Monthly Archives: September 2010

I decided to file for bankruptcy in January 2009, which was an extremely difficult decision. The pressure of trying to keep all the plates spinning was just becoming too much for my wife and I. After much soul-searching and some reality checks we both decided the way forward was to go bankrupt. This wasn’t easy and don’t ever let anyone advise you that this is the EASY OPTION to resolve your debt problems. The amount of people who have said to me, you’re alright you got off paying your debts! Believe me the shame, the sense of loss, the stress, health worries, the worry for the future, being homeless, and the panic attacks meant that it was not the easy option at all!!!

The decision to go bankrupt was made for me. I found myself unemployed after a disastrous attempt to set up my own recruitment consultancy. I must add prior to this I enjoyed a fabulously successful career with a major IT recruitment consultancy. This had allowed me to enjoy the fruits of my success, though this was all funded by debt paid for by my six-figure salary. But like many, I never saved for the rainy days. I just spent and remortgaged the house to enjoy spending the equity.

The decision to go bankrupt affected my wife and daughter who were living in our home at this time. I must add my wife and I had decided to separate prior to my decision to go bankrupt. I still had a responsibility to my family. Fortunately my estranged wife is very understanding and still very supportive of me.

My wife decided to move out of our home and find rented accommodation with our daughter. I am glad to say, they are both doing great but not through any financial help from me.

I was made bankrupt in February 2009. The process itself was straightforward, you complete the forms in advance and attend the court on the date given. I handed my papers to the clerk, paid £495 fee and then my papers were taken to the Judge. Thirty minutes later I was declared bankrupt! The next step was a telephone interview with the Official Receiver, this again was straightforward and not as bad an experience you may think. She agreed my financial circumstances were dire and I had no means to pay anything to my creditors.

It’s a myth that you lose your house straight away. However my wife and I decided that as we were now in negative equity and had separated we would hand the keys back to the building society. This was with mixed-feelings as we were losing our home but also getting rid of the past. I was scared as I was homeless. For a while I lived with my parents, but at 42 years old, this is not ideal!! I eventually rented a room in a shared house. That was hard, and a massive fall from grace.

During bankruptcy I must admit I found it very hard. I lost all self-confidence, I felt a massive sense of loss, like I was grieving. I don’t mean losing material items, more like your identity and self-respect. I was ashamed and I did struggle with not having money. But I gradually pulled myself together with great support from family and friends. I was discharged 7 months later and free to start again.

The future is bright, I have a great job, a lovely new girlfriend, my daughter is doing great in her new job, and my estranged wife is rebuilding her life too. Though I am still experiencing setbacks as a result of my damaged credit rating. I recently tried to rent a property with my new girlfriend but failed the credit check. I was asked to pay 60% of the 12 months rent up front plus costs (£6,250). This was a major blow, anyway fortunately we found a sympathetic private landlord.

I suppose the good thing from all of this is I have learnt a lesson. I have more respect for money, and I am actually saving where I can. I am more budget conscious when buying items. Oh and I don’t need a Ferrari to make me happy. I now drive a 1998 VW Passat Saloon, all bought and paid for by myself. I am approaching my new life in stages now, and it’s all about rebuilding. My personal goal is to save for a deposit to buy a house.

Take care Ian

I have just been declared bankrupt and have received the first call from the Official Receiver. Although I was unable to speak with him and have arranged to call back this week, I have a genuine reason to get it set aside (can’t remember legal words) I don’t think I’m going too though.

I have a very complex legal affairs having been a property developer for 7 years amassing over £6m in property, most of this has been LPA received and sold for substantial losses, on top of huge debts for cars, credit cards etc, the full extent of my debt is not yet known but will be circa £2m.

I have taken advice from all sorts of people with differing views and having read your website you’ve cleared some of the mess up. , ill definitely let you know as things progress but I’m scared right now in case I’ve done things or have been viewed to have done things wrong. I just want to get this over with and start my life again, it feels like such a mess… anyway I’ll be back but thanks for the advice up until now.

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