Bankruptcy. Any experiences?

[SweetValleyHigh80]

I have posted the same thread in Chat, am also posting here hoping someone can help :-(

Hi,
I have namechanged to start this thread as I don't want it following me around the boards.

I am in a position where I might have to declare bankruptcy. I am going to ring Citizens Advice later today for some advice but I wondered if anybody had any experience of bankruptcy that they would be willing to share?
I am in debt of just under £14,000 on credit cards, store cards and catalogs. I can barely keep up with the minimum repayments. It is all my debt, not joint with my husband and he didn't know about all of it until this week, which is a whole other story. Can anyone tell me was going bankrupt something you regret doing? Was the process humiliating and awful?

I have read some articles online and I can't seem to find a definite answer to two questions. 1. Do they take into account your husband/partners income and 2. Do you still have to repay your debts once you have declared bankruptcy? I read something yesterday which says that the official receiver will look at how much income you have and decide how much of that should go towards your creditors. I thought that bankruptcy wiped your debts out, is that wrong? Do you still have to repay?

As I said I am going to ring up later for some help but I am shite on the 'phone and would be greatful if anybody has any experience or could help.

Please don't flame me, I am ashamed of myself for getting in this position and I am desperate to see a way out of it. Thanks.

bumping as I'm also interested in the answers.

Have you been in touch with Steo Change, the debt charity, to see if there are any other options available to you?

A debt relief order would be more appropriate than bankruptcy. There are other options as well, both formal and informal. You must get some advice because dro and bankruptcy have ramifications both if you are renting or have a mortgage. Stepchange are very good.
Bankruptcy is a legal remedy and involves applying to court for an order. It is unlikely a judge will agree to a BO for that amount, particularly if you have not taken legal advice. A BO does not wipe out debts as such. Once an order is made, the insolvency service contacts you for an interview, usually carried out over the phone at a pre arranged time. If you are deemed to have more than 100 pounds or so available each month after allowable expenses, you could have a bankrutcy agreement or order made against you. This means you have to pay toward your debt, to the I S, for a set period, up to 3 years. If you are deemed to have no spare income you are usually discharged after a year and the debt written off. During the bankruptcy period creditors should not pursue you, and same once discharged. It costs about 800 or so pound in fees.

A DRO is a lot cheaper and more appropriate. Speak to Stepchange.

Have you looked at moneysavingexpert web site - lots of people have cleared much much worse debt than that.

Agree with pp that you should probably look at DROs, and get proper advice.

I went bankrupt 6 years ago and I didn't find it humiliating or awful. It was just an administrative procedure really, a lot of form filling and getting information together. I was single, so I don't have experience of how they consider a partner's income.

I didn't repay anything after I declared bankruptcy, but that's because I had a low income from benefits at the time. They look at your income and outgoings, and if they think you have enough money spare then you're expected to pay towards the debts. If your income is just from benefits then they don't ask you to repay. My debts were fully wiped one year after bankruptcy, when I was discharged. I'm debt-free now - it's much easier to budget for everyday expenses, now I don't have lots of repayments to make.

I don't regret doing it at all. It should fall of my credit record later this year, and I've been rebuilding credit using a credit card (which I pay off in full). It didn't affect my rented flat as it's a council tenancy and they don't do credit checks.

If you were barely able to keep up with the minimum repayments before telling your husband, now that you have told him why can't he help pay off your debts?

Hi Op, I would suggest you have a look at this website and get some proper debt advice before you do anything.

debtcamel.co.uk/