Bankruptcy or Not

SaraM_26

Hiya sorry if i was not clear its child DLA i just put it as an expense on the sheet.

fatbelly

Yes - that's fine. So we're not really coming up with any reason no to go for this, are we?

SaraM_26

Err i think its the right thing to do
but i just want to be 💯 sure and not regret it, trying think long term as would like to buy a house in years to come

theoretica

One think to remember when being concerned about bankruptcy affecting your life is that at the moment your debt is affecting your life - and looks like it will affect your future if you don't go bankrupt for a very long time of slow paying off.  Yes, going bankrupt will make it hard to immediately get a mortgage, but so will your debts if you choose a different route. 

fatbelly

Sara - we know your debts are defaulted and you have been making small payments. Can you give us a bit more info on what they are, when they started, and whether they have been sold to other companies. I mean I'm not seeing any other realistic option here but we don't now very much about them.

SaraM_26

Hi ya

All the debts are unsecured non off which are sold on and still with the original creditors
 There are 4 store cards  together around 4000
Two  loans totalling 22k
3 cc around 18000
Car repression  thats very recent just 1 month ago but i think it will be around 9000
Parents  around 5000

sourcrates

Hi Sara,

You should look at Bankruptcy as being a fresh new start, rather than some kind of burden that will affect the rest of your life.

Any debt solution you opt for will be on your file for 6 years, and to be fair, credit file wise, there isn`t a whole lot of difference between a default, and a bankruptcy, both will stop you from getting credit, now obviously Bankruptcy will affect you in other ways, but the average person can manage quite well during the period its on file.

After it drops off your file, the only place it will still be shown is in the London Gazette, for some reason it stays there in the archives forever, but is not used by lenders, so only visible to anyone specifically searching for you.

Most former bankrupts can easily access a mortgage after bankruptcy, by using a good broker, so life does go on afterward, and you will be debt free.

fatbelly

SaraM_26 said:

Hi ya

All the debts are unsecured non off which are sold on and still with the original creditors
 There are 4 store cards  together around 4000
Two  loans totalling 22k
3 cc around 18000
Car repression  thats very recent just 1 month ago but i think it will be around 9000
Parents  around 5000

I can't see any other realistic option TBH.

Your parents will be treated like any other creditor, unless they state that the money was a gift. You would not be allowed to make any payment to them until you are discharged.

SaraM_26

Thank you so much sourcrates fatbelly really great advice. 

Sadly i have this habit were i think about the future rather than the present

Mart7379

Hi @SaraM_26

Probably a little late to the party in regards to giving some advice. I was in the exact same position as you back in March this year, I was in a position whereby I couldn’t repay my debt in a reasonable amount of time, I turned to StepChange and they suggested a number of options. Bankruptcy being 1 

I was worried about it, I couldn’t make my mind up as to which was the better option, in the end I went for the Bankruptcy, I was scared, I did the regular guys on here head in by keep asking questions because I was anxious, worried. You name it I felt it. 

Like I said in the end I submitted the application. The day after it was approved. I felt a massive sense of relief. Because I was effectively debt free. My debts could no longer touch me, chase me, or threaten me with CCJ’s or register a default against me. Yes a Bankruptcy marker on my file looks a lot worse but it also means there’s an end in sight and light at the end of the tunnel and a fresh start on the other side.

I submitted my application 24th April 2021, approved the day after. I only just heard from the insolvency service a couple of weeks ago, and spoke to a really friendly person, someone that seemed sort of sympathetic but also doing their job properly, I hope that makes sense. To inform me I did need to pay into a IPA which I fully expected as I work full time. 

So, i am sure you have probably already made your mind up, it’s certainly not as scary as it seems. The long term is, it is ending a problem you have found yourself in. And gives you a fresh start at the End

(sorry if I have pretty much repeated everything everyone as told you, just wanted to give you my personal experience of the process)