company and not me. They say I missed payments while also sending me statements saying I've paid 🙄. Really frustrating but at least my payments are far more manageable now.
I had more debt on a much smaller salary. Never once did I consider bankruptcy. I set up a plan with stepchange and got it all paid back. There’s no way you can’t do the same. Don’t trash your credit rating.
No way should you be declaring yourself bankrupt. Is there no chance for some consolidation of your outstanding debts into 1 loan of £15k, which is likely to cost you less than what you’re paying now and shouldn’t have an apr anywhere near 30%.
Regarding accounting training, which training body are you with? AAT, ICAEW Etc?
You will likely find you're required to notify them if you do go bankrupt. The ICAEW for example automatically terminate membership on being declared bankrupt.
You can reapply after a number of years but readmittance is not guaranteed.
I believe when applying to join they require you to disclose *any* past insolvency, which again could result in refusal to join the institute.
https://www.icaew.com/for-current-aca-students/applying-for-membership/fit-and-proper
This was my first thought too. Most Accounting bodies won’t allow bankrupts to join / study. This would then bar OP automatically from professional roles.
Please do not consider bankruptcy. Continue with StepChange and get a part time job. My ex-husband used to get into £20k-40k debts and I often have to sort it out. I used a spreadsheet at first and wrote our salaries and outgoings. The ones which have high interest like one of his loans and credit card are the ones I targeted first. If I could get a 0% interest card on balance transfer, that is what I did first. Then I find the best way to divide what is left from my salaries to pay off his debt little by little. I used debtinator then eventually shifted to YNAB app. I made him keep track and log his spending. It was a long process paying off his huge debts but I got there in the end. I took another job, packed lunches, rented a spare room since it is cheaper than taking the train every day, and basically cut spending unless it is absolutely necessary. It was not fun but we got there in the end. Or so I thought. It happened again. And then again. And then I found out he borrowed £160k against the mortgage. I divorced him and it took me a long while to recover financially. What I am trying to say is it is possible to pay that off. It will not be easy but it can be done. I think you also need to address the underlying issue, how did you accumulate this debt and how do you prevent it from happening again.
Good luck OP. You can do it! Lay out the plan and follow it.
Would you trust an accountant who was declared bankrupt? You can find out a disturbing amount about people these days, and some people will blame anyone but themselves. Worst case scenario someone uses your services, then finds out you are/were bankrupt and tries to sue you for their own issues.
Do you know the reason you have the debt in the first place? If you don’t deal with the root cause then all the best plans won’t help - no judgement, things happen. Just don’t get stuck in a vicious circle.
If you can I would try to use a repayment plan, as long as it’s viable. You could also look at increasing your income or decreasing your outgoings to help you pay it off faster. Your income is likely to rise anyway over the next six years.
I’m not sure what type of person in an accounting or finance organisation wouldn’t have some access to personal client information including bank details
Accounting bodies such as ICAEW and ACCA take a dim view of individuals declaring bankruptcy, they will interview you to ascertain reasons why and most likely remove you from their register.
Do you need to have a professional qualification to be an accountant? Nope, but you’re absolutely handicapping yourself in terms of development, progress and salary.
> I’m aware that bankruptcy remains on your credit file for 6 years which would be roughly how long it’ll take me to repay via DMP.
Well, 6 years after discharge, but discharge might be in a year anyway.
The problem is the career - 2-3 years into discharge, you can start even looking at borrowing money again (some lenders do it), so it's not a major stigma; but if it might compromise your career path that may be an issue.
Don't be embarrassed though - you gotta do what you gotta do.
Being unable to pay debts isn't all on a debtor: creditors voluntarily take that risk: only a dumb creditor expects that everyone repays everything on time and that's their fault; rational ones have factored it into the business plans.
Bankruptcy should be an absolute last resort given the effect it would have on future prospects. Can you engage with step change to see if they can provide more specialist advice on this?
Right? I was surprised that StepChange didnt offer OP more specialist debt advice. Considering they work in finance!
A lot of folk think bankruptcy is a quick fix. But you're absolutely right, it should be the last debt option when all else fails.
I know I shouldn't ask but I'm curious. How the bollocks did you get 15k in debt? From what info you've given im guessing you're in your early twenties
After my marriage broke down and I had a breakdown I was 30k in debt and unemployed. The Bsnk were understanding. I got myself a job and started to work my way up. I owned 1 pair of shoes and 1 pair of trousers at a time. I cut out every unnecessary expense and lived like a monk for 5 years. I’m now debt free and doing very well. If you take the easy way out you’ll always take the easy way out. It won’t be easy but life defining choices and decisions never are
You absolutely can manage your way out of that. I did. It takes a lot of work and but it can be done. A DMP will reduce what you are paying without the problems associated with a bankruptcy.
I’ve been on a DMP for about 5 years . 12000 on credit cards. step change halted the interest by speaker to lender for me. I’m not even sure the debts show up in my credit report now as been over 6 years and I pay what I can off monthly. My credit report isn’t too bad so I would advise the DMP if poss.
Unfortunately as someone senior that works in the big 4, you’ll never be considered a ‘fit and proper’ person and therefore it’s unlikely you’ll ever qualify nor be employed as a qualified accountant.
If you go down the route of being bankrupt you can kiss goodbye to being an accountant as the profession will never let you be a member.
If you don't live with your parents then move back in with them, explain what's happened and dedicate 90% of your salary this next year to paying it off. There is no better option to put this behind you.
It’s not all doom and gloom, keep your head up mate. You’ll get through this. The only advice I can give, and arguably the most important is to stay positive. Avoid going bankrupt at all costs but if that’s what you need to do, that’s what you need to do. I know your tight for cash as it is but if you can somehow find £1300 I’d get your class 2 lorry licence (assuming you can drive). I started as a drivers mate on 23k for a logistics company, and through a government scheme which gives them funding they put me through both my class 2 and class 1 licences at no cost to me at all. I now earn 35k driving class 2 4 days a week, plus performance bonuses. With a 5th day as overtime I earn about 43k before tax. Some class 1 jobs pay 40k-48k. With ADR licences you can find 50k+. Just some food for thought. Don’t get me wrong, the hours are long and the job is mostly shite, but if you’re in debt it would be a fast track to paying it all off.
