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Bankruptcy
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Can anyone give an insight to life after bankruptcy if anyone has been through it please.
I have read online the restrictions ect that can be placed on you but I would like to know from a person who has been through it what it entails - was it worth it - and what is life like now.
Basically short version of my situation is, I am in £25k debt
I am with stepchange paying £45 pcm have 7 creditors so they are getting £5 each - there is no way I can up these payments so have been advised best option is to go bankrupt.
Thank you
I have read online the restrictions ect that can be placed on you but I would like to know from a person who has been through it what it entails - was it worth it - and what is life like now.
Basically short version of my situation is, I am in £25k debt
I am with stepchange paying £45 pcm have 7 creditors so they are getting £5 each - there is no way I can up these payments so have been advised best option is to go bankrupt.Thank you
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Didn't the person who gave you the advice to go bankrupt explain the consequences fully to you ?
No it was just a suggestion - I do know parts myself.
I really want to hear from people who have been through it.
##your assets can be used to pay your debts
##you must follow certain rules called the ‘bankruptcy restrictions’
##your name and details will be published on a bankruptcy register called the ‘Individual Insolvency Register’
##after 12 months you’re usually discharged (freed) from your bankruptcy
https://www.gov.uk/bankruptcy/overview
My father was in 70k debt, he had to sell his home, But I know of people who have gone bankrupt and managed to get another house.
Much more detail here:
http://debtadvicebureau.org.uk/bankruptcy/main_effects.html
As every case will be different, I don't see how "personal experiences" will help you.
Stepchange (formerly CCCS) exist for the sole purpose of providing free debt advice, so they are clearly best placed to advise on your best course of action.
You seem to be in need of a new calculator ...
No need to be rude, i meant 9 creditors
Thank you for your post, i dont own a home i dont have any assests at all really, no car , just basic house things which ive read they have to allow you to keep in order for you to carry on with your life.
Exactly thats why i will probably have to go bankrupt
http://forums.moneysavingexpert.com/forumdisplay.php?f=136
Is your partner going bankrupt as well, or are you going to transfer your assets into his name?
One effect of going bankrupt is that it could make it extremely difficult to get credit in the future - though you may consider that an advantage.
You'll be subject to bankruptcy restrictions for one year. The main restrictions are not obtaining credit of more than £500, can't run a business or work in local government.
You might have to make payments into the bankruptcy for three years (an income payment agreement)
It will cost you £700 to make yourself bankrupt
If you've no assets of note, they're unlikely to be sold. The official receiver is only interested in high value assets they can sell
The bankruptcy will be on your credit file for six years, then it drops off
Check your employment contract and tenancy agreement for any clauses about bankruptcy
Your bank account will be temporarily frozen, so you may need to make alternative banking arrangements
That's about the long and short of it.
To be honest, of you've no way of paying your debts back in a reasonable time frame, bankruptcy will give you the fresh start you need. If you've no assets, no surplus income and don't run a business, it won't make much effect on your day to day life, but do consider your future plans. Will you ever want a mortgage? Will you want to work in finance or law? Bankruptcy can affect these things long into the future.
Good luck.
The thing is, if you're giving debt advice to someone who owes £25k with only £45 surplus income and no assets, there's only two options - bankruptcy or a long term repayment plan. If the debtor doesn't want to go bankrupt, you can't exactly turn them away and say you won't help. Whilst a long term repayment plan is not ideal, it gets an arrangement in place with the creditors, gives the debtor some breathing space and they can consider bankruptcy in the future, as the OP is doing.
It's not that unusual.
I knew somebody who ran up a £27,000 debt from an initial £1,000 loan and they ended up paying it off at a measly £5 a week.
A couple of years in and she just filed for bankruptcy - I don't think they ever expect to get anything like the amount back but to the creditor £5 a week is better than zilch.
No my partner is not going bankrupt, he is fine, im considering bankrupt as I dont think you can be on a repayment plan for that long. I do want a fresh start, I am not concerned about future credit thats why i am in this mess
Happended when I was single and in a well paid job living beyond my means lost my well paid job and boom spiralled out of control! Totally hold my hands up my own fault.
Then met love of my life and now have a beautiful baby daughter, but have this looming over me.
The last few posts have been very helpful thank you.
This concerns me were are you supposed to have your wages paid into to carry on your normal life?
The Co-op do one and I believe Barclays do one to.
They let her keep her phone,I think they were going to take her car. But in the end it was worth less than £1000 so they let her keep it. I remember at the time she had trouble getting a bank account, and the bankruptcy stayed on record for 6 years, but she now has a mortgage with her new partner so I assume she is now able to obtain credit again.
A neighbour went bankrupt a few years back and seems to be be better off now than ever. They had restrictions placed on their bank account and they could only have enough money to live on for a while and that was it.
but 8 years on and they seem to be better off now.
This is why this country is in such a mess. People can spend tens off thousands that isn't theirs, go bankrupt and have it all wiped out, then just six years later start all over again, get a mortgage etc.
I hold my hands up it was my fault but i did lose my job too at the time, you cant just judge straight away.
Are yous on good terms now for you to know all that? Dont ypu mind you two split?
Barclays are the only bank that offer bank accounts for undischarged bankrupts now. Could you arrange for your salary to be paid into someone else's account temporarily? Partner, family member? Alternatively, could you open a bank account with a credit union? Google will tell you if there's any in your area.