23K 'wiped-off' in 6 months...drastic but quick way to get rid of debt

loobyloo1980

My inlaws went bankrupt 2 years ago in November. Not sure how much debt they were in, or how they had run it up. All I know is that MIL had to give up work 7 years ago through ill health and is on long term incapacity benefit & now DLA as well. She was never going to be able to return to work because of her multitude of illnesses. She can barely even get out of bed unaided. FIL couldn't get better job because he needed to be there 24/7 for her care needs, and no one other than his current job (very low paid) would be flexible enough for it.

We backed them through it as it seemed their only option. BUT then we found out that MIL had kept one of her door step collectors on the go and not declared them to OR. Plus (and this is my major problem with it) they were spending £120 PER WEEK between them on fags :eek: . I thought that was appalling as that was £120 pw they could have been paying off their debts with. I wish I could thrown that much at my debts!!! Within 1 month of them going bankrupt it was Xmas, and they bought new mobile phones, PC and loads of stuff for Xmas. All bought from the doorstep collector they kept on no doubt.

It angers me now, thinking how much effort we are making to repay our debts, as bankruptcy to me is a real last resort. BUT it took the stress off them and they have since cut down on fags. I just felt very annoyed at the time that OR didn't question £120 pw on fags for bankruptcy, whereas anyone who wanted to spend £120pw on clothes would be told no way.

Glad it worked out well for your girlfriend though, and I hope she has learned a valuable lesson not to go down the path again.

thaylock

truscott_uk wrote:

And the banks were right to force her into such a situation?

And banks put a gun to her head & forced her to take out the credit & sign the credit agreements, didn't they ?

loobyloo1980

They forced me JOKE!!!!!

loobyloo1980

I think it is such a cop out to blame banks. Banks are there to make money, granted, but they only advertise loans and cards. They do not force them into your hand. Willpower is needed to say no in the store when they are offering cards out like sweets. I am in debt for a number of reasons, but none are the banks fault.

newfunk

I went bankrupt back in March 03, and have just found out I was discharged 1st April 05....Mine was mainly for business debts of £100-120k, and to do with my divorce etc....I notice someone said did you try and pay your creditors off over 10 years!

Its not always as simple as that, I started to do this, and as I was not working, could only offer minimal payments, only 2 agreed, the remaining creditors, jjust said we will take you to court. Even after explaining that, i had no assests, and only the clothes I came out of my marriage with, they still were no more helpful...I had done what i could to get them to listen, and thought sod it, they can get..F....d.

If she was only taking home 750 a month, I cant see she could pay £200 a month...The day after I went bankrupt, i went to Disneyland with my kids, I didnt pay for it, so how dow e know if she paid for it...We should not judge people without knowing the full situation....I also think banks do have to take some of the blame, as they make it all to easy to run up debts on low wages!!

fairylights_2

I have to say they may not hold guns to our heads, but they certainly don't help matters. At my very worst financial point, I was getting at least one letter per week offering loans, credit etc. I was having REAL problems paying what I owed but people seemed to be falling over themselves to lend me more. To this day I don't understand why that was the case, but I thank my lucky stars I didn't dream of taking any of them up on the offer. As I saw it, I couldn't manage to pay what I owed, and taking more debt on was not going to lessen the amount.

Each to their own. I personally would feel like a failure and a fraud declaring myself bankrupt when there's the slightest possibility that I could pay it back, but it may well be the only answer for others.

I have to say, I like the not in front of the kids campaign, but I think it should just be a not at all campaign. It is too easy to take on debt without being clear of what it actually *MEANS* to you. The horror when I saw an ad yesterday for a company advertising easy low cost loans to consolidate debts, asking for £25000 and the total payments would be more than £40000. People just don't see that. They hear the "easy" "affordable" "low monthly payments" and see the "you can have a new bathroom/kitchen/car" without realising this is NOT the solution.

I've started writing down everything that I discover about money so that I can give it to my kids when they leave home. I hope they never go through what we've been through in the last couple of years, and I'll do anything to EDUCATE them about it (NOT pay their debts off if they fail though - it's the only way we've learned our lesson).

pug_in_a_bed

brokenwings wrote:

Hi

as someone who might be forced to go bankrupt shortly - although i am hoping an iva or even dmp will be okd first - i think bankruptcy is a brave thing to do.

what scares me is the publicity and naming and shaming.
did her employers have to know? do bankrupts get named in the local papers these days?

I've been recently discharged and was also worreid in the beginning about this.

