bankrupt an update

snake666

hi guys
heres an update on whats happened since i when to court for our debts of around £250,000 on 6th july this year

after a lot of phone calls to the OR they sent us forms to fill in about what we earn and spend so posted them off a week later it comes backj saying we have to pay back £150 pm however i sent it back asking to reduce that amount as we missed a few things off the list and they took £35 pounds off so £115 a month for 3 years starting 1st jan 2006

so after all the rows and stress we put on each other which didnt need to happen we are getting on great now with no pressure of finding 2k a month just for bills

we can live a better lifestyle without debt we have cash spare each week for the odd takeaway now so life during bankruptcy is far better than i would have expected on the 5th of july

so if anyone out there going through the same sort of problems
PLEASE DONT WORRY as things do get better and i think myself very lucky to only pay just over 3k over 3 years instead of £250k over the rest of my life


snake

pug_in_a_bed

Good to hear you are getting on well. I was discharged around the time you declared and I'm a different person now. I have learned so much in such a short time that my life is like someone elses lol!
Anyway, always good to see an update.

kevker

Hi pug, sorry to hijack the thread, but what happens now you are discharged? Can you get a "proper" bank account etc. Just curious as I'm halfway through mine.

pug_in_a_bed

Well it all stays on your file for six years bear in mind, I havent been able to as yet (see below). I'm sticking with my basic bank account for the time being, which I got when I declared (the co-op), as I don't think I'll be having much luck elsewhere esp. as the co-op won't even let me open their most basic savings account even! You get an electron card so its actually quite good.

Basically, you don't have to state that you are bankrupt anymore when you apply for something, although obviously if the bank etc looks you up it'll be there, probably with neon flashing lights round it!

I don't think there is any harm trying to apply for a 'proper' bank account, but as far as I remeber what you're best doing is sticking with whoever you're with now and try every six months to see if they will upgrade you, for instance to a switch account.

The problem I've had is my wages have literally only now just started going into my own account (as opposed to my mums, whose account I used as a stop gap between when i declared and opened my co op account). This is down to a string of !!!! ups by my employer, so the co op don't think I'm worth it yet as obviously there has been no regular large amounts (ie wages) going in. I am also saving like crazy (in an account in my mums name), trying to think ahead of things like buying a car or a house deposit - or anything people may normally buy on credit. Even though these things are prob a good while away, I don't think there is any harm in thinking ahead!

kevker

I know what you mean. I have the basic account with Nat West, whihc also is very good. I was really surprised by the savings account though. I wanted to open one to put any excess aside and maybe earn some interest on it. But everyone just refuses point blank. It's not as if they are giving you money.

pug_in_a_bed

I've just been accepted for a sainsburys instant access saver, I just have to send them all my id etc to fully open it, so as far as I'm aware I have been accepted. That may be worth a look for you.

Bestthingsinlifearefree

HI Snake,

Good to see you came out of the other side in one peace and in a positive position ie you can now start going forward and you have shown bankruptcy is not the end of the world,life does go on and can even be better than pre-bankruptcy times in many respects ie now you have a clean slate.

Thanks for the update in your origianl post (which I have pasted below) you mentioned some part of your 250K debt was a 89K mortgage on your flat worth 140K.

What happened in the end did you lose the flat when you went bankrupt ?

Did they take the 50k equity from the flat ?

ie your non -mortgage debt was about 140K or something. But you had 50K of equity in your flat.

So you actual debt was about 90K if you had managed to sell the flat and put the equity to your debt.

Did the OR / allow you to continue living there etc etc ???

Interesting to know how the OR handles these situations.



2005, 8:20 PM #1
snake666
NotSoNewbie MoneySaver



Join Date: Apr 2005
Post Count: 47
Thanked 21 Times in 12 Posts Going To Court This Week

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my wife and i live in a 1 bed flat worth about 145k on the market but not going to sell fast enough
my debts are
c/c 15.5k
c/c 5.5k
c/c 3k
c/c 2k
loan 18k

joint o/drafts 11k
joint loans 49k

wifes debts are
c/c 3k
c/c 1k
c/c 3k
store cards 2.5k
loan 13k

mortage 89k

so total is around 225k

we bring in about 2.7k-3k a month
but with just these debts its 3k plus a month without fuel,bills,phones,food,clothes,etc
lucky for us we have no kids only a cat

some have refurred payment for 3-6 months but as im in the building game and at the moment not working this is the only option
we have talked to the bank and even they said this was the best route to go down as iva,s are not all that as we might still lose the house in 4-5 years

we have opened a basic bank account with a different branch which gives us a cash point card only so that will help for a start

ok that a bit of background
heres what i need to know now

1/we are going to rent will this be a problem for about 700-750 a month

2/when im working again how much will be paid out of my wages and for how long

3/when do i need to ring or talk to the OR and when will they start taking stuff from our home

4/will they still leave us stuff like a tv,bed,cds,etc

any help please
thanks
snake

Entrepreneur_en_faillite

Hi Snake,

I was made Bankrupt last Friday for £335,000, so your story is very comforting, thank you.

snake666

well i now bank with the abbey we still have the 1 bed flat but are renting a 3 bed cottage which is nice but still could have been living there for nothing and now its six months in could have saved it but my weife just wanted out so that was it
was told by the OR we will be free in less than a year as its all gone smoothly
so if you want to pm me like a few others have on this site with questions please feel free and i will get back to you asap
snake

Entrepreneur_en_faillite

I have had some terrific feedback from everyone on tis site, it's been a huge help.

The next step for me (IF the OR ever contacts me that is) will be to set up a bank account, I've been told that Co-Op bank, Abbey and Nat West all offer accounts to bankrupts.

Keeping my fingers crossed that my bankruptcy only lasts a year. When do you find out whether they will decide to make the bankruptcy longer than a year?

kevker

when I had my interview, the examiner seemed to indicate that no matter the reason for your debts, you are automatically discharged after a year. If he finds things that he doesn't like, he will aply for a bankruptcy restriction order, this can extend it for up to fifteen years. Remember though, you will still be discharged after a year, but the restriction order places some restrictions (funnily enough) on what you can do. Others will probably confirm and clarify this, but i think they are you can't apply for more than £500 credit without declaring you were bankrupt, can't become a director of a company and can't hold certain jobs, which if I remember in your case was an IFA.

So the long and short of it is that you will be discharged no matter what, but might have some restrictions placed on you. If you haven't heard from the OR yeat, I would give them a call. My interview was about two weeks after my bankruptcy, but I received the letter a few days after so it may have got lost in the post. Believe me, this is one interview you don't want to miss.