Struggling Mentally/Emotionally With Bankruptcy Process

resiliante

Hi everyone,

I recently declared bankruptcy and the order has been made.

Since I submitted the application I didn't realise how much work there would be to do after that.

I knew to expect a call for an interview shortly after and they called me and asked me lots of questions on my situation and dates and incomes etc which totally there me and I ended up being a shaking blubbering mess, hardly able to put together sentences.

I've spoken about how I've struggled with mental health throughout my life and I've been hospitalised many times for this.

I've also spoken about very difficult relationship which I won't go into details here but was incredibly toxic and has led to me spending a lot of money either to start a new life several times to as a coping mechanism.

They want proof of all this and it's been very triggering. I don't have anyone close to me who knows and really understands as I fled to another part of the country.

I'm finding stuff I thought I'd dealt with mentally before is having to be re-surfaced and dealt with it again.

I don't really know the point of this post but I felt a need to reach out for support.

How long does it take for this part of the process "gathering information" kinda phase?

I hope it gets easier. I imagine they want this evidence of mental health etc to deal with the case differently somehow?

Has anyone got their own story to share?

Thanks for letting me vent more than anything

ToxtethO'Grady

Hi there

Well done for taking the step and for explaining your feelings. This will give you a fresh start.

This is normal for the OR to ask about how you got into debt and when they say they require proof they are asking for a health professional to confirm your mental health, this can be your GP or any other health professional involved in your care.

I would suggest asking them what they would accept then you will have an idea.

The easiest way to do this is to ask a health professional involved in your care within the last 3 months to fill in a Debt and Mental Health Evidence Form. This is free.

Have a look at the website and the form and you will see it answers the questions of how the debt came about and how you were unable to manage it. It also asks about how long your have been experiencing mental health issues. This will help with your debt narrative for the OR.

Another thing is if you have therapeutic/health costs on your budget this will back them up. Some of these costs can look non-essential to the OR for example someone spends some money on video games as they help their mental health. If the OR sees games on your statement/budget it may be classed a non-essential, if above the expected amount for a household of your size.

If you receive Personal Independence Payment you can use your award letter however that may not be enough as it sometimes does not explain your diagnosis just that you have been assessed for PIP.

If you need support for your emotions or health then their is a lot of information on the Rethink website

You can ask questions on here and this first part of your bankruptcy is the information gathering stage however once that is completed it does become easier.

Take your time and if you are worried about talking to people try and ask over email, the OR will usually give you a contact email address and by asking that way it will, hopefully, reduce some of the pressure it sounds that you felt when trying to answer on the phone.

Even though you are bankrupt you can still speak to the free debt advice charities and there is information about them online.

I hope this helps and if you have any questions just pop them in here. I'm pretty sure we can explain most things around bankruptcy and reduce the worry about what are usually normal requests by the OR.

Take care

luvchocolate

ToxtethO'Grady said:

Hi there

Well done for taking the step and for explaining your feelings. This will give you a fresh start.

This is normal for the OR to ask about how you got into debt and when they say they require proof they are asking for a health professional to confirm your mental health, this can be your GP or any other health professional involved in your care.

I would suggest asking them what they would accept then you will have an idea.

The easiest way to do this is to ask a health professional involved in your care within the last 3 months to fill in a Debt and Mental Health Evidence Form. This is free.

Have a look at the website and the form and you will see it answers the questions of how the debt came about and how you were unable to manage it. It also asks about how long your have been experiencing mental health issues. This will help with your debt narrative for the OR.

Another thing is if you have therapeutic/health costs on your budget this will back them up. Some of these costs can look non-essential to the OR for example someone spends some money on video games as they help their mental health. If the OR sees games on your statement/budget it may be classed a non-essential, if above the expected amount for a household of your size.

If you receive Personal Independence Payment you can use your award letter however that may not be enough as it sometimes does not explain your diagnosis just that you have been assessed for PIP.

If you need support for your emotions or health then their is a lot of information on the Rethink website

You can ask questions on here and this first part of your bankruptcy is the information gathering stage however once that is completed it does become easier.

Take your time and if you are worried about talking to people try and ask over email, the OR will usually give you a contact email address and by asking that way it will, hopefully, reduce some of the pressure it sounds that you felt when trying to answer on the phone.

Even though you are bankrupt you can still speak to the free debt advice charities and there is information about them online.

I hope this helps and if you have any questions just pop them in here. I'm pretty sure we can explain most things around bankruptcy and reduce the worry about what are usually normal requests by the OR.

Take care

Excellent reply such supportive advice 

MalMonroe

Hello, and welcome to the forum.

I just wanted to add to the above comments that you can also ask your local council to help you to get an advocate. An advocate is someone who can help you and support you and speak up for you whenever you face difficult circumstances. There's some more information in the following link -

https://www.nhs.uk/conditions/social-care-and-support-guide/help-from-social-services-and-charities/someone-to-speak-up-for-you-advocate/#:~:text=How to get an advocate,being made about their care.

