So it was Sunday, the day I had set aside to fill in all the paperwork. I had a copy of all the forms and had managed to find all my paperwork relating to the debs I had incurred over previous years.
With a strong coffee next to me I set off, only to stop 5 minutes later. I was completely confused! The front sheet was a declaration and seemed to make sense for businesses for sure but not for individuals. Had I been given the wrong forms? What should I do? Taking a big drink I looked again, right, look at this sensibly and fill in what I can. Names, addresses etc were easy but it went on about 'trading as' and 'abodes'.
I managed to fill in most of the declaration, making my mind up to speak to the court as soon as possible to make sure I was right with what I was putting.
So on to the 'Statement of Affairs', fairly basic stuff to start, names, addresses etc. Then into the bones of things. Who did I owe? When did I take out the debt? How much is left? Account numbers? I'd foreseen all these questions so was prepared and managed to rattle these pages off quite quickly, feeling as I did a little ashamed at the mess I'd managed to get myself in and over how many years I'd been burying my head in the sand! All my unsecured debt went on, then the secured stuff (mortgages etc). I went through all my paperwork making sure I put everything down and hadn't missed anything important.
Satisfied I had everything down i moved on to my assets.
Did I have a pension? Stocks? Shares? Property? The questions went on and I steadily became more and more miserable as I answered 'NO' to pretty much everything. About the only thing I had was a mortgage on a flat that was deep in negative equity. Then questions on Assets I had gotten rid off in the previous two years, again a 'No'. Not exactly a good showing on the Asset front by any means. Then questions about vehicles, had I sold any vehicles in the past two years (I'd scrapped one and luckily had all the details). Did I have use of a vehicle? Was it mine?
Bank accounts next, I listed the accounts I held and their balances (I knew they would be frozen the day I declared), again depressing. Nothing was left out and on more than one occasion I had to dash updstairs to dig out some paperwork or information to make sure everything was correct.
Not only do they ask for debts and assets presently, they are also very interested in anything you have gotten rid of in the recent past, thinking about it it makes perfect sense, it would be easy to liquidate everything into cash, hide it away then petition for bankruptcy and keep the lot. Thankfully for me I could justify every disposal I had made, (not that there were many, the car was the only thing really). Interestingly they ask if you have sold anything for less than its market value recently, again I hadn't.
All completed I moved onto what was the hardest part. An explanation of why I had ended up in this position. Did I gamble? Were any debts as a result of gambling (thankfully no). Then a space and a prompt to explain the cause of my bankruptcy (with a sobering reminder that putting 'the recession' wasn't acceptable). I sat looking at the page, could I put that I had been a fool for a few years and made some stupid decisions? Then thinking more I realised that although I had made a few bad decisions, made a couple of moves that hadn't paid off, I had also been the victim of old fashioned bad luck, being in the wrong job/company when the recession bit and they folded, moving from one company to another only to find the new company going bump 6 months after joining. As I wrote I began to feel a bit better about my reasons, I was still totally to blame for my position (and will admit that to anyone) but a good percentage of what happened had been beyond my control. Just a combination of bad timing and bad decisions (story of my life!!).
Finishing the forms was fairly straight forward, advice I'd give is to get all your debt paperwork sorted before hand, swallow your pride and be truthful (they aren't going to miss anything for sure) and if you messed up, admit it. It's done, time to try to move on.
Paperwork finished I sat back, ok, thats another stage done. Now for the appointment, first thing Monday morning I'm ringing to get an appointment!
Thursday, 30 June 2011
Friday, 24 June 2011
Taking the plunge!
So the decision was made.
Looking online it became clear that the option to do the forms online was gone, all forms have to be written out by hand from a pack given to you by a locally appointed court, usually the County Court, I looked online and very quickly found mine.
That night on the way back from work I called into the local County Court and feeling about an inch tall, enquired about Insolvency. The lady behind the counter smiled and handed me a pack. 'Fill this in and give us a call when your ready for an appointment. There's also a list of the costs involved.' Costs? I knew nothing of costs so asked how much it would cost, 'Well it's just gone up so all in all it's going to cost you £700.'
