I was made bankrupt following a creditor’s petition in February of 2010. This all came about following the failure in September 2009 of a parcel delivery franchise business and the level of personal guarantees that were given by me as a Director.
Having realised that the business couldn’t reach profitability in time, I took advice from my accountant and waited for the “pack of cards” to fall. Within days my personal creditors came calling in their personal guarantees.
Having lost the business and having no income, I spoke and wrote to all my personal creditors informing them of my circumstances and began sending them my income and expenditure statements.
Before long, one of the finance firms went legal on me and waded in with a threat of bankruptcy. After some consideration with regard to my situation (I was potentially liable for circa £450K) I felt that the most I would be able to cope with emotionally not even financially would be £300 per month and that when doing the sums even after 10 years that would be less than 10% of the debt assuming interest and charges were stopped. I thus came to the realisation that I should not defend the petition. The financial decision was easy, the same cannot be said with regard to the emotional and personal side.
Throughout and up to the date of my bankruptcy I engaged with my creditors and the day after the order was made, I phoned them all to tell them of the outcome and quite literally the phone and letters stopped there and then.
I am now back working (self employed) and my meeting with the OR went well. I went suited and booted and took along my suitcase full of documentation. I was found not to be at fault and due to my income and expenditure situation I am not required to make any payments.
As part of this journey I was unable to pay the mortgage and aware that the business loan was secured on the house, it was inevitable that it too would be lost. I moved out of my property this weekend (21/8/2010) in readiness for the possession order that was granted for 24/8/10 and now can truly make a new start.
I like many had my share of “dark” days, feeling low and lost but soon found strength and energy within myself with my resilience, thinking crikey I’ve dealt with this and thus will be able to cope with anything. I do not feel the old fashioned stigma of being a bankrupt but do not underestimate how tough the last 12 months have been and appreciate the support and understanding of my friends and family. I also would like to go on record to state how useful this site has been in “guiding” me through the daunting path I have trod.
I wish everyone reading this, strength and success in their own personal journey.
Best wishes Jon
