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

Moderators: TalbotWoods, JaneClack

By billykeats
#2489 Finally did it. I applied for bankruptcy.

Got to the Royal Courts of Justice nice and early around 945am. First one there and waited for the doors to be open. Once opened, I then went to the first person that was available and asked to become bankrupt. She looked over the form and said that I didn’t need to fill out form 6.27 as they do it there. The girl then proceeded to the computer and typed up the sheet and got me to sign. Told me to wait while she typed up the remaining part of the order.

Once that was done she showed where to go to pay the fees and then return back to this office. Went and paid and then went back. At this point I had to wait a bit. I was then seen by who I think was the head of the department who then got me to put my hand on the bible and say a few lines which basically said that everything I have stated is the whole truth and nothing but the truth. He stamped the order and told me to come back at 230pm to the next floor down room 110 to collect the copy of my order.

Now it was only 1115am and I had 3 hours to kill. So went for a walk to Covent Garden, Leicester Square & Piccadilly Circus. If I had known I would have brought some money with me to do my Xmas shopping.

I went back at 215pm and for some reason I was expecting to see the judge at this point as I obviously hadn’t taken in the fact that the man had said earlier to come and collect a copy of my order! 230pm came and went and I was panicking & worrying about it now. Then the 2 girls who had dealt with the bankruptcies earlier came in with copies of our orders and started calling our names out and giving them to us and advising us of where to now go to see the Official Receiver. Now this place was a good 20 minute walk away. So I got my skates on so I could be the first one there. Some people obviously have cash to flash even though they are going bankrupt as they got taxis!

I got there and waited for a bit until someone came down and called my name. She took me to an office where she looked at my order and went and copied it while I read a couple of forms which I had to sign which were about the Inland Revenue and my duties as a bankrupt. She also took my 3 bank cards that I had brought with me. She then came back and gave me the time and date I have to come back and the name of the Official Receiver I would be seeing.

The person could see I was a little worried and tense and asked if I was alright and if I had any questions. I said I have no questions. She gave me some numbers to call if I have any problems. I said thank you and at that point I then left.

That was all quite simple and easy in the end and don’t know why I was worrying about it. However I am now worrying about seeing the OR next week. I know it doesn’t make a difference if I get seen in person or it is done over the phone but I have read that in some cases if you are seen in person it could be a bit more to your case. I know that each individual OR works differently but I am still a bit worried.

I also don’t remember her mentioning anything about a pack being sent but again I may not have been listening properly as I was nervous. I have all my statements although I am missing one and I have got a signed letter with regards to my rent and household bills. Just wish the day would come quickly so I can get on and enjoy Xmas.

I will keep you informed as to how the meeting with OR goes but any reassurance or advice will be much appreciated
User avatar
By Nicky
#2491 Well done Billy!

I dont think you need to concern yourself about where the meeting will take place, its bascially for convenience rather than anything.

Your post is excellent! And im sure it will be very helpful to others who are in your situation and considering bankrputcy. I think when it comes to something that means so much to us, it is easy for you brain to be on constant overdrive, and you think of this, think of that, worry about this and worry about that, and when its done, you wonder what all the fuss was about.

I have read from other posters here that the waiting game is the worst bit, waiting to see the OR e.t.c. Well, dont let yourself worry too much about it whilst waiting for the day to come, at the end of the day, you will be seeing a fella or lady who will be doing their everyday job and will go through the motions, they will not be wearing half cut glasses looking down their nose at you, judging you for your situation, they will understand it is a big step that you have just taken, and will be curtious to you.

Look forward to hearing how you get on, and all the best. :D
User avatar
By geordie
#2493 hi both myself and my wife went personally bankrupt at the begining of november we are both disabled the o/r telephone interview took around two hours as my wife gets confused i was allowed to answer the majority of her questions during the interview the receiver even offered to suspend the interview for a break if needed the best advice i can give is to be prepared ie have as many statements and agreement nos also addresses avaliable dont worry if you do not have them all as the receiver will get the info from the creditors directly i thought it would have been a horrible experiance how wrong was i she done everything to help us even to the point of faxing the bank to tell them she had no problem of us keeping our account so best of luck and divvent worry .geordie
By mariem
#2528 Hi,

I petitioned for bankruptcy last week in the High Court and I have to say my experience was pretty much the same as Billykeats, apart from the fact that I was seen by my OR that afternoon when I went round to make an appointment... I wasn't expecting to get seen that day, but I have to say I was relieved to get it over and done with... the lady was really nice - she took my cards off me, and went through the form, but didn't really investigate my incomings and out-goings too much - I didn't have any statements with me since I wasn't expecting to have the interview, but she said she'd get it all from the creditors anyway... they seem to be quite rushed at the insolvency office and want to get it over with as quick as we do!

She did say that it was a matter of course that they contact your landlord - which I was a bit concerned about since I've just moved in with a friend and didn't want her to know... thankfully we found a way round it since I had only just moved in! Apart from that it was all very straight-forward and no dissapproving looks or anything like that! She just told me to let her know if my income changed.

