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Bankruptcy - My Personal Experience
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eveningstar201
Posts: 48 Forumite
Hi everyone,
As my debts were spiralling out of control, I stumbled across this site and had been a follower for a while, though I never really contributed. Now that I am a bankrupt, I realise that while there is a whole lot of information out there, people might feel a bit comforted by hearing other people's personal experiences of bankruptcy so I thought I would post mine here. My experience is only one of many different types out there (I have no income, no assets and no business) so it may be different for you. My BR is not over yet so I will keep updating this as and when. This site has been a great help to me and I hope to give at least a little bit back.
Firstly, what everyone wants to know: how did I get into this situation? In two words, my fault. I started university without a real understanding of money management and kept accepting and spending on every credit card I was offered. Then came the overdraft to pay off the credit cards, which I promptly re-used. Then the final nail on the coffin: a loan to fund postgraduate studies. In the current economic climate, my dream job that I had been studying hard for never materialized. Unfortunately, recently, my debt issues got to the point where is was impossible to continue. I can say that in all honesty, my problems were caused by spending beyond my means and burying my head under the sand.
After reviewing my options by looking at various sites on the internet, I decided that declaring bankruptcy was the best option for me. Because I was scared, I also went to the CAB but they couldn't offer me more information than I had already accumulated. So bankruptcy it was for me.
The process was incredibly painless, to the point of being surreal. I filled out the forms online at the Insolvency website and printed them off. After a false start, where I went to the wrong county court (silly me), I got to the county court by 8am, in a suit, terrified and with my two copies of the petition and Statement of Affairs and the fee in cash. There wasn't another soul in sight and I had to wait two hours for the bankruptcy section to open. People started trickling in after about 8:30-9am and we started chatting. In the end there were around 10 people. I felt really sad thinking that in that day and that court only, 10 people had reached the end of their tether financially.
Finally the counter opened at 10am and we were called. I was first in line and was asked to put my name down on a list. I was called back to the counter about 10 minutes after and a very nice lady (who cracked a joke about the weather) looked through my forms (to see if everything had been filled and not see the actual content) and then asked me if I was prepared to swear on the Bible to which I said no as I am not Christian. She then gave me a generic oath to read out which I did. Then I was told to go upstairs and wait for a judge to see me in chambers.
I waited almost an hour and a half with jittery nerves together with a group of equally terrified souls. I took a book to read but I couldn't concentrate because I felt mildly sick. The general feeling at that point was "I don't care what happens, I just want it to be over with!" Finally, at 11:30am, my name together with three other people was called and we were all taken down a corridor by a clerk who then showed us into the judge's chamber. I was very surprised to see that we were all going in at once. The judge said good morning and we sat in four chairs in front of his desk like naughty children in the headmaster's office. He then called out each of our names and asked us if we had taken independent advice regarding BR to which we all said yes. He then went on to explain the legal consequences of BR including the fact that (his words) "Contrary to popular belief, the bankruptcy WILL stay on your credit file for life". Then he said "Well, it seems clear to me that you are all insolvent" and declared us bankrupt. He then told us that the Bankruptcy Order would be ready for collection in an hour and we left. It must have taken a grand total of five minutes. I was expecting a grilling as to the why and how and maybe to be reprimanded for my irresponsible behaviour but nothing. It was in a way anticlimactic after bracing myself for the worst. I think my stomach muscles unclenched then after hours of being wound up.
After that, the four of us decided that after that trauma, we all needed some food to bring us back to life and we went to the cafe in the court. We all sat at the little cafe and started talking, each one of us sharing how we had got ourselves to this point. One had a failed business, the other had gone through a divorce and another had lost their job due to sickness. I felt guilty because I was the only one who had just been foolish and reckless.
We then went to collect the order and I was told by the Court clerk that I would get a call within 48 hours by the OR to check my contact details. I stepped out of the court and said goodbye to all the others. The first thought that came to mind was: why didn't I do this before. I kept borrowing to pay off the borrowing. I should have made this clean break before. Whatever comes after, be it bankruptcy restrictions or whatever, cannot possible be worse than the countless sleepless nights I've had. I felt I could finally breathe. I called my mum and had a little happy cry with her.
I waited but no call came from the OR. A generic letter included with my Bankruptcy Order advised me to wait up to seven working days for contact by the OR before contacting them so I waited. About five days later I received a letter from the OR saying that "Upon reviewing the information that you provided to the Court, I have decided that it is not necessary to interview you at this time." I then had to fill out three forms (Notice of setting out your duties and responsibilities as an un-discharged bankrupt, Tax and National Insurance Disclosure and Ethnic Monitoring Form) and send them back which I did.
