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Bankruptcy anyone been through it?

(47 Posts)
missyhols Mon 23-Jul-07 23:10:28

Dh and i are just about to go through it anyone else been through it already?

And yes we have considered all options. Baby due in 8 weeks and dd is 19 months!

pinkystinky Tue 24-Jul-07 06:13:57

Me and dh went bankrupt 3 years ago!

swanseadaddy Tue 24-Jul-07 16:14:33

i helped a close friend thru bankruptcy, if there's any info you want please ask

AnAngelWithin Tue 24-Jul-07 16:21:21

me and dh went through it last year. was heavily pg with dd2 at the time. although stressful at the time, looking back it was the best thing we did. feel free to ask any questions.

missyhols Tue 24-Jul-07 20:17:47

Thanks girls. Our day with judge is the 9th of august. We looked at house to rent today and will hopefully secure that tomorrow morning. I can't wait for it all to be over so i can concentrate on dd2's arrival! I'm worried we will lose our car as thats only thing we have! just two and bit weeks to find deposit for house as we're moving out as soon as the 9th has happened.

Did anyone else go into rented accomodation?

I'm waiting to hear from people who can help with deposit.

expatinscotland Tue 24-Jul-07 20:20:28

I have, but in the US.

It was such a relief after it was over!

I couldn't believe it.

I had been so distressed. I did everything to try to work things out.

Much empathy.

It may seem like it now, but I promise you it's not the end of the world.

expatinscotland Tue 24-Jul-07 20:22:05

I was living in rented accommodation already. Had NO assets at all - was borrowing one of my boyfriend's cars.

missyhols Tue 24-Jul-07 20:55:18

I know it will be better. We have been taking advice and having reg appointments with the cccs and have tried so hard to avoid it. But now i just wish that the court day was tomorrow. I'm terrified with losing the car as i know we won't be able to afford a car after. The thought of being heavily pg and young toddler with out car terrifies me. I know people do it everyday, but all my family and friend live a 30 to 40 min drive from me

missyhols Tue 24-Jul-07 20:57:59

Forgot to add that we share the car and we use it to travel to work. Its not a luxury we have each IYKWIM

expatinscotland Tue 24-Jul-07 20:58:53

If you need it to travel to work make sure your solicitor knows this!

whomovedmychocolate Tue 24-Jul-07 20:59:54

My DH is a retired insolvency practitioner - if you need any advice, CAT me and I'll get him to answer your questions.

Good luck. It's a tough situation to be in but within a year you start coming out of it and it's a fresh start.

missyhols Tue 24-Jul-07 21:11:04

Thanks. I'm bit concerned that our bank account will be frozen as what about our wages?

Also we don't have solicitor just us! All advice so far has been with cccs and other debt lines

whomovedmychocolate Tue 24-Jul-07 21:13:27

Missy - cat me with the details and I'll ask him for you. Please try not to get too stressed, you have two kids to think of (as well as yourselves!)

missyhols Tue 24-Jul-07 21:20:19

Its saying i have to pay to cat?

whomovedmychocolate Tue 24-Jul-07 21:23:32

Hang on, I'll cat you instead then.

missyhols Tue 24-Jul-07 21:45:55

Sorry to be a bimbo where can i pick them up? I use internet from mobile so only get so much from the web sites. Will it go to my hotmail add that i reg with?

whomovedmychocolate Tue 24-Jul-07 21:54:30

Yes. How on earth are you mumsnetting then?

missyhols Tue 24-Jul-07 22:12:38

Lol. Just checked my emails but nothing there. I use my mobile phone to get online but i can't get on to that top bar bit at top of screen and i can't alter my details etc. But can post etc.

whomovedmychocolate Wed 25-Jul-07 09:56:28

Okay - post your specific questions then

missyhols Wed 25-Jul-07 17:09:32

Lol. Ok wasn't sure what will happen with our bank account? We were told to take money out to live off etc. Also will they take our keys? We're moving into a rented house the day after.

missyhols Wed 25-Jul-07 19:40:55

?

whomovedmychocolate Wed 25-Jul-07 20:54:56

Bank account will be frozen and closed on bankruptcy - you will need a new account, you get special terms (no cards, no overdraft etc). They won't take your keys without an order from the court and in practice there would friendly court discussion about what would happen to the house.

If you have somewhere to rent, just get on with it and then hand the keys over. You could apparently just sit in the house and not give them the keys and it would take quite a while for the court order to be made to take over the house (up to a year) but I would understand why you wouldn't want to do that with a little one on the way.

Salary goes to you, can't be attached to the debt without agreement or a court order, but if there is surplus income (over and above your reasonable living needs) you will be asked to enter into an agreement to pay creditors.

Bankruptcy rarely lasts longer than a year but you could be asked to make contributions for three years if you do have surplus income. Surplus means over your basic need.

If you have an ordinary modest valued car which you need for work you'll be allowed to keep it. If it's a plush car it will be sold but they have to buy you a replacement modest car.

missyhols Wed 25-Jul-07 21:03:58

Ok thought so. So I'll get the money out for food etc and the money for court fees. What about direct debits such as gas etc? We already have the most basic account as we've been trying to start over but we have a deficit of £500 at end of month so no surplus.

Our car is prob worth 3 grand so nothing plush. Thats the only thing we own if you know what i mean.

Def want to get out asap and start over and settle in time for new baby etc

whomovedmychocolate Wed 25-Jul-07 21:07:30

Your bank account will be closed. You will have to set up new accounts with the utility companies. Don't worry they are used to this, just tell them once you have your bankruptcy order from the court. Then you need to find a new bank a/c

The surplus means anything that isn't 'reasonable' so I guess it depends on how you live on whether they'd deem it reasonable.

However, if you have a £500 deficit, how do you plan to manage when you have no access to credit - post bankruptcy. Is the £500 due to debt repayment?

whomovedmychocolate Wed 25-Jul-07 21:08:51

Sorry should have said, they may not do direct debit if you are a bankrupt, they may give you a prepayment meter. Some will, but you may well find a bank account for bankrupts wouldn't allow you to use DDs anyway (some do, some don't).

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