Don't be afraid to ask for help. You've done the worst part already, getting the bankruptcy in place.

As ToxtethO'Grady has said, above, you can still contact one of the free debt help agencies for help with any questions about your bankruptcy -

StepChange - https://www.stepchange.org/

National Debtline - https://nationaldebtline.org/

Citizens Advice - https://www.citizensadvice.org.uk/

I had a Debt Relief Order a few years ago - that is very similar to bankruptcy - and StepChange helped me every step of the way, and afterwards too. All of the agencies offer free, confidential and non-judgemental help and advice.

I do hope you manage to get things sorted out and that some of my information is helpful - I have been through similar experiences and know how it feels but I can promise you that things do get better and you have taken the first - and most difficult - step already.  Good luck.

TripleH

Think of it as the end being in sight.

There is a set process for bankruptcy which is primarily a box ticking exercise, yes it may be onerous but once it's done, things should get better.

Think of it as a steady controlled release of stress, it might take longer to happen but is a lot better than letting it all go at once. You are floating gently with a parachute to freedom as opposed to plummeting.

I know nothing about being bankruptcy but sadly too much about releasing stress and think controlled is the better way to go.

resiliante

Hello everyone,

I have questions now about saving for emergencies.

First an update - things are a bit more settled now. I was able to get all the evidence I needed to support reasons for my debts. I have also heard from the budgeting team and they have said I won't need an IPA. I currently only get about £70-£120 a month from my sole trading work. I asked if I can make a claim for universal credit while I look for some part time work. 

My question now is when I'm working I'll probably earn about £800-£1,000 a month. Obviously I'll need to tell them about my employment. I do want to try and have a little money aside for emergencies and not sure how to go about it. For example I've got a £200 budget for food each month which is £50 a week. I might not always spend £50 a week on food so if I have a tenner left over I could put toward an emergency fund but where do I put this? Does it have to be cash? I feel if I built money up in my bank account it would need to be declared and given to the official receiver?

Thanks

RAS

I strongly suspect that any bankruptcy budget for a single person would allow at least £267 per month for food. Add to that haircuts, "medical", travel, clothing, holidays, entertainment, communications etc. 

They are not interested in how you actually spend the money. Just open another basic account, or even a cash ISA, and put away what you are able to. Then you might be able to afford the dentist, or the cost of a family funeral if the need arises.

resiliante

RAS said:

I strongly suspect that any bankruptcy budget for a single person would allow at least £267 per month for food. Add to that haircuts, "medical", travel, clothing, holidays, entertainment, communications etc. 

They are not interested in how you actually spend the money. Just open another basic account, or even a cash ISA, and put away what you are able to. Then you might be able to afford the dentist, or the cost of a family funeral if the need arises.

Thank you. I'm sure I read somewhere that you could only claim around £208 for food for the month. 

So I can now build savings and the pot accrued won't be taken away from me? If I'm really extreme frugal one month when working part time I can maybe save £100+ that month. But I doubt my income will ever be more than £1,200 for the month over the course of the bankruptcy... It's more likely to be around £800.

luvchocolate

As long as you always inform the OR of change to your circumstances 

You're fine to use your allowance for anything once your SOA has been approved 

They will also understand that with rising prices your outgoings could change 

Always be honest and open and I found them to be very helpful 

ToxtethO'Grady

resiliante said:

RAS said:

I strongly suspect that any bankruptcy budget for a single person would allow at least £267 per month for food. Add to that haircuts, "medical", travel, clothing, holidays, entertainment, communications etc. 

They are not interested in how you actually spend the money. Just open another basic account, or even a cash ISA, and put away what you are able to. Then you might be able to afford the dentist, or the cost of a family funeral if the need arises.

Thank you. I'm sure I read somewhere that you could only claim around £208 for food for the month. 

So I can now build savings and the pot accrued won't be taken away from me? If I'm really extreme frugal one month when working part time I can maybe save £100+ that month. But I doubt my income will ever be more than £1,200 for the month over the course of the bankruptcy... It's more likely to be around £800.

You can put whatever you need for food and household expenses as long as you have a valiud reason and in some circumstances can prove why it is higher than expected.If you have mental health issues you may have concentration problems so forget you are cooking, you get takeaways instead because of this. I've advised single clients with over £700 per month in groceries etc due to this. Your budget should satisfy your essential needs and is individual to you.

Just to clarify £50 per week if £216.67 per calendar month (£50 x 52 weeks/12months).

carrot42

Without hijacking this threat a similar question - is it possible that initially agreed IPA amount could be reduced or increased for that 3 year period based on circumstance change? If for example I wont be able to earn as much or unable to work at all what is going to happen?