Has anyone ever declared bankruptcy?

[QueenofTea]

Hi,
I was wondering if anyone could offer some advice? DH and I currently have debts of approx £18000 between us, along with a mortgage of £160000. At the moment we can afford the repayments, as we both are working full time. Unfortunately due to lots of horrible life events etc, I've suffered from depression for about 18 months now. It's getting to the point where I don't think I can carry on in the job I'm in. It's quite a responsible job, and I'm afraid of making a mistake and causing bad things to happen. I went off sick for several months, and came back too soon really. I can't go off on the sick again, as they will probs just retire me on ill health grounds (something I cant really do at age 30!) I know I could probs work in a minimum wage type job with few responsibiliteis, but obviously cant afford to then repay any debts. What I really wanted to know was, I know everyone says declaring bankruptcy is a bad thing, but I really don't know anything about it or what is involved. I'm prepared to explore all options, but all I can think of is if I was debt and mortgage free life would be so much easier!
I'm so sorry for the long post!

There are a lot of other things you can do to reduce the anxiety around debt before bankruptcy becomes the best option. Bankruptcy is very much a last resort for people with no prospect at all of repaying their debts and must only be considered with full professional advice because the impact is very long-lasting.

Your main anxiety appears to be around your job. Talk to your employer about your problem with depression. A good employer will not sack someone for being sick. You may be able to be reassigned to a less stressful role, for example, or have your workload reduced until you're feeling better.

Secondly... anxiety about money can often be reduced by taking charge of your finances and creating some light at the end of the tunnel. There are two of you in the relationship. Have you ever sat down together and gone through your income/outgoings in detail? Have you considered talking to any of the free debt advice services such as CAB? It could be, for example, that with a little budgeting, different choices and some reorganisation, you can increase your disposable income and develop a plan for paying off the debts a little quicker.

Good luck

I went bankrupt in 2006, it was the best option for me. My credit score becomes clear next January

chili is right your anxiety seems to be round the job not money, her advice is very good

Thanks for replying! You're right, my anxiety is about the job, I'm at breaking point really. I'm not work shy, just not suited to what I could once do. I guess my problem is the only way I can feel truly free is to have a much less stressful (and therefore more poorly paid) job! DH and I were stupid and irresponsible with money in the past, and have spent a lot of time trying to repay and reform!

If you go bankrupt, you will loose your house as you own it. Second seeking advice, CAB if you can get an appointment, or the national debtline (government backed one, not the one selling IVAs).

What queenoftea said re the house.
I haven't been declared bankrupt, but know someone who has. First thing to go was the family home.

If you want to reduce the anxiety in your life you always have the option of downsizing... ie. selling your home & moving to a cheaper location to do something less stressful and maybe more rewarding at the same time. It's obviously something you have to talk about as a couple but it's easy to feel trapped in a lifestyle or a location and forget that there are lots of alternatives.

In the meantime, as I said earlier, if you feel the money situation is out of control, that will only add to the stress. Whereas if you decide to manage it better & reduce your debt (with help from a free agency if necessary), that alone can make you feel more in control and the stress levels go down.

Turkeyboots - just for your info, national debtline is NOT government backed, it is backed by the major banks so all the dmp's mean no cash write offs as in IVA's!!!!!

My husband declared bankruptcy 2 years ago. We did not loose the house (jointly owned). We have restrictions for the next couplke of years but living off the cash we actually have rather than credit we could never repay has made life so much easier.

We were declared by the IR a few years ago after our business went under.

The months leading up to it were hell on earth and the stress nearly killed us.

After it was over, it was fantastic.

We had nothing to lose - asset wise, we'd already sold the house right from under the bank just after the business folded and had nothing of value so they just gave us early discharge after 6 months.

Best thing that ever happened to us.

Don't imagine we'll get much in the way of personal credit but after all we've been through, we wouldn't bloody want to end up saddled with thousands of pounds worth of debt! Got a small catalogue thing, but very affordable. Nothing else.

We are now starting again, with a new business in a different field, doing things VERY differently! Having learned a lot of hard lessons.

Onwards and upwards, I say!