My after thoughts of bankruptcy paint a picture of two halves. On one side there is fire and on the other side there is water. Yes, bankruptcy serves its purpose and releases you from those debts you cannot afford to repay. However, contrasting this are the consequences of bankruptcy, which can be extremely damaging.
In my experience the two sides do amalgamate and the smoke does disappear leaving a new house to be built. With it comes some wisdom and a lesson in life.
For some bankruptcy is the only option but whoever we are and whatever our financial position is it’s important to realise that the best way to resolve debt problems is by seeking advice. In my opinion the earlier advice is sought, the lesser the damage caused and the greater the probability that bankruptcy can be avoided.
Within the UK I believe there are three main contributors to the debt problem and increased number of bankruptcies.
- The individual
- The Government
- The lenders
As individuals we certainly have to take responsibility for our actions. After all, nobody forces us to take credit. Yet I also think it is fair to say that the government has not actioned much in the past to educate us in financial management. This has then given the lenders the opportunity to take advantage and debt us to the maximum. The government has also played a role here as a weak regulatory framework existed within the unsecured credit industry allowing the debt culture to run away with itself.
Moving forward I believe the government has recognised that education is required and has since launched the National Strategy for Financial Capability. The purpose of this strategy is to improve the financial capability of people at different stages of their lives. Regulation of the industry is also improving.
The arrival of the Enterprise Act 2002 has also served to modernise the insolvency regime and help promote entrepreneurship within the UK. Whilst persons who have been bankrupt because of honest failure will be discharged sooner, those who have been dishonest or are somewhat to blame for their position will have the restrictions of bankruptcy prolonged.
There is no questioning that there is a debt problem in the UK. The only question is how much damage will be caused. As it stands today:
- Insolvencies are on the increase
- Repossessions are up
- Inflation is up
- Interest rates have increased
- Unemployment is on the up
- Surely house prices are reaching a peak
If these economic factors continue in the same direction and there was a recession what will be the impact? Given the current levels of debt that exist it’s an interesting thought!
hi.just to say a thank you to you for your site…i too was declared bankrupt.. on the 4th august 2006..i have just received my early discharge just 6 and half months from date it was imposed…i found your site great help…it is true what u wrote it is a mix of emotions from great highs to great lows…some people seem to think its the easy option but it really is not…thanks again and i hope everything is still going well for you..now all i have to do is to start rebuilding the damage bankruptcy has caused..any ideas will be greatly appreciated..i too would like to buy own home some time in close future and have disposable income to do this now but rates are so high…cheers
My husband and me have just been to court on 2nd July and had our interview with the Examiner 3 weeks ago…..so we are still in the thick of things…..me, I feel rubbish, I feel sick all the time and I’m thinking of seeing a Dr with what I think may be depression……this is also effecting my Hubby…we are both fed up and are just hoping things will get better….reading your blog I’m hoping I feel better about things soon…better that we have done this than not…..we made 1 bad decision 18 months ago which tipped the scales in our decision to go bankrupt. As for the interview with the examiner…..mmmmmmm I don’t feel my interview was that polite….professional, maybe but polite….no….my hubby and me adopted 2 children 18 months ago and the examiner told me outright this should of been looked into further regarding my husband and me adopting as she knew somebody who was adopting and they couldn’t because they were going bankrupt…(not really my business and why did she feel i needed to know this?????) …..for the record our childrens care is not affected and they are both very loved and going bankrupt does not mean we can no longer love them!!!! she made me feel inadequate…..she spoke down to me with a disaproving tone, however when speaking to my husband, they were laughing and joking!!!!! making me feel twice as bad….so right now 6 weeks after we went to court…..I feel rubbish and hope this feelin will change, I will keep you posted.
Hi Piggy
Two weeks ago i decided to go bankrupt and at the moment it is the best thing i have ever done. Finally sleeping through the night and now our homelife is returning to the normal i remember before all of the debt got out of hand. Whilst i cannot entirely blame our creditors for allowing us to get into this postion it came as a bit of self satisfaction to see them getting screwed. They should never have let us get into this position in the first place. Everywhere you look is finance and so to easy to get. My final tally for unsecured debt was about £75000 and it wasnt until i addd it all up that i thought how the hell did it get this far. I have learnt alot in the last couple of years and it is something which i will never allow to happen again so lesson learnt. I firmly beleive that this country is going down the tubes and that we are in a recession just nobody has the balls to actually say it.Anyway great website has proved some comfort for some of those answers at 2 in the morning!! Kindest regards Chris
Hi Piggy. What an absolutely brilliant site. We had our advisor at CCCS tell us to go bankrupt last night. Whilst I’d looked into it on HMCE websites and had all the facts and figures buzzing round my head it was so re-assuring to find your blog. I think i’m in a similar position to you as a business owner and thanks to this I have a much more positive feeling moving forward. An added bonus for me is that recently I’ve been feeling how much more important family and friends are rather than work and profit so being able to take a few steps back with work is a welcome relief! Keep up the site and let us know how you’re getting on
hi. thanks for your web site.we have searched for information on bankruptcy and your site is very helpful when so many other sources come up short with information and advice. CAB. seem to be under some strain with enquiries about bankruptcy and i was directed to a web site by them recently perhaps they are overloaded. my wife found Piggy and it is very professionally put together.We need to take advice on petitioning for bankruptcy and feel informed. Thanks and keep up the good work we wish you well.
phill
It is good to see that someone is sharing their experiences and proving that there is a clear alternative to hanging yourself over debt! I have been bankrupt twice previously and whilst it is hard to say I am probably going to be bankrupt for a third time. A mixture of bad timing in business and also being hit by bad debt myself has led to the failure of my business in the building sector. Whilst I am trying to solve the problem with creditors most of them just don’t want to listen so if you cannot reach an agreement then bankruptcy is the only solution. So as a seasoned bankrupt, it is not the end of the world and life does go on. My wife has supported me and that is the most important thing in your life – your family. Money can be earnt again, family is much harder to replace..
I was obliged to be made bankrupt on the 9th March this year in Plymouth. Two weeks ago I received the request, from the receiver, to fillout the income and expenditure form to facilitate the process of early discharge.This was filled in and returned to the receivers office the same day,in an effort to add speed to the discharge process. I would urge all people who have to go down the route of bankruptcy to be as honest and up front with the receiver as you possibly can be.Be as speedy as you can with requests from the receiver and I hope these actoins will help the receiver be as fair as possible with you. Speacking for myself, The treatmen hat I received from the receiver was excellent, business like but with compassion.
Dear Piggy, your site has been a great help. I decided that I had to go bankrupt a couple of months ago, filled out the forms, and have been seized with fear and dread since to actually just do it, but I'm also currently unemployed and trying to raise the fees. But I realise that I just can't put it off any more. I am paralysed by the thought of future consequences of the whole thing. But what a feeling it would be to be able to wake up in the morning and not be faced with a huge black cloud hanging over my head. I have a wonderful boyfriend who is behind me, and if we're going to make it together on an equal footing I have to go through with it so we can really start our lives properly. He understands that my debt wasn't because of a hankering for Jimmy Choos, but an over inflated sense of duty to family that just got ridiculous. Now it's all about me. I hope you are having a great life now, full of super achievements, love and happiness. That's certainly what I want.
What a great blog. Its nice to feel that you're not alone, even though I wouldn't want anyone to feel what you must have felt and what I am feeling right now.
Still so many questions and so much uncertaintly but everything looks a tiny bit better than it did before I read this site.