Bankruptcy

[Tinytootz]

Today, I started filling in the forms to file for bankruptcy. To say I am terrified is an understatement! The forms are so scary, and so formal. I don't know how I'm going to afford the fees as they have gone up since I last enquired, if I don't get the court fees wavered, I'm looking at around £700.
Headed to CAB tomorrow for a hand filling in the form, as I'm always convinced I do things wrong.

It's been on my mind now for about.....oooooh.....6 years. I got myself in a dreadful mess when I was younger, and am now paying for it. I attempted an IVA, but the company was dodgy, and were making me pay more than I could actually afford to. My debt is too much for a DRO. I know its the 'easy way out', but at the moment, and for some time, there is simply no other way out.

My parents don't know about it, and neither does OH. My ex did, not that that matters now! A few friends know about it, but not indepth. I guess I'm typing this as a way of 'discussing' it or at least 'vocalising' on a non-personal level. I know I did wrong, and I've given myself enough beatings up over it to last a lifetime.

:cry:

 

[MadameLaMinx]

I've been through this. Yes, it does seem overwhelming but the relief after its all been completed is remarkable. I also had the help of the CAB with filling out the forms, their financial adviser was great.

You need to take with you to the appointment everything relating to the debts you can find. Make sure you have up to date statements on how much you owe on everything and any letters you have had about the debts. Also take bank statements.

You will be advised to get a new bank account. I was advised to do this before declaring the bankruptcy. Everyone in the UK regardless of status is entitled to hold a current bank account. I went to Nationwide, explained what was happening, and they were happy to open a new account for me. This meant I could transfer any direct debit payments etc over before the bankruptcy was put in place. You may however be advised to wait until after it is in place. If you are advised to do it before, you should go to the bank as soon as the bankruptcy is filed, they will temporarily freeze your account and they will contact the Official Reciever to ask for permission to re-open it again. That doesnt take very long at all to do.

Once you have filed the paperwork with the court, you will see a judge who will review your file and sign off the bankruptcy. They then refer you to the official recievers who will most likely see you same day or very quickly thereafter, will again review your file, and will explain the restrictions placed upon you, and how long they will last for.

Make sure you cover every single debt you have in the filing, as you cant later then add something you forgot or that later arises.

If you have any questions, or need a shoulder, dont hesitate to PM me. The anticipation and the build up to it is far more stressful than the actual event itself.

 

[Tinytootz]

I just want it over and out. I'm so worried I'm gonna get a rollocking at the court. Granted, I deserve one, but I am a nightmare for getting upset when stressed, which helps nobody.

I did start enquiring about this late last year, but with a relationship breakdown and two housemoves, I just never got round to it, and pushed it to the back of my mind. But the letters keep arriving, and I've decided enough is enough. I already have another basic bank account which I opened in preparation for this, there is nothing in it, but its there, ready and waiting.

The paperwork is the nightmare point, as much of it got lost in the move, or thrown out due to Ostrich-head-in-the-sand syndrome. And I'm self employed, but contracted. Thankfully my boss is in a similar situation, so is very understanding and prepared to send whatever confirmation is needed.

The form is pretty much filled out, there's one creditor missing as I'm unclear on the amount. And also part of the assets is missing, as I don't know what I have to declare.

It sounds so vain, but I really hope it isn't published in the paper. I live in such a small town, and I hate being the subject of discussion.

I'm gonna be brave and tell the OH. Mainly so I don't have to go to the court on my own, but also so everything is kinda 'out there'.

If I could get in nailed this week, that would be amazing. I am incredibly impatient, and now the form is in the living room, I can't shove it to the back of my mind. But I realise that I have the waver form to do yet, the money to gather, and the actual form to fill out fully. Headed CAB tomorrow, boss is going to cover my shift. Those CAB people really are amazing.

 

[MadameLaMinx]

You dont get "told off" by the judge. All they do is go over the paperwork, agree that you are not in a position to repay the debts and sign off the bankruptcy declaration. They arent there to pass judgement on how you got there. All they do is check that you do not have the means to repay your creditors and have just cause to declare, and then authorise it.

When I went, I saw a judge, but it wasnt in a court room like they have on telly, it was in more of a board room type thing with a big round table and chairs. He was very kind, asked me a few questions and authorised it. It was very straightforward. He looked a bit like Alan Sugar actually, so I half expected to get fired.

But they arent there to "judge" you in the same way as a judge would comment on a murderer or something - just to "judge" that things are as you say they are and that this is the right thing for you to do.

ETA - if mine was published in the paper, I never spotted it and nor did anyone from my family. However, once you are on the Insolvency Register you will be found by a simple googling of your name - for the duration of the bankruptcy. Once its completed, your name disappears from the online record again and it wont show up any more. I lived in fear for the 12 months I was under bankruptcy of my Mother-in-Law finding out via Google, especially as she was doing her family history, but to this date she is either blissfully unaware, or knows and says nothing about it.