I've heard nothing since but have received my first letter from a creditor saying that they have been advised of my bankruptcy. The letter was fairly menacing (YOU SHOULD BE AWARE THAT IF WE TAKE YOU TO COURT AND GET A JUDGMENT AGAINST YOU REQUIRING YOU TO PAY US THE MONEY YOU OWE US UNDER THE AGREEMENT bla bla bla in big bold caps). I can assume therefore that my BR process is going ahead, more or less smoothly. I've not touched my bank accounts or credit cards since, as advised by the OR, not that I have any money there anyway. Luckily for me, I get fed and housed by my kind parents so I have no expenses at the moment. With no assets or income, I'm praying that this continues in this painless manner all throughout. Still, being a pessimist, I worry. Is it the calm before the storm?
UPDATE 17.07.2009
I spoke to the OR's office to advise them that I was moving house. The lady who I am meant to be dealing with (not the OR himself) seems really nice on the phone. I also asked if I am meant to cut up my cards and send them to them and she said yes. I also asked if I had to let my creditors know I was bankrupt and she said that I didn't and that they would do so on my behalf.
Also, I needed to open a bank account if I am to ever work, even if it's only temp work so I decided to look into that today. Having looked around the forum and websites, I decided to contact the Coop as their Cashminder account seemed attractive. As the branch closest to me was pretty far away, I decided to just call them. I thought there would be a long queue as I called around midday but I got through immediately. I fthere is one thing I hate is waiting hours to get through to Customer Services so I was already impressed by the Coop. I spoke to a very nice lady and when she asked me what attracted me to this account, I told her straight out that I was bankrupt. She said that is fine and that they would be able to help me anyway. I thought I would have to give extensive details of back accounts, credit cards etc so I had it all ready but she asked only for my name, DOB, address and previous address, employment details (none), income (nil) and expenses (also thankfully nil). She said she might be able to give me a decision then and there or they might need further information and/or documents. I thought that due to my circumstances, I would have to give them proof of ID and address at least but miraculously, my application was approved immediately and she told me they would be sending me a welcome pack and card shortly! I was so relieved! She also told me that the card they will be sending me is not just a cashcard (for withdrawing money only at cashpoints) but an actual debit card that I can use to pay in shops and the internet! I'm so amazed. I thought that what with being BR, they wouldn't provide me with anything like a grown up bank account (lol)!
UPDATE 19.10.09
I have just received a letter from the OR saying that he is taking into consideration giving me an early discharge. The letter states that in order to evaluate my current circumstances, I need to fill out the form which came with the letter. The form asks questions about my income and expenses, similar to the form I filled when I filed for bankruptcy. The letter went on to state that I needed to fill this even if my circumstances haven't changed since I declared bankruptcy (which they haven't) and that I need to send this form within 14 days or I will lose the opportunity to have myself considered for early discharge. Also, the letter said that this would be sent to all my creditors to give them an opportunity to raise any objections to my early discharge. Finally, the letter said to not badger the OR about whether I would get the early discharge or not and that he would write to me once a decision had been made (though he didn't use those worlds lol!).
Needless to say, I will be filling this immediately and sending it off my registered post tomorrow. I will be keeping all my fingers crossed and hoping for a positive outcome. This bankruptcy has not had any impact whatsoever on my life. I have no job, no property, no family or house so my life has continued pretty much as before expect for the fact that my bank account was closed and I now have a Coop Cashminder account and I get dozens or unsolicited debt advice calls a week. In fact, it's had such little impact on my life that only my mother knows about this. Not even my father, who I live with, knows about it. So really, it shouldn't bother me too much whether I get an early discharge or not but it does. I always feel like it's something hanging over my head and I want it over with.
Has anyone heard of a person who was considered for early discharge and then, once the OR had received the form, been refused an early discharge for whatever reasons? My circumstances are the same as when I declared bankruptcy and I have no fixed income that could be shared with my creditors. I have a temping job where they call me maybe for two or three days every two or three weeks and my monthly income is maybe £200 on average. Whatever I earn I give to my parents towards my rent and living expenses (even though this doesn't really cover what my parents spend for me) so there is absolutely no money left over for anything. Could the creditors object simply on the grounds that I should be "punished", so to speak? Any advice or information would be greatly appreciated!
