Bankruptcy - I've finally realised I have no option

Hi all

I posted here a while back about debt problems and was adamant I wasnt going to declare bankrupcy,well,I am going to bite the bullet and do it!

I was still kicking and fighting it a few days ago,so much to the extent I made a payment of over £500 to a credit card just to avoid them placing a default notice on my credit rating. I felt such relief once this was paid. (I must point out this payment was made by a close friend who was trying to help me settle as I was getting into such a state etc) I now realise this was sheer madness,the company had already agreed to accept my nominal payment of £1 per month for 6 months then review the situation

I have another pending default of £400 and was at that time gonna somehow find that money too to stop it.

I woke in the early hours of saturday pondering what I could sell to get this money up,after a few hours I think my reality really kicked in,I cant keep fighting this

Its been my first and last thought almost every night and its badly affecting my health

So,I am definately going to do it,no more playing games and trying to pay money i dont have,I'm scared,yes,but strangely calm

I'm convincincing myself,what can they do,they cant murder me or shout,nothing,except ask me where all the money went etc and there wasnt anything like an exotic holiday etc

They'll even see i was trying to keep up payments,some of my creditors arent even aware i have problems at moment as i've been keeping my spending to a min and paying them.

Infact I got a statement from one just the other day uping my limit by £1400,happy days,I could take that and make another few instalments,get in even more deeply,but no,I am not going to

I intend to read up on what i need to do to file bankrupcy and do it this week,wish me luck,and help me be strong

This is a great site,everyone is so helpful and I will try and keep you updated on what happens

I feel so stupid now for paying that default on friday as I need the money to give to the court,but I will find it,has anyone any idea how much I need to pay,I'm on IS at the moment

Thanks
«1

Comments

  • cozzie
    cozzie Posts: 521 Forumite
    First Post First Anniversary Combo Breaker
    Good luck, although I am sure you will be OK.

    My partner declared himself Bancrupt a few years ago and told me that everyone is really helpful, the only daunting part he said was when he was summoned into court as he had never been to a court before.

    Before they allow you to declare yourself bancrupt they will check to make sure that you have been "trying" to deal with the situation, but you have stated that you have, so, all should go smoothly.

    Have found some FAQ's on this site...........
    http://www.shawsinsolvency.co.uk/bankruptcy_faq.html

    Have sent you a PM to wish you luck too.
    "And crawling on the planet's face,
    Some insects called the human race,
    Lost in time, and lost in space,
    And meaning"
  • darlyb
    darlyb Posts: 6 Forumite
    I know how you feel, I was struggling to make payments between 5 creditors of over £1200 a month, basically all of my wages gone and survied (just) off my wifes money. Opted for the DMP at £600 a month but then when my wife fell pregnant (planned) and reduced the DMP payments to about £150 as was supporting the whole household.

    My wifes co didnt let her go back full time as only wanted one full time person and really her boss didnt like her plus wanted to move the post away from the town we live in :(. At this point it was going to take 15 years to pay back what I owed should our circumstances not change, as by this time we decided it would be best for my wife to stay at home and bring up our daughter (11 months yesterday). So I plumped for bankruptcy as 2 of the creds defaulted the account as it was below their minimum payment required. Didnt bother to make payments for 2 months to save up the money for going B (£460) at which point got one solicitors letter threatening further action in 7 days, on the 8th of this action I walked into the court with my forms :)

    The forms are quite easy to fill out, the main thing is they want account numbers & contact addresses, when it asks when the accounts/cards were created put in date as close as you can to when you opened them, like I say the account numbers are the vital things. When you go into court they ask if you have taken advice, my advice was over a year ago and B was an option back then so just said yes on the form, they ask you as well (maybe call up the national debt line) that way you are not lying as you have to swear on the forms. I didnt see the judge on the day he just signed my papers and sent me on my way - all really easy. The same day the official reciever called and said I would be paying £160 amount for 36 months and 2 months later the paperwork dropped through the door regarding my monthly payments.

    I can guarantee that before you do it you will be thinking all sorts of things just like me, you then walk out of court thinking what was there to be worried about :) and today is a new start.
  • rchddap1
    rchddap1 Posts: 5,926 Forumite
    Someone I know might be headed that way themselves. Its good to hear that there is light at the end of the tunnel and I will suggest that they read this thread. Unfortunately they have gone past the point of others being able to help (debt too large, and no income at all!). Problem is they have stuck their head in fast drying concrete thinking that it will all go away. Mind you I think I'm finally getting through.
    Baby Year 1: Oh dear...on the move

