Worried about consequences of bankruptcy

heleneb

Hi I'm new...

I've been considering going bankrupt for about a year now. However, I'm Worried about the unknown consequences of bankruptcy . It seems too easy just to petition for bankruptcy and have your debts wiped out and that's it. Could anyone give me any advice about what bad things might happen to you or your partner after going bankrupt? Is there any consequences that people dont tell you about?

Thanks

xxmichellexx

Ive not experienced any as yet just a huge relief from the pressures of debt

confused76

hi there
please see the link below, a recent thread on some of the pitfalls of bankruptcy.

https://forums.moneysavingexpert.com/discussion/2750716

please make sure you take advice from one of the free debt charities (national debtline, cccs, cab etc) to see if br is the right option for you, as it is a last resort
x

now

heleneb wrote: »

Hi I'm new...

I've been considering going bankrupt for about a year now. However, I'm Worried about the unknown consequences of bankruptcy . It seems too easy just to petition for bankruptcy and have your debts wiped out and that's it. Could anyone give me any advice about what bad things might happen to you or your partner after going bankrupt? Is there any consequences that people dont tell you about?

Thanks

If anybody had told me this time last year I would be BR I would have laughed at them, BR was never an option for me until bad debt and lack of cash flow closed down our business. having juglled money around I was sick with worry and did not want to addmit defeat, we had stood as PG's on a business loan and the bank called it in having sold everything including our house we had no option. The worst thing about BR mmmmmmmmmmmmm I can't answer that as I would not want to roll back to the calls and threatening mail. Yes you feel a little low ans scared to begin with but it was the best thing that happened to us as I now have a good nights sleep and no more presure worrying how the heck I pay for things. The fact is I can not think of anything other then not having a credit card and oh boy I will never go down that route again. Go and share your burden with somebody (there it is the worst thing that happened facing the first steps to help) once you have a plan it is so much better xx good luck with whatever you decide to do after all money is only paper.

now

Also the past year has taught me one thing, hold your head up high and face the world judgemnet by others means nothing and Karma has a way of coming back around, judge not unless ye be judged.........so try not to worry as BR is no longer looked on in a bad light.

foolishboy

Hmmm ...

- Regardless of what anyone says some people will look down on you and treat you differently. There is still a stigma attached to BRs (rightly or wrongly)
- Although it stays on your main credit file for 6 years the record of your BR will be kept FOREVER and some institutions (Insurance, mortgage companies) will ask if you've _ever_ been BR and you have to answer honestly

Those are the 2 biggies for me .. there are consequences, but still more than worth it IMO.

FB

indebtinsussex

imo it was the best thing that we ever done, for us the advantages outweigh the disadvantages

the disadvantages are that if things go wrong we dont have overdrafts or the possibility of getting a loan to tide us over (however it was unlikely that we would get one in teh first place), that potentially I could have lost my job (I work in the financial services industry) and mainly the stigma that is involved with it, some people are very very funny about brs and unfortunately they all seem to be related to hubbie, so apart from this site we've not had anyone to talk to really about our situation. there are a lot more disadvantages than that, but they were the immediate ones I could think of.

the advantages are that we have moved out of our mortgaged flat into a bungelow that is 3 times the size and the rent is a lot lower than the mortgage was by £400 per month, hubbie isn't killing himself anymore by taking any overtime going just to pay off a debt which was never reducing, he does overtime now because he wants to. we dont have to decide anymore about whether we're going to put petrol in the car, food on the table or have heating on. and now we can afford the odd treat for our son and not worry that we're not going to have food on the table because he needs a pair of school shoes.

skylight

The pros far outweighed the cons for me.

Carrying on life after BR is more difficult in some respects - such as some insurers wont insure you; but some do. When I finally get round to buying a house it will be more difficult to find a lender but it wont be impossible.

I have a small amount of credit now to build up my rating again and have found it a bit difficult to get a proper bank account (I WILL get one!)

So what that its a bit awkward?? Insurers refuse insurance to all sorts of people based on age/location etc and so on. It will take me a bit longer to sort the wheat from the chaff in future. Far better than the harrassment and worry etc.

Classylady2010_2

I agree with foolishboy in some aspects of our life it will affect us forever but, to me, being able to sleep again and to look forward to living again outweighs my being Br.This may sound strange but I shall be eternally grateful that being able to go Br exists. By becoming Br I now have a life again.
cl

ontheroad_2

I'm a brand new bankrupt, and I haven't noticed any difference at all! I've changed my insurer for my car with no problem at all, already have a bank account that does what I need it to do, and am looking forward to the day when the phone doesn't ring 3 or 4 times from a creditor chasing a debt.

Tigger1983

I've jsut been discharged, and we found very little changed for us. The car insurance went up a bit, I can't get a mobile phone contract (or in fact anything that involves a credit check like a private rent) and we don't have anything to fall back on in case of an emergency, but all that aside life's much better than it was. I dare answer the phone and the door now, I'm budgeting better and not worried my card will get refused at the checkout and eventually we will have money saved (that used to go towards paying a never decreasing debt) that we can fall back on.