My Bankruptcy

was_bankrupt

Sorry southernscouser - yeah that was for you.

Mike - How much of your debt was personal expenditure and how much was business?

Bestthingsinlifearefree

I think the worring thing is that at the moment millions of people are struggling, in debt,on the edge of bankruptcy / IVA's etc etc.

Yet the economic climate over the last few years has been ok.

If there is a economic down turn millions are going to be in deep trouble.

If hundreds of thousands are now going bankrupt in the good economic times what will it be like in the bad times ??????

Mike_St_Helens

The 100k is a collective between the two of us, id say we lost around 50k in the pub... the other 50 would have been personal... we kind of didnt have a wage for 9 months as we couldnt take money from the business (there was none !).

Your blog is really helpful... What sort of things are you allowed to have as expenses... I think this is my next hurdle as it worries me a lot.

southernscouser

was_bankrupt wrote:

I see the details of your debt problems. What did you decide to do and why?

I decided to just pay off my debts as I had been! I wasn't really clued up on DMP's, IVA's or bankruptcy and to be honest I bottled calling The CCCS. BUt I think I've made the right decision.

If I defaulted on my debts then I wouldn't of been able to get a mortgage until 2011 and there would be no guarantee, in fact it would be certain, that I still wouldn't be debt free. Doing it this way I'll be debt free by October 2009 at the latest! :j

Call me SS by the way! :beer:

Bestthingsinlifearefree

Mike_St_Helens wrote:

I dont need telling that it is my responsibility... I asked for the money, I risked it and thought I could deal with it... I think of that every single day, and will probably do that for the rest of my life... I hate what Ive done, and if I could go back 5 years I certainly would know what to do and not to be as foolish as I was.

What we dont need now that we are about to be bankrupt is anyone throwing the 'you made a boo boo' card at us and labelling us. Government legislation has allowed us to go bankrupt for a reason, to start again.

I agree 100%, if govt legislation allows you to go bankrupt you should exercise that right if it is the best option for your situation.

You are just exercising your legal right.

I have no problem with ppl going bankrupt and hopefully this current mass bankruptcy will teach the lenders a lesson.

However I don't agree with borrowers blaming the lenders for lending them the money.

At the end of the day if you borrow the money it is your responsibility.

was_bankrupt

Bestthingsinlifeareforfree just hit the nail on the head. Is it a ticking time bomb????? Terrorism and bird flu might even have a part to play - and its the Bank of England highlighting this not me.

Expenses are largely down to the Official Receiver. I was told I could not have Internet but could have an allowance for prescriptions. You may be allowed a small allowance for a holiday. Be sure to include insurances. Examples include Home & contents, life cover & car breakdown.

Mike_St_Helens

I am just talking personally, yes I asked for the money, but why on earth should a 'responsible lender' give anyone more money when they only have a modest income, have racked up all other credit cards and are 100k+ in debt... why ?

I agree, I asked for it... and ive fallen hard and heavy. The bank IS part of the blame. again, my opinion only i suppose.

was_bankrupt

Mike I agree - Problem is that people are not educated about financial management and that is the governments fault.

Bestthingsinlifearefree

was_bankrupt wrote:

Bestthingsinlifeareforfree just hit the nail on the head. Is it a ticking time bomb????? Terrorism and bird flu might even have a part to play - and its the Bank of England highlighting this not me.

Expenses are largely down to the Official Receiver. I was told I could not have Internet but could have an allowance for prescriptions. You may be allowed a small allowance for a holiday. Be sure to include insurances. Examples include Home & contents, life cover & car breakdown.

Hi WB,

You have gone throught the bankruptcy process and came through the overside.

I think if you can continue sharing your experience of the process on this forum etc etc that is a great thing.

On the main subject there is definitely a debt time bomb in the UK and who knows what the impact of it will be.

Millions are in deep financial trouble.

So for any of those going through tough times at the moment you are not alone, millions of us in the UK are in the same boat and face the same struggle.

Mike_St_Helens

I agree... its a massive time bomb... people now have the perception that to be 20k or so in debt is normal and in reality it will be one hard slog to clear that debt down. Couldnt see my grandparents saying 20 years ago... oh its only 20k.

Im king of glad my 'time bomb' has gone off, a short sharp shock is what I needed. back down to reality with a bump!