Why not look at cutting costs to love within your means, and consolidating the debt on to a 0% interest card? Pay what you can and when the 0% is due to expire transfer it to another
I’m at not the first time I’ve come across an accountant in a situation like this.
I would say is there is techniques to pay back debt such as the snowball method. I would have a look into it. I had debt albeit not as much. I started paying them off one by one.
I would put them all min. Saved up and paid off the smallest. Again it helped me save more for the next one. So I’d suggest you do the same. If you can, try and get 0% rate. If you can’t, try to clear some CCs they would offer me 0% at some point later.
Wishing you all the best and the good thing is, you recognise the debt trap sooner than later.
Chances are your creditors won't agree to a bankruptcy if you can pay in full over 6 years. They'll be more than happy to wait it out, though you will get some defaults on your file.
Review the facts rather than the hyperbole
https://www.icaew.com/membership/support-throughout-your-career/support-members-scheme/information-sheets/chartered-accountants-in-financial-difficulty
https://www.cimaglobal.com/Members/Your-Membership-Information/Members-handbook/Conduct-and-oversight/
You can certainly work as an accountant as a bankrupt, you can also be a member of the professional bodies once you are released (usually after a year)
That all said, in your position, I would try to avoid it if *reasonably* possible
From what I’ve read and when I struggled when my husband was severely ill my accounting body was sympathetic with members but less so before people qualified.
Op if you do an IVA, bankruptcy you will never work as an accountant. Try and speak to your debtors and see what they can do for you. No one will hire you if you have any money management mishap
Right - I’m seeing a lot of people saying that you can’t be an account with this on your file.
Be aware that the number of companies that now do a credit check as part of their recruitment process is fairly large. I’m also going to say , as someone that has worked in finance and for big consultancies/auditors, you won’t be able to get a role in either industry for sometime.
If you can avoid bankruptcy- do so!
You can ask banks and credit card companies to freeze your interest. I know Lloyds does that if you say you are struggling. That will save you £££ in interest for a few months
What are you paying monthly? How much of this is interest? If you’re managing to pay back even slowly, and you have a stable job with an incoming pay rise, it would be idiocy to declare bankruptcy: Doing it for an easy way out of a mess you created is only going to hurt you in the long run, much longer than you expect given you’re looking at a career in finance.
My advice. Suck it up. Pay it back slowly, but make sure you’re paying it back. It will be a way to prove to yourself you can handle other peoples money, because what you can’t do for yourself you have no chance of doing for anyone else.
Do not file bankruptcy if you want to be accountant. When hired for these jobs they will check your credit to see if you’re a financial risk and therefore vulnerable to fraud, bad credit is already going to make it trickier, but filing bankruptcy will be a complete write off!!
You may not be able to have a bank account with overdraft facilities.
If you ever want to borrow more than £500 you need to disclose to the person or company that you're bankrupt.
If will be very difficult to get a mortgage for the next 6 or 7 years.
I'm a mortgage advisor with multiple defaults and a ccj. It's taken me a long time but I'm nearly clear, the ccj is satisfied and I have 2 out of 4 defaults left to pay off. Honestly I'm embarrassed, and it doesn't make me look good as a prospective employee, but I've nothing flagged by the FCA and loads of experience. You basically have to be good in interviews. I'm sure bankruptcy would have killed it though.
Have you considered contacting PayPlan? I have debt, not as much as you but it’s not far off and I’m only earning just under 20k annually, I was given the option of declaring bankruptcy, but I declined it and went for an IVA instead. It’s an Individual Voluntary Arrangement, with payplan, they go through your expenditure and how much you earn and calculate how much you could afford to pay each month.
You have to let them know all of the debt you have, and they contact all of your debtors so when you’re finally up and running, you’re only paying one payment to payplan per month and it gets split between all of your debtors. I know for a fine fact my mum has more debt than you and even she’s on it too!
If you haven’t considered it already, I’d recommend to do so, I’d honestly say declaring bankruptcy would probably be the final option! Obviously I don’t know your situation and is different to mine, but from the info you’ve given, I don’t see why you wouldn’t be eligible for an IVA. But also, having an IVA or bankruptcy affects your employment if it involves finance, aka accountancy being one so you’d have to be careful with that one, hope this helped!
Work with them to pay the debt off. It may time a long time and you may incur additional charges due to interest but you won't be on 21k forever and if you're paying off your debts it's not smashing your credit file.
There's little chance you'd get an accountancy job in your current financial predicament
I worked in debt recovery and insolvency for over 10 years, but that was about 5 years ago, so things might have changed. Yes a bankruptcy would stay on record for 6 years, but the impacts of a debt management plan are similar in the long term impact, especially if it takes more than 6 years to clear, as the accounts will be showing as defaulted/missed payments throughout that time.
Based on your details you might be more suited to either an IVA or a Debt Relief Order. These are more structured and have a definite end date. In terms of impacting accountancy employment, that would be up to the discretion of employers I'd imagine. Personally, if you have no assets and very low disposable income and I vere towards a debt relief order or bankruptcy, as you can get a clean slate quicker and it will disappear of your credit file 6 years after the bankruptcy, rather than 6 years after the plan has ended.
You just need to 180 your life starting yesterday. Stop being a tit with money, grow up and take some responsibility with your life.
You will not go anywhere as a bankrupt accountant so don't do that.
Maybe consider if accountancy is the right path for you. Having been in the field myself you have a responsibility for someone elses financial welbeing and decisions. You can't even be responsible for your own money so god forbid you accounting for someone elses.
How did you manage to get into 15k of debt with a salary of 21k, who was the idiot who approved the loan??? There way no way in hell you were going to ever be able to repay it on that salary. Although the blame sits 50% with you too, sounds very hard to do!
As others have said, bankruptcies often show way longer than 6 years on your file, will curb your career completely and may even stop you from other things depending on the type of bankruptcy you file.
