taking the leap...

struggleville

After spending the past six months researching, planning, totting up figures, fighting off waves of despair at the situation I'm in, and feeling worthless because I cannot pay my debts, I am now preparing to petition to be made bankrupt during the first week of February.

I'm in a bit of different situation to many posters on this forum in that I a) do not have a mortgage or a house (I've never been able to afford one!) and b) am filing on my own - I am married but am anxious to keep my partner from being impacted by my financial failures any more than they already have been. My debts are all unsecured, and are a result of years of emotional manipulation and abuse at the hands of my parents, with whom I have now cut off all contact; I need to draw a line under that part of my life and move on. Unfortunately, I was made redundant last year, and have only recently been able to secure part-time work; my mental and physical health have suffered greatly and while bankruptcy is a big step to take, my partner and I agree that it's a necessary one.

I've spoken to StepChange and I've read up on the procedure, both officially through various CAB sites and the Insolvency Service Publications, and anecdoctally through the posts on this forum. I've begun to fill out the paperwork and have put together an SOA - if anyone reading wouldn't mind taking a look at the figures below to see if any red flags jump out, I'd greatly appreciate it!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1 (owned by partner)

Monthly Income Details
Monthly income after tax................ 710
Partners monthly income after tax....... 1100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1810

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 625
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 30
Mobile phone............................ 30
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 30
Groceries etc. ......................... 400 (I have a medical condition that requires a very specific diet)
Clothing................................ 100
Petrol/diesel........................... 100
Road tax................................ 20
Car Insurance........................... 40
Car maintenance (including MOT)......... 20
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30 (we both wear glasses, I have ridiculously weak teeth, & partner has a regular bi-monthly script)
Pet insurance/vet bills................. 22
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 20
Professional Memberships................ 25
Total monthly expenses.................. 1840


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
credit card #1.................10400.....0.........0
credit card #2.................8400......0.........0
credit card #3.................2700......0.........0
credit card #4.................2500......0.........0
credit card #5.................1800......0.........0
bank acct overdraft............2000......0.........0
Total unsecured debts..........27800.....0.........-


Monthly Budget Summary
Total monthly income.................... 1,810
Expenses (including HP & secured debts). 1,840
Available for debt repayments........... -30
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -30


I've made a few notes where amounts may seem high or unclear - I hope this helps.

At the moment I am trying to bury myself in the technical minutiae of the process, in order to keep myself from panicking about the day itself. I've read so many times on this forum that the judge and the OR are not there to, well, 'judge' you - that no-one is going to look at me and point an accusing finger and shout 'you! you worthless lowlife who can't pay your debts! shame on you!' and deny my petition, but I still can't help but have nightmares about the whole thing, and I expect those will continue until the petition has been made and I've settled things with the OR.

Thanks to everyone on this forum for sharing their experience, knowledge, and compassion - it means a great deal to this stranger, especially in these last few days before taking the leap....

NINANinja

Hi Struggleville
Your situation reads pretty much like mine, except I have a mortgaged house in negative equity which will be repossessed next month. I currently rent.
Your worries about 'being judged" and feeling like a "low-life" really echoed my feelings about attending at the court house. Even though it truly was a bit of a non-event on the day, I didn't feel relieved afterwards. I just felt guilty and useless.
However, there was something posted on here that lifted all of that. I can't remember who posted it, though I did thank them for their comments, which were this…
"It's not a crime to be unable to pay your debts. It is your legal right to declare yourself bankrupt. That's what bankruptcy is there for."
Reading this gave me back my status as a decent human being, and it's my fall-back position when everything starts to crowd in on me.
You have the right in law to say "enough is enough" and free yourself from debt.
Life is so much calmer with no money but no debts.
Good luck!
:T

christmas_baby

Hi Struggleville,

I went BR on 6th Sept 2013 after many years of struggling & deceiving my family,finally unable to even pay my mimimum repayments on my c cards & payday loans.
I got found out after my mum opened letters from creditors demanding payments (she had no idea i was in any debt) & after shouting for a while agreed to help me deal with things, i initially entered into an iva but had to stop making payments towards my £37,000 debt when i had an accident, had to stop working & the only other option was to declare bankruptcy.
I was in such a state, my mum paid a solicitor to deal with all the paperwork & go to court for me ( i know not everyone would be that lucky to have such a great mum), even though i didn't attend court i still felt sick on the day, however that feeling soon passed, i collected all my paperwork, receipts etc waiting on the OR to call, he rang 3 days later to introduce himself & i was sent some forms to sign & send back & that was it,i waited for the OR interview & it hasn't happened, i was so worried i rang the OR & he said he didn't need to do an interview at present so i've tried to put it out of my mind.
I'm now 4 months into my BR & it has flown by, i know i'ts easy for me to say but it REALLY HASN'T BEEN AS BAD AS I THOUGHT.GOOD LUCK ON YOUR BR JOURNEY.x:)

nervousandready

struggleville wrote: »

After spending the past six months researching, planning, totting up figures, fighting off waves of despair at the situation I'm in, and feeling worthless because I cannot pay my debts, I am now preparing to petition to be made bankrupt during the first week of February.

