BR success stories

KEHxxx

I am thinking of going BR but worried about the process with the OR and life after BR with renting and rebuilding credit history to purchase a house eventually. Can anyone share their stories and any hints and tips when applying and dealing with the OR?

SarahDoe

Hi. My story is far from ending. But I believe BR was the best decision I made. I truly regret not doing it earlier.
I have found myself deeply in debts after husbands gambling and strange attitude to working. But I do not want to go into details.

I declared myself bankrupt May last year, shortly after that I have split up from him.

Interview with OR was far less stressful. I was worried about the transactions, cause my husband used my card in bookies. OR asked for 12 months statements and came back with long-ish list of questions. I have answered honestly to all of them, provided evidence where possible. There was no further questions after that.

I have good income, so I got IPA set up shortly. Following the split up, I requested OR to hold on with payments, as I needed money for divorce and some other additional expenses, this was allowed without questioning.

When I was ready, I started my payments. In April this year I had small pay rise and change of the tax code. I have sent an email to OR with new income and breakdown of my additional expenses. Since the pay rise was at inflation rate, I have asked to increase allowance for groceries, odd bits here and there, by inflation rate too. This was approved. In fact it has reduced my IPA slightly.

Few months on, I got an offer from family member to clear my outstanding IPA. I made the proposal to OR. After checking with her manager, it was approved for me. I have made a payment last week and now awaiting for letter confirming that IPA is concluded.

I have already got Vanquis card (in fact, they approved me on the discharge day) and rebuilding my credit score :-)

SarahDoe

I am currently renting. Planning to take mortgage in next 5 years :-)

sourcrates

Bankrupcy should not be viewed as the end of the world, on the contrary, for most people it is the start of a whole new begining after spending years struggling with debt.

A fresh start free form debt collectors, letters, phone calls, where the actual money you have to spend is your own, and not borrowed off some credit card, most find it quite a liberating experiance.

RattyIrk

I am a few months into bankruptcy after hanging on for years trying to avoid it. Whilst it can at times be a brutal and dehumanising experience (my business went under which added to it) it was best thing I did and glad I was the one that instigated it rather than waiting for someone else.

A good tip is to get as much cash out as you can before you press the button on the BR. Your accounts will be frozen quickly, think mine was within a fortnight of the Order being granted and that was granted within 24 hours of my application.

Once the Order has come through set up a new bank account straightaway as it can take a couple of weeks for new account docs to come through. I got a basic account with Santander and it is fine and online banking easy. Note though you cannot use the debit card for parking meters or pay at the pump!

Do as much prep as you can for the OR and send through paperwork in advance. They do not ask for this but made meeting much easier. Mine only lasted about 40 mins in the end.

Most importantly remember that by doing this you will be leaving behind a lot of stress and longer term will be far happier. I never saw myself in this position. Never really borrowed money, lived a modest simple life. No vices. However life can hit you from virtually any angle and things do not always go to plan. BR is not a terminal illness or loss of a loved one or something similar. It is something you can pick yourself up from over time and get on with your life. So if BR is right for you press that button on it and move on.

wildheart83

I went BR in 2010 so not quite my 10 year anniversary but close.

In the space of 6 weeks my relationship ended, I was made redundant and I went bankrupt as I couldn't see any other option. It allowed me to take a job in a different field, starting at the bottom since I had no debts to repay, and working my way up.

I rented privately for 3 years and a rental through an agency in 2014 required 6 months rent upfront plus a deposit.

Fast forward to November 2018; with the help of a broker I took out my first mortgage on my own with a 10% deposit.

Some creditors were more understanding than others during the early days of BR. Shop Direct catalogue broke Data Protection Laws repeatedly and wouldn't acknowledge the BR for a long time. Another had a call centre worker screaming down the phone at me about how I'd spent the money so I had to repay regardless of BR and that he didn't believe I was BR. Instead of getting upset I took the power back and complained.

It's most definitely not the be all and end all. It's the end of your current/old life and the start of something that could be amazing. You're given the tools to start afresh, make the most of it.