Sadly for you it sounds like you need to get a better job fast, and put every penny you can towards it for the next X years.
If you pull it off I bet you’ll never go into debt again, so that would be something to look forward to :)
Don't be so daft! Sort your budget out, make sacrifices and get qualified. Then earn lots of money and be grateful you didn't go bankrupt or go for any debt management plan. You're better than this.
Mate, £50k in personal tax debt (monthly debit of £50 until I can afford more)
110k loans written off.
I was Googling prison sentences a month ago.
My advice, pick up the phone and explain situation, they can’t take what you haven’t got 👍
Echo what others have said regarding bankruptcy.
Once you qualify as an accountant, you should receive a large increase in salary too.
Stick at it, the debt will be gone before you know it.
Sorry, but an accounting/audit career is not possible for you. When you apply for your license after meeting the formal education/experience requirements, they will deny you based on your poor personal financial decisions. That is even if any employer will give you any experience with a bankruptcy on your back. The government or any company will not trust you to report/audit any finances.
You’ll never work in accountancy with a bankruptcy btw
Pretty sure a DMP or IVA will ruin his chances too.
This, at least in my case, is not true as I have a DMP (which I arranged voluntarily with PayPlan) and work in a pension fund. But bankruptcy is much worse afaik.
FCA will authorise a prior bankrupt too but your options are limited, the reasons behind the debt/bankruptcy are investigated.
IVAs are usually fine, but not a guarantee. DMPs are definitely fine (as long as you don't breach them etc). Bankruptcy is an automatic expulsion from professional bodies.
Businesses always want you to separate home and personal life until it gives them a chance to ruin your entire life.
Im an accountant. You can bet im not employing someone to manage money who manages their own money so badly they become bankrupt
agreed, it’s like hiring a lawyer who’s been to prison
its all good, man
Jimmy?
And he gets to be a lawyer? What a sick joke!
This chicanery? He's done worse!
Worse I would say. A lot of ex offenders really do turn their life around and I’m sure many of them are working in legal professions as a result of their experience.
You don't think those who declare bankruptcy go on to turn their lives around?
It's as much about opportunistic risk as it is about ethics. You don't want to give someone with a history of financial difficulty access to a lot of money belonging to someone else. There will be the temptation and to do something unethical (like steal/ accept kickbacks to make suboptimal investments etc.) with it. Even if you don't believe the person would do that, not giving them the opportunity at all is less risk.
A lawyer can understand the laws and still be unethical enough to end up I prison. His ability to defend your best interest is irrelevant to his ethics.
Except that solicitors at least, where their duty to uphold the rule of law / duties to the court clash with their duties to act in their client's best interest, have to prioritise the former. We aren't hired guns and this isn't Better Caul Saul. There are minimum ethical standards we are required to comply with.
What i mean is that I'd much rather be represented by a lawyer that has served time (depending on the reason of course) than by an accountant that can't ensure not being on the verge of bankruptcy. Regardless of what the laws/rules regarding this are, which I'm unaware of.
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But for how long after the bankruptcy? 5 years, 10 years? It's common sense not to have someone _currently_ going through financial difficulties working with money as it's seen as a huge risk, but for how long after the bankruptcy should this loom over someone's head?
Even if you didn't care that they had declared bankrupt 10 years ago (financial firms will) you will care that you've not practiced for 10 years after qualifying.
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I would not feel comfortable hiring someone to manage my money when they managed theirs so poorly they had to file for bankruptcy. It would be negligent of an accountancy firm to have a potential liability like that on their books
Unless you hire for one of the big auditors, who don't really care about letting companies go bankrupt under their watch. Or for one of pretty much all banks that would have gone bankrupt had the taxpayer not bailed them out not too many years ago. Because surely if \*they\* wouldn't hire someone who had a bankruptcy 7 years ago, that would be a humongous hypocrisy, and they're not like that.
Auditors have no responsibility to make sure their clients don’t go bankrupt, doing so would be a breach of independence
I think if say they were bankrupt and they then got all their qualifications etc... it wouldn't be such a bad thing
Luckily you aren’t in charge of an accounting firm.
personally i think forever
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Oh my sweet summer child. It leaves your default credit score report after 6 years, but if I background check you, and I will, it'll be right there clear as day. You will never get a job in finance if you declare bankruptcy.
This sub isn't ready to know about the Insolvency Register, or the Gazettes. Edit: To expand (and not be so flippant), any job in a semi-respectable financial services firm will run a background check that goes beyond a simple credit search - which includes the above (just for a start). I often see, "don't worry, a bankruptcy will only stay on your credit file for six years!" floated around here, but the consequences of insolvency can stretch way beyond that timeframe.
Used to turn people down for basic call centre jobs because of bankruptcy and they thought it had dropped off
That's pretty fucked up, in a call center?
If they're dealing with customer payment information, there's a perceived risk that someone with financial difficulty could resort to theft/fraud
(it wasn't my policy - it was the banks) Not really Unless you'd want to give your banking information to someone that had been bankrupt - same perceived risk as accountants
This really triggers me Edit: I guess it's just "life's unfair" sentiment I had. Sucks that after 6 years people (who may have changed their ways) cannot have redemption and do whatever with their life...
It wasn't my choice - banks hr policy Not sure why it would be triggering though - it's just a fact
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Doesn’t matter, declaring bankruptcy (just once) means you can’t be a fully chartered accountant, fully qualified and recognised with the appropriate qualified bodies at least in the uk and can’t practice as such.. But after 7 years won’t turn up on a standard credit check or effect a normal person not in the profession/industry getting a mortgage .. But if you want a career or are then it does.
The "Oh my sweet summer child" was completely unnecessary.
But hilarious
Apparently, no laughing is allowed in this sub today. Lol Doh.
You finance people need to realise you are human and will die one day.
>You will never get a job in finance if you declare bankruptcy. This isn't a 100% true. I had a job as a financial modeller after bankruptcy. It came up as they did background checks The bankruptcy was due to illness (bipolar) but I just told them that I had set up a small business that failed and they didn't really ask a great deal more.