As my debts were spiralling out of control, I stumbled across this site and had been a follower for a while, though I never really contributed. Now that I am a bankrupt, I realise that while there is a whole lot of information out there, people might feel a bit comforted by hearing other people's personal experiences of bankruptcy so I thought I would post mine here. My experience is only one of many different types out there (I have no income, no assets and no business) so it may be different for you. My BR is not over yet so I will keep updating this as and when. This site has been a great help to me and I hope to give at least a little bit back.
Firstly, what everyone wants to know: how did I get into this situation? In two words, my fault. I started university without a real understanding of money management and kept accepting and spending on every credit card I was offered. Then came the overdraft to pay off the credit cards, which I promptly re-used. Then the final nail on the coffin: a loan to fund postgraduate studies. In the current economic climate, my dream job that I had been studying hard for never materialized. Unfortunately, recently, my debt issues got to the point where is was impossible to continue. I can say that in all honesty, my problems were caused by spending beyond my means and burying my head under the sand.
After reviewing my options by looking at various sites on the internet, I decided that declaring bankruptcy was the best option for me. Because I was scared, I also went to the CAB but they couldn't offer me more information than I had already accumulated. So bankruptcy it was for me.
The process was incredibly painless, to the point of being surreal. I filled out the forms online at the Insolvency website and printed them off. After a false start, where I went to the wrong county court (silly me), I got to the county court by 8am, in a suit, terrified and with my two copies of the petition and Statement of Affairs and the fee in cash. There wasn't another soul in sight and I had to wait two hours for the bankruptcy section to open. People started trickling in after about 8:30-9am and we started chatting. In the end there were around 10 people. I felt really sad thinking that in that day and that court only, 10 people had reached the end of their tether financially.
Finally the counter opened at 10am and we were called. I was first in line and was asked to put my name down on a list. I was called back to the counter about 10 minutes after and a very nice lady (who cracked a joke about the weather) looked through my forms (to see if everything had been filled and not see the actual content) and then asked me if I was prepared to swear on the Bible to which I said no as I am not Christian. She then gave me a generic oath to read out which I did. Then I was told to go upstairs and wait for a judge to see me in chambers.
I waited almost an hour and a half with jittery nerves together with a group of equally terrified souls. I took a book to read but I couldn't concentrate because I felt mildly sick. The general feeling at that point was "I don't care what happens, I just want it to be over with!" Finally, at 11:30am, my name together with three other people was called and we were all taken down a corridor by a clerk who then showed us into the judge's chamber. I was very surprised to see that we were all going in at once. The judge said good morning and we sat in four chairs in front of his desk like naughty children in the headmaster's office. He then called out each of our names and asked us if we had taken independent advice regarding BR to which we all said yes. He then went on to explain the legal consequences of BR including the fact that (his words) "Contrary to popular belief, the bankruptcy WILL stay on your credit file for life". Then he said "Well, it seems clear to me that you are all insolvent" and declared us bankrupt. He then told us that the Bankruptcy Order would be ready for collection in an hour and we left. It must have taken a grand total of five minutes. I was expecting a grilling as to the why and how and maybe to be reprimanded for my irresponsible behaviour but nothing. It was in a way anticlimactic after bracing myself for the worst. I think my stomach muscles unclenched then after hours of being wound up.
After that, the four of us decided that after that trauma, we all needed some food to bring us back to life and we went to the cafe in the court. We all sat at the little cafe and started talking, each one of us sharing how we had got ourselves to this point. One had a failed business, the other had gone through a divorce and another had lost their job due to sickness. I felt guilty because I was the only one who had just been foolish and reckless.
We then went to collect the order and I was told by the Court clerk that I would get a call within 48 hours by the OR to check my contact details. I stepped out of the court and said goodbye to all the others. The first thought that came to mind was: why didn't I do this before. I kept borrowing to pay off the borrowing. I should have made this clean break before. Whatever comes after, be it bankruptcy restrictions or whatever, cannot possible be worse than the countless sleepless nights I've had. I felt I could finally breathe. I called my mum and had a little happy cry with her.
I waited but no call came from the OR. A generic letter included with my Bankruptcy Order advised me to wait up to seven working days for contact by the OR before contacting them so I waited. About five days later I received a letter from the OR saying that "Upon reviewing the information that you provided to the Court, I have decided that it is not necessary to interview you at this time." I then had to fill out three forms (Notice of setting out your duties and responsibilities as an un-discharged bankrupt, Tax and National Insurance Disclosure and Ethnic Monitoring Form) and send them back which I did.
