Been advised to take bankruptcy as 'the golden opportunity'

wherediditallgo

Hi FlyingHigh,

You're not marked forever as a bankrupt - you can be discharged after a year (or even less if the OR is happy with a relatively straightforward case), but it stays on your file for at least 6 years. You have to declare you're a bankrupt if you want credit of over £500, & you're not allowed to do various things. You can find more info here . If anything you need to know isn't covered there, just Google for bankruptcy & loads of links will come up.

I understand why you went bankrupt when you owed £10k - it's very easy for someone not in your position now or who has never been in your position to say you're mad to do it, but when you're in debt, the pressure can be very hard to live with. My debts come to less than £24k but there are times when it feels like a million. If I had known 5 years ago what I know now, I'd have taken proper advice at that time (instead of burying my head in the sand), & may well have gone bankrupt then if I'd been advised to do so. My finances would never have got as bad as they are now, & my credit record would be less than a couple of years from being clear of all the horrible stuff on it now.

I'm going ahead with it this week after years of dilly-dallying & believing I knew best & could do better. All that attitude got me was more debt, more stress, more ill-health & energy wasted worrying about debts when I could have been getting on with my life. I know better now, & things are going to change.

You've recognised that you can't manage your debts & that's what matters at least as much as the actual figure involved. You've found a way to deal with it that's right for your circumstances - it won't suit everyone, but if it's right for you, then you go for it.

As for whether a judge can turn away an application, I don't think they can though they might want to be extra sure you know what you're doing. I think the smallest amount that you can be made bankrupt for is £750, so a £10k debt is certainly not a refusing amount. They'll do the same as they do with every other case - look at the debt, the income & outgoings & make a decision based on whether there's any money/assets to go towards the debt, & whether you can afford to make monthly payments for a limited time on an IPA. If I'm wrong on that, then I hope someone will correct me as I'd like to know too, but the point still holds true - do what is right for you. When someone else has walked in your shoes, they can tell you about the pain & not before. Good luck.

backontheup

For what its worth - I really think that you are mad to go BR for £10k. The reasons you give are short sighted, and amount to giving the impression that I cannot be bothered to pay it back, when you could be going out on the p*ss instead.
It really isnt a decision to be taken that lightly. Many of us have taken the BR route because it was the ONLY solution. I went BR for £70k. I would never have done it for 'just' £10k. I know that it might seem overwhelming for you, but you really do have another alternative with a DMP.

savagevixen

backontheup wrote: »

For what its worth - I really think that you are mad to go BR for £10k. The reasons you give are short sighted, and amount to giving the impression that I cannot be bothered to pay it back, when you could be going out on the p*ss instead.
It really isnt a decision to be taken that lightly. Many of us have taken the BR route because it was the ONLY solution. I went BR for £70k. I would never have done it for 'just' £10k. I know that it might seem overwhelming for you, but you really do have another alternative with a DMP.

For what it's worth, our joints debts were quite high, but officially I have gone Bankrupt for #5109. If you can't pay it 5109 could be 500109. DMP do not stop charges or interest there is no guarantee they'll be accepted and they go on for years. If advise has been sought and a fresh start advised who are you to belittle anothers debt.

savagevixen

Sorry but the tone of that post really annoyed me. If a judge declares BR they will have considered the evidence and discuss it with the person petitioning. If it looks like the debtor can repay they will question the decision to go bankrupt.

tight_jock

savagevixen wrote: »

For what it's worth, our joints debts were quite high, but officially I have gone Bankrupt for #5109. If you can't pay it 5109 could be 500109. DMP do not stop charges or interest there is no guarantee they'll be accepted and they go on for years. If advise has been sought and a fresh start advised who are you to belittle anothers debt.

I agree with you here, Foxy. If you have 1p more going out than coming in you are insolvent. that is fact. Therefore if you are in that situation and you are advised to take the BR route by the PROFESSIONAL advisor, for me, that`s the way to go. It does not matter if you owe £5k or £500k, If you cant afford to pay it , you can`t afford to payit.

We should also note that there are "wont pays" as well as "can`t pays"

And by the way, shouldn`t you be doing the housework...:D

scootw1

Why doesn't the OP post their SOA here so we can see if there is something he/she can cut back on to try to clear the debt if he doesn't fancy bankruptcy?

NekoZombie

Hi everyone - I think maybe backontheup was trying to say that bankruptcy shouldn't be taken too lightly - in the grand scheme of things, most of us would agree that 10k is a manageable level of debt for the average person. I can't help but feel for a 10 k debt, bankruptcy is like using a sledgehammer to crack open a walnut. Of course, circumstances differ, which is why the final decision should be made by the OP.

backontheup

NekoZombie wrote: »

Hi everyone - I think maybe backontheup was trying to say that bankruptcy shouldn't be taken too lightly - in the grand scheme of things, most of us would agree that 10k is a manageable level of debt for the average person. I can't help but feel for a 10 k debt, bankruptcy is like using a sledgehammer to crack open a walnut. Of course, circumstances differ, which is why the final decision should be made by the OP.

Yes, that was the point that I was trying to make. Apols for the tone of my post.

savagevixen

We should also note that there are "wont pays" as well as "can`t pays"

And by the way, shouldn`t you be doing the housework...:D[/QUOTE]

I agree, the post just came across a bit to strong I think. And I believe the won't pay people will come unstuck later in life as they won't have learned any lesson from BR and will repeat their mistakes.

My BR is a life changing moment which will see me never use credit again for living.

And yes the baby sleeps I should be cleaning, but she was up last night from 12-2 and 3.30-5 with a fever so f*** the cleaning I am to tired to move!!

tight_jock

savagevixen wrote: »

And yes the baby sleeps I should be cleaning, but she was up last night from 12-2 and 3.30-5 with a fever so f*** the cleaning I am to tired to move!!

Been there , got the T shirt.....you`ve earned a bit of time to yourself....consider it granted, Foxy.
The rest of the kids will only make a mess later