BR Possibility & A Few Questions

NewChapter_2

Hi All

I'm new here so a big hello first :j

After 6 years of spiralling debt, I finally broke down the other day and told my concerns to my family. I feel very lucky to have a total support from my parents and partner. They have all been so loving and non-judgemental about it all.

I have around £24k debt which is a mixture of OD, loan and credit cards. Mixture of paying for my education (privately), cars (then sold to use money to survive!), interest and to help stupidly help me through depression a few years ago - to 'make me feel better'. So silly looking back now but it happened and I accept that. Can't believe I've been trying to pay it off for past 3/4 years at that amount and it is still the same as when I started, if not a bit more! Now at the point of living on the credit left. Way too much available which I am stopping myself using but time to start getting this debt and my life sorted out.

I have a debt advisor session with the CCCS next week to go through my finances and look at options such as DMP, IVA and BR. Doing self research, I think BR may be the best option although understand how drastic and serious it is. The plot thickens as I am now self employed and work has gone quiet! Looking for a part time job to help with the quiet times.

I have done some searches but I can't find the answers to these questions re BR if this is the route I end up going down. If you could answer them or point me in the right direction, I 'd appreciate it:

1) Does the OR have control of your earnings for just the first years or the whole 6 years? For example, what happens if I get a pay rise/business earns a big profit say 2 years in? Of course I understand in the first year, the OR will have this.
2) If you have been BR, do you regret it? I am v nervous as a massive decision. I guess most of all a bit of embarrassment what with the newspaper notices and because of such harsh consequences. I keep telling myself it takes a strong person to seek help.
3) Does your financial status ever get back to normal? Me and the OH do want to buy a house at some point but I guess we may have to wait 6 years?
4) We privately rent through an agency. Will I be forced to tell them/the landlord that I have gone BR?

Thanks so much in advance and even if you can't help, nice to meet you!
:beer:

debtinfo

1) They dont control your earnings as such but if you have a surplus after your expenses are paid then you will pay that amount into the bankruptcy. This is called an IPA, if you have a surplus before you are discharged and an IPA is started it will last for a maximum of 3 years. If you dont have a surplus before you are discharged then no IPA will be started.

2) It is a big decision and one that you need to be sure about before doing as it is difficult to go back. One thing to note is that bankruptcys are rarely recorded in local papers anymore, They are recorded in an online reigister and a newspaper calles the London Gazzette. This is not a normal newspaper like you would think but a record of important events

3) It will never get exactly normal but after 6 years it does get close to normal. For instance you will for a mortgage application always have to declare the bankruptcy if asked but over time it becomes less of a barrier to actually being granted the mortgage

4) Often the OR will inform them yes, but for most landlords as long as you are up to date with rent it has no effect, it often matters more if you are moving to a new rented property

Hope that helps

NewChapter_2

Thank you so much for your reply, you have really cleared up a few things for me.

I will definitely give it a lot of thought and discuss every option with the CCCS next week to see which is the best option for me.

Thanks again

Lou67

NewChapter wrote: »

Hi All

I'm new here so a big hello first :j

After 6 years of spiralling debt, I finally broke down the other day and told my concerns to my family. I feel very lucky to have a total support from my parents and partner. They have all been so loving and non-judgemental about it all.

I have a debt advisor session with the CCCS next week to go through my finances and look at options such as DMP, IVA and BR. Doing self research, I think BR may be the best option although understand how drastic and serious it is. The plot thickens as I am now self employed and work has gone quiet! Looking for a part time job to help with the quiet times.

I have done some searches but I can't find the answers to these questions re BR if this is the route I end up going down. If you could answer them or point me in the right direction, I 'd appreciate it:

1) Does the OR have control of your earnings for just the first years or the whole 6 years? For example, what happens if I get a pay rise/business earns a big profit say 2 years in? Of course I understand in the first year, the OR will have this.
2) If you have been BR, do you regret it? I am v nervous as a massive decision. I guess most of all a bit of embarrassment what with the newspaper notices and because of such harsh consequences. I keep telling myself it takes a strong person to seek help.
3) Does your financial status ever get back to normal? Me and the OH do want to buy a house at some point but I guess we may have to wait 6 years?
4) We privately rent through an agency. Will I be forced to tell them/the landlord that I have gone BR?

Thanks so much in advance and even if you can't help, nice to meet you!
:beer:

First of all... HI and well done for being so brave and making that step to going bankrupt; it's a HARD decision to make and some people are horribly judgemental; I have found that.... when we were thinking of going bankrupt AND since then we have had a few nasty judgemental remarks...but most people are nice and kind.

I will answer question 4 first.. Yes you had better tell your landlord as the OR will anyway; but as long as you rent is up to date, it should make no difference.

The OR is the boss of you for a year (usually) but if you have any surplus income, (say £100 month) they will take it for up to 3 years to pay some back to your creditors! So make sure you include EVERYthing in your income and expenditure, as you don't want to be landed with an income payment agreement. You have been through enough stress and you want bankruptcy to be the end of it; you don't want to be saddled with another 3 years of paying an IPA.

It takes 6 years for the bankruptcy to drop off the file, but as long as you clean your credit files (as per the sticky on the board here) you can sometimes improve it before then,

Did we regret it? Not one bit! We only regretted not doing it sooner! Apart from having our little girl, it's the best thing we ever did! We never slept properly for years because of our debt (which was mostly through ill health and redundancy,) and we never had enough money to even redecorate the house. It was a struggle for the first year, (after bankruptcy) but not long after discharge, my husband got more hours and I got better pay and now we are relly solvent and happy and much more relaxed.

