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

Moderators: TalbotWoods, JaneClack

By Morgana
#4517 Posted a while back you may remember me so you should really read my other posts.

Basically I have now went back to work but I have had to change my hours to part-time because my health cannot cope with full-time hours. I therefore will not be able to pay very much to payplan on my dmp. My creditors are now ringing my workplace as well as ringing my home constantly and some of them are still added interest and countless fees and I now owe well over £25k.

I really really cannot cope with the stress of this for very much longer and really now feel that bankruptcy is my only option. I don't really understand what way a few things work regarding bankruptcy. For instance I pay the home phone by direct debit which is up to date and also my mobile phone which is also up to date. What happens with these? I also pay life insurance for my mother from my bank account, what would happen with this?? When I got the dmp started I closed my bank account and got a basic bank account with Nationwide. Would this have to be closed and another one then opened with the Nationwide again?? Would I be able to do this?? :(
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By JaneClack
#4528 If you were to go bankrupt your bank account would be frozen.

Nationwide do allow accounts to unduscharged bankrupts so they may let you open another. If not there is the Co-op.

All utilities need to be up to date - the telephone especially. If a bill is included in the bankruptcy then BT will not allow you to have another line so get a month ahead on that - mobile too would be a good idea although you could always have a pay-as-you-go! Others should not be a problem although paying life insurance for your mother would not be regarded as a priority by the Official Receiver and if you wanted to do that you would need to pay it out of your housekeeping budget.

Go to http://www.insolvency.gov.uk as the leaflets regarding all this can be downloaded from there.