12 years on from BR

desperatetobedebtfree

I just wanted to provide an update and maybe some hope for those that are coming through bankruptcy. 

 I last posted about being bankrupt about 11 years ago. MSE was sooooooo helpful at the time. It saved me in many ways. 

 At the time I was a single parent and struggling with debts that accumulated over the past 10 years previously. Nothing particularly excessive just not having enough money to live in the private sector market and not really earning enough. 

12 years on I am married with two additional children from a new relationship started just as I was going BR and have two amazing step children. 

 Going bankrupt helped me have the financial freedom of debt repayments and meant I could go to College, live on a limited budget within my means and move on to a vocational related degree. Yep I have student debt which I have only just started repaying over the last 2 years. 

I got together with my partner and before I moved in we had a good conversation about money. He had to go BR too. He was staying in a untenable situation with a family member. He was in a situation where he couldn’t afford to service his debts, pay child maintenance and look to rent privately.  After all paid and extremely limited living costs he had £5 a month spare - not even enough to take his children swimming which was prompted him to say enough. Yes I need to go BR. 

We both felt awful morally about our decision to do so but it created a level playing field. He moved in with me around the same time and the OR was really helpful. 

Over a decade on I am finally earning good money. Not amazing by some people’s standards or in line with some friends. Enough to trigger student loan repayments 😝. 

We have until recently had NO debt for the past decade, not even an overdraft. 

We were starting to struggle with car expenses though and have sailed close to needing to borrow as the modest savings we had managed  to build were being eroded by expensive repair bills. The whole can’t afford to replace, can’t keep repairing debate came to a head and we ended up getting a car on PCP. It’s was the cheapest option. We both have one now -  however mine has been a really beneficial decision and it encouraged me to apply for a job where my earnings have increased by 33%. Knowing I had a reliable car really helped with my confidence. 

We are lucky that our children mostly have everything they need but definitely not everything they want and we save up for things that we desire.  Save for Christmas and birthdays. No flash holidays - occasional weeks away in caravan type thing. Buy when things need replacement. Shopping not a hobby or a leisure thing here. We both felt so bad spending money after BR and it took me years to “treat” ourselves. 

One of his children is now an adult and seems to have a good head on his shoulders financially! 

We think about how we probably will never be able to afford to buy but that bothers us less now we are in social housing and have some security there. 

I remember standing on the court steps after getting the papers ( I went to court but don’t remember it just the afterwards- did the office just stamp the papers- it’s a real blank!) and it had been a dull day weather wise and as I paused on the steps a rainbow appeared. It definitely was a sign brighter times would come. 

Good luck all 

sourcrates

Well done you.

No court these days, not normally anyway, all done online, by post and telephone.

You should never judge your financial situation by moral standards, the banks don`t, why should you.

Bankruptcy still scares a lot of people, but it should not be that way, it should be looked upon as a new beginning to some kind of freedom from debt, not something to be feared.

savingsavy

Congratulations! 
It's by no means an easy road and well done both of you for managing your finances so well. 
Thank you for posting and sharing.  It really encouraged me to think what my life will be in 12yrs!

Wish you all the best. 

Worried3648

Thanks for this positive and encouraging post, I've just been declared bankrupt and although a relief feels like a long way to go.