Bankruptcy worries

BRqueries

Hello. Likely to be going bankrupt in the next few weeks. Absolutely terrified. My debt is massive and the reasons for it complicated and traumatic. Probably facing a BRU as well unless my OR is sympathetic to what has happened to me and why I have made the decisions that I have. This is all extremely shameful and scary for me. My mental health is the worst it has ever been. I’ve not had a straightforward life but this is the first time I’ve ever been truly afraid I am going to hurt myself. Being hit with a BRU or getting into trouble for some reason would affect my job which I worked my entire life for. I am scared that might push me over the edge.

I just got in from the GP who thinks I am not in a state to work. I will be making arrangements about this tomorrow. I am self-employed.

Not sure what I was expecting posting this. It just all feels too much. Happy if anyone wants to share any experiences or advice that might help.

When I do take time off and am not earning, could the OR still seek an IPA based on past/average/future income capacity or is it purely based on whether there is a surplus in the present?

Grumpelstiltskin

Have you spoken to Business Debt Line?


Debt advice | Free Debt Advice and Support | Business Debtline

Although you feel that you are the only person in this situation they will tell you that they have seen every possible situation and you will get over this.

Just don't panic.

la531983

BRqueries said:

When I do take time off and am not earning, could the OR still seek an IPA based on past/average/future income capacity or is it purely based on whether there is a surplus in the present?

Its based on the present. They cant, and dont, make you pay anything when there is nothing.

On the flipside, if you find a job you legally have to tell them so the situation can be reassessed.

Grumpelstiltskin

ADD I am assuming the OP is self employed, I don't think it is clear if they are.

MyWorldIsOver

I'm going through the EXACT same thing right now - self employed, very large debt, having to reduce hours going forward due to mental health, expecting a BRU and going bankrupt in the next couple of weeks.. you are not alone at all!!!
I wish I could give you advice but all I can say is you're not the first and you certainly won't be the last, whilst we may not feel it now I try and remember so many people have done this before us and 99% of people say it's the best thing they did even if it didn't feel it at the time xxxx

ManyWays

Being hit with a BRU or getting into trouble for some reason would affect my job which I worked my entire life for. I am scared that might push me over the edge.
A BRU is not a criminal offence. I cant think of a job where it's ok to go bankrupt but not to get a BRU. Yours may be the exception, but you could say more about this, as you may be worrying about this unnecessarily. 

When I do take time off and am not earning, could the OR still seek an IPA based on past/average/future income capacity or is it purely based on whether there is a surplus in the present?
It is based on your actual income, not what you might get if you get better in the next few months. 

I echo the suggestion to talk to Business Debtline.  You need some support from a debt advice service that specialises in the self-employed. Eveven if you are sure bankruptcy is your best options, take an hour of your time to talk to them and they can also talk through BRUs and IPAs as well

sourcrates

BRU`s are only obtained if some kind of fraud or wrong doing is suspected by the OR.

The vast majority of bankruptcies run quite smoothly, and most ex bankrupts will tell you, that the comfort, relief and peace it brought them, made them wish they`d done it sooner.

Just be honest, the process is not designed to punish you, its simply a way of winding things up, and relieving you of your debts.

IPA`s are paid from any disposable income you may have over £20, if your not working, and your income is benefits based, there will be no IPA, but if your circumstances change before you are discharged, usually after 12 months, then they can impose one on you for 3 years.

Bankruptcy should be viewed as a new beginning for you, rather than some kind of punishment, honestly do your research and you`ll feel a whole lot better.

BRqueries

Thank you for your replies. Still struggling to be honest.

Fears and thoughts going round in my head that the OR/IS is going to come after me for all my mistakes. I developed an impulse control disorder as a side effect of a medication I wasn’t warned about which is why I got into the debt. Once I found out the link after accessing support, I stopped the meds and the problem went. I’m me again but I’ve been left with the damage done. I’m worried the OR will still label that reckless when it was a medical problem. The things I did, if recorded on a BRU could ruin my life. 

I’m also really worried that during the period we  struggled the most, a lot of my partner’s friends sent us money to help but it was to my bank. I don’t know them all that well and am worried about who I was associating with and what the OR/IS will make of that. 

All in all I’m just terrified. Not sleeping, thinking dark thoughts. Not sure what to do. 

RAS

The only BRU situations anyone here has reported were when the debtor refuse to co-operate or wasn't straight with the OR. I think 2 since I joined here.

One involved someone who basically did a bunk, came back 15 years later thinking it'd be hunky dory and discover their bankruptcy still hadn't been discharged. So they had to go deal with the OR.

Not a recommended strategy.

Just explain what happened to the OR and the remedies you've in place. 

sourcrates

Well I`ll say it again, the bankruptcy process is not designed to punish you, if the meds you were on at the time, made you act differently to normal, then you tell the OR so during your interview.

They are not looking for blame, all they require from you is the truth about how the debts were incurred, nothing more.

No one who declares bankruptcy has led a previously perfect life, people make mistakes, the official receivers office are well aware of this, and have likely heard every tale there is to tell, I doubt your case will be any different.

As long as you are honest, admit mistakes were made, and just tell the truth about what happened, non of your fears will be realised here.