    Lily contracted Strep B Meningitis Dec 2006 :eek: Now seemingly a normal little monster. :beer:
    Love to my two angels that I will never forget.
  • mumof3girls
    mumof3girls Posts: 239 Forumite
    we are thinking about it. my husband came with loads of debts and a house repossion and he has a huge bank loan and credit card to pay. have been paying all the small one but can not manage to pay the big ones. asked them if they could reduce the payments and did a buget form but they were not interested. they what all or nothing. asked them to send a paying in book to try and pay some and again not interested. he got a defalut notice this morningasking for£5k for his credit card within 14 days, like how??
    the thing that worries me about bankrupcy is we rent jointly and it would break the tenantcy agreement and i hitnk he could evict us??
    secondly we have a car on hp but have been paying regually and he needs it for work. would we still be able to??
    Smile and be happy, things can usually get worse!
  • Phonix
    Phonix Posts: 837 Forumite
    First Anniversary Combo Breaker
    It's good to read these comments as I'm soon to be in the process of declaring my father bankruopt because he's terminally ill and this is even though he thought he had enough insurance to cover his debts.

    none of you want to become MPs, a solicitor or become the director of a companym, because these are rights which are taken away from you when you declare yourself bankrupt. I think this is very harsh.
    the thing that worries me about bankrupcy is we rent jointly and it would break the tenantcy agreement and i hitnk he could evict us??

    I wouldn't worry about that, it's not like he's going to know.
  • mumof3girls
    mumof3girls Posts: 239 Forumite
    he may read it in the paper. and it says in the pack from the court they may tell the landlord.
    Smile and be happy, things can usually get worse!
  • darlyb
    darlyb Posts: 6 Forumite
    .....
    the thing that worries me about bankrupcy is we rent jointly and it would break the tenantcy agreement and i hitnk he could evict us??
    secondly we have a car on hp but have been paying regually and he needs it for work. would we still be able to??

    I would check your tenancy agreement, mine mentioned immediate bankruptcy ie just signed and then went B, but we had been living there for 2 1/2 years without a payment missed and have decorated a few rooms with no charge to the landlord. Called up the letting agency just to be sure and they said no problems, likewise spoke to owner of the house, who thought I was very brave phoning up, but she said as long as the rent is coming in no worries :) I dont want to worry you but I really would find out before hand as the OR can contact them, he may ask for your tenancy agreement to prove you are renting and dont own the house, on another forum one guys rent jumped £125 as he was classed a risk by his private landlord :( I was lucky the OR didnt contact them regarding my rent - but unfortunately each OR seems to do things slightly differently.

    Not sure about the cars, i had a second one off road (sorn'd) and they wanted that from me but I was allowed to keep the main car as it was only worth a couple hundred. Check your HP agreement regarding the car as some say if you enter b they will take it back regardless of payments made :( (gleaned from another forum).

    When I met my now wife 4 years ago I had quite a bit of debt and then consolidated several loans into one biggie and also had a few credit cards at the same time, I tried my best to sort it all out but faced the fact it was just a loosing battle - unless I took on another job and worked myself into the grave :( Thats why I entered dmp firstly to try and get a grip on things but as circumstances changed really was left with no option.
  • darlyb
    darlyb Posts: 6 Forumite
    he may read it in the paper. and it says in the pack from the court they may tell the landlord.

    Yep appears in the london gazette & online searchable, also appears on the insolvency website until you are discharged from b after 3 months - likewise your name, address, dob and job title appear. These can also be used by the credit ref agencies to update their records, likewise financial institutions can search them to make sure someone declared B is not applying for credit.

    It also appears in the local rag, didnt see mine although it can take 2-3 months for it to appear and to be honest who in there right mind, apart from a busy body, scours these announcements.
  • I went bankrupt on Tuesday with debts of just over 100k and the relief is enormous! I got a lot of help from the motley fool dealing with debt message board (https://www.fool.co.uk). Look especially for postings by BEESHOOTER / BBNE who went bankrupt last November.
  • fatbelly
    fatbelly Posts: 20,440 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    salsup wrote:
    I feel so stupid now for paying that default on friday as I need the money to give to the court,but I will find it,has anyone any idea how much I need to pay,I'm on IS at the moment

    It's £310 for you, as you'll get the court fee remitted. Payable in cash on the day.

    Salsup - Well done.

    I revisited your earlier thread and saw that the CCCS originally advised bankruptcy and a few of us tried to reassure you that it wasn't as stressful a process as you were thinking.

    Have you got the forms yet from the court? Just ring them and ask for a bankruptcy pack. The main form is not that difficult but the debtor's petition is. My local court says to leave that one to fill in and sign on the day. If you still need help most CABs have someone who is used to filling them in.

    I'm looking forward to that post when your debts are wiped off...

    Best wishes
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343K Banking & Borrowing
  • 250K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.1K Work, Benefits & Business
  • 607.7K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards