Considering Bankruptcy

AlanD_3

Ok... here we go...

We're finally considering Bankruptcy.

We've looked at IVAs but they are not all they cracked up to be and an agency has cocked up on one for us a few times.

We are rubbish with finances both having poor memories and being paranoid and stressed when it comes to dealing with people financially.

We have a friend who was discharged from Bankrupcy after just 6 months with no loss of property (including shop stock) and nothing else hanging over her.

We have £30,000 of debt, some from my student days over 10 years ago and some from a failed business.

We had a comic shop and we cocked up, going in with debts for a variety of reasons and we accumulated debts like iron filings to a magnet.

We are paying back some debts but hardly any of them to be honest.

We had a baliff actually catch us in yesterday and they got £90 off us today (you don't want to know what we had to do to get it, not strictly illegal but some morally oppose that kind of work). They also refused to go unless they got a list of some of our property (they didn't come in but now they have the list I guess they can if they want).

Some of our debts are several years old but as I read on here today that is meaningless.

We have 2 kids and another due within a few weeks. We live in a shabby and tiny 2 bed Housing Association flat (we are on a waiting list for a bigger place). We previously lost a Housing Association place when we were evicted due to debt.

I own a car worth about £700 at a BIG push. I need it for work and the family. A friend is lending us a PC, laptop and motorbike that are currently surplus to his requirements. I have a laptop from work that doesn't belong to me.

The car is slowly falling appart and will need replacing soon.

We have the stock from the shop. Comics mostly but they aren't stored all that well and they'd be difficult to sell without an outlet.

We have Sky TV and Broadband and to be honest we need them both. My wife suffers from Post Traumatic Stress and is often trapped in the house unable to get out and the Internet and TV provide her only contact with adults at times.

I am a teacher but I have been forced to go part-time recently due to stress, anxiety, paranoia and ME.

So... Would Bankrupcy help or hinder?

Alan

Further (copied from another board):

It is just very costly to start the process.

I am concerned that we have to stop using our bank account as soon as the order is issued as all our bills come out of there and all our benefits and wages go into it, we would be penniless!!

Plus I am worried about if I would lose my job because as a teacher I am essientially an employee of the local government.

I guess we have no say on when the court date is either as if it comes on a school day I would have to get permission to take the (whole I guess) day off which could be problematic.

Thanks for your help.

Mike_St_Helens

AlanD wrote: »

Ok... here we go...

We're finally considering Bankruptcy.

We've looked at IVAs but they are not all they cracked up to be and an agency has cocked up on one for us a few times.

We are rubbish with finances both having poor memories and being paranoid and stressed when it comes to dealing with people financially.

We have a friend who was discharged from Bankrupcy after just 6 months with no loss of property (including shop stock) and nothing else hanging over her.

We have £30,000 of debt, some from my student days over 10 years ago and some from a failed business.

We had a comic shop and we cocked up, going in with debts for a variety of reasons and we accumulated debts like iron filings to a magnet.

We are paying back some debts but hardly any of them to be honest.

We had a baliff actually catch us in yesterday and they got £90 off us today (you don't want to know what we had to do to get it, not strictly illegal but some morally oppose that kind of work). They also refused to go unless they got a list of some of our property (they didn't come in but now they have the list I guess they can if they want).

Some of our debts are several years old but as I read on here today that is meaningless.

We have 2 kids and another due within a few weeks. We live in a shabby and tiny 2 bed Housing Association flat (we are on a waiting list for a bigger place). We previously lost a Housing Association place when we were evicted due to debt.

I own a car worth about £700 at a BIG push. I need it for work and the family. A friend is lending us a PC, laptop and motorbike that are currently surplus to his requirements. I have a laptop from work that doesn't belong to me.

The car is slowly falling appart and will need replacing soon.

We have the stock from the shop. Comics mostly but they aren't stored all that well and they'd be difficult to sell without an outlet.

We have Sky TV and Broadband and to be honest we need them both. My wife suffers from Post Traumatic Stress and is often trapped in the house unable to get out and the Internet and TV provide her only contact with adults at times.

I am a teacher but I have been forced to go part-time recently due to stress, anxiety, paranoia and ME.

So... Would Bankrupcy help or hinder?

Alan

Further (copied from another board):

It is just very costly to start the process.

I am concerned that we have to stop using our bank account as soon as the order is issued as all our bills come out of there and all our benefits and wages go into it, we would be penniless!!

Plus I am worried about if I would lose my job because as a teacher I am essientially an employee of the local government.

