Loopy's Bankruptcy Journey

loopy_lou1 · 30 October 2007 at 1:00PM

I'm 33 and I live at home with my parents.
I moved out two years ago to try and get a better life in Manchester because I live in a small seaside town in Wales.
Anyway, things didn't work out there because I was homesick and lived with a couple and I ended up running up more debts - when I already had some to start with.

I'm now in about 34k worth of debt and I have failed 2 IVA proposals. I've tried the paying my creditors reduced payments but I was out of work between June and September this year and I am now in temporary employment and things have got out of hand.

The reason I feel no one is like me is because my debts is reckless behaviour when I only had me to look after. No bills, no mortgage, no rent - I just wanted to have nice things and be extravagant and I've brought this on myself.

I don't see bankruptcy as the easy way out because I will struggle and I don't think I deserve sympathy either.

I've sought advice from Payplan and the National debtline and the Consumer Action group and they've all been brilliant with me.

I've been feeling that it's too easy, too. Having read the 6.27 and 6.28 - it's not but a lot of it doesn't apply to me because I have absolutely NO ASSETS. My car is in my dad's name.

This all started because I was terrorised by a company called HFO and I finally took my head out of the sand.

I'm scared and confused but looking forward to an end.

Anyone similar to me or can prepare me for what's to come.

Thanks a million

loopy_lou1 x

fermi · 30 October 2007 at 1:16PM

Welcome.

If you've been sticking your head in the sand and hoping things would somehow work themselves out then you will be in good company.:o

You are taking positive steps to sort things out, and already appear to have taken some good advice.

Being extravagant and reckless in the past could land you with a BRU/BRO (see here), but they're not to be feared as much as many people seem to. Depending upon other circumstances, even this may not happen.

There is a wealth of experience here from people who have been thought the bankruptcy process so feel free to ask any and every question that comes to mind.

loopy_lou1 · 30 October 2007 at 1:27PM

I have considered the BRO/BRU but I don't have a regular income at the moment and when I say reckless I don't mean gambling or drugs or drink or running up 10k worth of debt in a year. I meant buying things I basically couldn't afford but it was a gradual process.
I've had amazing advice so far. My concern now is when I fill in my SOA - do put the original creditor on my list or the DCA?
And also, I have a mobile phone and internet which amounts to about £60 per month and I am not in arrears. Can I still keep them?

I just want to soak up as much info as I can beforehand because this is such a daunting prospect

fermi · 30 October 2007 at 1:44PM

As far as DCA's go, a direct quote from the forms guidance notes says:

See: http://www.insolvency.gov.uk/pdfs/forms/debtorsguidance.pdf

The address of the bank or supplier should be available from your last
statement. Where the debt has been purchased or taken over by
another firm provide the name of the original supplier, e.g. Barclaycard,
but the name and address of the company which has taken over the
debt collection.

You should be fine keeping the mobile phone as most companies don't care as long as you aren't in arrears and you can keep up the payments. The OR will allow a reasonable amount for mobile phones in your budget, but excessive use might result in you having to meet the costs out of any surplus in your I&E you are allowed to keep.

Internet/Broadband access is the same but unless you need it for your employment/education you will normally be expected to meet that out of any surplus again.

eagles74 · 30 October 2007 at 2:41PM

Hello loopy_lou1

I read your story and it was like reading my own. I am 33 and live at home with my mum, after moving away and moving back. I am 20k in debt and I know it is all down to me and some decisions that now I know were abit daft.
I am just about to start going through bankruptcy, it was recommended to me by a charity debt counsellor. It finally hit home then how bad things had got, but now I realise its probably the best thing that could happen.
Dont be too hard on yourself, unfortunately its an easy situation to get into.
Im pleased that you took your head out of the sand and I think now that things can only get better for you.
Good luck with it. I wish I could give you some advice but as I am just starting the same path you probably know more about it than me!!

eagles74

loopy_lou1 · 30 October 2007 at 2:45PM

Well eagles74 we can go through this together, then. Support each other. I haven't even got to stage 1 yet but I'm doing all my reading and then I'm going BR.
I've read so much over the past fortnight I'm going cross-eyed! I have no assets so some of the BR forms won't apply to me - I'm actually dreading writing it all down and seeing what a stupid girl I've been.

Got to be done though and I wish you the best of luck, too.

betterlatethannever · 30 October 2007 at 3:05PM

Hi Loopy_Lou
well done on your realisation of your problem. Thats a huge step to take and took me over a year to work out there was a major problem with my finances.
You've learnt a valuable 'life lesson' and will be a better person for it.
I know its scary writing it all down, but its quite theraputic too. I only had a rough idea of my debts until i wrote them down.
Any questions or even just moral support you need, then please ask.
Everyone on here as been through at least one of the problems you may encounter on your way to BR and someone can always help you.
You might want to consider joining here http://bankruptcy.informe.com/viewforum.php?f=1. loads of BR info and advice, and we even have a little fun there too!!!
Good luck x

cinnabar · 30 October 2007 at 4:26PM

Loupy_lou - I'm 34, don't live at home but only because my mum's flat is too small - I live in a shared house though, I'd really like my own place but it seems like a long way off yet. Like you, my debts built up gradually, not through any major extravagance, just little bits and pieces, and I've totally let it stop me doing any of the things in life I really want. Really what I'm trying to say is, there are others in the same boat. I feel like a total failure sometimes, but I'm starting to pick up the pieces, and facing up to the necessity of going bankrupt has been a major step forward for me, and it's really helped reading this board and knowing there are other people who are going through the same thing.

I'm only a couple of months into the BR but I'm amazed how quickly it's passing and how much better I feel - hang in there :-)

NekoZombie · 30 October 2007 at 6:14PM

Hi

I'm 28 and managed to rack up 37k of debt. Not a very lavish lifestyle, but the realisation I was in stupid amounts of debt came out of nowhere, to be honest - I had been under the mistaken impression that because I could make the minimum payments, everything was fine. Eventually, I decided I wanted to sort out my finances so I could buy my own place - and that was when I realised I was in serious trouble.

Ironically, I have nothing to show for the mountain of debt - in many ways that's what surprises me most - I mean, where did it all go?

sleeplessnights_2 · 30 October 2007 at 6:29PM

Hi

I just want to say that don't worry, I was a mess before I found this site. But everyone is great on here and will support you, infact the people on here have been better than my friends so supportive and have truely been there for me... so don't worry now, just ask lots of questions!!!!

Keep strong

Sleeplessnights xx

:A :A

eagles74 · 30 October 2007 at 6:44PM

Hi loopy_lou1

It would be great to go through this with someone. It is scary thinking about going bankrupt, it seems such a big thing.
The great thing is that there are so many supportive people on here and so much information on the website.
I havent got any of the paperwork yet but im quite looking forward to getting it, it will be the start of sorting my mess out!

We might have been daft in the past but at least we are trying to sort our mistakes out. I dont know about you but I have learnt alot from this.

eagles74

Loopy's Bankruptcy Journey

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