has anyone regret going bankrupt?

[stuffedcrust]

am seriously considering it but i don't want it to be a mistake. i would like to hear from anyone who has been through it, any advice welcome. thanx

I went bankrupt a month before DS1 was born, I was clearing the debts gradually but on mat pay the ends wouldn't have met so I jumped before I was pushed.
No-one knows except DH and I, and the mortgage advisor who helped us buy our house but because I'm not earning I am not mentioned on house deeds so kept it simple. I don't know what effect I would have had on our mortgage-ability
It was 5yrs ago. I do have a credit card now but each time they write to me and say we're raising your limit I ring them and ask them to leave it where it was! Its basically for collecting tesco points, and gets used mainly for food shopping. I don't carry it around with me
I was amazed when we were approved for credit for new sofas in my name (purely because I had my bank card on me and DH didn't that day!)
I had to get a new bank account, didn't have a problem getting a standard current account with a switch card, can't remember if I had to tell them why I was moving banks
It had to be in the paper but I didn't know many people so didn't worry me too much.
I can't say it has had too big an effect on me, I am getting better at budgetting, I think I would do the same again given my time over (depending how far back I could rewind time, ideally I wouldn't clock up the debt in the first place)

thank you. mine is'nt due to running up debt but from leaving an abusive relationship resulting in the house being repossesed & selling for much less then we paid for it.
with regaurds to the bank account, does your current one become frozen? when i spoke to someone at CAB i was told to take out all my money as i won't be able to use it for a bit? i'm just worried about where my money will get paid into.

In that case, congratulations for taking such a positive step.

Have you looked at any of the alternatives to bankruptcy, like an IVA? They work out how much you can afford to pay after working out reasonable living costs and deal with creditors so they accept, for example, 70p in the £1? Think they're spread over 5 yrs so a reasonably long term solution, but at least its a fixed amount and you don't need to worry about interest building up

It ought to be fairly simple to get your child benefit etc paid into your new account but I'm not sure how you stand on opening the new one before your old one is frozen - I think you have to give details of all your accounts on the bankruptcy paperwork, it might have to be a case of empty old account, hand in bankruptcy paperwork, open new account, ring child benefit with new account numbers.... and breathe!

Stuffedcrust I am potentially in the same situation as you - good luck - i'll be watching this post x

There is quit a hefty admin and court fee to pay it was£400 when my friend did ir in 1998. Also it is not private as all bankruptcies are made public and put in local papers

I declared bankruptcy in April - for various reasons. It was pretty straight forward.

The cost is £700 cash. You can download the papers from the internet.

In the past, it was publicised, and I am sure that if you search on the internet you will find my name. But I can assure you your name will NOT be in the papers.

The interview with the Insolvency Service is pretty straight forward.

I am glad I did it I had no choice.

Best thing I ever did, wiped the slate clean and I'm nearly 3 years in, my bankruptcy was discharged after 6 months so just waiting for it to disappear from my credit file now

As said your name is not published in the local papers anymore. The fee is £700, you may be able to get a remission on the court fee if you are on certain benefits or a low income. Get yourself a Co-op Cashminder or Barclays Cash account as they are the only two bankrupt tolerant accounts. Some other banks may let you keep the account running but you will never know for sure till after the bankruptcy

Go and post on the bankruptcy board of MSE, there is a lots of useful info and links and a sticky all about bank accounts.
forums.moneysavingexpert.com/forumdisplay.php?f=136

forums.moneysavingexpert.com/forumdisplay.php?f=136

Hopefully that's a link that works now.

How long does it affect your ability to hold credit cards/bank accounts etc. now? Back when a friend of mine did it in the early 90s, I think it was 7 years. He found it a bit of a PITA because he could only deal in cash for those 7y; but my info is well out of date.

The Co-op Cashminder account comes with a Visa debit card, DD's and SO's, telephone and Internet banking. You can use the Post Office to deposit cash and cheques and use any Link cash machine to withdraw it

You can get a Cashplus Gold Card which essentially acts like a MasterCard but you top it up to spend it.

After doing a credit file clean up after discharge from bankruptcy then you can usually get a Vanquis CC at an extortionate rate but with careful handling and paying back in full each months you can start to rebuild your rating and get better deals.

I was bankrupt under the old rules, some time ago. It was a business debt that got me - my business partner took our money and ran off with it and the VAT people were not too impressed. My personal bank account carried on - I explained the background to them and they saw no reason to change things apart from removing the overdraft facility. Under the old rules it was on your record for 6 years. I paid back £300 per month ( had a reasonably high income then) and after 3 years was discharged. I now have a perfect credit rating and it is all in the past. Much better than struggling to pay on a voluntary basis and never seeing the back of it.

thank you everyone
the lady at cab helped me with the forms. she said that it would be on my record forever?
so after i go to court, apply for bankruptsy, get a phone call from OR what happens? do i need tto pay any other money to my debt?

When did they stop publishing it in the papers? My ex's was published in 2008. Personally I would never ever do it as I honestly could not bear the shame of it. I even paid of huge debts left with me by my ex rather than have the shame of being a bankrupt. I have just transferred the last 2k onto 0% CC. Personally I would make an effort to pay it all off - it will stay with you, it will be a prob if you need a mortgage or good rates on anything.

I agree. If you can pay it off, no matter how long it'll take I do believe that morally you should.

I do think personally, it has become a bit too easy.

A Bankruptcy will NOT be on your file forever - any defaults registered prior to going bankrupt and the BR will fall off your credit file automatically after 6years from the date of your bankruptcy order. You can take steps to clear up your credit file when you have been discharged from bankruptcy.

It is true however that if you are asked on an insurance/mortgage application if you have been br you should answer truthfully.

Bankruptcy is still sometimes advertised in the local paper - but mainly ex company directors. Individuals are not really advertised anymore mainly as to keep the insolvency service costs down

You do not get away without having to pay anything if you are made bankrupt - I had to pay £300 pcm for 3 years (old rules) as it was a business failure and the debts were over £200k I would never have been able to clear them.