After setting up a limited company to carryout a building project, my husband and I after 18 months had to throw the builders off site and finish the build ourselves. Three years of legal wrangling followed by a court case resulted in a loss for us (because we were fair minded people) and a debt of £180k. With a mortgage, loans and credit card debt on top, the only avenue for us was bankruptcy. We have spent many years of worry with the legal battle and court case which was a walk in the park in comparison to the worry of bankruptcy.
Even though we have only been bankrupt for 17 days and have only spoken with the official receiver over the telephone, we are starting to feel there is light at the end of the tunnel. I had last week my first experience of restriction when I was unable to view my bank account online. It seemed that its OK to have the money in there, but you are not allowed to view it or talk over the telephone with the bank. I found the idea ridiculous.
Having the amount of money you are allowed each month limited but expected to travel several times a month to the bank to view what you have which costs more in fuel, or being charged for weekly statements is just punishing a bankrupt because they can. During the course of my work I have the ability to view the Company’s bank account and print statements, I can move money around just simply view it, why cant a bankrupt have the same facility? The bank staff treated me with very much “i don’t care” attitude, whereas before they were so nice. It seems as soon as you are bankrupt even though it may not be your fault, you are viewed as some kind of leper. I have decided to take each restriction as it comes, its just being taken out of your comfort zone, don’t get upset or frustrated, just look for a way round it. I know its not going to be a walk in the park, but its not for ever. Learning to live without credit can be easy if you want it to be.
Lynne describes what happened to her bank account when she declared herself bankrupt.
When I declared myself bankrupt on the 19th Jan the official receiver informed The Yorkshire Bank who closed both my savings and current account. All the monies in both were taken. This left me with nothing to live off. When I complained to the manager at the official receiver’s office I was informed that it should not of happened and they said that my account would be refunded. The problem is that I cannot now get an account anywhere so the cheque is being sent to my son. I went to Barclays for a basic account. It went to appeal and I was asked to go back for a 3rd time. I was declined again and advised to get a credit check.
I feel so ashamed about what has happened to me as my ex-husband had a gambling addiction and ran up lots of credit cards which he said are not in my name. I’ve lost not only my husband, house (got repossessed), car and caravan but my life and self respect . For now I ‘m having my wages paid into my son’s account.
After the breakdown of an 8 year relationship in 2007 my then ex-partner left me with £13,000 worth of debt. He also disappeared into the ether with anything of value that I didn’t manage to get out of the house before his return from the holiday we were meant to go on together. As I was employed part time at this point, I had nothing extra to give my creditors. After receiving calls at work over four months from a High Street bank, I finally admitted defeat and declared myself bankrupt in August 2008. My advice to anybody thinking of going down this route, I sympathise completely and offer the following advice:
1) For me the County Court judge was fair and balanced when considering my petition. I did not even have to speak to the judge in person.
2) The bankruptcy petition may be daunting but be totally honest with the Insolvency Service from the outset – they will catch you out in their good time and there is a penalty to pay for lying.
3) As my petition was straightforward (not involving assets such as a house or business or savings abroad etc), I did not have to meet the Official Receiver but was allocated to one of the Insolvency Service staff. However, the important point here is that if you are interviewed by the Receiver (as I was), then be prepared for all eventualities. I found it very hard to believe that during the 50 minute interview call, I had to convince him that he should not seize my 12 year old Peugeot with almost 110k on the clock as an asset. If you have a car worth selling, the receiver may seize it as an asset as the primary aim is to pay back as much to your creditors as is possible. He allowed me to keep my beloved car as it would cause hardship for travel to work, thereby worsening my situation. In the weeks following, my tax code changed for 12 months as any tax paid is used to pay your creditors. I also decided to tell my landlord that I was now bankrupt in case the receiver’s Officers do. I found it easier to speak to my landlord first and he was very sympathetic. Two years on, I am still living in the same flat. If you don’t fall into rent arrears, it will help your credit situation no end, and I have been promised an excellent tenant reference when I leave the flat this Spring.
4) There is light at the end of the tunnel for anyone going through the stress of financial problems. I lost weight and became ill until the bankruptcy was organised. I am now free of debt but feel guilt at times that I didn’t hang on to try to sort my debts out. However, I felt there was no choice but to admit that I could no longer carry on with debt I knew I would never be able to pay off. Please do talk to friends, colleagues, family and organisations that can offer help. I found them very helpful. All is not lost and you will find things improve over time but it won’t be an easy time. Think positively and make plans for your future – you do have one!!
Ann Marie.
I quit nursing in 2005 as i was fed up with it all. I bought an upmarket cafe in a very small town, no competitors and good turnover. I had a lovely house and a beautiful girlfriend – all looked rosey for the future. Almost immediately things started to go wrong, the business was not as profitable as the sellers had made out (my fault for not checking properly) a lot of the equipment was outdated (my fault again) and there were too many overpaid staff. Basically it spiralled out of control, i racked up debt trying to sort things out – managing to survive while the economy was good. Finally the economy crashed, roadworks hit my town for 6 months and my lifeline, my girlfriend, got fed up of my 80 hour weeks and left, selling the house as she went. I foolishly sunk my proceeds from the house sale into the business and plodded on.
I realised there was a problem at this point – I took out an IVA – bundling £1500 of monthly payments into £220 – making things much easier. However after a year, my mental health was failing, my physical health was failing, i was lonely and hated work. Business had not improved, in fact with the worsening recession, it had halved! I tried to sell – no joy! Finally after an argument with one of my staff over her redundancy pay – i flipped – closed the doors and walked away.
Fast forward a month, i had escaped to a job offer in France and was returning to the High Court in London to declare bankruptcy. A professional (sorry sir, i have long forgotten your name) filled out the forms for me by telephone interview and had forwarded them to me, i was stood in the High Court, money in one hand, forms in the other. I handed over my cash, only to be told that i was paying too much – i was now officially poor and did not have to pay the full £510. The staff in the High Court were amazing – friendly, understanding and helpful – 5 hours later, i was back on the Eurostar heading for France and offically bankrupt.
11 and a half months later back in England, i am fit again, healthy again and most importantly, happy. I have returned to nursing – no longer bitter about it, enjoying its daily challenges and cheerfully smiling at those that moan about how bad it is.
In 2 weeks, i will be discharged – that is not the point my life started again though, it was definitely the day i signed the dotted line in the High Court.
Do i recommend it for everyone – no, of course not – i had no assets at all, no family to support, no car, no life – in my case it was the choice of bankruptcy or early grave. I will struggle buying a house but apart from that, i won’t attempt to get credit, I save money for what i want. I am wiser, happier and grateful to those that helped me get my life back!
My wife Sara and I had been in Debt Management since May 2000. We had been keeping up the payments each month and were very slowly we believed getting out of debt. Then at the start of 2010. My earnings had dropped by a large amount.
I knew several people that had gone bankrupt and I decided to investigate this route. I found Piggy’s site and, using this and other reference materials, decided this was our only way forward. Having no assets it seemed logical. So I went to the court obtained the paperwork (petitions etc) for both of us and filled them out. On May 17 2010 at 09:17 we were declared bankrupt.
Two days later I was interviewed over the phone by he Official Receivers Office, about 30 minutes interview that was it! Because of my earnings we did not have to pay anything towards our bankruptcy. On the 21 October 2010 we were given early discharge.
So Thank you Piggy for this site it was useful to us, we found the whole experience quite painless and now are happier than we have been in ten years
