Taking the plunge - About time

Chasingdreams

Hi all,


Firstly, please ignore any previous posts from me over the years. I've felt in that past that I was ready to tackle my debts head on when in reality I wasn't. In all honesty I just cancelled all the DD's, stopped opening mail and only answered phone calls to those in my phone book. Very immature and has cost me in the long run.


Today, I've grown up a lot. I'm the proud father to a beautiful baby boy and have a wonderful fianc!e. I'm lucky that I've managed to get a good career behind me and am in a job I love. However, these debts don't go away do they (no matter how much you bury your head in the sand!).


I've spent the last few days getting advice and I am going to go bankrupt. I'm filling in the forms and finally getting this sorted. I'm not proud with how I've managed the financial part of my life but I now have to do my best to give the little man the best future I can as well as providing some security for my wife to be and running away from the problem isn't the answer.


I'd like to ask people a few questions of their own experiences in going BR.


How did you feel filling in the forms and waiting for your court date?
Are the OR people as horrible as you imagine them to be?
Are there any stories where people were able to keep their vehicle when needed for work? I currently travel 100 miles per day for work and whilst my car is valued at approx. 3500-4000 I feel I need something both reliable and safe with the baby.
What happens after the court date?
And what happens after 12 months?


Many questions I know and I've read a lot on the subject on various websites but I would actually like to hear from people who have gone through the same.


Thanks for all taking the time to read this.


ChasingDreams

Teen_the_Drama_Queen

Hi there Chasingdreams, not sure why no one else has replied to you, so anyhow, I'll kick off.

Well done for finally making a decision, BR isn't an easy option for anyone. Been there done that, have just come out the other side, have literally just this month finished paying off the IPA. Nearly 4 years ago, myself and my DH were at our wits' end, 'owned' a home with a mortgage we could not afford, with a secured loan and credit cards with limits through the roof and an overdraft we had no chance of ever paying off.

Went on to this site and got great advice (also rang National Debtline who were brilliant) - what you need is good honest advice from people who will not judge.

3 years down the line, we are in a privately rented house, have two elderly cars (my DH's car was taken, but he was given an amount to buy another (cheaper) car) and things are so much better, BR takes a load off your mind. There have been months which have been a real struggle (for instance, when something has gone wrong with the car) and because you don't have a credit card, you have to pay there and then, some weeks we have had to do weekly shopping for 2 adults (and a teenager still living at home) with a budget of £20.

Filling in the forms is daunting (I cannot lie), but if you have any queries, just ask on this forum. The going to Court, again, daunting, is do-able and when you are pronounced BR, it's good to know that you will not have creditors ringing you every 5 mins chasing you up.

You question what happens after 12 months? To be honest, not a lot...... You just check the Insolvency Register to check your name has 'dropped off' (and print off the details and keep them) - although I believe it stays on the London Gazette for ever more.

After the court appointment (the Judge may or may not wish to speak to you direct), the OR contacts you to discuss your SOA, and if they deem an IPA is necessary (that's you paying money off to your creditors) then this lasts for 36 months (though throughout that time if your finances change, you can refer back to the OR so that the IPA can be reduced, however if your salary increases then you have to notify the OR and your IPA will then prob be increased).

Sorry, I'm waffling, I bet you wish someone else had responded too

Whatever you decide, you must do what you think is best for yourself, your fiance and little baby - good luck

owlet

For me, filling in the forms was the hardest part of the process. Court was fine, no stress at all. My OR was really nice, he asked the necessary questions but wasn't judgemental or critical. I'm only a few months in so I can't comment about after but I will start looking at my credit file in the autumn. Good luck.

egrescrimp

Who/what did you use to value the car? if it's needed they may let you keep it but if they insist on taking it then you can ask about buying the OR's interest in the car, which should be far less than what you believe it's valued at now. We bought the OR's interest for just under a 1/3 of what Parkers valued our car at.

After court, I got a call in the afternoon from my examiner and had a quick 10 minute chat and it was decided a further interview was needed and that took place about a week later. We went through my forms, answered questions about what each debt was for and then went over my SOA - I was told there would be an IPA and then that was pretty much it. I've not spoken to my examiner since.

I'm also only a few months in, so can't comment on what happens after 12 months but I'm sure thats as much of an anti-climax as the actual court date was.

Chasingdreams

I used Parkers to value the car, albeit I took an amount of what was quoted by Parkers as my vehicle has done 40k miles above the average for it's age and will do approximately another 25k miles in the next 12months.


I'm going to call CAB again today I think. I've got so many more questions going through my mind ie if my account is frozen, how can I access my wages to pay for our house, food etc.


I guess as much as you read others posting to say it is such a relief when they do the forms and they needn't had worries, you still can't help yourself from worrying when you're in that same situation....

michael1983l

The biggest thing for me was actually doing it. Filling out the forms is a bit of a pain, got my date tomorrow but after reading lots of reports on here I am not too worried about it. I only wish I did this years ago.

DJ4614

I think that taking the plunge was the hardest part for me, actually booking the appointment at the court. The forms were a little painful but it was a big wake up call seeing your state of affairs in black and white. I was at court for no longer than 15 minutes and it was very straight forward. The OR called me 2 days later and we went through my SOA the following week, she was very nice but unfortunately will be taking my car which is worth £950.

I was most concerned about not finding a bank account but It turned out fine in the end. A month before I applied for bankruptcy I opened a Natwest Select account as I didn't have any debt with them. When I went bankrupt the OR wrote to them and said that she has no problem with keeping the account open and fortunately for me they did. They have downgraded the account to a basic account but I still have internet banking and direct debits set up.

I am not even a month in so I can't comment on what happens in the long term but I have absolutely no regrets and my shoulders feel a lot lighter.

Chasingdreams

Could someone please tell me how long does an IPA apply for? Is it a set period or dependant on individual circumstances?

Also, what would happen if I was to get a Payrise at work or an annual bonus? Would all of this go to the OR?

Thanks again

TheGardener

Chasingdreams wrote: »

Could someone please tell me how long does an IPA apply for? Is it a set period or dependant on individual circumstances?

Also, what would happen if I was to get a Payrise at work or an annual bonus? Would all of this go to the OR?

Thanks again

Hi
An IPA (if set) last for 3 years - 36 payments. If you only get an NT tax code IPA, it lasts to the end of the current financial year.
If your circumstances change you have 21 days to inform your OR who may increase or reduce your IPA depending on the change but it will not extend the duration - it will still be for 36 payments - unless they cancel it all together because your income has fallen too low for one.

longtermplanner

A payrise or an annual bonus will usually go to the OR if you have an IPA set, however if your costs have also increased, this can be taken into account.

Many people don't have an IPA at all, post a Statement of Affairs here and we can say how likely one would be for you. If an IPA is not set in the first 12 months, then it will never be imposed no matter how large a pat rise you get

Chasingdreams

Thanks to all for your responses.

My forms have ben filled in and my court date is set as next Wednesday. Usually I'm a world leader in not letting things get to me but I have to be honest, these last few days I can't get the court date out of my head!

I guess my main concern is the the uncertainty. I know it's the right thing to do, I'm just worried about if they take my transport (with a 100mile round trip each day it's essential). If they do take it on a Tuesday for example and I have work on the Wednesday, that doesn't leave me much time to find transport. My other main concern is my partner. All these debts were run up without her knowledge (mainly before we were together) so I (and she) feel strongly that this shouldn't affect her in any way. It's definitely starting to stress me out. Anyone else been in a similar scenario?

As for an SOA, could some of the experts on here really give me a good indication of what will be my situation after my court date if I was to post one up?