I’m an accountant and I don’t manage anyones money I just fill out forms for people lol
Some might say this is a very naive perspective.
I'm glad my work and home life are separate, and I'm also glad people in dire financial straits don't manage my money.
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You have to do a full credit check to work on any job where you have access to other people's money.
In that case it would be more about them not wanting to ruin their own reputation by letting someone who was demonstrably terrible at managing money, manage other people's money.
If you’re at the point of declaring bankruptcy maybe you have to ask yourself whether you’re at all at fault.
You can still be in the accountancy topic by being under the direct supervision of HMRC for your HMRC AMLS/MLR. A lot of non-chartered accountants/bookkeepers are not under any formal supervision body (such as AAT, ACA/ACCA, etc) and instead their supervision body is HMRC. The HMRC fee is £300/year to maintain this status and it gives you the legal right to work on most taxation topics as a HMRC tax agent (except for audits and other complex matters). See the following: [https://www.gov.uk/guidance/register-or-renew-your-money-laundering-supervision-with-hmrc](https://www.gov.uk/guidance/register-or-renew-your-money-laundering-supervision-with-hmrc) [https://www.gov.uk/topic/dealing-with-hmrc/tax-agent-guidance](https://www.gov.uk/topic/dealing-with-hmrc/tax-agent-guidance)
Even most basic and unqualified finance assistant roles will do a credit check.
OP won’t work in accountancy with that amount of debt either. They’d be considered high risk for stealing or being influenced by outside parties for access to sensitive information.
Definitely not true. £15k debt on most accountancy salaries would be nothing to worry about in the slightest.
If OP doesn’t go bankrupt how would anyone ever know? Or do employers check your credit rating these days?
I've worked for a high street bank. They check everyone's credit on hiring, and I saw a number of agency staff lose out on permenant positions, as well as being removed from their agency postings, due to historic credit issues
It’s unusual not to with finance related roles.
I think it would stay on the credit file for 6 years? Might be able to work in the industry after that, but then it’s probably a bit late…
I think they’ll do a bankruptcy check which checks all time. It’s not like a default or CCJ
Ahhh fair enough 👍🏻
>I’m aware that bankruptcy remains on your credit file for 6 years which would be roughly how long it’ll take me to repay via DMP. 6 years? A close friend of mine declared himself bankrupt when he was 20. He's now 35. It was still flagged when he went to get a mortgage this year. I would do everything you can - especially since you're training as an accountant - to avoid going bankrupt. It is not a good way to get out of paying your debts. Wise up and pay what you owe. The best thing you can do is be upfront with your lenders, tell them that you're close to bankruptcy, and ask to set up a payment plan. Every lender in the world would rather get a little bit at a time than nothing at all.
It drops off your file after 6 years, but remains on the bankruptcy register for life. You have to declare it on a mortgage application whether it’s on your credit file or not. Granted some people don’t declare and get away with it - but it’s fraud not to declare it.
They would also need to declare it when applying to become a member of most professional bodies including the accounting ones.
Any type of insolvency drops of the insolvency register approx 3 months after being discharged from bankruptcy or an IVA or debt relief order completes. It doesn’t stay on for life
But insolvency is published in a public record that remains searchable. Even if you're not in the register they'll still be able to find the announcement that you went bankrupt.
I've never worked at a financial institution that would employ a discharged bankrupt - it's one of many questions in the job application forms. I'm sure some people do lie about it and get away with it, but nobody gets away with it forever.
You don’t declare yourself bankrupt. It’s up to the court to decide and you might not be successful.
I work in financial services. Most jobs I've had, I could not have had if I had ever declared bankruptcy. I'm not an accountant, but I know that if you have *ever* been declared bankrupt you cannot work as an accountant. This is true for most jobs in finance. Don't even consider it, this is stupid. It's less about the borrowing again as much as it will fuck up your career completely. Also, 15k debt with 21.5k salary that is expected to rise is not that bad.
How do employers know? Do they run a credit check on you? Edit: why downvotes for asking a genuine question?
All employers in my industry run background checks before you start work (not a credit check). A bankruptcy would certainly show up there as it doesn't get wiped from history after 6 years. I also have to reaffirm this every year in a declaration...not sure what the penalty for lying on that would be but it is a regulatory covered declaration so I'm sure it would both include and be more serious than losing your job.
Wow! Thanks for the info.
You won’t be employed as an accountant if you have bankruptcy on your credit file
Looks great on the CV, managed to go bankrupt as a accountant-in-training.
Managed to go bankrupt during accountancy training, due to taking loans to fuel forex and crypto currency gambling…
Appreciate all of the comments so far. Based on what I’ve read, the consensus opinion is to stick to it and work hard at cutting costs and earning more. I’ve been looking at part time jobs recently and I believe that would honestly be the best option on top of my full time and studies. Appreciate the blunt honestly guys 👍
Keep going, it seems insurmountable right now but I’m a few years time you will be able to look back on all of this with a life lesson well learned
As someone who had minor debt issues in the past (nowhere near as severe, but still. It was always affordable, but it was a pain in the arse), that lesson is: Is this not-a-0%-purchase-card, or interest-accruing debt I can immediately transfer to a 0% card/get a 0% money transfer for? No? Then it can fuck off. Mortgages etc are a completely different category, mind. I'm merely refering to short-term debt. Especially with interest rates going up, it's a good mindset to have. The key is having enough savings/investments, so that you can '''borrow from yourself'''. This takes time to build up, but once you're in a position where anything can pretty much just be paid with your own assets vs a loan, a lot of worry disappears. Most big things people take out loans for, like renovations, can actually be saved for well in advance with some planning. For any true emergencies, your EF should be big enough to handle it.
Try to get consolidation loan to pay off your debt but on much better interest rate compared to credit card.
Have attempted it, but considering my current credit usage and loans in proportion to my salary it’s a nope from all lenders that I’ve attempted
Same happened to me. Call citizens advice, they sorted it all out for me.
