The Bankruptcy Club & Supporters Club

rog2

nobk wrote:

Can you use debt negotiation in UK? In USA you can. You pay your debts at around 50%, keep everything you have and yet be able to get credit (if you still ant more debts). There are several companies in Uk that should do this. I tried commercialcreditsolutions . com in USA and helped me.

Sounds a bit like an IVA. We like to advise people to talk to the Registered Debt Charities, such as PAYPLAN, CCCS or CAB, who will advise whether a DMP, IVA or Bankruptcy is the best answer for their particular debt problem, before they talk to private companies.

jandomenia

Five years as a bc and I am finally starting to see light at the end of the tunnel.I declared myself voluntary bankrupt after splitting with my husband. Debts which had been manageable with him were not without him. I finally realised it was an uphill struggle when I was trying to manage on the £75 per month I was left with after paying my debts. I did all the work myself, filling in numerous forms, writing letters, ringing for my Credit details, account numbers etc, calling my OR. I finally went bankcrupt in August 2001. The only bank who would let me open an account with them at the time was the Cooperative Bank and then it was a simple Cashminder Account with debit card. It took six weeks for them to sort it out for me during which time I had to have my salary paid into my friends account and I was unable to pay the first insurance premium on my car over the phone. (My other car was reposessed). The stress of this process and trying to sort my bank acccount out caused me to forget to send it off (I also had no cheque book) and I ended up in court for driving with no insurance!!! 6 points on my licence and £400 fine!! This was probably my lowest ebb! The electron card seemed to be 'the mark of the beast' as far as retailers were concerned. Lots of stores would not accept it, further making me feel like a second rate low life. I once had my bank account closed and all 10 of my Direct Debits cancelled for the crime of allowing my account to run over by the princely sum of 54p!! This in spite of the fact that I have worked for the same company for 11years and my salary is paid in each month. In the end I had to practically beg them to let me keep the account and they did agree that until that time I had managed my account very well. I have applied 3 times to the Cooperative Bank and once to First Direct to open a current account and have been refused every time.I wrote to Experien 3 years ago to amend my credit record with my discharge letter and added a note explaining my situation and the events leading up to my bankruptcy but still this did not make a difference. I am paying an extortionate rent through a private landlord (agents do a credit check!) I hope to buy a house one day but know I haven't a hope of getting a mortgage yet. I wonder if my credit record will ever be clear. Have any other mature BCs had similar experiences? Any advice on ways of improving my credit record will be much appreciated. What a great site. I wish I had discovered it 5 years ago! I guess what I'm trying to say is that in spite of the hard work and knock backs - it was the most exhillerating experience ignoring and passing THOSE letters on to someone else. I wish you all the very best because in the end it was absolutely worth it. Stick in there! Thanks Jan x

Mike_St_Helens

jandomenia wrote:

Hi! I so wish they had this site 5 years ago when I went bankrupt. I sorted it all myself and it was the most emotionally draining event of my life and has had a knock on effect on all kinds of things ever since. I declared myself voluntary bankcrupt when it became evident upon splitting up with my ex, that as a single woman I was not going to be able to honour my debts. I was discharged two years ago and to this date I do not have a cheque book! I have been refused by the Cooperative Bank on three occasions. They were the only bank to offer me an account immediately after the bankcruptcy I have a Cashminder account. Apparently, you are not allowed to go even 1p overdrawn with this. I once had all 10 of my direct debits cancelled and my account closed down because I went 54p overdrawn. This in spite of the fact I have worked for the same company for 11 years and my £20,000 salary is paid into this account every month! I have absolutely no debt now. I rent my home from a private landlord (it seems a mortgage is out of the question at the moment) and am paying dead money for this. I have been treated like the lowest of the low. I have learnt a hard lesson and I am grateful for the fact that I am now completely debt free. However, I am worried that even after six years have elapsed, I will not be able to secure a mortgage. I even wrote a note to add to my Experien credit record to explain my situation now and sent off my discharge letter but still I was not able to open a current account. There was also a time when many stores would not accept an Electron card and this too caused me a lot of problems. This was just the tip of the iceberg. I hope it's much easier now. Has anyone else had similar experiences? Does anyone know of a bank who would be interested in letting me open a current account and do I mention my bankruptcy? Thanks Jan x

Hiya Jan,

Thanks for posting. Sorry you ha to go through all that... I think things are slowly changing and the world seems to look upon Bankrupts a little differen, perhaps we are looked like we have only the lurgey rather than leprosey?

THANKS AGAIN AND WELCOME !

lovemoneytoomuch

jandomenia wrote:

Five years as a bc and I am finally starting to see light at the end of the tunnel.I declared myself voluntary bankrupt after splitting with my husband. Debts which had been manageable with him were not without him. I finally realised it was an uphill struggle when I was trying to manage on the £75 per month I was left with after paying my debts. I did all the work myself, filling in numerous forms, writing letters, ringing for my Credit details, account numbers etc, calling my OR.The only bank who would let me open an account with them at the time was the Cooperative Bank and then it was a simple Cashminder Account with debit card. It took six weeks for them to sort it out for me during which time I had to have my salary paid into my friends account and I was unable to pay the first insurance premium on my car over the phone. The stress of this process and trying to sort my bank acccount out caused me to forget to send it off (I also had no cheque book) and I ended up in court for driving with no insurance!!! 6 points on my licence and £400 fine!! This was probably my lowest ebb! The electron card seemed to be 'the mark of the beast' as far as retailers were concerned. Lots of stores would not accept it, further making me feel like a second rate low life. I once had my bank account closed and all 10 of my Direct Debits cancelled for the crime of allowing my account to run over by the princely sum of 54p!! This in spite of the fact that I have worked for the same company for 11years and my £20,000 salary is paid in each month. In the end I had to practically beg them to let me keep the account and they did agree that until that time I had managed my account very well. I have applied 3 times to the Cooperative Bank and once to First Direct to open a current account and have been refused every time.I wrote to Experien 3 years ago to amend my credit record with my discharge letter and added a note explaining my situation and the events leading up to my bankruptcy but still this did not make a difference. I am paying an extortionate rent through a private landlord (agents do a credit check!) I hope to buy a house one day but know I haven't a hope of getting a mortgage yet. I wonder if my credit record will ever be clear. Have any other mature BCs had similar experiences? Any advice on ways of improving my credit record will be much appreciated. What a great site. I wish I had discovered it 5 years ago! Thanks peeps - in spite of the above - it's so good to be debt free and I wish you all the best because in spite of it all it was worth it. Stick in there! Thanks Jan x