I'm in a bit of different situation to many posters on this forum in that I a) do not have a mortgage or a house (I've never been able to afford one!) and b) am filing on my own - I am married but am anxious to keep my partner from being impacted by my financial failures any more than they already have been. My debts are all unsecured, and are a result of years of emotional manipulation and abuse at the hands of my parents, with whom I have now cut off all contact; I need to draw a line under that part of my life and move on. Unfortunately, I was made redundant last year, and have only recently been able to secure part-time work; my mental and physical health have suffered greatly and while bankruptcy is a big step to take, my partner and I agree that it's a necessary one.

I've spoken to StepChange and I've read up on the procedure, both officially through various CAB sites and the Insolvency Service Publications, and anecdoctally through the posts on this forum. I've begun to fill out the paperwork and have put together an SOA - if anyone reading wouldn't mind taking a look at the figures below to see if any red flags jump out, I'd greatly appreciate it!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1 (owned by partner)

Monthly Income Details
Monthly income after tax................ 710
Partners monthly income after tax....... 1100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1810

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 625
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 30
Mobile phone............................ 30
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 30
Groceries etc. ......................... 400 (I have a medical condition that requires a very specific diet)
Clothing................................ 100
Petrol/diesel........................... 100
Road tax................................ 20
Car Insurance........................... 40
Car maintenance (including MOT)......... 20
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30 (we both wear glasses, I have ridiculously weak teeth, & partner has a regular bi-monthly script)
Pet insurance/vet bills................. 22
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 20
Professional Memberships................ 25
Total monthly expenses.................. 1840


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
credit card #1.................10400.....0.........0
credit card #2.................8400......0.........0
credit card #3.................2700......0.........0
credit card #4.................2500......0.........0
credit card #5.................1800......0.........0
bank acct overdraft............2000......0.........0
Total unsecured debts..........27800.....0.........-


Monthly Budget Summary
Total monthly income.................... 1,810
Expenses (including HP & secured debts). 1,840
Available for debt repayments........... -30
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -30


I've made a few notes where amounts may seem high or unclear - I hope this helps.

At the moment I am trying to bury myself in the technical minutiae of the process, in order to keep myself from panicking about the day itself. I've read so many times on this forum that the judge and the OR are not there to, well, 'judge' you - that no-one is going to look at me and point an accusing finger and shout 'you! you worthless lowlife who can't pay your debts! shame on you!' and deny my petition, but I still can't help but have nightmares about the whole thing, and I expect those will continue until the petition has been made and I've settled things with the OR.

Thanks to everyone on this forum for sharing their experience, knowledge, and compassion - it means a great deal to this stranger, especially in these last few days before taking the leap....

Hi, I went BR last week, in circumstances not dissimilar to yours. I also was panicking and in a right state about the process. Please let me assure you that it is not in any way going to be as bad as you think it will be. My experience was that it is a very straightforward day, and in my case was all done and dusted in about 2 hours from start to finish. No-one judged me. In fact, every single person I have spoken to and dealt with about this from banks to court, to DWP and HB, everyone has been exceptionally helpful and IN NO WAY JUDGMENTAL.
I cannot tell you the relief that I dealt with it. It's not something any of us would choose, but the hardest part I found was admitting the problem and reaching the decision, aided by a great debt counsellor at the CAB and support from family.


I think you will be fine - your SOA looks fine to me, but I've not yet had my OR interview. Keep strong. you wouldn't be doing this if you had a choice, so do what I have done. Accept you can't change it and look forward to a new way of living and the future. Good luck!


PS - tips that helped me: Take time to fill out your forms correctly and make sure you take the original and a copy for the court, and keep one for yourself. Take cash to pay the BR and court fees.
Open a new bank account with Barclays before you go BR and transfer any standing orders across (I picked mid month when it's quiet on that front).


And most of all, please don't panic. It really wont be as bad as you think - I was with the judge for minutes, and all you have to do is confirm you understand what you are doing and that you have taken advice.

therudemonkey

For a number of years now i have been struggling to repay my debts I had before i met my girlfriend, its all started when i lost my job a year after i met her and in that time we had bought our flat and everything started going pear shaped from there, it was back when the recession went into overdrive and i couldn't find another job in my field of travel agency work with comm, the debts started to pile up while i was hunting any job i could find, nothing arose and i ended up doing a labourers job onsite via an agency paying min wage.

Me and the other half who were planning on getting married before the job loss were surviving on her wages while using my pitiful wage to try and pay some of the debts, the other half had enough and applied to a uni in london to try and better herself in order to get a better paid career and succeeded in becoming a graduate and getting her dream job, it took 3 years and while we lived in london i managed to find work that would earn enough for us pay the rent and bills and be able to pay a little via CCCS to the creditors.

