Tell me about the long term effects of BR pls

rag31

I have just read something about someone discharged a year ago who can't get insurance with a different provider or a new mobile phone contract and it made me wonder about the longer term effects of BR that are more difficult to find out about.

Can anyone let me know some of the surprising or unexpected long term consequences that they were unaware of?

Thanks,
Becky

winnie81

Hi, I don't post often but my husband and I have had very few negative effects after becoming BR. We both have contract mobiles (OR let OH and I have our phone contacts still) and have found that it hasn't affected us getting insurance We don't own our own home nor do we want any loans but that would be a huge issue right now if we wanted to do either of those because of our credit rating now. OH has a CC (for emergencys only) and I have a catalogue account for my clothes balance is very minimal though.
Its been 2yrs since BR though and we started rebuilding credit rating via this sites instructions as soon as discharged (both ED), neither of us regret the BR and any future issues will still be small compared with the relief gained from the BR for us although we never went into it lightly.

Only you can decide if the benefits outweigh the cons for your situation or not. When we were thinking of the BR we figured our credit rating was shot anyway and neither of us would be affected by the employment BR rules so that was best for us. I am sure there are some mobile phone companies and insurance co's that won't insure BR but you would need to just shop around when the time came for renewal etc

Good Luck

sizzler

Hi there,

Quite a few things change after BR. When discharged BR says on your credit file for six years. Which means getting even basic credit can be hard, If you can get credit it tends to be very expensive.

Bank accounts with overdrafts and Cheque books etc are hard to come by for some people, HP for cars etc also come with a large price. It can also effect your insurance premiums and elegibility.

Lastly getting a mortgage can be very hard for up to 10 years after BR and the deposit required would be in region of 25%.

These are just some of the things, I hope some more post will enlighten us more.

Regards sizller:T

sizzler

Sorry just to add, Myself and a lot of people here will try to rebuild our credit score, but will probaly never take unesscarry credit ever.

Sizzler

dojoman

sizzler wrote: »

Sorry just to add, Myself and a lot of people here will try to rebuild our credit score, but will probaly never take unesscarry credit ever.

Sizzler

Too true :T:T:T

Bethankim

Hiya its not so much you cant get insurance, although some compaines wont play ball its more that many wont let you pay via installments until your credit file is cleaned up post discharge, i havent done mine yet i have been waiting for a couple of months.

so its about saving for your insurance just in case, the yorkshire building society wll often give BR's a savings account, or open 2 coop accounts and make sure you put the money away every month.

again if you have a moble contract and plan to keep it then do so, iflike me you dont then its trickier although sim only rolling deals have been suggested.

Its not the end of the world its a pain and yeah i dont see why as a discharged bankrupt im anymore of a risk than others, infact im proably better..

But i keep in my mind, i am so much better off, im not scared all the time, drwoing in debt and wondering how im going to put food on the table. so for me im not bothered by having to shop about a bit more and not having a fancy new phone contract.

SkintYokel

Ah! Guess that would be my earlier post :-)

To clarify:

When we declared bankruptcy I had a contract mobile, about 6 months after my contract ended and I renewed with the same supplier (better phone, better texts/minutes and less money per month) with no problems. This was an 18 month contract.
This has now come to an end and my current supplier cannot offer the phones that I want to upgrade to and can only offer me a 2 year contract on phones that I don't particularly want (certainly not for 2 years!).
To get the phone and deal that I want I would have to change supplier, this would mean starting again as a new customer. I have tried with 2 and both have given me a flat out 'NO' at the credit check stage. As such I am just carrying on month to month with my current contact. I appreciate that this is not a major thing and is merely an annoyance.

Insurance is another difficult one. Many, many insurers out there have clauses about Bankruptcy (there are several threads on here already regarding this). Some hike the premiums up if there is a bankrupt in the house (doesn't have to be you, can be spouse, child etc) and others just flat out refuse to insure you. If you already have insurance and are bankrupt/going bankrupt then check the small print VERY carefully!

Other things I have come across are little things like getting Virgin cable (getting their full package of basic TV, broadband and phone was cheaper than getting all individually) required a letter from the OR confirming we were discharged (they wouldn't deal at all until we WERE discharged) and then required a deposit which they will hold for the first year.

These are just little inconveniences that we have come across though. All in all our ride has been fairly smooth but having read some of the stories on here we seem to have got off very lightly compared to many others.

In_a_Mess_3

We are only just BR so have yet to see the long term effects of it, but we didn't have any choice but to go BR, so the long term effects were for us not really an issue tbh.

I have kept my mobile contract going, and we have kept sky going as well, we have opened an internet savings account with Yorkshire Bank and I will be putting the amount we have on our soa's for insurance so we have enough to pay up front come renewal, as I don't want to pay monthly and pay their hefty % on top.

I will be getting a pre-paid credit card, but not so much for rebuilding credit, more for being able to buy things on the internet and have the insurance it gives you.

SkintYokel

In_a_Mess wrote: »

We are only just BR so have yet to see the long term effects of it, but we didn't have any choice but to go BR, so the long term effects were for us not really an issue tbh.

I think I'll just clarify also that we were very much in that same situation at the time. What might happen further down the road was a long way from our minds. Putting food on the table each evening was much more of a pressing thought!

Like I said, these things are merely an annoyance; there are ways around them and in the case of the mobile is an unnecessary luxury when it comes right down to it!

If I had known 2 years ago that these things would happen now then it would have made no difference to our decision whatsoever.

rag31

No, of course it wouldn't make any difference with regard to bankruptcy. But would be nice to know beforehand what to expect IYKWIM.

Thanks for the info so far people!

Becky

NekoZombie

Hiya

Went BR March 2007 and was given ED Jan 2008.

Main longterm effects that I've noticed:

Almost impossible to get credit, though I think this has more to do with the current economic climate. I have managed to get a NEXT account (now up to £2000 limit) and the other day a vanquis credit card (limit £250). Before this it was pretty much a flat no from everyone.

I'm finging it hard to upgrade my bank account to a normal account with switch card and cheque book, despite never being overdrawn on my account.

I'm still paying an IPA of £73 per month and student loan of £167. BR wiped out a lot of my debts, but not all of them!

I've had no problem with utilities like BT or Virgin

I can't change mobile phone provider - all other companies say no!

Despite all of the above, not coming home to a demand letter is amazing! I live within my means and I wouldn't change I thing. If I had the choice again I would still petition for bankruptcy.