Advice needed with br

Slowmonkey94_2

Hi all hope someone can help me basically at the ripe age off 22 I'm in a position were Iam sadly petitioning for bankruptcy due to several factors what I want to know is is this you g to ruin my chances of ever being credit worthy again e,g getting g a mortgage in later life I'm really hoping someone will have a br success story were they might be kind enough to share I've been stuck between a wall and sharp object for a while and I'm praying that my br has not ruined my entire future
Many thanks for reading
Slow monkey

Slowmonkey94_2

Sorry can I also add I'm very new to this so not sure how it really works �� but am very glad to be here x

peterkay369

First of all I'm very sorry to hear of your situation. You've come to the right place, everyone here is helpful and won't judge you.

I don't have a BR success story as such, I've still not even pressed the button myself, I keep putting it off in my head.

I'm 23, with a very high amount of debt (£65k+) due to gambling. Without knowing exactly how things are once I am officially bankrupt, it can't be any worse than how things are now. After speaking about everything with my gambling counsellor, he's said it's the best £680 he's ever spent.

In regards to the mortgage and future credit, no it won't ruin your chances at all. In the short term, you won't be getting a mortgage (unless you have a ridiculously high deposit) and you can't get credit over £500 whilst undischarged. However there are a fair few brokers that specialise with discharged bankrupts so it's not a dead end road. Other people that have gone through it will be able to explain in more detail, but you definitely haven't ruined your entire future.

Feel free to ask any questions you may have. It would also be worth contacting one of the free debt charities such as StepChange or National Debtline who have great support and advice for people in our situations.

TheGardener

HI Slowmonkey and welcome
In a nutshell - BR will remain on your credit file for 6 years. Regular credit may prove difficult within the first few years but your credit worthiness can be rebuilt if you follow the advice on this forum. Even after the 6 years (but not 'forever') mortgages can be a sticking point but there are many success stories on this forum. How you manage your finances (like, squeaky clean) after BR, your income and of course the size of deposit you can offer will all be factors that improve your chances - and are all factors within your control.

BR is a big step - you really should read the stickies at the top of the board, its a lot of reading but it is all worthwhile. You must also seek advice from one of the free debt charities Stepchange/CAB/National debtline etc.
There are things you can do beforehand that will make the journey a much smoother one so do read the sticky posts.
Once you have grasped all the principles and consequences, come back and ask us if you have any questions.

Slowmonkey94_2

Hi there thanks for the replies and thank you for the warm welcome uve spoken with step change who advised me that br is the best option for me with 18000 pounds worth of debts due to a broken relationship and failed business however I'm hopeful that I will once be seen as creditworthy again most of my debt is HP agreements and loans phone bills and a very old benefit overpayment so I'm just hoping ita defibatkey the right decision for me my question is I have a sim only plan on by mobile I've just taken out as its on pay as you go will I have to give this up ??

LEK

Firstly if you haven't gone through with it yet and still considering it, think hard on it for a bit to decide whether it really is for you.

Make a phone call to the relevant charities / organisations listed on this forum for advice, do a lot of research into it online and think forward to what the outcome will be for you and ways to plan forward. Importantly also consider all the other possible options you may have to avoid bankruptcy & see what may be best for you.

The obvious things to point out if you do go bankrupt is that your credit rating will be tarnished for 6 years as a result, or maybe more if you abuse the rules of bankruptcy therefore your chances to obtain credit during this period is impossible - be it the likes ranging from a mortgage right all the way down to the smallest of things i.e. a store card / mobile phone contract. Any company or organisation that can run a credit check on you will see that you're bankrupt. After your first year of bankruptcy and if you follow the rules, you will be what is called Discharged from the Insolvency Service - this is where your debts have been dealt with and you can start to repair your credit file again. However, as your bankruptcy will still be on your credit file for another 5 years afterwards, obtaining credit will still be very difficult - the likes of a broadband contract may be possible as you will be down as a Discharged Bankrupt. When you've reached the 6 year landmark, your bankruptcy will drop off your credit file overnight effectively.

The bankruptcy is also a a public record, so your name will be displayed publicly on the Insolvency Register online (along with your full address too) and if you put your full name in Google, you may also appear on the search results as being listed as being bankrupt.

After you are made bankrupt you will be assigned with your own advisor who works for the Insolvency Register, as they are part of the government / HMRC you will be required to do as they say, abide by their instructions and what they expect from you. Abusing their trust or not following their procedure could also result in you being taken to court and for example in extreme cases where you attempt to or commit fraud while being bankrupt or if your recent bankruptcy is linked to it, they could send you to prison.

Another important factor with being bankrupt is that you could be faced with being placed on an IPA (Income Payment Arrangement), this procedure is mandatory if you are given one and basically it's your way of paying a monthly contribution towards your outstanding creditors as a result of your debts being dealt with effectively - however this is solely based on your outcome, outgoings & other contributions. The Official Receiver will decide if you are liable for one, and usually they last for three years. Alternatively you could be put on an NT tax IPA where if you are employed, you stop paying tax until the next tax year but this instead get's paid towards your creditors - after you've completed the NT IPA the IPA itself ends.

As you're still young and still have your young adult life ahead of you - I'll reiterate again, please take account into all of the above AND also other important advice that other members of the forum will contribute to here, as no doubt I may of missed off other key things.

Edit - I made myself bankrupt back in July, I will post up my story for you on here tomorrow (a bit too long to write out on my mobile tonight!).

All the best & good luck - Liam.

peterkay369

with it being less than 20000, a DRO may be better for you?

Slowmonkey94_2

Hi thanks again for the replies I earn approxiamtley 1000 per month and my outgoings on basic living costs like my rent food CT water TV licence etc are about 80 a month leftover I'm a self employed pizza delivery driver also I was told a dro I'm bit eligible for I've been researching this for six months bow I've just got to save the six eighty up and get on with it I'm really hoping I don't have to make a income payment arrangement as I'm wanting to try and save at least twenty pounds a month for emergency such as car needs fixing as I have to use my car for work fingers crossed

LEK

Slowmonkey94 wrote: »

Hi thanks again for the replies I earn approxiamtley 1000 per month and my outgoings on basic living costs like my rent food CT water TV licence etc are about 80 a month leftover I'm a self employed pizza delivery driver also I was told a dro I'm bit eligible for I've been researching this for six months bow I've just got to save the six eighty up and get on with it I'm really hoping I don't have to make a income payment arrangement as I'm wanting to try and save at least twenty pounds a month for emergency such as car needs fixing as I have to use my car for work fingers crossed

One of the charities in question can also help to contribute towards the cost of a DRO / bankruptcy.

Also a DRO is different to bankruptcy itself - especially with the procedures involved so again, read up on everything you need to know about a DRO as well.

Liam.

Slowmonkey94_2

hi i will do so thabks again forthe reply im trying to see the positives in this and all the replies are great ! ive just spoken to somone recently who described there br as a learning curve they basically went br after discharged rebuilt there credit and said i arbt ashamed as it taught me how to be responsible and said he pays less in intrest with the credit he uses seven years on now then he did formely so descrives it as a life lesson and says its one of thr best lessons hes learnt financial responsibility ! thats what im prayibg i can do nake the right decision and learn from it however o feel likr ive already learnt my lesson !

Slowmonkey94_2

Okay so a quick phone call withing of the charities above and it turns out my debt has taken me over the threshold for a debt relief order hence my application being rejected so I now have bankruptcy as my last option god I'm really hoping this all goes another than the previous six years of my life