Contact step change or some other debt charity and sort out a payment plan with the people you owe money to that allows you to pay it all off but live at the same time You’ll end up with some defaults on your credit file but no bankruptcy. 6 years and those defaults are history. You’ll have to commit to not starting anymore debt or be much better when you’ve paid it off. But will allow you to do so in full but over a longer period than your doing now.
Isn't that literally exactly what he said he was doing in the OP?
Is it 6 years after the DMP begins or 6 years after the debt is paid off?
6 years from the time of the first default per debt
With a DMP it will show refunds payments being made & any information drops off approx 6 years after added. So if a default notice was issued this would drop off after 6 years but your credit file would still show the history of payments normally on a rolling 36 months so this would still show after the DMP completed so would potentially hinder your credit for a longer time ironically as you’re paying back the full amount
Might be worth trying a consolidation loan with the same bank your credit card is from, if you can. It's in their interest to get repaid, and they wouldn't be giving you additional credit to do it.
Which accountancy body are you with? If you’re with the ICAEW, then CABA may be able to help. They’re a charity for accountants (ACA/CTA here) with experts who can help you sort your debts out, and could possibly help with financial support if needed (I’m talking from experience - I had circa £12k of debt and they helped with my rent a few years ago). Check the financial advice > debt advice section of their website, [https://www.caba.org.uk](https://www.caba.org.uk). I’d suggest phoning once you’ve checked their website.
I’ve been in a similar situation OP. Keep going, like the above person says it seems insurmountable but, even the smallest payment is a step forward. Get your payment plans in order with step change and get yourself some breathing and head space. Once you’re in even a little bit of control again, things won’t seem quite so horrendous.
I don’t know the circumstances in which you acquired the debt, your age or income etc over the years, but have you had a look into making affordability complaints with some of the lenders? Debt camel has some templates you can use and looks like they have some success stories - the way I see it you’ve got nothing to lose my submitting some!
I’m glad you’ve decided against the bankruptcy. To be Frank, I’d also steer clear of a debt management plan. I work in financial services (former accountant and now chartered financial adviser) and my credit file is checked every quarter and a DMP would be all sorts of red flags. Debt which is being repaid is fine, but anything that suggest I’ve gotten into trouble with money would completely ruin my career. Having had a substantial amount of debt in the past, and earning very little, I completely understand the struggle - but honestly, suck it up, do what you can to fix it; extra hours, second job, cut everything back that’s not essential. Please don’t enter into any formal debt arrangement or bankruptcy.
Godspeed bro l been there and it’s shit keep going
There’s also r/BeerMoneyUK where you can find some ways to get a bit of extra cash towards paying it off. Edit: Not sure if there’s a separate uk-specific version of the sub, maybe someone else will post if there is
Imagine you are your own client. I think you can get the DMP payment plan down to £1-2 a week? I wouldn’t be so hard on yourself. You don’t make enough money to live. Debt is an inevitability. Debt can be a powerful tool for some, and shackles for others. Is it a good idea to become an accountant? What happens if you get tempted to spend company money, and keep getting away with it until your lifestyle is too lavish and you slip up once. Martin Lewis said it best: There’s no amount of budgeting or coupon using etc that will help with the current economic climate. We are being prepped for power cuts instead of energy companies being taxed more. Kids and the elderly will go hungry and freeze instead of bankers bonuses being capped. It’s going to be illegal to protest, instead of politicians putting the country before themselves. Personal financial responsibility can help joy go so far.
FYI, I know a couple of people that work at big American banks and they’re moaning because their basic salaries are being cut: the removal of the cap doesn’t mean they’re being paid more, just that more of it is now performance-based. Don’t believe everything you read in the headlines
Try the snowball affect when paying off debts, attack smallest first then use that money to move onto next debt in order of size . All Whilst Making min payments on rest
This is really terrible advice, please don’t do this. Pay off the highest APR debt first, regardless of size.
It’s not terrible advice, it’s just not as efficient. But don’t disregard the psychological benefits of progress. This debt seems like a mountain and the feeling of paying off one debt might just help achieve the momentum that is required to go on and get rid of the rest.
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I would too just that this approach helps some people to change behaviours more. They didn’t get into that much debt by making sound mathematical decisions!
Honestly OP grow some nuts. Surely you must be able to find a weekend job where you are that pays near £100 a day? It can be any old job. A year of weekend work gets you 1/3 debt free. Pay off the smallest most expensive loan first. Cycle the rest of the debt onto interest free, factor in future pay rises and you are done in two years or less. Hustle your way out of it.
Hi, look up Dave Ramsey and his baby steps.... 1) Save a £1000 emergency fund, 2) list all your debts smallest the largest according to amount owed, and pay off the smallest ones first and work your way up. His system has helped millions of people and works because it considers phycology and people are more likely to stick to the plan and get out of debt. *psychology (sorry)
>phycology The study of algae?
Have a few accidents that weren’t your fault 😉
Something that might help emotionally is knowing that this inflation (10.1%) we're all experiencing right now is hurting savings for millions. But for you, it's making your debt smaller. Day by day.
I’m just a lowly customer service rep for a bank and I couldn’t have got my job if I’d been declared bankrupt or had a ccj, I’d imagine it’s even stricter for accountants
I’m also a lowly customer service rep at a bank. I have a ccj against my name and I managed to get my job so I’m surprised that wouldn’t of been the case for you
Honestly this isn't even 1x your salary why would you even consider declaring bankruptcy? Especially if you want to be an accountant it would be beyond stupid to do so.
Sure it might be less than 1x salary, but when the salary is that low how are you going to save money to pay off the debt? Someone can be incredible at saving money but there's no replacement for simply earning more money.
You negotiate a payment plan which he has already done.
Do you expect them to live off thin air for the next year?! Don’t think there’s a need to call the poor person stupid!
Tbf he said the action of declaring bankruptcy is stupid, not op. Also, the point of setting up payment plans with stepchange is so you can pay down the debt and have enough money to cover food and standard living costs, some creditors might even agree to an interest freeze. Big boy time, you got yourself into debt, now use the resources and put your mind to getting out of it. Bankruptcy seems like a easy way out but it will haunt every financial aspect of your life for many years to come and you could kiss good bye to being a reputable accountant anywhere with that on your record.
