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  • FIRST POST
    • NordicLordic
    • By NordicLordic 12th Sep 17, 6:25 PM
    • 4Posts
    • 1Thanks
    NordicLordic
    Lurker close to filing for bankruptcy
    • #1
    • 12th Sep 17, 6:25 PM
    Lurker close to filing for bankruptcy 12th Sep 17 at 6:25 PM
    Hello,

    I have lurked this forum for a very long time and finally at the point where I am very close to filing for bankruptcy. I have found myself in a terrible situation financially and my relationship is all but dead so I am having to make the decision to go bankrupt.

    A lot of my debt is from my partner, early on in our relationship I helped him pay his tax bill (twice), helped him buy a replacement car when his blew up in the middle of London and never saw a penny of it back to this day. I helped him through the recession as he was self employed and it affected his trade quite badly (construction). Work dried up a lot in the winter which left me paying for everyrhing. We also struggled through my maternity leave but somehow managed to muddle through. He ended up down the DMP route which he cleared this year but I have ploughed myself into debt as a result of all this.

    We are very close to splitting up now - for reasons I would rather not go into in great detail but our relationships is very toxic and it is time for him to leave. He has already told me not to 'expect a penny from him'.

    I have already contacted StepChange, which has suggested bankruptcy. I currently owe £31,878 across cards and loans, pay out £911 per month on debts and it has been crippling me. Barely surviving. Up to date with payments for now but heading for Armageddon once my partner moves out.

    I'm naturally quite frightened about taking this step, until this point I've had a good credit rating and always paid up on time but I have been trying to claw my way out of debt for so long now that I've failed miserably and ended up in a huge mess.

    I have some burning questions about bankruptcy as I am confused about some things:

    1. Can I open a new (basic bank) account & set everything up to pay my rent/utility bills etc BEFORE filing for BR? Or will this be closed down also?

    2. How long does the whole process take from start to finish? Will it be dragged out over months or do things move fairly quickly once the ball starts rolling?

    3. How much can i take out to live off before my bank account gets frozen? I want to be able to pay my rent and other important bills so I don't run the risk of losing our house in the process. I have a 4yr old son and we have just had to move house for the second time in 18months (landlady sold our last house) and could do without a third house move in the space of 2 years.

    Thank you for your advice and wisdom. Please be kind x
Page 1
    • TheGardener
    • By TheGardener 12th Sep 17, 9:50 PM
    • 2,167 Posts
    • 2,051 Thanks
    TheGardener
    • #2
    • 12th Sep 17, 9:50 PM
    • #2
    • 12th Sep 17, 9:50 PM
    Hello,


    I'm naturally quite frightened about taking this step, until this point I've had a good credit rating and always paid up on time but I have been trying to claw my way out of debt for so long now that I've failed miserably and ended up in a huge mess. Don't be frightened - this is you taking back responsibility for you life and finances - that's a good thing

    I have some burning questions about bankruptcy as I am confused about some things:

    1. Can I open a new (basic bank) account & set everything up to pay my rent/utility bills etc BEFORE filing for BR? Or will this be closed down also? Yes you can and if you state on the BR forms that this is your 'everyday' account the OR will tell the bank they have no interest in it. Barclays Basic used to be the best for this but a lot of banks seem to have relaxed their rules. You must be explicit to the bank that you want a basic no matter what account they want you to have.

    2. How long does the whole process take from start to finish? Will it be dragged out over months or do things move fairly quickly once the ball starts rolling? From the point you press the 'submit' button the application - it will take no more than a day or two for the application to go through its initial process. The OR will contact you within days and if they want an interview with you - that too will be a matter of days and probably the last time you hear from them. You will be automatically discharged from Bankruptcy 12 months from the date on your BR petition. If gambling or reckless behaviour is involved, there may be some other restrictions.

    3. How much can i take out to live off before my bank account gets frozen? I want to be able to pay my rent and other important bills so I don't run the risk of losing our house in the process. I have a 4yr old son and we have just had to move house for the second time in 18months (landlady sold our last house) and could do without a third house move in the space of 2 years. If you need all your cash - then draw it out in cash - the OR will not raid your bank account (assuming there isn't loads of money there) All reasonable living costs are fine.

