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Casey.sr
Starting Member
3 Posts |
 Posted - 19 September 2012 : 04:34:06
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I am very scared to take the step to bankruptcy but I have been going around in circles for the last few years just meeting all the payments but never able to save or get anywhere. Now I lost my job and it will not be long that I cannot meet the payments any longer. I have been living in the UK for 20 years but it is not my country of birth and I have one bank account in another country but there isn't much on it, do I have to close this down? Also I am very worried that if I take up another job again after filing for bankruptcy that I might be put on an IPO which means 3 years of living on a bare minimum, can that be avoided at all? I do not want to run away from my responsibilities at all, but I have not come into debts because of reckless spendings and being punished with an IPO and living on the bare minimum for 3 years looks to me quite tough.
Also, is there somebody on here who has survived being on job seekers allowance whilst bankrupt and be able to build up a normal live with a job afterwards?
I know it sounds maybe over the top but I am just very worried that I will end up social outcast who is not going to make it again.
Many thanks in advance to everyone.
Casey |
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debtinfo
forum expert
2826 Posts |
Posted - 19 September 2012 : 07:09:37
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| Having an IPA/O is not a punishment, it is simply a controled way to pay a certain amount back to your creditors and also to pay for the cost of the work you have asked the OR to do for you on your bankruptcy. If you cannot stomach that then maybe you are not ready for the step of bankruptcy as it is alegal process and needs to be followed, the bits you dont like as well as the bits you do. Finally yes you do need to declare all assets and bank accounts no matter where they are in the world |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 19 September 2012 : 08:03:08
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Agree with debtinfo - bankruptcy and all of it's associated bits and bobs such as an IPA are not a punishment. It is a way out of the spiral of never ending debt.
As with employment - depends on what occupation you are looking at as to whether it will affect you.
The vast majority of people are fine once they have done BR.
Why don't you have a chat with one of the experts that post on here? The advice is free. |
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xmas baby
Average Member
537 Posts |
Posted - 19 September 2012 : 12:03:23
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Hi there,
Don't be put off by a potential IPA. You will only receive one if you have disposable income left over after all your expenditures are taken into account. Okay, so you may not have much 'spending' money left over but it is only fair that people pay something back if they can. I have always found them very reasonable and fair throughout my IPA and they have always been ready to change the amount when my circumstances changed throughout the IPA period. They even halted the payments for the last 6 months or so which helped me a great deal. I am now IPA free as the 3 year period came to an end a few month back. The chances are you have very little, if any, disposable income now if you are struggling to pay off your debts anyway, so I imagine going into bankruptcy and a possible IPA will make very little difference to you financially and at least you can be assured that all your debts are now settled and you can make a fresh start.
xmas baby |
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pcoventry
Junior Member
United Kingdom
235 Posts |
Posted - 19 September 2012 : 17:14:46
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Sorry I thought the IPA was to pay back creidtors and not to pay the OR? If so why do we also pay £525!?
Anyway don't be scared Casey.. It's the best thing I've ever done.. I was more scared of going to court than I was the BR but even that was simple and quick!
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Edited by - pcoventry on 19 September 2012 17:15:29 |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 19 September 2012 : 17:49:03
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The IPA goes to the company nominated by the OR to collect your money (usually Moonbeever) and they then pay your creditors.
The fees to the OR are for them to administer your BR. |
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debtinfo
forum expert
2826 Posts |
Posted - 19 September 2012 : 18:16:53
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| PC coventry - the average cost of administering a bankruptcy is £1715, It is understood by the authorities that most bankrupts would be unable to find the full cost of the bankruptcy up front (in some european countries you can't go bankrupt until a much larger sum is paid)and so a deposit of £525 is paid (this is why it is called the bankruptcy deposit)the rest is paid by any assets or income payments in the bankruptcy estate. There is a strict order of payments, 1 the OR 2 the secretary of state fee 3 any other trustee costs 4 costs of the petitioner 5 any preferential creditors 6 any ordinary creditors |
Edited by - debtinfo on 19 September 2012 18:18:11 |
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pcoventry
Junior Member
United Kingdom
235 Posts |
Posted - 19 September 2012 : 19:14:54
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| okay thanks for the info. and please it's just Pcoventry. |
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debtinfo
forum expert
2826 Posts |
Posted - 19 September 2012 : 19:29:25
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| Doh sorry pcoventry. Must put my glasses on whilst posting |
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pcoventry
Junior Member
United Kingdom
235 Posts |
Posted - 19 September 2012 : 19:56:20
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dont worry i didn't mean to sound rude or anything - just saying!