I guess we have no say on when the court date is either as if it comes on a school day I would have to get permission to take the (whole I guess) day off which could be problematic.

Thanks for your help.

Hiya Alan,

First of all welcome to the boards, Its a nice place here. Loads of help, guidance and support. get a beer and follow the threads for a bit, you'll soon get the jist and realise that it aint the end of the world, infact its the start of your new future.

First thing is to ensure that you are all eating well, are warm and clean, !!!!!! any bailiff, debt collector or any lender of any kind if you are foresaking any of the essentials. Its easy for me to sit here and say you shouldnt have paid the bailiff.. If you did something that you aint proud of then that just shows what type of guy you are.. You were there to try and resolve your issue without worrying anyone, you should be proud. (Not too naughty I hope ! )

OK, that bit over, You need to ensure you want to file for bankruptcy, really sure as it is quite stressfull, although again this site is great for helping you out.. And the people are nice...

If you have made the decision, then take a good look round the boards, youll find most basic answers. It sound like its a good option for you at the moment. It would wipe out ALL your debt, but bear i mind if the student debt is student loans, then they cant be included.

You would get to keep your car if its worth around £700. You should keep your Job - many teachers are bankruot, unless it states specifically in your contract then dont worry. You would have to stop using your bank account the day you file. If you dont owe them anything, most banks will allow you to keep the account, mine did.. If you owe them, just open up one of the many accounts availible to us.. thats the least of your worries.

You woundnt really need the whole day off.. its a good idea though, and get some wine in !! YOU can choose the date, the court will give you options, and you make your choice from that. Then there is the fees.. You should get the court fee reduced as im sure you would be on benefits, again we can advise you.

We have a club, and one website that we run is https://www.bankruptcysupportersclub.co.uk. It is not a company or anything, I run it off my own back, to try and help, its a bit basic, but might help with links and all that.

Hope thats a birt of help.. Others will be along very soon !

Mike

tigerfeet2006

Thanks for replying Mike. I am Alan's other half and have been a member of the boards for a while but have only just really had our light bulb moment.

AlanD_3

Indeedy, thanks!

I'll put a better reply together a bit later on.

I take it I shouldn't have paid and shouldn't have given in to their demands?

tight_jock

AlanD wrote: »

Indeedy, thanks!

I'll put a better reply together a bit later on.

I take it I shouldn't have paid and shouldn't have given in to their demands?

As soon as you`ve takaen advice and made your decision.....STOP paying anyone except utilities, rent and council tax. You`ll need the money for your fees. My OH is a teacher and there has not been any mention of the BR at all. So one bit of good news.:D

:beer:
TJ

ms_london

I think to start with you need to work out exactly what you have coming in (wages, benefits etc etc) and what you have going out, debt, as well as standard outgoings (rent, council tax, petrol, food, tv licence) etc etc.

I am sure that you will be asked for this when applying for Bankrupcty anyway? So its a good idea to know exactly who you owe money too and how much.

Your comment about "needing" internet & sky annoys me somewhat, and I dont think that going bankrupt will help with the following:

AlanD wrote: »

We are rubbish with finances both having poor memories and being paranoid and stressed when it comes to dealing with people financially.

but if you do feel that this is the right choice for you, good luck!

You do need to think about the future and when you are discharged if you can continue to manage on your current wage, and perhaps cut down your outgoings to as little as possible, and make sure you budget. Bankcruptcy may "wipe the slate clean" but you can easily get into debt again if you havent learnt the fundamental rules of budgeting and living within your means.

Good luck xx

AlanD_3

Just a quick one.

Does anyone know how Bankrupcy affects housing association housing?

Are we at risk of eviction from the association due to Bankrupcy?

We are on the waiting list for a bigger house due, in part, to the forthcoming birth of our third child. The housing association (or the council) generally pay for removals agents which we then have to repay on installment. Are we likely to miss out on the move, would the council be likely to lend us the removal fee... are we allowed to borrow the removal fee... are we better waiting until we are moved or, at least until the birth of our child before going bankrupt... then again housing association lists can take months before a suitable place comes up so maybe we'll be discharged before the move...???????????

Help!!!!!!!

AlanD_3

ms_london wrote: »

Your comment about "needing" internet & sky annoys me somewhat, and I dont think that going bankrupt will help with the following

I'm sorry you feel that way but it is the truth. Dial up costs more per month and my wife needs the contact from the internet otherwise she will have prolonged periods where she has no adult contact whatsoever. She gets panic attacks outside the house and feels trapped within it. The internet provides the only escape she has. This is due to mental health issues and frankly I take umbridge at your refuting of it.

