personal stories .. bankruptcy

[phat256]

i am going to go for bankrupt next month after advice from national debtline and CAB

 

i wonder if he anyone who has gone through and if it worrth it for the clean slate or their personal stories of it ? is it that difficult ? did you have any creditor trying to enforce or getting you a CCJ after Bankrutpcy ?

[Guest forgottenone]

Interested in learning more personal experience as well. Subscribing.

[Parkvale]

Once you are discharged from bankruptcy then you do not have to repay the debts you had at the time you were made bankrupt. If you are discharged and creditors do contact you , then let the Official Receiver who managed you bankruptcy know and they will deal with this for you. Once you are discharged from bankruptcy then you do not have to repay the debts you had at the time you were made bankrupt. If you are discharged and creditors do contact you , then let the Official Receiver who managed you bankruptcy know and they will deal with this for you.

Good luck and look to the future. You will be able to draw a line in the sand and move on.

[sequenci]

i am going to go for bankrupt next month after advice from national debtline and CAB

 

i wonder if he anyone who has gone through and if it worrth it for the clean slate or their personal stories of it ? is it that difficult ? did you have any creditor trying to enforce or getting you a CCJ after Bankrutpcy ?

 

Hello there.

 

I have not gone through the process myself but I've helped hundreds of others do it. For many the experience is very liberating and although they may be daunted by the prospect of attending a court they soon see that it's actually pretty painless.

 

If a creditor tries to chase you for payment once you have been declared bankrupt just point them in the direction of the Official Receiver. If any creditor tries to obtain a CCJ against you after bankruptcy you'll easily be able to defend the claim on the ground that the debt has been disolved into the bankruptcy (even if you forget to list the debt in your bankruptcy petition).

 

It looks like you've had help from some good sources, I wish you all the best with your quest. If you have any quesries or concerns or just fancy a rant feel free to drop me a line.

 

Best wishes,

 

Seq.

[Parkvale]

Just to make you feel a little bit easier. Here is a list of famous bankrupts.

All these persons were very successful and continued on with their careers. When bankrupcy conditions were much tougher. Good luck.

 

Francis Ford Coppola (film maker - The Godfather)

Kim Basinger (Actress)

Barbara Bel Geddes (Actress - Miss Ellie in Dallas)

George Best (Football star)

Bjorn Borg (Tennis player)

Toni Braxton (Singer)

John DeLorean (Car maker - featured in Back to the Future films)

Walt Disney (Founded Disney)

Handel (Composer - messiah)

MC Hammer (Singer)

Ulysses S.Grant (18th President of the USA)

[phat256]

thanks for yoru support, everythign is set up now just need to go to court ! not really looking froward to that one ! lol thanks again.

[Parkvale]

Please keep us informed and don't be worried to ask anything. However irrelevant it might seem. Good luck.

[excel1]

A word of caution, the advice about creditors is spot on once your bankrupt they have to deal with official reciever or Insolvency practioner. they may send you stuff, certainly in the first month ot two into bankruptcy as there depts dont talk to each other, but for my father-in-law we just sent to OR office and never heard again.

It was the OR that was the pain,they wanted an IPa (income payments agreement) and wanted way too much after it was pointed out to them that they had broke there own guidlines they gave up but were a pain in the backside and he would have just paid struggling along.

bankruptcy is a new start and whilst they are entitled to get something back for creditors, as it said on there site it should also give a solvent clear future to the bankrupt too, so if they come at you with a #IPA that you feel unfair post it back up here for us to look at, please dont just presume they know what they are doing.

[sisternumber1]

It has been a liberating experience for my daughter although she is not discharged yet. It has helped her mental health no end, so that she can concentrate on her physical health, its helped me as well as I no longer need to write so many letters and can concentrate on the rest of the things that are needed.

[Guest wino]

I was advised to go bankrupt two years ago when my business went into liquidation. As I have a house that I didn't particularly want to loose, I have fought and am just managing to pay everyone each month.

 

I can't afford to go out on the razz and I cannot remember the last time I could afford to go to the hairdresses.

I feel better knowing that I am slowly climbing out of this mess. It has not been easy and I have shed a lot of tears. I live in hope that one day my debts will be a thing of the past.

 

I know a few people who decided to go down the bankrupsy route. They are all now much happier and starting over again. They can answer their telephones and open their front doors whilst I'm still ignoring mine.

