Please help me!

susiepink

I have just had a baby and I'm planning on staying at home and bringing him up. I'm around £40,000 debt so I've chosen to file for bankruptcy and make a fresh start but I feel sick every day and I'm so scared.

Even when I was told to do a budget plan and cut down my bill payments I carried on paying them as I felt guilty. I have just got a big bonus from work and I've being spending like crazy, mainly on my little boy and paying back all the money I had to borrow to originally pay my bills. Will I get in trouble and baliffs be sent to my friends flat?

My money has nearly run out now so I'm going to court in a couple of weeks. Also I'm currently sharing flat with my friend in his council property (I'm on the housing list but could wait years yet) I have no tenancy or rent book and council don't know I'm living here. What will happen, will my friend be notified as I don't want him knowing of my bankruptcy, does the OR need proof of the amount of rent I pay each month? How strict are they? I am so scared.

Would appreciate all your help.....

gratton20

Hello Susiepink

Welcome to the board. I am sure that very soon one of the more experienced members will be here to give you some practical advice and believe me they really WILL be able to help.

I know it sounds trite but there IS light at the end of the tunnel and you WILL come through this - be brave, there will certainly be lots of people here to support you.

No-one will judge you, and as for having spent lots of money on your little boy - of course you have, he is the most important thing in the world to you and I don't think any parent would blame you, I certainly wouldnt.

Sorry I cant offer detailed practical help, I am still a "newbie" and sorting my own stuff out, but there will be lots offered by the "wise ones" very soon, and meantime be brave, you DO have support!

Rafter

Susie,

The official receiver will need a record of all your outgoings. For your own protection it would be useful to have something in writing from your friend confirming that you are being rented a room, at what rate and what notice they have to give you to leave. Say you need it for child benefit office or something if you don't want to tell them about your bankruptcy?

There is no reason why the official receiver will need to contact them though, unless they don't believe your outgoings or living arrangements.

The main issue for you seems to be that following your bankruptcy you cannot rely on credit each month. Once the money in your basic bank account has gone that will be it until you are paid again.

Good luck.

R.

susiepink

Thank you. As I'm not supposed to be at my current address my best friend is going to let me change my address and live with her. She also has a council property and will let the council know I am staying with her. Will the OR still be interested in my old address once I've moved?

rog2

Hi Susie - I can understand that you are worried about the effects of bankruptcy and the process. All I can say is that you really don't need to worry.
Sort out a 'rental'/'lodger' agreement with your friend.
If you're not working, and your only income is from benefits, then you are not going to have to pay an IPA/IPO, and you should be able to save on the court fees. If you are not already taking advice, then pop into your local CAB.
Your bankruptcy will be published, usually in the local paper, but hardly anyone is going to take any notice, and it will be 'forgotten' in a matter of a few days anyway.
Oh, by the way, they don't send 'bailiffs' round in bankruptcy.
Good luck.

susiepink

Thank you so much everyone it's just this living situation that's causing the problems. If the truth be known I'm subletting my friends council property, he now lives in America. If he finds out about the bankruptcy it's likey he will ask me to leave. My friend Louise is quite happy though to do me a tenancy agreement from her house, I'm just worried about losing my flat. As of December I will no longer be on an income anyway so I've no money that they can take. My partner will be paying all the household bills for me but there is no way he can take on my stupid debt. I guess the OR just needs all the details so as they know how much money they can take for my creditors. God, it's such a mess, I can't bear it.

fiveyearplan

You don't have much security in your friends council flat. Have you thought of declaring yourself homeless to get your own council flat. You have a much better chance now that you have a baby - especially if you are on your own.

susiepink

At the moment with so much going on, a new baby, bankruptcy, giving up work I need some stability and I've been at my friends for so long I feel "safe". I don't think I can cope if I lose this place now, we've just made it look nice for our little boy. All I need to know is if the OR is just interested in my circumstances at the time of BR, if they ask why I've moved I will just say that my friend had offered cheaper accomodation. Once I've sorted out this bankruptcy I am then going to approach my friend in America and see if he will put me on the rent book.

fermi

I think you've had some good advice, and as said the OR could do with seeing a formal housing arrangement if possible. However, I don't suspect you will be the first or last person they see in similar circumstances if you can't. They are normally sympathetic if you take time to explain your circumstances.

But please seek some professional advice on your situation.The courts asks whether you have before the will grant the bankruptcy, so it's best to get some ASAP if you haven't already. The organisations in my signature can give you that free professional advice.

susiepink

Thank you, I have spoken to so many different helplines incl the Insolvency line that my head could burst from all the conflicting advice I've been given. As of this month my maternity pay kicks in and I will only have about £800 and then as of December I am on 3 months unpaid leave. I will have nothing for them to take. I just want this all to be over now, I've notified all my creditors of my change of address and will go to court the end of September. It just all seems so huge but by reading some of the threads here it doesn't see all that bad?

fermi

susiepink wrote: »

It just all seems so huge but by reading some of the threads here it doesn't see all that bad?

I'm glad you've taken plenty of advice.

Yes it does seem very big and scary, but then so do most major decisions in your life. Going bankrupt is not something to consider lightly, but neither is it something to fear. Nowadays it is designed to be a fresh start for those who need it, so try to think of it in those terms. The most scary part in anticipation is the court, but as you may have read most of the judges emphasise the 'fresh start' aspect and are very sympathetic.

Keep posting on here with any concerns you have, because you can be guaranteed that many here will have thought/felt/worried the same, and that you can multiply that many times over for the people just reading the forum.