We don't NEED Sky but as we don't watch soap opera's, cookery shows, reality shows, moving house shows, Jerry Springer-esq chat shows or sport we don't actually watch anything beyond Dr Who on Terriestrial TV. That is it the sum total of our BBC -> Channel 5 viewing. The rest is Sky one, Living and Sci-fi (and a hell of a lot of Ceebiebies but that IS on freeview). I personally hate having to pay a TV license for one single, solitary TV show that is only on for a few weeks a year (plus the cbeebies of course but they could easily watch boomerang or Nick Jnr if we could switch off bbc channels) but there you go.

ms_london wrote: »

You do need to think about the future and when you are discharged if you can continue to manage on your current wage, and perhaps cut down your outgoings to as little as possible, and make sure you budget. Bankcruptcy may "wipe the slate clean" but you can easily get into debt again if you havent learnt the fundamental rules of budgeting and living within your means.

We haven't gained any NEW debts for quite some time. None whatsoever (other than the odd miscalculation on wages leading to an odd bounced direct debit that gets fixed the following month, silly overspend one month we manage to correct the following month, nothing that accumulates) since I started my current job nearly 4 years ago. It is all old debts hanging over us.

We don't have excessive outgoings, our car is a beaten up old thing, we live in a tiny flat, we cook our food fresh rather than living on take out or ready meals, we don't go to the pub, we don't go out for meals, we holiday at the home of friends, we use freecycle, we buy from charity shops... and so on. We have two luxuries, the internet and digital tv, things we think of as actual luxuries too we don't take them for granted.

Mike_St_Helens

AlanD wrote: »

Just a quick one.

Does anyone know how Bankrupcy affects housing association housing?

Are we at risk of eviction from the association due to Bankrupcy?

We are on the waiting list for a bigger house due, in part, to the forthcoming birth of our third child. The housing association (or the council) generally pay for removals agents which we then have to repay on installment. Are we likely to miss out on the move, would the council be likely to lend us the removal fee... are we allowed to borrow the removal fee... are we better waiting until we are moved or, at least until the birth of our child before going bankrupt... then again housing association lists can take months before a suitable place comes up so maybe we'll be discharged before the move...???????????

Help!!!!!!!

Im pretty sure that it doesnt matter,, where would all the bankrupts live if they couldnt have council housing if they needed it !

Im sure there are others who know better. Perhaps email the HA or call them anon ?

savagevixen

ms_london wrote: »

Your comment about "needing" internet & sky annoys me somewhat, and I dont think that going bankrupt will help with the following:



but if you do feel that this is the right choice for you, good luck!

You do need to think about the future and when you are discharged if you can continue to manage on your current wage, and perhaps cut down your outgoings to as little as possible, and make sure you budget. Bankcruptcy may "wipe the slate clean" but you can easily get into debt again if you havent learnt the fundamental rules of budgeting and living within your means.

Good luck xx

ms_london. I really felt, reading AlanD's post that he is pretty much at the end of his tether. Without fuelling fire, I really think he does not need to have these sort of comments. Your comments at the end are very valid and important, but maybe this is not the time given the OP. The comment regarding sky is unnecessary.
We all know that in the real world sky is not classed as a necessity. frankly I hate it and can't find anything to watch with 16 channels or 1600. However if Alan feels it a necessity and he opts for bankruptcy, he will be advised to put this amount in another area of his SOA. They have 2 children and another on the way. They all squeeze into a 2 bed Housing Asssosiation flat (which I am sure will not be affected by BR) and if he feels broadband and Sky are a necessity. Perhaps they are-if only for their sanity.
I have a child with High Functioning Autism. He is currently not at school. He is 8. I have other small children and I classify Sky as a necessity (and so would you if you had to live with him) He watches the wildlife documentaries (thats 'his' thing. And if we did not have it I would be completely insane. It costs £14 per month.
Broadband is also a necessity, as he cannot cope or manage in public situations. He makes loud whooping noises and strange movements, people stare at him and call him badly behaved, this naturally upsets him as he can't help it, so he becomes rude and aggressive, yelling words like w*nkers and f*ckers. Consequently broadband is a necessity for internet shopping and Tesco deliveries.
So please cut AlanD some slack and wait for all the facts. He is a newbie.

hi Alan!

NekoZombie

I understand the need to cut back, but we all need a life with a little luxury - and in the grand scheme of things a sky subscription or internet is hardly high living. If bankruptcy has become an option, cancelling these products is hardly going to change the tide.

Hi Alan! Welcome to the Board!