TheGardener

Without BR I would have spent most of my retirement in penury and something had to give. It was the best decision I have made and gave me my life back. It was a painful few months but the weight of years of dragging (someone else's - but that's a whole other story...) debt around with me gradually lifted and I found financial security a blessing. I learned how to actually sleep the whole night without walking up in a panic and being able to plan for the future.

Its ok - its the start of a new financial life with you back in control.

Potbellypig

Depends on what you define as a success, for me. Bankrupt 9 years ago and whilst it was the right decision and I would probably be considered a success in that I'll be getting a mortgage in the next year or 2 and will have no debt. However, I'm not sure the mental burden in that I was insolvent will ever fade away. Only time will tell whether I consider myself a success story, but as I approach a decade, I don't consider myself a success.

[Deleted User]

I think BR always has potential to cause issues - some lenders will NEVER lend if you have ever been bankrupt (e.g. Santander mortgages). Some won't lend if you've defaulted on their product in the past.

I work in finance so if I ever want a new job I have to declare it, and hope I pass credit vetting etc.

But ultimately, all of that is pretty minimal compared to the fresh start you can make. It's almost like being 18 again - many companies won't trust you with credit (and rightly so) but you can start small with a credit builder card and then build your way up if you want to.

No more excessive debts over you, potential to move on with your life and get a mortgage etc in future.

Mentally, I agree with the above in that it can be an issue. But how much worse mentally would you feel struggling to pay debts for 5/10 years and essentially getting nowhere?

I think there are definitely negative aspects, and some of those will continue for many years or possibly life (e.g. insurance loading/refusing to quote if you've ever been BR) but as long as you've had proper advice and know that going BR is the best option for your circumstances (rather than an IVA, DRO etc) then the positives should far outweigh the negatives

My view is the insolvency legislation exists for a reason. The limits and thresholds are set for a reason and validated by an official. If you meet those thresholds then you have every right to go bankrupt and shouldn't feel guilty about it.

If somebody repeatedly goes bankrupt that's clear systemic abuse of the system - but for the first time (or maybe even 2nd time), I don't think a person should retain a feeling of 'guilt' or similar

cymruchris

I went through bankruptcy in 2013 - through a business failure. I learnt a lot - and wouldn't do some of the things I did previously again. Lost my house - and just about everything I had - but life goes on, it takes time to pick up the pieces, and patience to rebuild your tattered credit history - but it's all achievable. Sometimes it's frustrating, sometimes it's plain silly, but step by step with the right attitude you'll get yourself in order, and build yourself back up. Think about some of the reasons you got to where you are, and do your utmost to not follow a similar path over the coming years. You should use bankruptcy as a way of looking at life a little differently. There are a multitude of reasons why people go bankrupt - and ours is not to judge whether yours is justified or not - if the situation is such that you're way over your head in sinking debts, getting nowhere fast to pay them off, charges and interest climbing daily, and no light at the end of the tunnel - then it might be the right move for you.

My bankruptcy has just dropped off my credit file (they do that after 6 years) - I now have 4 sub-prime credit cards with a combined balance of £6k which isn't a great deal, but it's heading in the right direction. All are clear, and I spend on them, and pay them in full monthly. I'm building up a history of good management with the ultimate goal of getting back into a decent mortgage in the next 3 years.

You have to choose your own path, and what you want to achieve and when - but there'll be definite challenges along the way. There's no doubt though, that if you can step away from a mountain of unsustainable debt, it'll certainly help you in the short term, but it's up to you what you achieve in the long term. Changing behaviours can make a big difference to a more secure future.

KeepOnKnitting

Bankruptcy was my best option. It would have taken me decades to dig myself out on my combo of minimum wage and self employment. Instead I have been able to go to uni and I finish my degree next month. I have two credit builder cards, paid in full every month. I am coming up for 3 years since discharge. My tip would be to be honest with the OR. They are just doing a job, and if you make their life easy by being honest, they won't need to trouble you.