 

It makes me wonder if I made the right decision to struggle on

[Parkvale]

The majority of people who go bankrupt really wish that it wasn't their best option, but usually it is. We accept that we have responsibilities: Normally we will try our upmost

to repay our debts if we possibly can . The bankruptcy laws are there for people who have genuinely dug themselves into a hole that they cannot get out of..It is very honourable to soldier on and attempt to pay back your creditors and we all agree that you should always try your best to do so but if you are in serious debt and having considered all of the alternatives there is just no way that you can manage and you are making yourself ill with worry and you can't provide for your family. Then if you consider bankruptcy don't forget it is a right that you have in Law.

[phat256]

my decision to go baankrupt wasn't easy. i took a lot of advise from national debtline, CAB and CCCS. they wanted me first to gointo a debt management plan what hey ask to repay was enormous for my low income. IVA wasn;t an option for me as don;t have any asset of any value.

 

 

the las few years have terrible for me fighting with DCA etc.. not having money to buy clothes, food, go to the hairdresser as most of my wages went to pay towards my creditor. but i was only paying interest and charges.

 

then they National debtline suggested me to go bankrupt that was last year.after a good look on the implication of bankruptcy i decided to go for it.

 

i have over 25 k unsecured debt which wil took me at least 15 years to repay on my current income.

 

today i book my appointment ot the court, printed off mybankruptcy from from the insolvency website and in 2 weeks time weel at least i will be able tosay i am debt free ... i feel extremely nervous about what the future hold for me .

 

at the moment i am fighting a CCJ see my thread on residential forums. i have had a very nasty ex Landlord.

 

 

the clerk at the court told it will take aproximately 2 hours to be declared bankrupt on the day itself, 5 minute in front of the judge and about 30 min to one hour with the Official reciever.

 

i will kepp you posted now on the 18th July i will be bankrupt

[Parkvale]

phat 256 .

Well done you will soon be back in control of your life. You have drawn your line in the sand. I am sure it is not easy to go bankrupt in your own mind, but once you have made the decision then your can move forward. I am sure it is the mind making up that must be the worse.

While it was agonizing in making the decision, I'm sure you can now see that the worst will soon be over and done with and you can now start to focus on your future again.

As far as your CCJ and debts with your landlord. These should be included in your bankruptcy order. Good Luck.

[phat256]

thanks parkvale i have included everything on my bankruptcy form iwill be a lot happier well sort of once the deed is done and over with .. lol

 

the real annoyance is the feeling of embarassment of being insolvent and declaring bankruptcy ... and hopefully the OR won't be too harsh on me.

 

for the my ccj defence i have told the court and my ex LL that i will be bankrutp in 2 weeks time and if my ex LL want to go further well go for it, you will be only wasting your time and money.

[Parkvale]

phat 256 I am sure it will be a huge relief & although not the most pleasant thing to admit to. In the future it will prove to be a a benefit to you. You can move forward with a fresh outlook on life & learn to appreciate money more sensibly now. I am sure you will think twice about applying for a credit card and no doubt that if you want something, you'll save for it - like you had to in the "old days" The thing is there is nothing to be ashamed or embarrassed about going bankrupt. When it's all over you will be in a much better position than the vast majority of people who have consumer debt hanging over their heads with years of worry and anguish in front of them.

[blue4ever]

hi phat256 last year i went bankrupt and i was quite poorly at the fact of going to court,but this stopped because the people at the courts were very nice and helpful on the day i went to the court and swore a affidave that took 5mins told will get call that night,which i did got.i was told judge had made me bankrupt 48 hours later call from the offical reciever this last for 45 mins(was asked lots of questions)the OR was also very nice and now all the calls from DCA`S have stopped and i can now loook forward to a brighter future.

Good Luck i will be thinking of you.

[seylectric]

Just a word of caution, if you own a property the creditors will force you to sell that to get their money if you are made bankrupt, so while wiping out any debts you could also lose your home and will find it nigh on impossible to get a mortgage in the future; that's my understanding of it anyway and is what we are going through at the moment.

 

Additionally it doesn't wipe out everything, my partner is still being chased by the water board for around £2000. Our position is a bit strange as the bankrupcy has since been converted to a fastrack IVA, but we would have had to sell the property, and still may have to, to pay off the huge costs involved (over £25 for an original £6k debt), and have been told that if the IVA fails then there is nothing to stop the creditors applying for bankrupcy again, so it doesn't necessarily wipe out the debts.

 

As a result of the costs involved we are in a far worse mess now than we ever were before the bankruptcy. I don't even begin to understand any of it.

Edited July 8, 2008 by seylectric

[phat256]

i do not have any asset whatsoever to be honest this is why bankruptcy was suggested to me as it will be very straight forward.