£700! To make myself bankrupt! I didnt have £100, let alone £700. I managed to ask about lawyers and solicitors and the like. did I need one, how much would they cost etc, 'You don't need a lawyer or solicitor, you can do it all yourself. Have you had some advice?' I replied that yes, I had been advised by a few organisations and others about my options.
I headed home, my head spinning, not only with the thought of actually doing this, but also about how I was going to get £700 together in order to do it.
Arriving home I had a quick look around, I had lots of stuff in the house I'd aquired over the years that I didnt use anymore, surely that was worth something? I sat and talked with my wife, explaining what I had planned and how it would affect our lives. As usual, she was just concerned about us and the baby, as long as we were ok and could eat she would go with what I thought was best for us all.
The next week was a blur of photographing and doing Ebay adverts for all the old kit I had aquired, a gaget here, a whatnot there! Soon the items were on sale and I sat back to see what happened.
During my wait I started to go over the forms I had been given, A Statement of Affairs Debtors Petition (form 6.28), a Debtors Bankruptcy Petition (form 6.27) and a Statement of Affairs Form. as well as this there was a 'Guide to Bankruptcy' from The Insolvency Service, Guidance Notes on filling the Statement of Affiars form and a Form B50.10 Bankruptcy Petition- Guidance Notes (what you should and shouldnt do if the court does not hear your petition there and then). As well as these official forms was a slip of paper detailing the costs, £125 Court Costs and £575 Administrators fees, totalling £700.
All the forms were very detailed and looking through it was obvious it was going to take time and effort, as well as finding all my paperwork for each debt, to fill them in correctly. I decided to photocopy the forms so I could do a dry run and make sure I got it all right before filling in the originals.The sheer enormity of what I was planning began to hit home and I wobbled, surely there was another way without doing this, another option. But I knew deep down this was my only way of sorting my life and my families life out, no matter what happened or how embarrassed or humiliated I was going to feel. There were serious concerns, what about the flat i had a mortgage for with an ex? I didnt pay anything towards the place, haven't done in over 4 years. I knew it was in negative equity and thought this must surely be a help to it not being taken but I was worried. I also had a car that I needed for work and I was concerned about losing that as well, how would I get to and from work if it was taken.
Taking a deep breath I decided it needed to happen, no matter what.
By now all the Ebay items were sold, I had done ok on a few and well on a couple so there was just over £800 due to land in our account in a few days, enough to pay for the insolvency.
I decided that the following Sunday was going to be the day I filled in the paperwork and that on the Monday following I would make an appointment.
A curious sense came over me, a calm feeling I hadnt had for many years and I realised it was because I was taking action. It didnt matter the action I was taking was about as drastic as it could be, the mere fact I was doing something at least seemed to put me at ease for a short while.Then my mobile started ringing with one of the debt collection companies wanting to know why I had missed another payment and the feeling vanished and I realised I was a long way from being sorted, a very long way indeed.
Looking online it became clear that the option to do the forms online was gone, all forms have to be written out by hand from a pack given to you by a locally appointed court, usually the County Court, I looked online and very quickly found mine.
That night on the way back from work I called into the local County Court and feeling about an inch tall, enquired about Insolvency. The lady behind the counter smiled and handed me a pack. 'Fill this in and give us a call when your ready for an appointment. There's also a list of the costs involved.' Costs? I knew nothing of costs so asked how much it would cost, 'Well it's just gone up so all in all it's going to cost you £700.'
£700! To make myself bankrupt! I didnt have £100, let alone £700. I managed to ask about lawyers and solicitors and the like. did I need one, how much would they cost etc, 'You don't need a lawyer or solicitor, you can do it all yourself. Have you had some advice?' I replied that yes, I had been advised by a few organisations and others about my options.
I headed home, my head spinning, not only with the thought of actually doing this, but also about how I was going to get £700 together in order to do it.
Arriving home I had a quick look around, I had lots of stuff in the house I'd aquired over the years that I didnt use anymore, surely that was worth something? I sat and talked with my wife, explaining what I had planned and how it would affect our lives. As usual, she was just concerned about us and the baby, as long as we were ok and could eat she would go with what I thought was best for us all.
The next week was a blur of photographing and doing Ebay adverts for all the old kit I had aquired, a gaget here, a whatnot there! Soon the items were on sale and I sat back to see what happened.