All bankruptcies appear on the insolvency register which can be searched by everyone, although I only found out about it as a relative told me (who works in debt management), I don't believe many people know about it - those that do are obviously the banks etc and those who are bankrupt. I believe that it can appear in the papers although not sure which. Your employer does not have to know, although I believe there are some circumstances (rare) where they do, so I wouldn't worry about this. No one really has to know if you don't want them to - bankruptcy is nothing to be ashamed of in my opinon.

I wish I could have gone another way but I couldn't of, things were too far gone and what I'm really most ashamed of is not facing up to my problem earlier and seeking help before things spiralled out of control.

It was an easy process, yes, and i was also discharged early, thankfully. I have learned the biggest lesson of my life, and I am grateful for that at least. I cried my eyes out when I was discharged:o

Poppy9

holidayguru wrote:

.......So-for the sake of 30 mins in court & a 1 hour interview-24k wiped off & a fresh start-she's now triaing to be a teacher.

OMG is this really the sort of person we want educating our children.

Nobody forced her to run up an overdraft or take out loans etc. She knew her take home pay and outgoings so simple maths would tell her how much she has left over to meet loan repayments.

If she had the added stress of trying to keep a roof over her and her kids head or food on the table I might be a bit more sympathetic.

Everyday I get at least two letters offering me loans, credit cards etc. The CC I do have keep increasing my limit to 8/10k but I only use if I can pay off in full.

I think before she embarks on becoming a teacher she needs to grow up and take responsibility for her actions. I appauld all the MSE who have faced upto their responsibilities. On the debt board you read heartbreaking stories of people who have got into debt through just trying to look after their family, or illness, redundancy etc. They are working so hard to reduce their debts and deserve our support.

holidayguru

Hello all,

My main reason for posting was to make people aware of the situation she found herself in & what she did to sort it out.

This is the advice a reputable free debt advice service gave her. Sure...she was foolish...but we've all been at some times in our lives? She's not from the UK & is a bit naive & 'stuck-her-head-in-the-sand', so to speak.

As she had no way of paying it off at all-certainly not within at least 10 years & she'd already had a CCJ against her, so her credit rating was B******d for 6 years anyway.

It's been a hard lesson but one she had to learn I feel. Yes-your details are published in the 'notices' section of your local paper & one in the London gazette...but how many people read that?

I completely take my hat of to those who work hard/save & pay off all they borrowed....but it is not the way for all. I'm sure there are many people on this board for whom bankruptcy would be the sensible option-but many people are too proud/object on moral grounds/scared to do it.

If you have property, children...a big ammount of disposable income then there are probably other ways. She had no property, her debts massively exceeded her income (she has a 8 month contract so for 4 months she has no official job so makes do by temping, etc).

All that I'm saying is that it's an option. She actually went to thank the official receiver (sad cow!) for discharging her early & he said the law had been changed on bankruptcy to help those who had no way to clear those debts but it had also been tightened up to punish those who wilfully accrued the debts, played the system, etc....

Just my thoughts & her story as I'm sure, whatever your standpoint on bankruptcy is its relavent to this forum.

Oh....by the way to the poster who criticised the fact we were on holiday, firstly BUTT OUT it's not your business, secondly i get free holidays with my job & thirdly if I chose to pay for her holiday (we don't live together by the way) that's my business! RANT OVER....(!)

Poppy....your quote ' think before she embarks on becoming a teacher she needs to grow up and take responsibility for her actions. I appauld all the MSE who have faced upto their responsibilities. On the debt board you read heartbreaking stories of people who have got into debt through just trying to look after their family, or illness, redundancy etc. They are working so hard to reduce their debts and deserve our support.' ....she has taken responsibility for her actions-she had to face the official receiver & explain how she came to be in this situation. I really think personal attacks are not justified on the board & you do not know her/me or all her circumstances. In her situation this was the advice given to her...why be a martyr & spend years scrimping/saving, worrying (it made here ill & she was on anti-depressents) & haggling with creditors over 10-15 years, when she had this option open to her?

All personal choice.Bankruptcy does not have the awfull stigma that it used to have.

klare_2

well i have to say that i think you did the right thing.. and if it means her not having to worry herself to the point of illlness for the next how ever many years then i would too have take the same choice, if it wasnt for the fact that i am tied up in a mess mainly due to my OH and the fact that i am desperately fighting to keep a roof over mine and my childrens heads then i too would have got down this route... and for all those people who are on their moral high ground over this unless you can look at your own lives and find them faultless i dont think you have the right to critise other peoples actions... so long as you can answer to your own when you get into your bed at the end of the night then thats all you should be concerned about...
( okay will get off second hand soap box bought on ebay for a bargain!)