Bankruptcy - I've finally realised I have no option

uk1981

I am so scared.

Unfortunately due to many reasons I have debts over £45000, with a monthly income of just over a grand after tax and a rent of £510 including council tax this doesn't leave me anything with my payments mounting to over £500 per month, and still only 23

After many months I have been advised to go bankrupt but after seeing the main form I feel sick. I am supposed to be going bankrupt tomorrow I don't think I can and I wish there was another way out.

Can I be refused bankruptcy and do i have to stand up in a court? I have never been to court!

bandito22ess22

Hi,

Apologies if this has been covered elswhere but I am due to opt for bankrupcy after strugggling like many others with debt.

I was alarmed to hear from a friend who went bankrupt 10 years ago and has since managed to get back on his feet after losing his house etc. The alarm comes from the fact that he has been sent a letter requesting that he must sell his new house to cover the old debts, due to a change in the law last year, which means you can still be expected to pay the old debts once you are back on your feet. Having checked with his solicitor he was advised that he has no choice but to pay or sell his house!!

If someone has any information about this please advise.

Thanks.

Willsnarf1983

£510 pound a month seems extremly expensive for rent, u may live in an expensive area but for a room in a house u may do better. I live in a fairly rich place, not london or manchester or brummy land and for my room i pay £260 a month, this includes all bills, free wireless internet and free sky tv. The deals are out there for u to find mate u just ahve to look for them...the extra £250 i am getting is going on my debts, its just an idea anyway...ahve a look around.


good luck

Will

Willsnarf1983

my apologies i re read the message if u have been advised to go that way then good luck in that

Will

ink_central

Whilst all you guys are posting excellent, caring, and helpful posts for this poor chap - and may I express my sympathies and best wishes for the future too - could I just add (and apologies if you are already aware of the following):-

1) The Citazens Advice Bureau is a BRILLIANT source of FREE HELP.

2) See if it is not possible to offer a REDUCED SETTLEMENT (eg. Write off 75% of your debts) to your creditors, INSTEAD of going bankrupt.

To answer your question, if you go bust, I believe you need to find about £350. This payment does not cover all of the insolvency office's costs, but it does go some way towards paying for things like the advert in The Bankruptcy Gazette (I think that's what it's called - sorry it was over 4 years ago for me).


Good luck to you with getting thru this.

Incidentally, I'm someone who had an ADMINISTRATION ORDER on me 4 years ago (MINI-BANKRUPTCY). Now, 4 years on, I have re-established accounts and my business has Accounts (many of which with credit limits of over £10k) with several national newspapers, wholesalers, tradesmen etc.

So, the next 3 years may be difficult, but in whatever way you manage your life - whatever kind of job you go for or what have you - you can recover, and hopefully we'll see you BOUNCE-BACK.

Best of luck to you!

ink_central

..[Sub-thread]..

Bandito, Pleased to advise you that the party concerned is talking rubbish.

Bankruptcy is the replacement to The Debtor's Prison and DISCHARGEMENT FROM BANKRUPTY means ALL DEBTS ARE CONSIGNED TO HISTORY. There was no such House of Commons motion. If by some obscure chance, there was, then steps will be taken to overrule it, but I would imagine it is fantasy for this EX-creditor.

Should this party continue to harrass you, drop me a line, and I'll forward it on to one of my national newspaper editor friends*. (* Please ONLY email me on this one if it's absolutely essential for further intervention, in which case I'd be glad to step in, but apart from that, good luck! In other words, do everything in your powers to close down this illegal red herring without contacting me, before seeking to take further action which is offered to you only if the erroraneous party continues to persist, do hope you get them to back down - you can show them a copy of this post if you like.

viktory

I went bankrupt in February 2004 at the High Court Of Justice. I was discharged in April this year. The fees were £250 and the process was simple. Luckily, i did have a very kind uncle to help but nontheless it is not a difficult process. The court staff were very helpful and I didn't have to actually appear in front of a judge. I handed the forms in, made a sworn declaration that the information was true and then was told to go away and come back in a couple of hours. When I got back the deed was done. I then had to visit the Official Receiver, who took all my credit cards and bank cards off me. I had a short interview with him (very formal) and then was free to go. I went back to the Official Receiver a week or so later for a longer, more in depth interview. He stated that as I had nothing (I rent my house) and was on benefits at the time I would not have to pay my creditors anything. That was it.

A year on I have work, I am off benefits, I pay my rent, Council Tax, I am discharged and debt free. A lesson learned the hard way - I will never get a credit card again. I can honestly say it was the best thing I did. A fresh start. Not an easy option though. I have had to accept I will never get a mortgage, but hey! Who wants to owe in excess of £100,000??

Good luck to anyone thinking of taking this action. Think it through carefully & get lots of advice. If anyone needs any help, please don't hesitate to ask.

skylight

Am currently taking advice on this as well OP.

Been trying to pay off through agreement plans, but then a spanner was thrown in when hubby lost his job. Okay - that was only last week, but we have realised very quickly that there is no other option and like you I am scared but relieved.

Good luck and hope all goes well for you.

newfunk

viktory wrote:

I went bankrupt in February 2004 at the High Court Of Justice. I was discharged in April this year. The fees were £250 and the process was simple. Luckily, i did have a very kind uncle to help but nontheless it is not a difficult process. The court staff were very helpful and I didn't have to actually appear in front of a judge. I handed the forms in, made a sworn declaration that the information was true and then was told to go away and come back in a couple of hours. When I got back the deed was done. I then had to visit the Official Receiver, who took all my credit cards and bank cards off me. I had a short interview with him (very formal) and then was free to go. I went back to the Official Receiver a week or so later for a longer, more in depth interview. He stated that as I had nothing (I rent my house) and was on benefits at the time I would not have to pay my creditors anything. That was it.

A year on I have work, I am off benefits, I pay my rent, Council Tax, I am discharged and debt free. A lesson learned the hard way - I will never get a credit card again. I can honestly say it was the best thing I did. A fresh start. Not an easy option though. I have had to accept I will never get a mortgage, but hey! Who wants to owe in excess of £100,000??

Good luck to anyone thinking of taking this action. Think it through carefully & get lots of advice. If anyone needs any help, please don't hesitate to ask.

But Im sure you can still have a mortgage, although at a high rate of interest..