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    • Greg_
    • By Greg_ 9th Feb 18, 10:26 AM
    • 1Posts
    • 0Thanks
    Worried about bankruptcy
    • #1
    • 9th Feb 18, 10:26 AM
    Worried about bankruptcy 9th Feb 18 at 10:26 AM
    Morning guys. Iíve just joined the forum after reading up on lots of posts regarding bankruptcy.

    Due to my business failing and a personal guarantee on a business loan, I am faced with having to go bankrupt. I have spoken with an IP and it is their recommendation that I do so.

    I cannot explain the complete fear I have with the thought of going bankrupt. I have searched for other forum users personal stories of the process but I couldnít really find the answers I was looking for.

    One of my main worries is what actually happens during bankruptcy and for how long ? Does the bulk of my income go towards the bankruptcy with just a basic amount left to keep a roof over my head , or would there be any leftover money that i could put into savings etc ?

    How long would I be paying back towards bankruptcy ?

    And finally , for those of you who have unfortunately had to go bankrupt , how did you find getting a mortgage etc once your bankruptcy was over ?

    Sorry for the long winded thread and hope you are able to offer some advice.

    Thanks in advance.
Page 1
    • luvchocolate
    • By luvchocolate 9th Feb 18, 11:16 AM
    • 1,500 Posts
    • 1,361 Thanks
    • #2
    • 9th Feb 18, 11:16 AM
    • #2
    • 9th Feb 18, 11:16 AM
    Hi read all the stickies and the welcome thread.. loads of info on there.
    When you go B.R you fill in your S.O.A and any surplus income of £20 plus 100% of this goes to the O.R in an I.P.A which lasts for 3 years this payment can go up or down as your circumstances change.

    Its advisable to open a basic bank account away from any you owe money to, the banks will usually close any accounts other than a basic one upon notification from the O.R
    I would also suggest you call business debt line for advice.
    Plenty of people have got a mortgage 3 years after B.R. A large deposit will help.
    Keep in touch and good luck
  • National Debtline
    • #3
    • 9th Feb 18, 4:46 PM
    • #3
    • 9th Feb 18, 4:46 PM
    Hi Greg

    Welcome to forum. I understand bankruptcy is daunting, but it can also be a good way to get a fresh start if there is no other realistic way to repay your debts. luvchocolate has covered some of your questions above, and I agree contacting Business Debtline for some independent advice is a good idea.

    You will need to apply for bankruptcy online and pay the £680 fee before submitting. You'll generally be notified in a couple of days if the order has been made, and this is followed shortly after by contact from the Official Receiver (OR). They will interview you, either in person or over the phone, to discuss all the information you've put in your application.

    The OR's role is to run the bankruptcy, including deciding if you should have an income payment arrangement (IPA) and if you have assets that can be sold. You're discharged (and your debts are written off) after 12 months but the IPA can last for 3 years. There are lots of people on the board who have been through the process and I'm sure will share how they got on. Good luck with it all.


    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • TownCalledAlice
    • By TownCalledAlice 9th Feb 18, 8:15 PM
    • 1 Posts
    • 1 Thanks
    • #4
    • 9th Feb 18, 8:15 PM
    • #4
    • 9th Feb 18, 8:15 PM
    Hi Greg

    Definitely have a look around at IPAs. I was astonished to see what sort of things would be accepted - a decent food budget, allowance for clothes etc. We had been living penny to penny for so long that it felt like a luxury to consider things like that. I then read that bankruptcy is about having a fresh start, not punishment, and it began to make sense.

    The process of bankruptcy has been so straightforward. I applied to a local fund to cover my fee. I havenít had to go anywhere near a court room - just an online application and a telephone call.

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