Thinking of applying for bankruptcy

yenool

I am seriously considering going bankrupt, but to be honest I am scared about the whole process.

I am 22, my only income at the present time is incapacity benefit, I am living at home with about 11k debts. I want to go to college in september with the hope of going to uni after that, but I can't do it with this crap hanging over my head.

My main concern is having to stand up in court in front of loads of people, I have social anxiety anyway, so that would be my worse nightmare. Can anyone tell me what the experience is like?

The other problem is raising the money to pay for it, I have a cheque for about £350 which I think will cover the costs, but as my bank have closed my account I can not cash this cheque (a/c payee only), Natwest and CO-op have already turned me down for basic accounts.............. and I am really concerned about how it will look to the O/R if I open an account just a few weeks before going bankrupt?

My other concern is I had a few managable debts, then in dec 06 I got a loan for about 8k, which I frittered away, and I only made approx 2 payments before defaulting, and again my only income was benefits.

I have spent the last year ignoring all creditor letters and I have very few papers and statements about my debts, so filling in the forms is going to be tough!

I was in a pretty bad mental place back then, but this is going to look really bad to the court is it not???

I'm not sure if anyone can really help, I am just hoping for a bit of moral support I guess.

k2nga

Hi Yenool,

The first bit of advice i can give you is to call national debtline to talk it through with them to ensure you have had professional advice in the eyes of the court but also so you have another opinion.

Dont get concerned about the court process and i have never heard of anyone ever having to stand in front of anyone at court. Most judges dont want to see you and those that do will see you in there private office or in an empty court. Dont forget your not a criminal your not guilty of anything merely asking the court to help you take back control of your life.

As for the bank account Barclays should be the next stop as they offer a basic account that you can continue to use after you have been made BR. The other thing to say if you do decide that BR is the only option is to stop paying your debts as this will give you more money to use if you need it. Obviously keep up on bills like gas and electric and council tax and rent if you dont have arrears as this will make it easier later down the line. The OR will be fine about you opening an account pre BR if you get a Barclays Card Cash account then you will be able to use it after BR and they are less likely to get concerned about whats on your credit file as this is a basic account.

As long as you can put all your creditors on the forms just estimate what you owe. If you are like me and i did not really know what i had in debt but i knew who i owed and the OR got the amounts.

The judge really is there to ensure you understand what going BR does to your credit file and future in terms of borrowing which i why i mentioned the national debt line as they like to know you have spoken to them or got good advice. The judge is not worried about your debt as that is the OR's job

Hopefully this will put your mind at rest but if you do decide to go ahead my advie would be face it head on and do it.

deedee_3

I second what K2nga said.

I have had to phone National Debtline a couple of times lately and they are incredibly busy and I have had to sit with my finger on the redial button for up to half an hour, so be prepared to be patient.