I've heard nothing since but have received my first letter from a creditor saying that they have been advised of my bankruptcy. The letter was fairly menacing (YOU SHOULD BE AWARE THAT IF WE TAKE YOU TO COURT AND GET A JUDGMENT AGAINST YOU REQUIRING YOU TO PAY US THE MONEY YOU OWE US UNDER THE AGREEMENT bla bla bla in big bold caps). I can assume therefore that my BR process is going ahead, more or less smoothly. I've not touched my bank accounts or credit cards since, as advised by the OR, not that I have any money there anyway. Luckily for me, I get fed and housed by my kind parents so I have no expenses at the moment. With no assets or income, I'm praying that this continues in this painless manner all throughout. Still, being a pessimist, I worry. Is it the calm before the storm?
UPDATE 17.07.2009
I spoke to the OR's office to advise them that I was moving house. The lady who I am meant to be dealing with (not the OR himself) seems really nice on the phone. I also asked if I am meant to cut up my cards and send them to them and she said yes. I also asked if I had to let my creditors know I was bankrupt and she said that I didn't and that they would do so on my behalf.
Also, I needed to open a bank account if I am to ever work, even if it's only temp work so I decided to look into that today. Having looked around the forum and websites, I decided to contact the Coop as their Cashminder account seemed attractive. As the branch closest to me was pretty far away, I decided to just call them. I thought there would be a long queue as I called around midday but I got through immediately. I fthere is one thing I hate is waiting hours to get through to Customer Services so I was already impressed by the Coop. I spoke to a very nice lady and when she asked me what attracted me to this account, I told her straight out that I was bankrupt. She said that is fine and that they would be able to help me anyway. I thought I would have to give extensive details of back accounts, credit cards etc so I had it all ready but she asked only for my name, DOB, address and previous address, employment details (none), income (nil) and expenses (also thankfully nil). She said she might be able to give me a decision then and there or they might need further information and/or documents. I thought that due to my circumstances, I would have to give them proof of ID and address at least but miraculously, my application was approved immediately and she told me they would be sending me a welcome pack and card shortly! I was so relieved! She also told me that the card they will be sending me is not just a cashcard (for withdrawing money only at cashpoints) but an actual debit card that I can use to pay in shops and the internet! I'm so amazed. I thought that what with being BR, they wouldn't provide me with anything like a grown up bank account (lol)!
UPDATE 19.10.09
I have just received a letter from the OR saying that he is taking into consideration giving me an early discharge. The letter states that in order to evaluate my current circumstances, I need to fill out the form which came with the letter. The form asks questions about my income and expenses, similar to the form I filled when I filed for bankruptcy. The letter went on to state that I needed to fill this even if my circumstances haven't changed since I declared bankruptcy (which they haven't) and that I need to send this form within 14 days or I will lose the opportunity to have myself considered for early discharge. Also, the letter said that this would be sent to all my creditors to give them an opportunity to raise any objections to my early discharge. Finally, the letter said to not badger the OR about whether I would get the early discharge or not and that he would write to me once a decision had been made (though he didn't use those worlds lol!).
Needless to say, I will be filling this immediately and sending it off my registered post tomorrow. I will be keeping all my fingers crossed and hoping for a positive outcome. This bankruptcy has not had any impact whatsoever on my life. I have no job, no property, no family or house so my life has continued pretty much as before expect for the fact that my bank account was closed and I now have a Coop Cashminder account and I get dozens or unsolicited debt advice calls a week. In fact, it's had such little impact on my life that only my mother knows about this. Not even my father, who I live with, knows about it. So really, it shouldn't bother me too much whether I get an early discharge or not but it does. I always feel like it's something hanging over my head and I want it over with.
Has anyone heard of a person who was considered for early discharge and then, once the OR had received the form, been refused an early discharge for whatever reasons? My circumstances are the same as when I declared bankruptcy and I have no fixed income that could be shared with my creditors. I have a temping job where they call me maybe for two or three days every two or three weeks and my monthly income is maybe £200 on average. Whatever I earn I give to my parents towards my rent and living expenses (even though this doesn't really cover what my parents spend for me) so there is absolutely no money left over for anything. Could the creditors object simply on the grounds that I should be "punished", so to speak? Any advice or information would be greatly appreciated!