ETA2 - Its the Official Recievers that is the tougher of the two parts, really, because they ask the questions like "what did you do with this money" - for example I had taken out a loan a few months before filing for bankruptcy, which had paid off my overdraft and some credit card debt, which I then stupidly ran up again. They are basically looking to make sure you dont have any hidden assets that you arent letting on about.

Honestly, while its got long term repercussions for my credit rating, its the best thing I ever did. I spent so long robbing Peter to pay Paul and spending money that I couldnt afford it was actually a huge relief to know that I couldnt do that any more. Nowadays, if we cant afford it, we go without it.

Dont worry, just take it one step at a time, and once it is over with, you'll feel so much better. Just make sure you have as much of the information as you can find to give to the CAB adviser.

I doubt it will all get sorted this week, you need the whole file ready for filing which means getting all the paperwork in one place, and contacting any that you are missing for confirmation of whats owed.

But do tell your OH, for one thing it may have repercussions for them too, because you wont be in any position to get a mortgage together for quite some time for example.

 

[Tinytootz]

To get the ball properly rolling tomorrow would be great, and a proper weight off my mind. I have already told him I have a dreadful credit rating, but I never really admitted as to why. He has a funny thing about debt, and thinks it is 'dirty', so lord knows how he will take this.

Googling doesn't bother me much, there's already a host of nasty things on there about me (which I have tried to get removed, posted by a bitter ex), and if someone is googling me, good luck to them

Thank you for your comments, it has made me a lot calmer!

 

[mickeymygrey]

been there too, i didnt even see the judge at all just handed in the forms and the money at a little counter like you get in a bank then sat about for 2 hours before being asked to take a call from the Official Receiver to arrange a telephone appointment and give some of my details - that was it.

The Official receiver interview is tougher but they are human, from what ive heard they are tougher on you if your money went through gambling or other addictions but as long as its not criminal then its ok. Moneysavingexpert is an excellent site with a forum specifically for bankruptcy and living with it, they will give you advice on just about everything including what you are allowed in allowances to live on. Good luck it was the best thing i ever did having done a DMP for 4yrs - my bankrupcy didn get published in the paper either which was what i was most concerned with.

 

[NiaX]

I don't have any advice to give as I've not been in this position but wanted to say how brave I think you are.

 

[fairy3853]

Hey hun, your not on your own sweety. I went through it in novemeber last year so im still in mine. I know ware your coming from with the forms, they are hell to say the least, but my CAB Advisor was absolutly fantastic and filled it in for me while I was there, she asked the questions and filled in the forms. I also had some paper work missing and this held up my court hearing, as untill the entire forms filled in with every single penny owed, it cant go before the judge. My best advice is to ring the company and ask for an upto date statement of what you owe. from what I remember, I called one of my cattalogues, obtained the figures and just told my CAB Advisor the ammount. The CAb advisor checked with the companies anyway.

Like whats already been said, the judge is just a formalaty and there not there to judge, YOU, their there to judge that you are aware of all the implications of bankruptcy and that you have no means of paying the monies owed. I had to see the judge, but from what my CAB Advisor told me, this is a raraty, but I was terrified, turns out I was scared of the judge for no reason at all, I was in and out within 3-4 min.

Its definately scary going through bankruptcy, I had to go bankrupt due to my ex. I diddnt handle it at all well and I turned the the bottle, not the answer I know, but just remember that every cloud as a silver lining.

Im hear if you need to bouncy anything off me, or if you just need to chat with someone whos worn the same shoes.

Good luck hun xx

 

[Tinytootz]

Well, went to CAB for my appointment with who I thought was a financial advisor. Now, I've always been super impressed with CAB, and recommended them to everyone, but I was a bit disappointed yesterday.

In walked a man, who asked if I had come for advice on bankruptcy, and I said yeah. So I produced my form, and he commented on how he had never seen one before, so it didn't start well! He pulled up my notes, and saw that I had been in before, therefore had already made my mind up pretty much, and I agreed. So he proceeded to go through the form with me after I asked, but he didn't seem to know what he was looking at, and couldn't really answer any questions I had. He even got the fees wrong, I had to correct him. Basically, he said my form looked fine, but recommended I called the court to check what else I had to take with me, if anything.

I appreciate their help, but it seemed a bit pointless to me. He didn't seem to know what he was talking about, and was more a general advisor than a financial one, and not really a smashing one at that. So I'll call the court when I return from holibobs, and then take it from there. Filled out the ex160 form to see if I can waiver the court fees, hope so!

 

[Moon Gazer]

Oh good luck! I hope it all goes well and you get the fees waivered.

I've never been in that situation, but we have debt but manage it ok at the moment. It would only take one of us out of a job to end up in the same situation. It's so easy to get deep in to debt and so hard to get out of.

 

[Celica190]

I used to work in the Official Receivers' office in NI and, here anyway, all bankruptcies are published in the local paper on a Friday night. Unless you know where to look, though, they're not particularly obvious, so don't worry too much.