I can understand your frustration I am in the same position. Although Nationwide have been quite helpful to an extent although still do not have a cheque book and if I go just a few pence over my overdraft they will happily bounce my direct debits and charge me £30 for the priviledge. So I now try and keep within my limits.:rolleyes:

Richard_S

jandomenia wrote:

I am paying an extortionate rent through a private landlord (agents do a credit check!) I hope to buy a house one day but know I haven't a hope of getting a mortgage yet. I wonder if my credit record will ever be clear. Have any other mature BCs had similar experiences? Any advice on ways of improving my credit record will be much appreciated. What a great site. I wish I had discovered it 5 years ago! Thanks peeps - in spite of the above - it's so good to be debt free and I wish you all the best because in spite of it all it was worth it. Stick in there! Thanks Jan x

Hi Jan,

There are an increasing number of lenders who are prepared to offer mortgage facilities to bankrupts, and when you think about it, you can see why. Little or no debt, first hand experience of the consequences of overstretching yourself financially, more effective budgeting, add to that a premium of a percentage point or two over the main stream lenders and it starts to look like a viable market.

We're also in rented property, had to sell house because of BKY and we resent the dead money paid every month, however, if house prices take a tumble then paying rent is a more financially prudent alternative than buying and ending up with negative equity. We haven't been discharged yet but I'm hopeful that once we are we may be able to buy at lower prices than today. Only other problem of course is saving up for a deposit while you're paying rent.

Regards

Richard

jonejayc

Made bankrupt on tuesday, all went ok, now more nightmares begin cancelled all old direct debits from old bank account. I have been to other banks today to try and open a basic account no chance they tell me until i can show them a discharge notice. As i am self employed, how can i get paid for work done with no bank account. Does anyone know any banks i could try or what i can do.
thanks

Mike_St_Helens

Hello again !!

As per ypur other thread. I think you can pay cheques in at the post office for the Co-Op... But Barclays shouldnt be a problem.

I was with Lloyds TSB and fortunatley didnt have any debt with them, so was able to keep my account, including debit card.

Abbey were also very good with us and let us open a joint account with electron and a separate savings account... We did have to go into the branch mind.

Welcome to our gang.. Its safe here... For now !

Millionare

jonejayc wrote:

Made bankrupt on tuesday, all went ok, now more nightmares begin cancelled all old direct debits from old bank account. I have been to other banks today to try and open a basic account no chance they tell me until i can show them a discharge notice. As i am self employed, how can i get paid for work done with no bank account. Does anyone know any banks i could try or what i can do.
thanks

Barclays, Coop and Nationwide are currently the only banks that offer accounts to Undischarged Bankrupts. Unless you manage to agree to keep a bank account open with another bank that you use.

No cheque book, no overdraft and no debit card and Barclays and Coop pay 0% interest to positve balances nationwide is 0.25% which isnt muc anyway.

Fedupbutready

Hi all,

Found this site by accident and so glad I did. I have been stressing for months now as to what to do, where to go and what can happen. I don't want to back down the depression route (suffered in the past.... but not over debt.)

I had debts with my previous partner and was paying them off (ever so slowly) but we split early this year and I could no longer afford to pay them especially trying to save for deposit (renting) and paying rent and buying essential furniture (bed and sofa). I can't face DMP and have trouble getting on an IVA as most of my wages are made up of OT. And as I owe a lot more than I earn I don't see I have much choice.... And if it stops the phone calls and letters and if I do have to pay back (at a reasonable amount and time, does that happen?) and have enough money to live on then I will be more than happy.

Just a couple of questions.
1. I give respite care (not official) to my step son (is severly disabled; autism, speech, behavoural, epilepsy) from my previous relationship (only Dad he really knows) so I have a two bedroom flat would they allow me to keep it or would I have to move to a one bedroom flat/lesser property?
2. I sold the family car (£4k) and used some of the money to pay off friends / family I owed and bought a S reg Vectra (£1K) would I have to sell it and get something less?
3. If I work any OT would they take all of it to pay the creditors back as my basic just covers my living expenses?
4. I haven't got all the paperwork for various creditors (now debt collection agencies) would they beable to find out who I owed.
5. Final question. I had to open a new bank account this year (due to overdraft) and I have kept this account in credit for nearly 6 months, would I beable to keep it as my wages are paid into it and my company are very slow at changing details?

Many thanks in advance and I look forward to hearing about everyone else's experiences.
Simon

lovemoneytoomuch

Millionare wrote:

Barclays, Coop and Nationwide are currently the only banks that offer accounts to Undischarged Bankrupts. Unless you manage to agree to keep a bank account open with another bank that you use.

No cheque book, no overdraft and no debit card and Barclays and Coop pay 0% interest to positve balances nationwide is 0.25% which isnt muc anyway.

When I went bankrupt that same day I opened a current account with Nationwide and I was given a cash card and a £250 overdraft limit. I told them I was bankrupt and they were fine.