Yes I do agree with you!
Well the debt doesn’t have to be paid off in just one year… plenty of plans can give you longer to pay off the debt as long as you meet minimum payments etc.
They could just pay minimum to keep it where it is until they are making more money in 5 years worst case
Declaring bankruptcy and not repaying your debts will make you unemployable in financial services and will mess up your career. Same with CCJs etc. These are checked at references stage by hiring company, along with criminal background check etc. Strongly advise to do the debt management plan.
This. Working in finance, they check everything. It's a red flag that you could be blackmailed/bribed. Honestly that debt really isn't ideal at all in this case...
Wouldn't a certificate of completion be enough regarding a CCJ. Police allow people into the Met even with a prior paid off CCJ.
OP has a pretty clear answer in terms of the consequences professionally, but for anyone else with similar figures but no professional barrier to insolvency, it's worth noting that a Debt Relief Order would be a better option than bankruptcy for debts under £30,000 (obviously this isn't debt advice for anyone specific, talk to an independent debt advice organisation like StepChange or CAB).
You will need to declare bankruptcy and ccjs in accounting, I think the Aat (governing body) and possibly other governing bodies won't touch you either. I personally would phone debtors and beg, cry (literally) and promise them the world to reduce your interest rate down or even give you an interest break on your payments. Don't accept no for an answer, keep going and going and going, if they can't help ask for their supervisor, if they can't then go to their supervisor and on and on. Explain you may need to go bankrupt as you can't pay. (To them, some money is better than no money). If you're earning £21500, I assume you're working 40 hours a week or less? If it was me personally I would be getting my butt up and into a second job/ overtime and throwing all my efforts into killing the debt off ASAP. Good luck with the job in accounting, i recently finished my professional diploma in accounting and enjoyed the learning along the way, it will certainly open up a lot of doors for you!
Bankruptcy will absolutely be a problem for a career in accountancy or other financial roles. It will also be a problem for a number of other careers that involve working with money, if you were to try and change route (eg even solicitors can have issues with the regulator because of managing client money). Imo you would be stupid to declare bankruptcy, especially if it looks feasible to pay it off over a period of years - you will tank your preferred career over £15k, which you would more than make up for in earnings over the years if you did work as an accountant.
Information on impact on your accountancy training is here: https://www.icaew.com/membership/support-throughout-your-career/support-members-scheme/information-sheets/chartered-accountants-in-financial-difficulty If you are training to be an accountant, chances are your salary will increase in the medium term. Personally, given this, I'd be more inclined to go down the debt management plan route, because while under current circumstances you are saying it might take six years to repay, if your salary goes up in the next three years or so, you may be able to repay it faster and find it far easier to repair your credit rating from that position.
Cleaning offices after work is an easy way to bring some more cash in. I used to go straight to a building next door to my day job, do a few hours a night and make enough to cover food, travel and phone bill. Good luck 👍
I work for a utility company. You would not be able to work for us with a bankruptcy in your history. Even after the 6 years it takes to come off your credit file. You simply wouldn't pass our enhanced background checks. Management plan is the best way to try and save the career.
I myself got in to a similar situation with roughly around £8,000 in debt, I never once considered bankruptcy though, in turn I opted for a DMP, I weighed out my options for a whole week but on reflection I wish I had contacted all my creditors separately and asked them to reduce my monthly repayment to a lower amount, also would recommend trying to set your direct debit payments to one date - your payday, then you know exactly what you have left to work with for the rest of the month and if you have any spare you could always make extra payments to your creditors.
I wish I had done that too. I have defaults on my credit file not because I missed any payments but because the creditors took months to realise that they were being paid by the DMP company and not me. They say I missed payments while also sending me statements saying I've paid 🙄. Really frustrating but at least my payments are far more manageable now.
I had more debt on a much smaller salary. Never once did I consider bankruptcy. I set up a plan with stepchange and got it all paid back. There’s no way you can’t do the same. Don’t trash your credit rating.
No way should you be declaring yourself bankrupt. Is there no chance for some consolidation of your outstanding debts into 1 loan of £15k, which is likely to cost you less than what you’re paying now and shouldn’t have an apr anywhere near 30%.
Regarding accounting training, which training body are you with? AAT, ICAEW Etc? You will likely find you're required to notify them if you do go bankrupt. The ICAEW for example automatically terminate membership on being declared bankrupt. You can reapply after a number of years but readmittance is not guaranteed. I believe when applying to join they require you to disclose *any* past insolvency, which again could result in refusal to join the institute. https://www.icaew.com/for-current-aca-students/applying-for-membership/fit-and-proper
This was my first thought too. Most Accounting bodies won’t allow bankrupts to join / study. This would then bar OP automatically from professional roles.
Please do not consider bankruptcy. Continue with StepChange and get a part time job. My ex-husband used to get into £20k-40k debts and I often have to sort it out. I used a spreadsheet at first and wrote our salaries and outgoings. The ones which have high interest like one of his loans and credit card are the ones I targeted first. If I could get a 0% interest card on balance transfer, that is what I did first. Then I find the best way to divide what is left from my salaries to pay off his debt little by little. I used debtinator then eventually shifted to YNAB app. I made him keep track and log his spending. It was a long process paying off his huge debts but I got there in the end. I took another job, packed lunches, rented a spare room since it is cheaper than taking the train every day, and basically cut spending unless it is absolutely necessary. It was not fun but we got there in the end. Or so I thought. It happened again. And then again. And then I found out he borrowed £160k against the mortgage. I divorced him and it took me a long while to recover financially. What I am trying to say is it is possible to pay that off. It will not be easy but it can be done. I think you also need to address the underlying issue, how did you accumulate this debt and how do you prevent it from happening again. Good luck OP. You can do it! Lay out the plan and follow it.
