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Scared and anxious

Hello
I've been reading allot of posts on here as I am about to submit my banķruptcy application but I'm really scared about a couple.of things. I haven't told anyone as im thoroughly ashamed and embarrased about getting myself into this mess. I know that details will be in the Gazette but is there any ither way people will find out? Also I'm scared incase they make me sell my car its worth about 1300 but I do need this to get to work and if they make me sell it my family will then question why? I know these may sound silly things in the grand scheme of things but im really worried and its stopping me put my application through even though I know there is no other option. I owe around 23000 on credit cards, loan and a catalogue account

Comments

  • broaps
    broaps Posts: 97 Forumite
    Fourth Anniversary
    Hello Adele, I remember those feelings of embarassment and shame when it dawned that I was in a hole with no easy way out. But there will be a way out and you can solve your problems with the right advice. Have you spoken to any of the free debt charities? National Debtline, Citizens Advice and Stepchange can all look at your situation and check what is the best way out for you. I tried the on-line debt solution on Stepchange and also spoke to CAB before finally making the decision to apply for br. I also found the debtcamel website helpful. If you decide this is the only way out for you, you don't need to tell anyone as the information won't be printed in the local paper or anything like that. If you rent privately you should check your tenancy agreement as some don't allow bankrupts. You may be given a zero-rate tax code so you can send your income tax to the OR so whoever handles the payroll where you work will notice the change. The OR won't normally allow a car over £1000 so you may have trouble there but you can try arguing you need it for work. The OR will look at your income and expenses to decide if you can pay anything towards your debts. If there is a surplus of £20 per month or more they will sign you up to an IPA which last for 3 years. You can put your SOA on here and we can suggest ways to boost your expenses to give you a bit of breathing room. Lastly, you need to realise that the br will show on your credit records for 6 years. Br is a big step but getting rid of the stress and ending those letters and phone calls is such a relief. It gives you a fresh start and you can rebuild your life. Good luck.
  • luvchocolate
    luvchocolate Posts: 3,394 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Home Insurance Hacker!
    Hi my examiner was amazing and moved a few things around on S.O.A so no I.P.A. my car had a value of £1700 and it was allowed I did need to cover 36 sites so it was a genuine need but it was over the allowed £1000. Some O.Rs (examiners) are more lenient than others its the look of the draw, so good luck
  • terrence45
    terrence45 Posts: 132 Forumite
    I think you'll be able to keep the car as if it's worth £1300 there's no guarantee they'll get that at auction, plus all the fees, costs to transport it etc. They'd be better off letting you keep it if you use it for your job.

    Apart from the Gazette and bankruptcy register, there's no way 'people' will find out about it, and you disappear off the register 3 months after discharge.

    You'll have to declare your bankruptcy if ever specifically asked in the future (if you apply for credit, mortgages, certain jobs etc).

    I really wonder if there's anything we can do about the Gazette as to me it's a total con. Criminals get to protect their identity but normal citizens making use of a legal debt management tool cannot! It's there for life. Tempted to start a movement...
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    Hello, I'd just like to add that I support those saying to contact one of the free debt help charities. I was in a terrible financial state, like you, very embarrassed but in difficulty through no fault of my own. But I contacted Stepchange and never looked back. They suggested a Debt Relief Order and although my credit rating was pretty much rubbish for the following six years, once it's over you can start to recover. I think it's pretty much the same with bankruptcy. People at these agencies are not there to judge, they are there to help and that's what they do. It was such a load off my mind and I could sleep at night. I agree with what others have said about your car, too. It's probably not worth as much as you think and you'll be able to keep it. Do contact one of those agencies, you will not regret it, I guarantee.
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • fatbelly
    fatbelly Posts: 23,047 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    OP owes 23k on cca debts so DRO not appropriate.

    I suggest you get a valuation off parkers Guide, if necessary paying the extra to get a mileage adjusted valuation (private poor). Your car may be worth less than you think. At £1300 it's over the limit but it may not be worth the OR's time to force you to trade down.
    As a reasonable vehicle can be obtained for an amount in the region of £1,000 this is the amount that the official receiver uses as a benchmark when considering the cost of a reasonable replacement vehicle. Where a vehicle is exempt but there may be a benefit to the estate in realising the vehicle and replacing it with a cheaper alternative under section 308 of the Insolvency Act 1986 the official receiver should consider doing so.

    An exempt vehicle should only be taken on the basis of providing a replacement if there will be a net realisation of a minimum of £500 to the estate after taking into account the cost of an agent’s fees and a replacement vehicle. When considering what would constitute a suitable replacement vehicle the factors that should be taken into consideration are the type of journeys that the bankrupt makes and the frequency and purpose of those journeys. A third party contribution equivalent to the estimated net value to the estate may be accepted to avoid seizure, sale and replacement.

    Depending on the circumstances of each individual case the payment to purchase the replacement vehicle may be made to the bankrupt directly or to the vendor of the vehicle. It is recognised that a bankrupt may be able to obtain a better deal to purchase a vehicle by negotiating a private sale or attending a car auction and in such circumstances immediate access to cash is required. If an allowance from the proceeds of sale is made directly to the bankrupt then the official receiver should request evidence of the purchase of the vehicle within 21 days
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