My reasons for bankruptcy, comments gratefully received

About_Time_3

[FONT=&quot]In October of 2005 my marriage broke down forcing me to leave the matrimonial home, in leaving the home I incurred large costs, mainly met by credit facilities, with the intention of clearing the debts from the proceeds of the matrimonial house sale. The house took much longer to sell than first anticipated, further increasing my reliance on credit facilities to meet my day to day living expenses, this was further exasperated by increases in interest rates and fuel bills. The house was eventually sold for much less than the market value of £295,000; we sold the house in the end for £242,500. My share from the reduced proceeds left me with a shortfall making it impossible to clear my entire debts as anticipated, still leaving me with substantial debts. It is with deep regret a that after seeking advice from the CCCS and the National Debt line I find myself insolvent and unfortunately find myself petitioning for bankruptcy.[/FONT]

tomterm8

I would be very careful about the language "The house was eventually sold for much less than the market value of £295,000; " which could get you into a lot of trouble.

Instead of saying you sold the house for less than the market value, I would say that the housing market collapse reduced the amount you could sell the house for to £242,500.

philnicandamy

I'd put figures in as well were you mention (costs) (day to day expenses) (fuel bills)...they seem to like figures included

About_Time_3

Thanks tomterm8, that's exactly the sort of feedback I was looking for.

About_Time_3

philnicandamy wrote: »

I'd put figures in as well were you mention (costs) (day to day expenses) (fuel bills)...they seem to like figures included

Thanks philnicandamy, do you mean list my coucil tax bills, fuel bills, furniture costs etc for the last 3 years?

Pammybun

Well, first of all don't beat yourself up about things. There are loads of people in similar situations to you.

The thing about bankruptcy that really pi**ses me off is that people assume bankrupts have gone about willy nilly making frivolous purchases on credit with no intention of paying - THIS IS NOT THE CASE:mad:

Most people have to go doen the bankruptcy route due to change in personal circumstances eg divorce, separation or job loss, failure of a business or illness and it is hard enough to come to terms with these things happening to you withough people making judgments.

The thing to focus on now is that you have made the decision to get your finances in order and what you need to do now is move forward.

Make sure you are in a rented place with ideally a long lease so you have some security. co-operate with your Trustee and life will be much easier - they are not there to trap or trick you and are usually quite helpful - they do no want to make your life crap, they want to ensure you have enought to live on and, if possible, that some payments are made to your creditors.

You will not be allowed credit but if you go to Natwest (who we are with) and explain you should be able to open a natwest basic bank account which comes with a solo debit card - to be honest we have this and it is fine as it is widely accepted, you cannot go into overdraft and it serves its purpose for day to day life.

Don't worry about any stigma to bankruptcy - we only told those people who we want to know and others can't find out (unless they really go searching in which case would you want someone as nosey as that as a friend) - my mum does not know we are bankrupt (because she is older and would worry).

It is not as bad as you think so just move forward and enjoy life in a sensible, non credit way. Also enjoy not getting telephone calls from people after you for money.

Pam

endure

About_Time wrote: »

[FONT=&quot]In October of 2005 my marriage broke down forcing me to leave the matrimonial home, in leaving the home I incurred large costs, mainly met by credit facilities, with the intention of clearing the debts from the proceeds of the matrimonial house sale. The house took much longer to sell than first anticipated, further increasing my reliance on credit facilities to meet my day to day living expenses, this was further exasperated [/FONT]

Think you mean 'exacerbated'..

philnicandamy

About_Time wrote: »

[FONT=&quot]In October of 2005 my marriage broke down forcing me to leave the matrimonial home, in leaving the home I incurred large costs explain what costs & a rough figure, mainly met by credit facilities, with the intention of clearing the debts from the proceeds of the matrimonial house sale. The house took much longer to sell than first anticipated, further increasing my reliance on credit facilities to meet my day to day living expenses, this was further exasperated by increases in interest rates and fuel bills. [STRIKE]The house was eventually sold for much less than the market value of £295,000;[/STRIKE] we sold the house in the end for £242,500. My share of £? from the [STRIKE]reduced[/STRIKE] proceeds left me with a shortfall making it impossible to clear my entire debts as anticipated your entire debt of? , still leaving me with substantial debts. It is with deep regret a that after seeking advice from the CCCS and the National Debt line I find myself insolvent and unfortunately find myself petitioning for bankruptcy.[/FONT]

Just a few thoughts

About_Time_3

I've made a few ammendments, and will probably do a few more before my big day next week, but can anyone see anything in there that would make a Judge refuse my bankruptcy? the reasons I have put down in the statement are the general reasons for it, if I was to put everything down it would probably end up reading like a novel! I imagine the OR will do a lot more digging, I feel it will be easier to explain to the OR the ins and outs of it all. Thanks again everyone, you've been a great source of support and information for me over the last couple of months,

tomterm8

About_Time wrote: »

I've made a few ammendments, and will probably do a few more before my big day next week, but can anyone see anything in there that would make a Judge refuse my bankruptcy? the reasons I have put down in the statement are the general reasons for it, if I was to put everything down it would probably end up reading like a novel! I imagine the OR will do a lot more digging, I feel it will be easier to explain to the OR the ins and outs of it all. Thanks again everyone, you've been a great source of support and information for me over the last couple of months,

I don't think judges are supposed to consider the reasons for BR... merely consider whether you are insolvent and have had the right advice. So, no, it won't stop you going bankrupt, but you need to give a reasonably good explination otherwise the OR might start investigating you for a possible BRU / BRO.

About_Time_3

Thanks tomterm8, I'll keep going through it over the weekend and see if I can explain it any better, I have no worrys about a BRO / BRU, I've done nothing dishonest, I've nothing to hide, I've just been lumbered with moving house, and the debt spiral as a result has gotten out of control. It'll all come out in the wash as they say.