Your advice is invaluable - you could call me every name under the sun and i'd still have maximum respect! - goes for all experts that I talk to! |
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Casey
Starting Member
United Kingdom
7 Posts |
Posted - 20 September 2012 : 16:56:00
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THank you all very much for your replies.
I do not know who you are 'debtinfo' but though your reply is probably correct in what you say, you do not come across as very symphathetic to me and to tell me that I am not ready for something I am already scared off does not help me at all. My opinion is still, that even though, the law says otherwise, that living on a bare minimum with not even being able to spend more than £10 a month on a visit to the cinema or other social activities which are important if you don t want to end up being isolated, in particular during such stressful time, is not a fair solution. Yes, I agree that it is fair to pay something back to your creditors if you have a fair amount of money left over to pay your creditors, but why then go bankrupt at all if that is the case? But three years spending money of £10 a month is not a fair solution if your debts were not accummulated because of reckless spendings.
Anyhow, debtinfo, maybe you could be a little softer in your replies as you have put me off somehow asking further questions. Thanks again to all the rest of you.
quote:
Originally posted by Casey.sr
I am very scared to take the step to bankruptcy but I have been going around in circles for the last few years just meeting all the payments but never able to save or get anywhere. Now I lost my job and it will not be long that I cannot meet the payments any longer. I have been living in the UK for 20 years but it is not my country of birth and I have one bank account in another country but there isn't much on it, do I have to close this down? Also I am very worried that if I take up another job again after filing for bankruptcy that I might be put on an IPO which means 3 years of living on a bare minimum, can that be avoided at all? I do not want to run away from my responsibilities at all, but I have not come into debts because of reckless spendings and being punished with an IPO and living on the bare minimum for 3 years looks to me quite tough.
Also, is there somebody on here who has survived being on job seekers allowance whilst bankrupt and be able to build up a normal live with a job afterwards?
I know it sounds maybe over the top but I am just very worried that I will end up social outcast who is not going to make it again.
Many thanks in advance to everyone.
Casey
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debtinfo
forum expert
2826 Posts |
Posted - 20 September 2012 : 18:11:26
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| Casey, What i mean is this, i have acted in thousands of cases and seen many different types of people. Some have an easy path through bankruptcy some have a rough time. Often what unites those who have had a rough time, is that they go into it begrudgingly without accepting the realities of what bankruptcy means and so end up spending all their time complaining and butting heads with their trustee. Bankruptcy means that you have lost control of your finances (even if you dont believe it to be your own fault/and even if it wasnt your own fault) and someone as part of the bankruptcy is going to make decisions about your finances for you. Im not saying that you should not go bankrupt, im saying that maybe you need to go away and think about what it really means, those that accept this reality tend to sail more serenly through the process and come out the otherside renewed and ready to tackle life again, those that cant accept that tend to come out bitter and twisted and continue looking for someone to blame. |
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sorting out my life
Starting Member
9 Posts |
Posted - 26 September 2012 : 16:27:12
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quote:
Originally posted by debtinfo
Casey, What i mean is this, i have acted in thousands of cases and seen many different types of people. Some have an easy path through bankruptcy some have a rough time. Often what unites those who have had a rough time, is that they go into it begrudgingly without accepting the realities of what bankruptcy means and so end up spending all their time complaining and butting heads with their trustee. Bankruptcy means that you have lost control of your finances (even if you dont believe it to be your own fault/and even if it wasnt your own fault) and someone as part of the bankruptcy is going to make decisions about your finances for you. Im not saying that you should not go bankrupt, im saying that maybe you need to go away and think about what it really means, those that accept this reality tend to sail more serenly through the process and come out the otherside renewed and ready to tackle life again, those that cant accept that tend to come out bitter and twisted and continue looking for someone to blame.