 

 

i do not own any property .. so i am ok with that

 

you right blue4ever the people at the court seem nice they told me i could get exempted form the court fee obviosuly not from the OR fee.

 

and again parkvale thansk for your support . i look forward to have my life back on track not to worry about if they have any CCA or not , no more phone call on week end or late evening etc.. no scared to open your letter or answered the phone, or how my going to pay this and that !

 

they suggested me first a debt management which i had to refuse as my outgoing were bigger than my income. and i can tell you, oh dear boy, i have learn my lesson not in the nicest way but hey at least i will be no more slave to my debt. and look forward for peace and quiet.

 

thbnaks everyone for your support it is encouraging that at least i am not the only one

[blue4ever]

You will NEVER be alone whilst you have so many people on this site.

 

REMEMBER YOU ARE NOT ALONE:-)

[gizmo111]

Just a word of caution, if you own a property the creditors will force you to sell that to get their money if you are made bankrupt, so while wiping out any debts you could also lose your home and will find it nigh on impossible to get a mortgage in the future; that's my understanding of it anyway and is what we are going through at the moment.

 

Additionally it doesn't wipe out everything, my partner is still being chased by the water board for around £2000. Our position is a bit strange as the bankrupcy has since been converted to a fastrack IVA, but we would have had to sell the property, and still may have to, to pay off the huge costs involved (over £25 for an original £6k debt), and have been told that if the IVA fails then there is nothing to stop the creditors applying for bankrupcy again, so it doesn't necessarily wipe out the debts.

 

As a result of the costs involved we are in a far worse mess now than we ever were before the bankruptcy. I don't even begin to understand any of it.

 

Have you a thread on this?

Why was it converted?

Did you declare yourself bankrupt, and was it just yourself or your partner as well?

[Parkvale]

Blue4ever, As gizmo says your story would also be of interest. Why not start your own thread ?

"REMEMBER YOU ARE NOT ALONE:-)"

[phat256]

yes wi wil do start my own thread in 2 weeks times from the day i will be declared bankrupt.

 

hi gizmo my partner and myself will be both bankrutp but not at the same time as we do get paid at different date so to make sure we have enough money to buy food after paying the rent and bills.

 

i will in 2 weeks time then my partner two weeks later. our combined debt over 42 k only unsecured one... actually this thread could be converted into one.

 

i fount out that it is very difficult to obtain specific information about bankruptcy as each every single person going through that is different.

 

i just been told that apparently the coop is good with undischarged bankrutp but told to wait before openning one.

[Parkvale]

In bankruptcy, your accounts are frozen and any monies in there will be frozen too. It's advisable to open up a new basic bank account prior to bankruptcy to avoid this, but be honest with the new bank and tell them you are filing for bankruptcy, and let the Official Receiver know that it's a basic account and they won't have any interest in it.

There are currently two banks who allow basic bank accounts for undischarged bankrupts. The Co- Operative and Barclays. You can open a basic bank account with them as long as you have no record of debt or fraud with them.

Edited July 9, 2008 by Parkvale

[seylectric]

Have you a thread on this?

Why was it converted?

Did you declare yourself bankrupt, and was it just yourself or your partner as well?

 

There is a thread somewhere, I'll try and find it. It was my partner, not me that was made bankrupt for council tax arrears (because she is the sole owner of the property). We hired a solicitor to try and get it annuled because we didn't receive the statutory papers - these seem to have been posted by the process server through somebody else's letterbox as the house he described on his witness statement described a completely different property - but basically the solicitor was hopeless and did little or nothing.

 

Towards the end of the bankruptcy at the end of last year we were told that the creditors (there are two) would apply for the property if we didn't pay up, and it would be cheaper to convert it to an IVA and this would annul the bankruptcy (see my IVA thread for more details).

 

Sadly we have been misinformed and badly advised throughout. What is sickening is we were not in any financial trouble UNTIL the bankrupcy occured - although we had been through a few rough years which led to the arrears, I offered to pay the council the £4000 outstanding five months before the bankruptcy happened but was told that they couldn't accept it as the matter was in the hands of their solicitors who would be contacting us. They never did do, and the next thing we heard was a letter from the O.R. stating that my partner had been made bankrupt.

 

Even now I'm earning very good money but am stuck with a huge bill and have not been given a decent amount of time to pay, so it's looking like we are going to be forced to sell or try and get a back door remortgage and pay huge fees over the next few years for what was originally a £4k debt that I could have easily paid! The whole thing is absurd!

[seylectric]

Original thread:

 

http://www.consumeractiongroup.co.uk/forum/general-consumer-issues/48917-made-bankrupt-how-overturn.html?highlight=bankruptcy