The bankruptcy experience

RattyIrk

I went bankrupt early last year so am now free of it.  I was going to post something before but Covid hit and I was worried I might be bankrupt again soon!  However, thankfully that has not happened.
I read this forum regularly and found it helpful.  I was also mindful of how much people struggle with some even thinking of topping themselves.  I guess my message is that if anyone is feeling desperate and having to go bankrupt it is the start of getting yourself back on your feet.  It is stressful and at times humiliating but to have ended up in a place where you are having to go bankrupt it is likely that life is already pretty miserable.  Pressing the button on bankruptcy starts the clock ticking on getting your life back together.
For me I had endured several years of daily stress after being dumped in it by former business partners.  The company was left with nowhere to go, I tried everything, put everything I had into it but ultimately it swallowed me up.  
I always regarded bankruptcy as something that had a stigma attached to it so it was with a heavy heart I had to admit defeat and put my application in, which was accepted and Order issued within two hours!  The interview in person with the OR was fine and I was treated fairly during my bankruptcy year.
Most people treat you ok, a few take pleasure in your downfall and dance on your grave and a few treat you like you have some awful contagious disease.  It can be humiliating at times.  However you also close the door on the situation that got you into the mess in the first place.  No risk of creditors banging on your door.  You have a date you can look forward to when you will be free of it and 'normal' again.  You can get a job, plan for short and longer term, look to start rebuilding again.  
The company situation was a bit more complicated as a lot to sort out with administrators and I found once they had what they wanted they treated me like something off the bottom of their shoes.  That really annoyed me for a few months but in the end I accepted that reflected more on them and me being angry only affected one person, me, so I just put them to back of my mind and dealt with them only when they wanted something from me.  
I managed to not end up with an IPA so once the 12 months was up that was it.  About six weeks post bankruptcy I got a Vanquis credit card.  That means I now have contactless and can pay at the pump at the petrol station!  I decided to remain self employed and have more freedom.  The only person I am responsible for is me.  Yes my credit rating will take a few years to recover meaningfully but it will.
Bankruptcy is a last resort but it is not the end of the world.  It is more about accepting things in life have gone wrong, for whatever reason, and taking back control.  It is about deciding to draw a line under the past and deciding on a different future.  I am not saying it is easy or that it doesn't come with complications as it does but when you break it down it comes down to continuing with a horrible situation with an inevitable bad ending or making a start on something else.  I have no regrets on doing it and after the initial rough first couple of months it got rid of an awful of stress.  So if you have no other options take a deep breath and go for it.  Best of luck for those of you either on the journey or about to go on it.  

Strugglingjobseeker

RattyIrk said:

I went bankrupt early last year so am now free of it.  I was going to post something before but Covid hit and I was worried I might be bankrupt again soon!  However, thankfully that has not happened.
I read this forum regularly and found it helpful.  I was also mindful of how much people struggle with some even thinking of topping themselves.  I guess my message is that if anyone is feeling desperate and having to go bankrupt it is the start of getting yourself back on your feet.  It is stressful and at times humiliating but to have ended up in a place where you are having to go bankrupt it is likely that life is already pretty miserable.  Pressing the button on bankruptcy starts the clock ticking on getting your life back together.
For me I had endured several years of daily stress after being dumped in it by former business partners.  The company was left with nowhere to go, I tried everything, put everything I had into it but ultimately it swallowed me up.  
I always regarded bankruptcy as something that had a stigma attached to it so it was with a heavy heart I had to admit defeat and put my application in, which was accepted and Order issued within two hours!  The interview in person with the OR was fine and I was treated fairly during my bankruptcy year.
Most people treat you ok, a few take pleasure in your downfall and dance on your grave and a few treat you like you have some awful contagious disease.  It can be humiliating at times.  However you also close the door on the situation that got you into the mess in the first place.  No risk of creditors banging on your door.  You have a date you can look forward to when you will be free of it and 'normal' again.  You can get a job, plan for short and longer term, look to start rebuilding again.  
The company situation was a bit more complicated as a lot to sort out with administrators and I found once they had what they wanted they treated me like something off the bottom of their shoes.  That really annoyed me for a few months but in the end I accepted that reflected more on them and me being angry only affected one person, me, so I just put them to back of my mind and dealt with them only when they wanted something from me.  
I managed to not end up with an IPA so once the 12 months was up that was it.  About six weeks post bankruptcy I got a Vanquis credit card.  That means I now have contactless and can pay at the pump at the petrol station!  I decided to remain self employed and have more freedom.  The only person I am responsible for is me.  Yes my credit rating will take a few years to recover meaningfully but it will.
Bankruptcy is a last resort but it is not the end of the world.  It is more about accepting things in life have gone wrong, for whatever reason, and taking back control.  It is about deciding to draw a line under the past and deciding on a different future.  I am not saying it is easy or that it doesn't come with complications as it does but when you break it down it comes down to continuing with a horrible situation with an inevitable bad ending or making a start on something else.  I have no regrets on doing it and after the initial rough first couple of months it got rid of an awful of stress.  So if you have no other options take a deep breath and go for it.  Best of luck for those of you either on the journey or about to go on it.  

This is very helpful thank you so much.

i didn’t know you have an actual face to face interview with official receivers, is that compulsory every time?

what depends on if you end up with an IPA, or just wipe all the debt off all together and have a completely clean slate?

i like bankruptcy option better than DRO as everything will be included even if you forget to include something. With DRO if you got your paperwork wrong somewhere you may end up still owing someone?

luvchocolate

Hi face to face interviews are not very common usually if business or in my case a complicated properties situation. 
You could get an IPA if you have £20 or more surplus income 

Strugglingjobseeker

luvchocolate said:

Hi face to face interviews are not very common usually if business or in my case a complicated properties situation. 
You could get an IPA if you have £20 or more surplus income 

I dream about £20 surplus.

i haven’t got enough to feed my kids

RattyIrk

Sorry, not been on here this week.  Face to face not compulsory but I have an OR office in the next town so difficult to say no.  Went into meeting feeling very apprehensive but the guy was fine.  The build up to it was far worse than the meeting itself.

Luvchocolate right on IPAs, you need surplus income.  I didn't have any.  Have lived largely off small amount of savings my partner had to keep our heads above water.  I had a few email exchanges on specific queries but then nothing for the rest of the year.  My former business partner was asked to submit monthly figures so experiences will vary.  

Best or luck with your situation.  It will improve.