The one thing I would point out to those considering bankruptcy in the High Court in London - when you go to pay your fees, go down the corridor to the exemption office first - the man in the fees office advised me to try for an exemption since quite a lot of people get it - I didn't have any surplus income so that's probably why I got it - but I honestly didn't think I would be entitled since I work and have an income coming in! So it's worth a try... knocks £147 court fee of the total - I only had to pay the £310 fee for the OR's services!

All in all I couldn't have asked for it to be any more straight forward! I even shared a cab round to the OR's office with some of the others that were petitioning that day - was only a couple of pounds each!

Now I just have to make sure I never get myself in that situation again!

User avatar
By Nicky
#2531 Thank for sharing that Marie, and all the best for the future. :wink:
By billykeats
#2555 Got my questionaire pack and rang to confirm the appointment as instructed.

The questions in there seem very geared towards to comany owners or directors and paying of employees and pensions. I think just about every answer I gave in there was "no"

Will this mean they will be asking me lots of questions then?

Mariem do you mind if I ask what questions you got?
User avatar
By Nicky
#2566 I would think it is a general form to cover every scenario Billy. Just fill out the parts that are relevant to you, it doesnt at all mean you will be asked alot of questions (more than normal) because of it. Infact, if you have answered No to most of them, you will probably have less questions. :wink:
By mariem
#2575 Billy,

My questions were pretty stright forward - she wanted to know how I'd come to be in debt, when it first started to become a problem (I couldn't be exact, it was gradual!), what I'd spent the money on, if I'd made any agreements with creditors for paying back the debts, and then just simple questions like where I was living now, how much my rent is... Basically it was just going over the statement of affairs to make sure nothing was missed out - she didn't question the totals I had put down for the various expenses - travel, rent etc! It was all over pretty quick.

I don't know if they all are like that, I'm sure some are more thorough than others and my case was pretty straight-forward - I didn't have any assets or anything to sort out... but having said that, I think mostly they've seen it all before and are just interested really in noting down the facts - they're not there to judge you or interrogate you... I wouldn't worry about it too much!

Good luck.

By billykeats
#2583 Got a nice surprise when I got home today. My card fro my Co-operative Cashminder account had arrived. I only went to open it Last Saturday and I was expecting to hear anything for at least another month or so like many other people on this forum

Maybe its a sign of everything starting to go right for me
By mrsmith
#2598 Well I finally went for my my bankruptcy on Thursday. Hardly slept a wink the nights leading up to it, didn't have to worry.

Over the past months I've been agonising over this. Have £84k in unsecured debts. Mostly credit cards. Managed to raise enough money from family etc to offer all my creditors 40% lump sum, but they all refused (this is not now available to OR as it was to be borowed from family etc), even though I assurred them that was way more than they'd get if I declared bankrupt which I would do if they did not well accpet my offer. Well its their loss - funny thing is that I got a letter from Morgan Stanley the day after I went bankrupt saying that they'd finally accept my offer - too late, I wrote twice previously and they refused each time. It's probably going to cost £10k for my wife to buy out the beneficial interest therefore it's probably the best decision I've made to go bankrupt.

On Thursday morning my guts were churning as I waited for the train to the courts. I kept thinking to myself that I couldn't believe I had gotten myself into this situation - everyone around was was talking about their xmas plans, and I thought if only you knew.....

Got to the court 20 mins early so walked around in something of a daze. Went to the court at 9.30 and by 11 it was all over - that included 30 mins waiting to see the judge, and a 15 min call to the OR office. The staff at the court just checked to confirm all the right bits had been completed, too my £450, and go me to affirm all was true. I then went to see judge. It was in a smallish office and he was on his own. When I sat down he started to tape the conversation. Got me to confirm my signature, name, address, d.o.b. Said he'd read my file, asked a couple of short questions, and then said satisfied I could not pay my debts and confirmed bankruptcy.

Took my file back to the counter, went into a room, was put on the phone to OR office who asked a few basic q's, and let me ask mine. Confirmed I had no businesses or never had, and offered me a telephone interview next Thursday which they said would be about an hour, but reserved the right to call me in later if needed. Some forms are in he post to me. Said I'd be bankrupt for 12 months, possibly less if the OR completes his admin. Notice will be in paper in next week or two - a price worth paying to get rid of the debt millstone I've been carrying around.

That was it - done and dusted. Walked out of the court feeling like the world had been lifted off my shoulders. Am sure some difficult questions await but I was totally honest in my SOFA so am sure the're won't be aything I am unable to explain.

All in all, my advice to those considering bankruptcy is (1) get all your paperwork in order (2) sort out your salary into your partners account (3) change names on all utilities (4) change direct debits/standing orders to partners (5) get on and do it and be honest in your forms.

Will update once my interview is done,
User avatar
By JaneClack
#2599 You have no idea how pleased I am to read your posts Billy. I do hope everything else goes well!