What do you think about bankruptcy

[yeye]

who in here claimed bankruptcy? how did it affect your life?

Yeye - not been in that position myself but you may find it useful to look at this site as quite a few people on there have gone bankrupt recently. Most of them seem like ordinary, decent people who have just let their finances get away from them, and find that bankruptcy has given them literally a new chance at life.

However, there's a lot to consider, particularly if you own your home, well worth looking at National Debt Line and this website written by a debt counsellor.

Hope this helps.

Hi yeye - I think that there are likely to be major differences in bankruptcy legislation between US and UK. Can't offer any US advice - sorry. (I can't offer any UK advice either - but most of the posters here will only have UK knowledge.)

Hi - my separated husband declared himself bankrupt last november as his business was seriously going under. Fortunately I moved out at the beginning of last year anywhere so it didnt really affect me. We didnt own a house as we had always rented so we didnt lose that but its the little things that are difficult as for instance none of the banks are interested in having a bank account with a bankrupt person and therefore things like he received housing benefit via cheque and had nowhere to bank it! the housing benefit wouldnt pay him any other way.. also you arent allowed any credit as such for a while so things like paying council tax or water rates all needs paying at once..
I dont think he would of changed things having known what it would like as he had no other choice but it wasnt quite as plain sailing as he thought and a bit stressful. Its now march and
there is still some paperwork outstanding for it.
please ask if you've any further questions.

hi amylou..
my dh is trying to file for one but i am not sure if he should do this. He owed so much credit cards and medical bills. They are actually calling him everyday, some of them are already suing him and made a court date but for some reason i dont want him to file for bankruptcy. For him he feels like he has no choice. He doesnt eve have enough money to cover our bills(rent,utilites,food). For now my dad is giving us some amount to help pay for his school tuition.
I dont know if he has a choice or i dont know if theres any other option.

Yeye - I know people who have declared themselves bankrupt more than once. They run up huge credit card bills then just wait for the companies to chase them.... then they file for bankruptcy and start over!! Makes me spit blood .

My DH defaulted on a bank loan a couple of years before I met him. He tried to declare himself bankrupt since his credit rating was seriously damaged anyway.... and he has no intention of starting up his own business. But he couldn't declare bankruptcy until the Bank sued him. He wrote to the bank with his current address. That was 4 years ago and we've still heard nowt! So he's left in limbo. I wish we could get this sorted out coz we can't take his earnings into account when applying for a mortgage.

Yeye - It sounds like a solution the problem. I would advise you to go ahead with it. Good luck.

Has he tried the CCCS? Consumer Credit Counselling Service, are a registered charity and don't charge for any advice or managing your debts or anything. They'll deal with creditors on your dp's behalf. I've been with them for two years, 20 grand of debt, the creditors like dealing with them as they really help you and them without making any money themselves.

Sorry to butt in.

I haven't but it's a last resort and shouldn't be undertaken lightly. (not suggesting you are, just that it's not worth it for £6k or whatever)

Yeye
Are you in America? I declared bankrupcy in the US after divorce, medical bills (was uninsured) and redundancy. With no job, there was NO way for me to pay.

If you are in America, I suggest speaking to bankrupcy attorney now, b/c the laws are set to change in May and make it harder. TBH, it was easier than I thought. I had no assets - not even a car (I was using one of my boyfriend's and living with him). I let it go too long and it caused me a lot of needless stress. In the US, it was much easier to recover from bankrupcy. I had offers for credit cards coming thru the post days after my bankrupcy was finalised (didn't go down that road again, however)!

I looked into bankruptcy but haven't done it for one big reason. Not only will my credit rating be knackered for at least 10 years, it will do the same to my dw even though the debts are nothing to do with her!!

Because of the healthcare 'system' in the US, there's no great stigma attached to bankrupcy anymore there. About 40% of all personal bankrupcies are the result of medical bills.

It's not the end of the world, yeye, particularly in the US. It's incredibly common.

my dh most likely will file bankruptcy because i laid off from my job and ive been trying to look for another job. My dh is only one thats working and he doesnt even make enough. We keep dipping money from our savings because his paycheck doesnt cover the bills. geez money really come and go.