Bankruptcy

sturll

Please take this thread with the intention it is meant in. I am not trying to be patronising. But i was thinking (I am not in debt -well save for the obvious mortgage etc)
If you have say debts of over say £10000, very little income (and no property) then why wouldn't you just go bankrupt and save yourself the hassle and depression of finding money out of nothing?
Why would you live in borderline poverty when the law is designed to help you?

Is it the stigma of bankruptcy? The pride of managing the debt you created?

Jacks_xxx

Do you know much about bankruptcy honeybun?

It's seriously scary stuff and I have the utmost respect for the people who take that step.

To be honest I often think we were muppets and we should have gone bankrupt. (We owed £96700, the minimum payments were up near a grand a month and we took home £2644 a month between us.)

We didn't do it when we probably should have because of wanting to retain some control and autonomy over our own finances and not wanting to place our trust our trust in "the system"

It's also partly a sense of clearing up our own mess and taking responsibility for the consequences of our actions.

Hubby wants to run his own business again soon, plus our mortgage will need renegotiating early next year and we felt being bankrupt would impact negatively on these.

Budgetting and managing the repayments has been an education for us and I think we'll be ok with money from here on in because of it.

I'm not sure that would be true if we had declared ourselves bankrupt.

Love Jacks xxx

Mozette

sturll wrote: »

Please take this thread with the intention it is meant in. I am not trying to be patronising. But i was thinking (I am not in debt -well save for the obvious mortgage etc)
If you have say debts of over say £10000, very little income (and no property) then why wouldn't you just go bankrupt and save yourself the hassle and depression of finding money out of nothing?
Why would you live in borderline poverty when the law is designed to help you?

Is it the stigma of bankruptcy? The pride of managing the debt you created?

Well in my case, I spent it, I'll pay it back. I was never that close to being bankrupt, but had I not 'woken up and smelled the coffee' I could easily be so by now. However, for me it would be something I would avoid at all costs because I was bought up to accept the consequences of my actions.
However lots of people become bankrupt through the consequence of the actions of others, and the best of luck to them. I don't see it as a stigma, but I spent what I spent, and I've damn near paid it all back. And I am proud of myself for having done so. It isn't easy, and there are always setbacks to the best laid plans. Had I become bankrupt because of others, then I would have done so. It isn't an easy option though, as you appear to me, to think.

Bismarck

Jacks_xxx wrote: »

Do you know much about bankruptcy honeybun?

It's seriously scary stuff and I have the utmost respect for the people who take that step.

To be honest I often think we were muppets and we should have gone bankrupt. (We owed £96700, the minimum payments were up near a grand a month and we took home £2644 a month between us.)

We didn't do it when we probably should have because of wanting to retain some control and autonomy over our own finances and not wanting to place our trust our trust in "the system"

It's also partly a sense of clearing up our own mess and taking responsibility for the consequences of our actions.

Hubby wants to run his own business again soon, plus our mortgage will need renegotiating early next year and we felt being bankrupt would impact negatively on these.

Budgetting and managing the repayments has been an education for us and I think we'll be ok with money from here on in because of it.

I'm not sure that would be true if we had declared ourselves bankrupt.

Love Jacks xxx

was that £96700 on top of a mortgage?

shinyhead

I've read a little bit about br whilst looking through the threads here and I agree with Jacksxxx.

Have you seen that advert on the telly for the herbal sleeping tablets done like wallace and grommit and the woman says 'tablets, oh noooo!' I think most people think of br that way.

I think most don't go br simply as they want to keep their house. It is a scary step but it can be possible to keep the house. There are restrictions afterward but it could be a release from overwhelming debt to start afresh.

It does depend on people's personal circumstances and anyone considering it should get expert advice.

Even in your scenario going br may not be the way as if you rent your agreement may have a clause allowing your eviction if you go br.

Bismarck

just thinking, shouldn't this be on the BR sub-board anyway?

shinyhead

You've got a point, Bismarck,

If you post on there as well sturll, you may get a bigger response.

If you're considering it the feedback you'll get there will help you make up your mind.

sturll

shinyhead wrote: »

You've got a point, Bismarck,

If you post on there as well sturll, you may get a bigger response.

If you're considering it the feedback you'll get there will help you make up your mind.

Thanks for your replies, no - i am not in debt. But i deal with a lot of people who do ultimately go bankrupt and usually (but not exclusively) its through the actions of others.

I was simply wondering - mainly out of nothing other than curiosity - why some people take the 'difficult' option. And for the reasons you have given i have nothing but admiration for your strengths and determination.

Jacks_xxx

Bismarck wrote: »

was that £96700 on top of a mortgage?

Sadly yes hon, We had a £91,000 on top of that. :eek: xxx

Bismarck

Jacks_xxx wrote: »

Sadly yes hon, We had a £91,000 on top of that. :eek: xxx

wow.

and it's going OK? good for you.....( I mean that genuinely)

I will always try and avoid making any comments about whether BR is right for anyone or not because really it's a personal choice and not to be taken at qall lightly - I've seen enough forms over the years that ask have you EVER been a BR?

And EVER is a long time.....

However - if it made enough of a difference in my circumstances I would use the protection it would give - which is what it was designed to do

jammydodger1969

Hi everyone!

My first post here so not sure what to expect - but I could really do with some advice!

I have booked my court appointment for the 20th of October, I have completed all the forms etc but will still be trying to run a business as I have to keep the family going!

I guess my main questions are as follows:

Once I go BR my business will actually become profitable in a few months - how does this affect my personal finances with regards the OR?

We have two cars in my name but I understand you can usually only have one and it cannot be worth any more than 2K. My wife really needs a car so is she allowed to buy that one off the finance company?

I understand the OR will investigate my expenses, etc - at present I pay my wife a small salary, could i increase this as she is not going bankrupt?

We have a joint account that will be clear of debt when I go BR, will this affect my wife's credit rating?

Finally (and thanks for your patience!) is she allowed to include me as an additional card holder on her credit card as I work abroad alot and have to use one otherwise it presents some problems!!

Thanks

P.S. I only wish my debt was 91K!