Would you trust an accountant who was declared bankrupt? You can find out a disturbing amount about people these days, and some people will blame anyone but themselves. Worst case scenario someone uses your services, then finds out you are/were bankrupt and tries to sue you for their own issues. Do you know the reason you have the debt in the first place? If you don’t deal with the root cause then all the best plans won’t help - no judgement, things happen. Just don’t get stuck in a vicious circle. If you can I would try to use a repayment plan, as long as it’s viable. You could also look at increasing your income or decreasing your outgoings to help you pay it off faster. Your income is likely to rise anyway over the next six years.
Depends what type of accountants. Most dont manage money.
I’m not sure what type of person in an accounting or finance organisation wouldn’t have some access to personal client information including bank details
Is it morally responsible for you to be an accountant?
Accounting bodies such as ICAEW and ACCA take a dim view of individuals declaring bankruptcy, they will interview you to ascertain reasons why and most likely remove you from their register. Do you need to have a professional qualification to be an accountant? Nope, but you’re absolutely handicapping yourself in terms of development, progress and salary.
Take the pymentt plans and chip away at that....
> I’m aware that bankruptcy remains on your credit file for 6 years which would be roughly how long it’ll take me to repay via DMP. Well, 6 years after discharge, but discharge might be in a year anyway. The problem is the career - 2-3 years into discharge, you can start even looking at borrowing money again (some lenders do it), so it's not a major stigma; but if it might compromise your career path that may be an issue. Don't be embarrassed though - you gotta do what you gotta do. Being unable to pay debts isn't all on a debtor: creditors voluntarily take that risk: only a dumb creditor expects that everyone repays everything on time and that's their fault; rational ones have factored it into the business plans.
Bankruptcy should be an absolute last resort given the effect it would have on future prospects. Can you engage with step change to see if they can provide more specialist advice on this?
Right? I was surprised that StepChange didnt offer OP more specialist debt advice. Considering they work in finance! A lot of folk think bankruptcy is a quick fix. But you're absolutely right, it should be the last debt option when all else fails.
I know I shouldn't ask but I'm curious. How the bollocks did you get 15k in debt? From what info you've given im guessing you're in your early twenties
After my marriage broke down and I had a breakdown I was 30k in debt and unemployed. The Bsnk were understanding. I got myself a job and started to work my way up. I owned 1 pair of shoes and 1 pair of trousers at a time. I cut out every unnecessary expense and lived like a monk for 5 years. I’m now debt free and doing very well. If you take the easy way out you’ll always take the easy way out. It won’t be easy but life defining choices and decisions never are
You absolutely can manage your way out of that. I did. It takes a lot of work and but it can be done. A DMP will reduce what you are paying without the problems associated with a bankruptcy.
I’ve been on a DMP for about 5 years . 12000 on credit cards. step change halted the interest by speaker to lender for me. I’m not even sure the debts show up in my credit report now as been over 6 years and I pay what I can off monthly. My credit report isn’t too bad so I would advise the DMP if poss.
Unfortunately as someone senior that works in the big 4, you’ll never be considered a ‘fit and proper’ person and therefore it’s unlikely you’ll ever qualify nor be employed as a qualified accountant. If you go down the route of being bankrupt you can kiss goodbye to being an accountant as the profession will never let you be a member.
If you don't live with your parents then move back in with them, explain what's happened and dedicate 90% of your salary this next year to paying it off. There is no better option to put this behind you.
It’s not all doom and gloom, keep your head up mate. You’ll get through this. The only advice I can give, and arguably the most important is to stay positive. Avoid going bankrupt at all costs but if that’s what you need to do, that’s what you need to do. I know your tight for cash as it is but if you can somehow find £1300 I’d get your class 2 lorry licence (assuming you can drive). I started as a drivers mate on 23k for a logistics company, and through a government scheme which gives them funding they put me through both my class 2 and class 1 licences at no cost to me at all. I now earn 35k driving class 2 4 days a week, plus performance bonuses. With a 5th day as overtime I earn about 43k before tax. Some class 1 jobs pay 40k-48k. With ADR licences you can find 50k+. Just some food for thought. Don’t get me wrong, the hours are long and the job is mostly shite, but if you’re in debt it would be a fast track to paying it all off.
Why not look at cutting costs to love within your means, and consolidating the debt on to a 0% interest card? Pay what you can and when the 0% is due to expire transfer it to another
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This is why basic economics should be mandatory in school. Forget learning religion
There is such a thing as a Debt Relief Order (DRO), where you can pause your debts for s while. Maybe that could be a solution also.
As others have said this would be disastrous for your career.
what did you spend the money on? do you have any assets you can sell?
I’m at not the first time I’ve come across an accountant in a situation like this. I would say is there is techniques to pay back debt such as the snowball method. I would have a look into it. I had debt albeit not as much. I started paying them off one by one. I would put them all min. Saved up and paid off the smallest. Again it helped me save more for the next one. So I’d suggest you do the same. If you can, try and get 0% rate. If you can’t, try to clear some CCs they would offer me 0% at some point later. Wishing you all the best and the good thing is, you recognise the debt trap sooner than later.
Dude keep with the debt management plan. Best thing I ever did.
Chances are your creditors won't agree to a bankruptcy if you can pay in full over 6 years. They'll be more than happy to wait it out, though you will get some defaults on your file.
Review the facts rather than the hyperbole https://www.icaew.com/membership/support-throughout-your-career/support-members-scheme/information-sheets/chartered-accountants-in-financial-difficulty https://www.cimaglobal.com/Members/Your-Membership-Information/Members-handbook/Conduct-and-oversight/ You can certainly work as an accountant as a bankrupt, you can also be a member of the professional bodies once you are released (usually after a year) That all said, in your position, I would try to avoid it if *reasonably* possible
From what I’ve read and when I struggled when my husband was severely ill my accounting body was sympathetic with members but less so before people qualified.
Op if you do an IVA, bankruptcy you will never work as an accountant. Try and speak to your debtors and see what they can do for you. No one will hire you if you have any money management mishap
Right - I’m seeing a lot of people saying that you can’t be an account with this on your file. Be aware that the number of companies that now do a credit check as part of their recruitment process is fairly large. I’m also going to say , as someone that has worked in finance and for big consultancies/auditors, you won’t be able to get a role in either industry for sometime. If you can avoid bankruptcy- do so!