    Thank you for your advice and wisdom. Please be kind x
    Originally posted by NordicLordic
    Have you done an SoA to submit to the OR? If not you can find one here - http://www.stoozing.com/calculator/soa.php if you post it we can help with a bit more advice
    • NordicLordic
    • By NordicLordic 14th Sep 17, 9:01 AM
    • 4 Posts
    • 1 Thanks
    NordicLordic
    • #3
    • 14th Sep 17, 9:01 AM
    • #3
    • 14th Sep 17, 9:01 AM
    Hello;

    Thank you for the great advice and for putting my mind at ease. I have done a SOA but only through StepChange and kept trying to find the link of the one you provided to me (again - THANK YOU!) So that I could post here.

    I'm working today but will sit down this evening and go through it all and post details later on. Also preparing myself for the fact i might have to sell the car - checked online value and it was coming out at just under £2k for private sale. I use car for work (commute approx 10miles each way) & for collecting my son from School 5 days a week. His dad is not around much in the week, leaves early 6am and home late 6/7pm & sometimes works away so not like I could even arrange for him to share the burden.

    It is such a hard decision to make but I know it is going to be the end of years of worrying and anxiety & misery. I feel like this is as low as it gets for me but remaining positive for the future.

    Thanks again for the non-judgement and for being kind.
    • menageamoi
    • By menageamoi 17th Sep 17, 4:30 PM
    • 21 Posts
    • 4 Thanks
    menageamoi
    • #4
    • 17th Sep 17, 4:30 PM
    Money in to Basic Bank Account
    • #4
    • 17th Sep 17, 4:30 PM
    hi - I'm very new here so sorry if this has been answered before. Like the OP I want to set up basic bank account ( co-op) before I go bankrupt but what about the the money to finance that? Can I arrange to have my salary paid there as well - or will the OR see that as trying to hide money? Thanks
    • TheGardener
    • By TheGardener 18th Sep 17, 8:08 AM
    • 2,167 Posts
    • 2,051 Thanks
    TheGardener
    • #5
    • 18th Sep 17, 8:08 AM
    • #5
    • 18th Sep 17, 8:08 AM
    If you are opening a basic account to use after BR then its fine - in fact I would recommend that you arrange all your income and DD's to be set up on it. Its not going to be seen as hiding anything - just planning.
    • menageamoi
    • By menageamoi 18th Sep 17, 9:29 AM
    • 21 Posts
    • 4 Thanks
    menageamoi
    • #6
    • 18th Sep 17, 9:29 AM
    • #6
    • 18th Sep 17, 9:29 AM
    Thanks very much - yes it's all about planning
    • NordicLordic
    • By NordicLordic 4th Oct 17, 7:01 AM
    • 4 Posts
    • 1 Thanks
    NordicLordic
    • #7
    • 4th Oct 17, 7:01 AM
    • #7
    • 4th Oct 17, 7:01 AM
    Well I finally went bankrupt this weekend, did all the forms online on Sunday and found out Monday it had been approved, had my phone call with the OR yesterday, it lasted around 45 minutes - mainly because we were trying to work out the ins and outs of council tax & NT tax code. Also spent a while explaining my tale of woe.

    The OR was extremely professional and not once made me feel ashamed or bad. Advised me I May or may not be able to keep my car as it is hovering in the £1000-1500 Mark so waiting to hear back from this. I expected this though so no great surprise there.

    I do not feel instant relief like I expected to but I guess I have so much other stuff going on in my life right now that it will take some time to sink in.

    I have set up a new basic account online with a Nationwide so expecting to get all wheels in motion with that in the next few days & organise my direct debits to come out of account.

    I apologise for not posting an SOA. Things went from bad to worse in my personal life, my son had a dreadful accident (well not even an accident to be honest) when out with his Dad in which he almost died. Partner lied to me about what had happened and now there is a Police investigation on going.

    This has probably been the worst month of my life but I am determined to see the positives and never look backwards now, only forwards. Life is short and precious, you never know when everything could be snatched away in an instant.

    NL x
    • raleigh75
    • By raleigh75 9th Oct 17, 12:43 PM
    • 6 Posts
    • 0 Thanks
    raleigh75
    • #8
    • 9th Oct 17, 12:43 PM
    • #8
    • 9th Oct 17, 12:43 PM
    I am in the process of filling in bankruptcy form, I have a bank account with no overdraft facility and about £40 in it. Will they take that off me? its my day to day account for bills etc or do I need to open a new one ready?
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