A few months after she started her job she found out she was pregnant and we have since had a child, she is back at work now but we cannot afford the childcare so i have had to stop working to care for the little one as my partner earns more than i could, we had to move into a rented accommodation where she works and rent out our flat where we used to live as we couldn't sell it in neg equity.

Two of my creditors have since applied to the courts and succeeded in getting two CCJ's against me and this means i am pretty worthless in the financial world since i have debts of 15000 and 2 CCJS against me, my debts are affecting my girlfriends status creditwise as in order to rent we are credit checked and i fail everytime we live in a tiny flat and the little one is needing a bigger space now, as we own the flat between us and my girlfriend isnt in financial trouble could i apply for Bankruptcy, like i said the flat if sold would be in neg equity putting my girlfriend into debt for the difference of the mortgage.

struggleville

NINANinja, christmas baby & nervousandready - thank you so much for your words of empathy and support, and for sharing your experiences. NINANinja, I've seen the same post/quote you mention, and it did help me to read it - now I just need to start believing it!

Forgot to mention before that I've opened a Cashminder account at the Co-op, which is in the switching process at the moment. I am slightly concerned that the final step is to close the old account (the end date of the switch process is due to be next Monday, the 27th) and I don't know if Barclays will do so with an overdraft outstanding - hopefully this will not have an adverse effect on my Co-op account, or, worse, cause my January pay to be deposited into the old account where it will be swallowed by the overdraft rather than be available to pay rent, etc. on the 1st!

therudemonkey - I'm sorry, I've no advice for you other than you may want to re-post your query to a new thread so more people see it and might be able to help you - good luck with whatever you decide to do!

nervousandready

struggleville wrote: »

NINANinja, christmas baby & nervousandready - thank you so much for your words of empathy and support, and for sharing your experiences. NINANinja, I've seen the same post/quote you mention, and it did help me to read it - now I just need to start believing it!

Forgot to mention before that I've opened a Cashminder account at the Co-op, which is in the switching process at the moment. I am slightly concerned that the final step is to close the old account (the end date of the switch process is due to be next Monday, the 27th) and I don't know if Barclays will do so with an overdraft outstanding - hopefully this will not have an adverse effect on my Co-op account, or, worse, cause my January pay to be deposited into the old account where it will be swallowed by the overdraft rather than be available to pay rent, etc. on the 1st!

therudemonkey - I'm sorry, I've no advice for you other than you may want to re-post your query to a new thread so more people see it and might be able to help you - good luck with whatever you decide to do!

Hi Struggles,
Re closing the Barclays with OD - I wouldn't bother. When you go BR, I would think this forms part of your liabilities. (I went BR last week, and my main current account was in OD, part of my liabilities). Good Luck!

struggleville

Just an update: I've an appointment tomorrow morning to file my petition. I've gathered the cash fee, I've filled out and printed three copies each of forms 6.27 and 6.28, and I'm currently going through & organising my statements and paperwork for the accounts to be included in the bankruptcy.

Am I correct in thinking that the two forms and the cash fees are the only things required tomorrow morning? What about ID - will a driving licence suffice (my address is current) or should I bring my passport + proofs of address? How about things like my tenancy agreement, or payslips? Forgive me - I'm sure the answers to these questions are somewhere on this forum, but I'm rapidly approaching the point in this evening where I start to panic and obsess needleesly over minute details, so I thought I'd ask....

(FYI: The switching process went smoothly in the end - Barclays closed my old current account on the 27th and I've included the overdraft on form 6.28.)

sort_me_own_yard_out

All the best for tomorrow, I m sure you will feel a lot better for it. My mental and physical health has improved in vast amounts since I walked out of the court 7/3/13.

this board is full of support from many people that have gone though the same journey and bags of experience and expertise.

woodformoretrees

Hope all goes well for you today, Struggleville.
You'll be able to let your shoulders relax a bit tonight xx

struggleville

Thanks, sort_me_own_yard_out and woodformoretrees, for the good wishes.

I was made bankrupt yesterday morning at a few minutes past ten - in the end, the entire process was quick and relatively painless (other than handing over that £700). My appointment was for 9.30am; I was called to the counter to sign my forms and pay my fee around 9.40am, then went to sit in another waiting area before seeing a judge. I was called back to see the judge just after 10am and after a brief conversation in which he confirmed that I'd taken professional advice, he adjudged me bankrupt and wished me good luck for the future, and I went out to sit in the first waiting area again while my paperwork was processed. Less that ten minutes later, I was called up to the counter and given a copy of my stamped petition, several official copies of my bankruptcy order, and details of the office of the OR who will be contacting me in due course. I was out the door again by half ten - the entire process took less than an hour, and everyone I encountered was perfectly pleasant, including the judge, who was very straightforward and didn't make me feel as if I was a terrible person at all, which I really, really appreciate.

Now to wait to hear from the OR - and then to get on with my life! It still doesn't quite feel real that I no longer have to dread the arrival of the post, or the ringing of the telephone - but I'm sure it will sink in eventually. Many thanks to all who have given advice and/or good wishes during this process - I am most grateful. x