Good luck and I wish you all the best Your life will get better from now on. :T

rossireps

hi
great advice for di as ever
id just like to add that in no way do i regret it. wasted at least 2yrs of my life living in fear and not going out. once the interview was over i only heard from the examiner once and i called them once as well. the year has flown by and now i dont fear the postman

NewChapter_2

Ah thank you Lou67 and Rossireps!

It is really good to hear both of your experiences and how you do not regret it. Thank you very much also for explaining about the IPA, I really am going to have to make sure I include everything!

It will be interesting to hear what the CCCS says. After this, I literally never want credit again!! Apart from a mortgage at some point and that is only because it pretty much is a must. I envy those people who don't have any credit or debt at all, it must be so refreshing!

Hey ho, here's to a new start and hopefully everything will slot into place!

Thanks both again :j

Lou67

Hi again Newchapter!

Tell you what, I too envied people with no debt (not that there are that many!) for many years... and everyone seemed to be getting breaks except us. We had friends who kept getting bailed out by family (literally had 1000s and 1000s paid off in debt,) neighbours who won 10s of 1000s on the lottery, and a friend of mine whose auntie left her a £100,000 in her will, and many other things... I mean, we even know a few people who had kitchens and bathrooms installed by family members who did it for next to nothing; just the price of the materials, while we paid 5 times more for anything and everything, as we had to use builders and contractors... we weren't lucky enough to have any breaks at all. It seemed when we were down and very low; everyone we knew had lucky breaks...

We went bankrupt because we were literally going out of our minds with worry, and suffering severe depression, and it was affecting our marriage and jobs, and also our daughter knew there was something wrong. My husband was very ill because of it. As soon as we went bankrupt however, we felt like a MASSIVE weight had been removed from us, and although it was a battle for the first year (as we were undischarged and broke) this past 10 months has been great.

We are both on more money and actually have a four figure sum in savings now, and NO DEBT. Our car is old - 18 years old - but it is fine for us and we have no finance on it. Everything we want, we save for, and we go on modest holidays, and will never ever ever get in debt again. I would have liked a Christmas catalogue but was turned down recently, but I would only have had £50 of stuff and would have paid it all straightaway.

Again, GOOD LUCK to you! It's all uphill once you get rid of that nasty debt! :j

NewChapter_2

Thanks Lou67!

So after 1 year, does that mean you can start saving again? I know the first year will be hard but I think it may be worth it. Wow hard year ahead but a good learning curve!

I really appreciate your posts. It really helps to hear your story and where you both are now. It's amazing how things spiral where debt is concerned. I know so many people who it has happened to. Wish I'd never started on it! But I have and here we are. Time to change and start a fresh.

I have also been very depressed about it all and spent many nights awake and concerned. It was already a huge weight off my shoulders telling my parents and partner and having their support. The CCCS have been brilliant too and non judgemental.

I am very much looking forward to getting rid of the nasty debt!! :T

mynumber

Hi Newchapter. I echo the posts from Lou and rossi i dont regret Bankruptcy one little bit. From 2009 i was a nervous wreck, dreading the postman, once hed been and there were no demanding letters i felt so relieved i would cry for a couple of hours then tomorrow came, it isnt living just exsisting. As soon as i got my appointment the relief started. On 10th sept this year i went to court and less than ahour later i felt like a new person. I still do and i look forward to the post man comming. It was right for me, but i had alot of advice and they all said the same thing. Take your time, get lots of advice and if you feel its the right thing for you go a head, good luck what ever you decide, if you need help or support this is the right place to be. K X

Lou67

NewChapter wrote: »

Thanks Lou67!

So after 1 year, does that mean you can start saving again? I know the first year will be hard but I think it may be worth it. Wow hard year ahead but a good learning curve!

I really appreciate your posts. It really helps to hear your story and where you both are now. It's amazing how things spiral where debt is concerned. I know so many people who it has happened to. Wish I'd never started on it! But I have and here we are. Time to change and start a fresh.

I have also been very depressed about it all and spent many nights awake and concerned. It was already a huge weight off my shoulders telling my parents and partner and having their support. The CCCS have been brilliant too and non judgemental.

I am very much looking forward to getting rid of the nasty debt!! :T

Yes, you can start saving again after that first year, as long as you don't get an income payment agreement... for up to 3 years!. Trouble is, with one of them, is that it hardly makes it worth your while bothering to earn more or try and save, because any extra money you get or earn could be taken from you. So I sincerely hope you don't get an IPA

Great that your family are supportive too. I am so sorry you have been so depressed, but trust me, after bankruptcy, you will feel a MASSIVE weight lifted off your shoulders. :j

Lou67

mynumber wrote: »

Hi Newchapter. I echo the posts from Lou and rossi i dont regret Bankruptcy one little bit. From 2009 i was a nervous wreck, dreading the postman, once hed been and there were no demanding letters i felt so relieved i would cry for a couple of hours then tomorrow came, it isnt living just exsisting. As soon as i got my appointment the relief started. On 10th sept this year i went to court and less than ahour later i felt like a new person. I still do and i look forward to the post man comming. It was right for me, but i had alot of advice and they all said the same thing. Take your time, get lots of advice and if you feel its the right thing for you go a head, good luck what ever you decide, if you need help or support this is the right place to be. K X

Just wanted to quote this because it's a brilliant post! :T