Hi Casey, I would totally agree with debt info - its a process we all have to go through to make the decision to file for bankruptcy, and sometimes its only when your backs against the wall (so to speak) that you are ready to make that decision. From my point of view I was scared witless of the implications, but in reality it was the best thing I ever did. I clearly could not afford to pay back debts incurred throughtout my marriage to someone with mental health issues, and the Court was very sympathatic to my situation. I was terrified of going before a Court but in reality it was a bit of an anti-climax! Nothing to be worried about at all, it was just the end of one life and the beginning of a new one. If there are genuine reasons why you are in such debt don't be scared, the OR is human and I found them to be very reasonable and helpful, at the end of the day they are there to help. Believe me, I had it all (the big house, new cars) and lost it all, and I'm still standing. Keep strong and don't be afraid to ask for advice. This site is really good and has some very knowledgeable people who have been there and got the t-shirt. |
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Casey
Starting Member
United Kingdom
7 Posts |
Posted - 26 September 2012 : 22:17:03
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Thank you very much sorting out my life for your kind reply this helps a lot. Best wishes, C
quote:
Originally posted by sorting out my life
quote:
Originally posted by debtinfo
Casey, What i mean is this, i have acted in thousands of cases and seen many different types of people. Some have an easy path through bankruptcy some have a rough time. Often what unites those who have had a rough time, is that they go into it begrudgingly without accepting the realities of what bankruptcy means and so end up spending all their time complaining and butting heads with their trustee. Bankruptcy means that you have lost control of your finances (even if you dont believe it to be your own fault/and even if it wasnt your own fault) and someone as part of the bankruptcy is going to make decisions about your finances for you. Im not saying that you should not go bankrupt, im saying that maybe you need to go away and think about what it really means, those that accept this reality tend to sail more serenly through the process and come out the otherside renewed and ready to tackle life again, those that cant accept that tend to come out bitter and twisted and continue looking for someone to blame.
Hi Casey, I would totally agree with debt info - its a process we all have to go through to make the decision to file for bankruptcy, and sometimes its only when your backs against the wall (so to speak) that you are ready to make that decision. From my point of view I was scared witless of the implications, but in reality it was the best thing I ever did. I clearly could not afford to pay back debts incurred throughtout my marriage to someone with mental health issues, and the Court was very sympathatic to my situation. I was terrified of going before a Court but in reality it was a bit of an anti-climax! Nothing to be worried about at all, it was just the end of one life and the beginning of a new one. If there are genuine reasons why you are in such debt don't be scared, the OR is human and I found them to be very reasonable and helpful, at the end of the day they are there to help. Believe me, I had it all (the big house, new cars) and lost it all, and I'm still standing. Keep strong and don't be afraid to ask for advice. This site is really good and has some very knowledgeable people who have been there and got the t-shirt.
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pcoventry
Junior Member
United Kingdom
235 Posts |
Posted - 27 September 2012 : 00:52:20
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Honestly it's not as scary as you think. Yes the OR will have 100% access to your life for a while but it's not all that bad.
For me the court was easy. I went paid my money had the forms checked was told to come back 2 hours later. I went and had a subway and a nice walk - came back and it was all done.
The relief.. oh it's so overwhelming.. :) |
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xmas baby
Average Member
537 Posts |
Posted - 27 September 2012 : 10:18:08
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Hi there,
I also spend years dithering about whether going bankrupt was the best option for me, but after seriously going through the other options such as an IVA, I decided that bankruptcy was the right course for me, even though I knew it wouldn't be an easy ride. Looking back I wish I had done it earlier really. Yes, there are drawbacks obviously to going bankrupt and it is, in no way, an easy option, but then neither was being in serious debt with no hope of paying it off. I was given an IPA, but as my financial circumstances changed during the 3 year period, so too did my payments until finally during the last 6 months of my IPA it was suspended and I ended up paying nothing more. The lasting impact of going bankrupt is the bad credit rating which lasts for 6 years from the date of bankruptcy. This means that during this time it will be hard, if not impossible to get any credit although once the 6 years is up, your credit file is wiped clean. I find it a bit hard not having a credit card, especially for paying unexpected expenses like car repairs, etc, but I have managed for the past 4 years, so another 2 is hardly going to kill me. As another poster has already said, bankruptcy should never be looked on as an easy escape route, but it can help you to clear your debts and start again, albeit with having to make certain sacrifices. I think you will find that once your expenses are taken into account you will have money left over to still have some kind of a social life, albeit definately not an extravagant one.
Good luck
xmas baby |
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I am very scared to take the step to bankruptcy
