Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By doglover
#2755 Hi all
Just want to report back on how the bankruptcy proceedings went.
As of 11.25am yesterday, i was declared bankrupt.
Got there about 10am. Filled in half the forms (that i recieved through the post from the court beforehand) before i went and left the ones i had questions on, til i got there. The clerk, Brenda, was very nice. After checking through the paperwork with me, she photocopied in triplicate.
The paperwork was sent upstairs via me, to the usher, who passed it to the judge.
I had to wait about 10 mins to see the judge, who was also very nice. I explained what had led me there and he made the order straight away.
I then had to go back downstairs, with my yellow folder and give it back to Brenda.
I was then told to sit near the phone as when it rang it would be for me, given a copy of my form i had filled in previously to go over anything the OR might ask and waited about another 10 minutes till i got the phone call.
The OR was also nice. Explained to me about the forms i would be getting through the post to fill in and return to her.
I was told to open a basic bank account and the building societys are supposed to be the best as they have less rules.
She explained that as i had a car (only worth about £500) and need it for work, to fill in the exempt form, included in among the forms i was being sent and then in future the OR wouldnt be able to consider taking it (even if i left employment next week, once the form is filled in, they cannot take the car)
She made a telephone appointment for the 11th Jan, by which time she will have contacted hopefully all the creditors on my form.
I have to keep and send her any letters from creditors asking for money, my accounts for when i was self employed and bank statements.
She said if i thought of anything else, then to tell her when she rings.
(i realised when i got home, that i forgot to announce my child benefit on the forms. I also need to get an address for a creditor)

Thats about it really. No dramas, no hassle.

I'm not even worried about the OR telephone call, as i have nothing to hide or be worried about. Just a set of unfortunate circumstances that led me to the banckruptcy court.
You have to remember that this is a job to them and they just want to get you through it and on to the next person as quickly as possible.

Now i just need to sort out a basic bank account for C.S.A., child benefit and wages.
Can i do this over the phone or internet, or do i have to do some legwork round town?

I will update you further, after the OR interview on the 11th Jan.
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By Nicky
#2757 Thanks for posting doglover. Pleased it all went well for you, what a relief hey! :D

I dont know if you would be better speaking to someone face to face regarding opening a new account. Others will be able to better advise you I'm sure.
#2775 I found it far easier to do it in person - bear in mind that the person you will speak to in the branch is probably earning minimum wage so there is no stigma involved.

I found Nationwide fastest as they will give you an account number there and then although there are others ( a few ) that offer acounts to bankrupts.
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By JaneClack
#2791 Yep, Vanessa is right. The Nationwide have a flexaccount cash card that does direct debits, standing orders and gives you a hole in the wall card you can use anywhere (having used mine in Paris and Brussels recently!). The Co-op also has a cashminder account - takes longer to open but also supplies an electron card so you can use it as a debit one in lots of places.

Thanks for letting us know how it went, doglover and I hope to hear that you have been discharged in July!
#2822 Hello

As Sarah and Vanessa have said, the Nationwide do a good basic account that's open to UBs, with a great internet banking facility. I opened one on the spot with passport, driving licence and a recent bill.

Be warned, if you want to open a Co-op account you need two separate pieces of ID identifying you, and two further pieces as proof of address. This account also takes a few weeks to open.

The Woolwich also offers an account for UBs with an electron card. There is no internet banking but it does SOs and DDs, need £50 to open but can be opened on the spot with 3 pieces of ID and no hassle.
By doglover
#2934 Hi
The lastest update is this
Had OR interview by phone. She had not recieved my paperwork but gave me another 2 days to get it to her.
I explained that my memory was like swiss cheese and if i forgot to put anything in she would have to ring me again and i would send it on.
The OR was satisfied with my replies and automatic discharge in a year.
If she completes all the paperwork earlier, then i will be discharged earlier, as in simple cases like mine where no further investigation is neccessary.
Have been into the Nationwide but as its a local branch, they said i need to go to a main one to open an account.
I will be doing this on monday, now i know the ID required.

Thats about it, really.

WOuld just like to say thankyou to everyone that took the time to answer my questionsand the help i've been given.
I can understand how nerve racking it is but really, bankruptcy in this day and age is NOT the stigma it used to be.

I will pop in from time to time and let you know when I am discharged.
By chivasgirl
#2937 Doglover, thanks for posting your experience. I really think that the more people who do this, the less people will be terrified about the process and end result of bankruptcy. Reports like yours make it easier to face the courts/OR because you are all telling us how it was not as bad as you thought. We probably all think it's going to be awful, all have the same awful stomach aches etc, so to know others in the same situation are coming out of this intact, it makes such a difference.

I have received alot of advice from Simon and also from here, realised that we are by no means the worst offenders even though it felt like it. £80k debt between two people is unacceptable really. But we had a good joint income which meant we could keep up payments, lived in the south east, I worked in London for 15 years which really meant alot of spending. It's hard trying to keep up with your far wealthier colleagues. It's not an excuse but it is a contributory factor. Never realised quite how fragile things were - only took an illness which meant my husband had to leave his job, and then 3 months unemployment on my part, and we were facing calls every day. Takes years to build up your credit rating, weeks to wreck it... :(

We have got to the point where we have had our valuation which gives us approx £7k equity, which my in-laws are prepared to invest into the beneficial interest. Simon has advised us that it is certainly worth my husband trying to get a full and final settlement on his share of the debts, which is approx £25k. He'll only have a very small percentage but as soon as we have our trust deed signed and sealed we will be approaching his creditors. As I have more creditors (although a couple are with the same company, just under different part - loan and card with same company), and approx £55k debt, I don't think I stand a chance, but I have resigned myself to bankruptcy and have come to terms with it.

I am just praying (against hope I'm sure) that they will be ultra nice to me and let me keep my car, which is worth around £2k. As it's an import it's hard to value but at least part of the requirements for my job is to be a car owner as I will have to travel between sites. Also, since I start my job on Monday and will be on a trial period, I hope that the OR will see that I can't be without a car until I'm a bit more established in the job and will be able to cope for a few weeks without one if they take it off me. It would really give a bad impression in the first few weeks!

Doglover, thanks again, and I am going to track your last postings so I can see what your whole situation was, it all helps.