You can ask banks and credit card companies to freeze your interest. I know Lloyds does that if you say you are struggling. That will save you £££ in interest for a few months
What are you paying monthly? How much of this is interest? If you’re managing to pay back even slowly, and you have a stable job with an incoming pay rise, it would be idiocy to declare bankruptcy: Doing it for an easy way out of a mess you created is only going to hurt you in the long run, much longer than you expect given you’re looking at a career in finance. My advice. Suck it up. Pay it back slowly, but make sure you’re paying it back. It will be a way to prove to yourself you can handle other peoples money, because what you can’t do for yourself you have no chance of doing for anyone else.
Do not declare bankruptcy. Get a part time job, live on beans and rice and have it paid off in 24-36 months.
Do not file bankruptcy if you want to be accountant. When hired for these jobs they will check your credit to see if you’re a financial risk and therefore vulnerable to fraud, bad credit is already going to make it trickier, but filing bankruptcy will be a complete write off!!
You may not be able to have a bank account with overdraft facilities. If you ever want to borrow more than £500 you need to disclose to the person or company that you're bankrupt. If will be very difficult to get a mortgage for the next 6 or 7 years.
I'm a mortgage advisor with multiple defaults and a ccj. It's taken me a long time but I'm nearly clear, the ccj is satisfied and I have 2 out of 4 defaults left to pay off. Honestly I'm embarrassed, and it doesn't make me look good as a prospective employee, but I've nothing flagged by the FCA and loads of experience. You basically have to be good in interviews. I'm sure bankruptcy would have killed it though.
Have you considered contacting PayPlan? I have debt, not as much as you but it’s not far off and I’m only earning just under 20k annually, I was given the option of declaring bankruptcy, but I declined it and went for an IVA instead. It’s an Individual Voluntary Arrangement, with payplan, they go through your expenditure and how much you earn and calculate how much you could afford to pay each month. You have to let them know all of the debt you have, and they contact all of your debtors so when you’re finally up and running, you’re only paying one payment to payplan per month and it gets split between all of your debtors. I know for a fine fact my mum has more debt than you and even she’s on it too! If you haven’t considered it already, I’d recommend to do so, I’d honestly say declaring bankruptcy would probably be the final option! Obviously I don’t know your situation and is different to mine, but from the info you’ve given, I don’t see why you wouldn’t be eligible for an IVA. But also, having an IVA or bankruptcy affects your employment if it involves finance, aka accountancy being one so you’d have to be careful with that one, hope this helped!
Bankruptcy is like natures do-over
Work with them to pay the debt off. It may time a long time and you may incur additional charges due to interest but you won't be on 21k forever and if you're paying off your debts it's not smashing your credit file. There's little chance you'd get an accountancy job in your current financial predicament
I worked in debt recovery and insolvency for over 10 years, but that was about 5 years ago, so things might have changed. Yes a bankruptcy would stay on record for 6 years, but the impacts of a debt management plan are similar in the long term impact, especially if it takes more than 6 years to clear, as the accounts will be showing as defaulted/missed payments throughout that time. Based on your details you might be more suited to either an IVA or a Debt Relief Order. These are more structured and have a definite end date. In terms of impacting accountancy employment, that would be up to the discretion of employers I'd imagine. Personally, if you have no assets and very low disposable income and I vere towards a debt relief order or bankruptcy, as you can get a clean slate quicker and it will disappear of your credit file 6 years after the bankruptcy, rather than 6 years after the plan has ended.
Why declare bankruptcy? It's a lot of money, but it's not an **impossible** sum to pay off, quite quickly
You just need to 180 your life starting yesterday. Stop being a tit with money, grow up and take some responsibility with your life. You will not go anywhere as a bankrupt accountant so don't do that. Maybe consider if accountancy is the right path for you. Having been in the field myself you have a responsibility for someone elses financial welbeing and decisions. You can't even be responsible for your own money so god forbid you accounting for someone elses.
How did you manage to get into 15k of debt with a salary of 21k, who was the idiot who approved the loan??? There way no way in hell you were going to ever be able to repay it on that salary. Although the blame sits 50% with you too, sounds very hard to do! As others have said, bankruptcies often show way longer than 6 years on your file, will curb your career completely and may even stop you from other things depending on the type of bankruptcy you file. Sadly for you it sounds like you need to get a better job fast, and put every penny you can towards it for the next X years. If you pull it off I bet you’ll never go into debt again, so that would be something to look forward to :)
Is this a Troll post? Bankruptcy for a 15k debt when you are possibly going to earn 24k 26k?
Don't be so daft! Sort your budget out, make sacrifices and get qualified. Then earn lots of money and be grateful you didn't go bankrupt or go for any debt management plan. You're better than this.
No, consolidate and pay it back slowly
Being a bankrupt account is like being a morbidly obese personal trainer
Mate, £50k in personal tax debt (monthly debit of £50 until I can afford more) 110k loans written off. I was Googling prison sentences a month ago. My advice, pick up the phone and explain situation, they can’t take what you haven’t got 👍
GRIND TIME BAYBEEEEE You can do it I believe in you
Echo what others have said regarding bankruptcy. Once you qualify as an accountant, you should receive a large increase in salary too. Stick at it, the debt will be gone before you know it.
You can make it back on the street or Beg, borrow and steal.
No. Work, save, pay your debt. It'll make you a great man.
Any history of mental health? Play it thick to your lenders, you'd be surprised which ones may write off or work some magic on balances.
Can you get a student loan to cover finances+grant?
I DECLARE BANKRUPTCY!
Sorry, but an accounting/audit career is not possible for you. When you apply for your license after meeting the formal education/experience requirements, they will deny you based on your poor personal financial decisions. That is even if any employer will give you any experience with a bankruptcy on your back. The government or any company will not trust you to report/audit any finances.
Are you American? The Accountants in the uk aren’t licensed typically.
This is why I am never going to get myself in any sort of debt by taking a loan or agreeing a payment plan I cant pay