Life after bankruptcy in 2008

kezza90

Hello all,
I used to be an avid reader of this forum when I went bankrupt in November 2008, so I thought it would be worthwhile for me to share my experience since then.....to show there is light at the end of the tunnel.

I didn't quite understand what bankruptcy would do to me mentally, I remember the day I went to court, when I got home my dad said "well, you don't look any different, it's not branded on your forehead" but I think he said that because I thought there was such a stigma around being bankrupt. It's amazing though how many people have actually gone bankrupt!

I was discharged after 6 months and I thought I'd feel better then, don't get me wrong I did feel relieved but it wasn't until it was 6 years since my bankruptcy date that I felt a great deal better and then total relief 6 years from my discharge date, which was June this year.

I spent a lot of time reading the forums (they are invaluable), taking the advice and tidying up my credit file before I got to the 6 year target, I made sure all of the dates were correct and got a disassociation from my ex-partner. I applied for a Vanquis card and each month pay off the outstanding balance to rebuild my credit. I have now checked my credit files and for the first time in years they are clean....what a relief!!

Bankruptcy isn't for everyone, but it helped me a great deal, it helped me deal with my money issues, build a life away from my ex-partner and has also taught me the greatest thing of all that you don't have to have everything, budgeting helps and actually saving for things makes them all that more worthwhile...and you know what if there is something you want and you cant afford it, it's not the end of the world to do without it!! Our society now seems to encourage people to buy TODAY even though we cant afford it, but that life is not for me, I never want to be in debt again and feel that sense of loss when you have more outgoings than income.

In November 2008 I thought 6 years was a life time away...but it has come around quick and I have learnt so much. Bankruptcy in a way has helped me to rebuild my life and I'm so happy for that.

I just thought I'd share my story, I hope it gives some of you hope and confirmation that although this is a hard part in your life, it's not forever xx

Daisy4567

Hi, thank you for sharing.

My BR journey starts on Thursday morning. I am worried sick and appreciate being able to read a positive story. Good luck for the future xx

alastairq

Thanks for that...it encourages others when they are down, and cannot see a way forwards.

I, too, a few months ago, achieved the 6 year mark....my sheet is clean...[my defaults actually came off some months beforehand....as they pre-dated things, so I left them be.]

In fact, so clean, Tesco have given me a credit card, with a relatively huge limit [and 0% on purchases, etc].....good, considering a long time ago, they [and RBS] were a creditor.

The Provvy card [vanquis] will be quietly put aside for now....even though that, too, had a huge [for them] limit.

I haven't bothered changing any of my bank accounts, as they work for me....

But, most important, I have not buckled under the idea that what I did was somehow 'bad'....I have not endured any sort of guilt trip.....merely been pragmatic about the whole situation, and totally discarded any moral aspect.

So, well done...after BR, the only way is up?

Jakefrom

I would like to echo above. I was discharged in 2008 and used this forum for some helpful advice and support

Life can get better so try and keep a positive outlook (I know that's easier said than done)

kezza90

hi alastairq

Just like you I've kept the same account, the cashminder account with the Co-op bank, I'm not even sure you can get the same account now but it does for me! I've no interest in getting an overdraft or upgrading my account and I'm not sure I need to upgrade it anyway.

I'm glad that sharing my story has helped, to Daisy4567 it is amazing how fast 6 years will go over, and time waits for no one, that time will pass whether you are BR or not, so better to have sorted everything out now! Good luck with your journey.

xx

AMay

Hi all,

I know everyone's situation is different, but I just wanted to ask how you all managed to live on so little during the 3 years of having an IPA?

elljay

The IPA should leave you with enough to live on, if you feel that yours isn't enough then speak to your OR. It's an agreement not an order. You do need to budget carefully however, but that will give you room for luxuries if you plan well.

In my case, and I know in several others, I am better off with an IPA than before I became bankrupt. Before, I was using every penny to keep my head above water with the business debts, at one point I didn't even have enough to buy a tin of dogfood and had to scrounge. Now I have a £40 a month pet food budget allowed for in my IPA. Hugely better.

It should be tight but not impossible. Lots of people live on less every day without being bankrupt and masses of ideas for eating well and cheaply etc are on MSE - the old style board is one of my favourites.

AMay

Thank you Elljay,

I'm going to call Stepchange this morning and will go from there.

I know it's going to be tough, but it's a sacrifice we are prepared to make.

I just want to make sure it doesn't affect my children too much, I don't want them to even be aware of what is going on, so if possible, I'd still like to have a Christmas and be able to send them on school trips etc, I just know it won't be elaborate.

Does the OR take every spare penny that's in your surplus, or do they leave you with some still? I've read on other forums that they take 50-70% of your surplus?

elljay

I think in the old days they took a proportion, also I believe for an IVA they take only a percentage but with a BR IPA they take all of your surplus - well apart from £10 each 'emergency fund' which they automatically add in. However your SOA which you agree with them will include allowances for lots of things and if you're careful with those allowances and a bit creative, you should have plenty for your basic needs plus a bit which you can put into a savings account towards the special events. Just because you're allowed £50 a week for petrol for example, doesn't mean that you have to spend it all. You could walk a lot and save half of that and put it into savings. Once agreed the OR doesn't want to see your petrol station receipts or anything. By getting ideas for meal planning, bulk buying, cooking from scratch, using coupons etc you can cut what you use on food and again, save what's left of your allowance.

From what I save during the year by being creative and careful, I can do a great Christmas, can contribute towards my grandchildrens school trips, uniforms etc and am about to go on the first holiday for god knows how many years. I know exactly what I have each month and can really plan.

To the OP and others, it's from reading such stories as yours that gave me the courage to go for bankruptcy. The effects on me have been difficult but I try not to think about the bad bits (mostly to do with what others think of me which I know shouldn't matter but does!!) and that feeling that there is light at the end of it all is so helpful to read about. Thank you!

EJ

AMay

Thank you so much, that is really positive to hear that there is light at the end of the tunnel

Hope you have a lovely holiday EJ.

fay66

Yay I got accepted for a marbles credit card £600 limit, taken since 2011 since bankrupt discharge