Declared Bankrupt: 3rd July 2009
Bankruptcy - My Personal Experience:
http://forums.moneysavingexpert.com/showthread.html?t=1818063
"Never go to excess, but let moderation be your guide." - Cicero
Bankruptcy - My Personal Experience:
http://forums.moneysavingexpert.com/showthread.html?t=1818063
"Never go to excess, but let moderation be your guide." - Cicero
0
Comments
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Thanks Eveningstar for sharing, will help others considering and intimidated by creditors and the process. All the best for a debt free life, and you have wonderful parents. xx
PS no its not the calm before the storm, that's it, just carry on and when you find a job let the OR know.Bankrupt 11th June 2008
Automatic Discharge 11th June 20090 -
I hope you are right! I'm hoping that, as my financial affairs are quite straightforward, I can continue like this.
And yes, my parents are truly wonderful. Any other parent would have quite rightly told me off for my stupidity but they haven't said a word and have been incredibly supportive. Still, no one can blame me more than I blame myself. I'm not going near a credit card as long as I live. If I need one, I'm going to a get a prepaid one.Declared Bankrupt: 3rd July 2009
Bankruptcy - My Personal Experience:
http://forums.moneysavingexpert.com/showthread.html?t=1818063
"Never go to excess, but let moderation be your guide." - Cicero0 -
Thank you for sharing your story with us, it will help quite a few people.
The judge was wrong about it not falling off your credit file, it will in 6 years. You will however be searchable on the London Gazette for life. Also if you are ever asked 'have you ever been BR' then you have to answer 'yes', though it is usually only mortgage providers who ask this and they can also check a seperate list.BSCno.87The only stupid question is an unasked oneLoving life as a Kernow Hippy0 -
Ye tigerfeet2006 I am one of the few people eveningstars201's experience will help; many thanks for the excellent description of the series of events you went thru.0
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Thank you eveningstar201 that was a great read and will be reassuring to others.
What a relief it is to be debt free!Look down your nose at me and I thumb my nose back at you.
Bankrupt: 8th July 2009
Early Discharge: 19th Jan 2010
Proud BSC Member: 2780 -
tigerfeet2006 wrote: »Thank you for sharing your story with us, it will help quite a few people.
The judge was wrong about it not falling off your credit file, it will in 6 years. You will however be searchable on the London Gazette for life. Also if you are ever asked 'have you ever been BR' then you have to answer 'yes', though it is usually only mortgage providers who ask this and they can also check a seperate list.
Is that so? I really need to look this up as I too was under the impression that the BR would come off my credit record after a while but the judge said no so I assumed he was correct. Still, to be honest, I'm glad to have gone through with this, even if it DID stay on my credit file forever!Declared Bankrupt: 3rd July 2009
Bankruptcy - My Personal Experience:
http://forums.moneysavingexpert.com/showthread.html?t=1818063
"Never go to excess, but let moderation be your guide." - Cicero0 -
Ye tigerfeet2006 I am one of the few people eveningstars201's experience will help; many thanks for the excellent description of the series of events you went thru.
Hi auldblerk,
I'm glad if my description has been of any help to you at all. I know it won't be the same for everyone but I hope this gives people some sort of idea of what to expect. I think everyone knows the basic info about doing the BR but it's the details like "what will the judge ask me?" or "will the OR ask me about every detail in my SOA?" which worry people. At least, I know that those were the things which worried me the most!Declared Bankrupt: 3rd July 2009
Bankruptcy - My Personal Experience:
http://forums.moneysavingexpert.com/showthread.html?t=1818063
"Never go to excess, but let moderation be your guide." - Cicero0 -
antarctica wrote: »What a relief it is to be debt free!
Indeed it is! :rotfl:Declared Bankrupt: 3rd July 2009
Bankruptcy - My Personal Experience:
http://forums.moneysavingexpert.com/showthread.html?t=1818063
"Never go to excess, but let moderation be your guide." - Cicero0 -
Look down your nose at me and I thumb my nose back at you.
Bankrupt: 8th July 2009
Early Discharge: 19th Jan 2010
Proud BSC Member: 2780 -
Looking around the forum, I see so many people saying they've been discharged! I'm so envious!!Declared Bankrupt: 3rd July 2009
Bankruptcy - My Personal Experience:
http://forums.moneysavingexpert.com/showthread.html?t=1818063
"Never go to excess, but let moderation be your guide." - Cicero0
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