Affects of bankruptcy

davidandkeiley

We have been in a DMP for 3 years but can only pay a small amount each month and so the time period for paying off our debt is unrealistic. An IVA is not an option as we cant afford to pay enough each month therefore I am seriously considering bankruptcy. I am scared of how this will affect me in the future and would like to hear from people who have made the jump and what they think. It wont affect my husband job, not yet sure about mine as I work for an accountants but just in admin.
We are looking to move to a cheaper rental property - will bankruptcy affect this?
I understand we will lose our bank account but can get a basic account and a pre paid debit card.
Is there anything else that would put you off doing it again?

dojoman

Please contact one of the charities below, they will offer free and impartial advice.

https://www.nationaldebtline.co.uk/
https://www.citizensadvice.org.uk/
https://www.cccs.co.uk/



Below is a link you may found helpful about going BR?

https://forums.moneysavingexpert.com/discussion/1056083

Also this link to the Insolvency Service is useful!

http://www.insolvency.gov.uk/

JMV

Hi D & K - welcome to the forum...most people here are friendly and helpful (and will answer your question rather than just posting some links)

I haven't come out of the other side of Bank ruptcy yet, but there are lots of people on the forum who have...

On the green bar above forum titles you will see a FORUM SEARCH facility - it's worth searching a few key words and you'll probably find some really helpful information...

DOJOMAN - the OP said he/she wanted to hear from people who had already made the decision...is this forum not for discussion and an exchange of views and experiences? I'm unclear if it is against the rules to ask for advice?

Gemlou26

We are looking to move to a cheaper rental property - will bankruptcy affect this?

Br could effect this, most agents will want to conduct a credit search, if not you should inform them of your BR.

It depends on the landlord. My sister lets a few properties and has let to BR people after looking at their individual circumstances so it is a bit pot luck I am afraid.

In my experience of br so far it has been alot easier for me than being hounded by creditors, I didn't want the debt cloud hanging over me when I could see that my circumstances were not going to change.

Luckily I had no property / assets involved so mine was a straight forward case.

Although I have never taken my decision lightly, I see it as a positive step and I am really looking forward to starting afresh debt free.

As you look through the forum you will see how peoples experiences differ not only in life style but in also in health.

Anyway I hope you stick around, if you have any more specific questions post them up you will find alot of helpful people round here

Good luck

balletshoes

Its good advice too - if the OP asks those specific questions of the debt charities staff, they'll get information that can help them make the right decision for their individual circumstances.

alastairq

I agree with Dojo....

If the OP is at the stage of having to ask what effect BR can have, then it is very early doors for them.

The Debt charities form an essential, nay mandatory, step on the road towards BR.

Within that step the OP would discover exactly how BR affects an individual.

For the OP, BR is simply another process whereby someone who is Insolvent can deal with debt.

It also allows closure for creditors...who can then claim from the State, for a lost debt.

BR places certain, limited constraints upon the individual, for varying periods of time.

Whether those constraints are intolerable, or can be blithely ignored, will depend upon individual circumstances.

However, if the OP's situation proves to require BR, then a bit of planning aforethought would not go amiss.


During BR, an individual may only hold a 'basic' bank account......setting one or two up beforehand eases the transition.

Co-op Cashminder is a good option, with online baking facilities, a visa [electron] bank card....and the option of joining the Co-op divvy.

Moving to another rented property may be ''easier'' if conducted pre-BR..however, in all likelihood the OP's creditworthiness will be pretty shot up anyway...

May I suggest an interview with the property owner direct?

During this ,I'd recommend offering to enter a 12 month lease, [the standard is 6 months]

This gives an additional guarantee to the property owner......over and above the risk of a tenant simply moving out after 6 months.....thereby losing the property owner income?

Thus you would establish a desire for permanency?

[my XOH beat off 2 competitors for her present house with that ploy].

BR itself means having to adopt a change of attitude towards life in general....the day-to-day things.

A stigma still seems to lurk over BR..totally unwarranted...a bit like divorce 50 years ago?

It truly allows a 'fresh start'.

If embraced as such, BR should hold no fears and demons.


Surprisingly, there is more support for BR out here than one could imagine.


As for whether I'd under BR again?

Well....as far as the process itself, and the 12 months following, were concerned, there were no devils.

There is a set of rules one must abide by, but they are no hardship.

In most respects I'm better off now than I had been for many, many years.


not just financially....but in every other respect.

But, the issue isn't whether I'd go though it again.......but whether I'd need to...!