How bad is the 1st year of BR

julesb31

Hi everyone

I've been advised by CCCS that bankruptcy is the best solution for me. Obviously I'm slightly scared and apprehensive about this as its a big step to take :eek:

I've read loads of stuff on here which has been really helpful but just wanted to know peoples 1st year experiences which I understand is the hard bit.

Do you basically have no money to do anything with as the OR is in charge of everything. Does it mean I won't have money to take my children out during the holidays. Obviously it wouldn't be expensive trips but need to entertain them a little.

Also, would it affect my partner at all. Do they take his wages in to account when calculating stuff. All of the bills are in my name.

Do they basically sell stuff like computers etc from your house to pay off some of the debt. I have this image of someone knocking at my door and just removing loads of my belongings!!

I think I'm going to struggle to get the £700 payment together for a little while though.

Your stories and advice would be greatly appreciated.

curly04

Hello unless you have anything worth a lot of money like fine art expensive cars etc they don't take anything.

Mine first year was simple expect for little fight with the OR


Now it's 3 years next month and I have my life back


Good luck


Curls xxx

Depth_Charge

julesb31 wrote: »

Hi everyone

I've been advised by CCCS that bankruptcy is the best solution for me. Obviously I'm slightly scared and apprehensive about this as its a big step to take :eek:

I've read loads of stuff on here which has been really helpful but just wanted to know peoples 1st year experiences which I understand is the hard bit.

Do you basically have no money to do anything with as the OR is in charge of everything. Does it mean I won't have money to take my children out during the holidays. Obviously it wouldn't be expensive trips but need to entertain them a little.

Also, would it affect my partner at all. Do they take his wages in to account when calculating stuff. All of the bills are in my name.

Do they basically sell stuff like computers etc from your house to pay off some of the debt. I have this image of someone knocking at my door and just removing loads of my belongings!!

I think I'm going to struggle to get the £700 payment together for a little while though.

Your stories and advice would be greatly appreciated.

Hi

Just following on from the others

While you are getting the fees together read up some more if you can, ask the questions on here, the more you understand the better as you prepare.

The O/R will be polite & treat you fairly and its worth remembering that they and their examiners are not the law (or debt advisers either for that matter) and can be challenged.

You have probably checked this out already but heres the bankruptcy guide link for on here and is arguably the best around that also has info on a charitable organisations that may be able to help with fees

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

As far as any payments in B/R are concerned & your partners contribution to the essential household expenditure etc then the new CAB section (part of the above) may be of particular use (info on children & holidays etc included)

https://forums.moneysavingexpert.com/discussion/4224493

Best wishes

alastairq

hi, & welcome!

As Curly says, the OR doesn't 'take' anything that is not an asset of significant value. [I believe it's still individual items over £1000 in worth??}

They certainly don't come to your home to extract an inventory of goods!

Whilst the OR's task is to realise assets for the benefit of creditors, it is also the OR's task to help you and protect you from creditors.

In simple terms, from the moment you walk out of that Court [or maybe not, in view of future plans?] clutching the Bankruptcy Order....you can take a big, deep breath, and look to the future...a future, for the moment, that is devoid of any debts.

Everything that is constantly worrying you at the moment will effectively disappear. [They become the OR's concern].

So, from that moment you will literally be able to make that 'fresh start!'

For sure, money will be tight....but wasn't it always so?

But at least you will be able to take some comfort {?} from the knowledge that all monies you do have coming in will be available for your own living expenses...and not simply disappearing down the black plughole of credit payments.[ where, literally, one see's nothing for the effort......when whatever the credit was originally entered into for, has long since disappeared into distant memory....probably into a landfill as well?]

Because you won't have that safety net of credit [a false security if ever there was one?}, you will have to 'go back to basics' as far as prioritising' your finances for essential bills.

But, whatever is left...and whatever you can save from whatever source, is yours to do with as you please.....so whilst working within a tight budget might seem 'restrictive', the value of it's usage to you is far more than when credit was the simple answer.

As far as OH's contribution is concerned, the OR will look at least a 50/50 contribution to household expenditure, in the absence of any other information.

However, the most important part of coping with bankruptcy is, prior preparation.

Struggling to save up the Court's fee's must not be seen as a negative.

[Stop paying non-essential debts for a start...ie unsecured debts]....

If you have come to a decision regarding BR, and intend to proceed at some point in the future, take this opportunity to start planning and organising your finances...and your life, so that once into the BR period....and beyond....the transition is but a blip....nothing more than a day off to visit the Court.

Start taking time out to thoroughly work out an accurate SOA....nothing is more demoralising than finding an IPA is being sought, simply because the BR has in some respect understated their SOA.

Start looking to open....NOW....some basic bank accounts, in preparation [always best to have one's bank account in a separate place away from any creditors]

Now is the time to think about where to live..if that s necessary....as renting is somewhat easier without a BR on one's credit record. [although this advice may not apply to the OP?]


BR isn't a dark place.

BR is simply, the opening of a new door.

Time to be positive.....after all, that is what BR helps one to be, more than anything.

tiggerbodhi

Hi,
Alistairq is spot on with the advice, I am in my first year and things are soooo much better than before, in my experience if you get your SOA correct your will have the money you need to take the kids out etc.
You start to see an end to the downward spiral of debt and a definite end to the phone calls and letters from DCA's.
Will re-iterate one point from alistairq, preparation is the key, read the advice on here, you must get advice from CCCS or similar or the Judge won't allow your BR.
No they don't come and seize your computers, worldly goods and first born anymore, only the Van Gough you have in the loft may go!
The OR is in charge of your finances for a year, but in reality if you are a "straightforward" BR you will have the interview an exchange of forms and that may be last contact until discharge.

Good luck!

PippaGirl_2

I know that jewellery is sometimes claims by the OR even if it is worth £200 or so, one person had their engagement ring claimed which I found distressing to hear though that was worth 4 figures.

julesb31

Thank you everyone for your replies.

Its so great being to able to get help and advice on this forum. I think I've pretty much made up my mind to go BR but have got to try and save for the fee now.

Time to get selling on Ebay!!

tiggerbodhi

Hi,
There are some charaties that can help with the fees, think there is a thread on here somewhere, also if you are 100% going BR what are you paying to unsecured creditors, consider stopping these payments, one last bit of advice, put a date on the calendar when you want to be BR by its easy to let it slip.