During my wait I started to go over the forms I had been given, A Statement of Affairs Debtors Petition (form 6.28), a Debtors Bankruptcy Petition (form 6.27) and a Statement of Affairs Form. as well as this there was a 'Guide to Bankruptcy' from The Insolvency Service, Guidance Notes on filling the Statement of Affiars form and a Form B50.10 Bankruptcy Petition- Guidance Notes (what you should and shouldnt do if the court does not hear your petition there and then). As well as these official forms was a slip of paper detailing the costs, £125 Court Costs and £575 Administrators fees, totalling £700.
All the forms were very detailed and looking through it was obvious it was going to take time and effort, as well as finding all my paperwork for each debt, to fill them in correctly. I decided to photocopy the forms so I could do a dry run and make sure I got it all right before filling in the originals.The sheer enormity of what I was planning began to hit home and I wobbled, surely there was another way without doing this, another option. But I knew deep down this was my only way of sorting my life and my families life out, no matter what happened or how embarrassed or humiliated I was going to feel. There were serious concerns, what about the flat i had a mortgage for with an ex? I didnt pay anything towards the place, haven't done in over 4 years. I knew it was in negative equity and thought this must surely be a help to it not being taken but I was worried. I also had a car that I needed for work and I was concerned about losing that as well, how would I get to and from work if it was taken.
Taking a deep breath I decided it needed to happen, no matter what.
By now all the Ebay items were sold, I had done ok on a few and well on a couple so there was just over £800 due to land in our account in a few days, enough to pay for the insolvency.
I decided that the following Sunday was going to be the day I filled in the paperwork and that on the Monday following I would make an appointment.
A curious sense came over me, a calm feeling I hadnt had for many years and I realised it was because I was taking action. It didnt matter the action I was taking was about as drastic as it could be, the mere fact I was doing something at least seemed to put me at ease for a short while.Then my mobile started ringing with one of the debt collection companies wanting to know why I had missed another payment and the feeling vanished and I realised I was a long way from being sorted, a very long way indeed.
Thursday, 23 June 2011
The beginning.
The beginning seems a good place to start with this. No rambling moans about my life and why it messed up, just a few lines about the position I find myself in and where I am at with trying to get back on track.
The plan for this Blog is to check in and write everytime something of importance happens, or if anything about the process strikes me as odd, unfair or just strange!
End of the line.
The end of the line for me came on a Friday. Months and months of fighting to keep up the repayments on the 18k of debt I had managed to aquire had left me stressed, ill and basically at the end of my tether. I had gone through the options, IVA's, Equity release on my property, arranged payment plans and none of them worked for me. I had tried to keep up my payments but a period of unemployment took all my savings and left me, well, broke.
So I was on benefits (eventually), no job, no future I could see and most importantly, 18k of debt (plus another 11k I will go into later) that wasn't getting any smaller! The letters and calls had increased, we were getting at least ten a day from collection agencies and worse still we were beginning to get visits from the agencies themselves which scared my wife to death. Every time we got a call or a visit I conned myself that I could sort it, it would be sorted and everything would be ok.
The Friday in question started brightly enough, I had just that week secured a job and thought things were looking up, it was a lovely day and I was up bright and early for an important meeting. But my mood changed immediately I started down the stairs, a note pushed through my letterbox looked very ominous.
It was from a bailiff. An unpaid debt had finally caught up with me and opening the front door I saw what I feared the worst, the car had a bright yellow clamp on it wheel.
I was mortified, neighbours were out and about and alreay I had been given a few odd looks from one or two wondering what was going on. I grabbed the letter to see it was in relation to a £300 debt. For a £300 bill they had clamed £5k worth of car! I was both humiliated and furious in equal measures, I had a meeting to get to, if I didnt get there I would lose the job I had only just managed to get!
I called the bailiff and explained I needed to get away asap, 'I'm only around the corner Sir, I can be there in 5 minutes.' he said, managing to sound like it was the most normal thing in the world to wake up to your car being clamped.
True to his word 5 minutes later the bailiff appeared at my door with the paperwork needed to release my vehicle and a jolly attitude like all was fine in the world.
Was there any way to release the car without making full payment? No. Was there any way to set anything up? No. Why clamp a £5k car over a £300 bill? It was his job, naturally. I had no option but to pay the full amount, wiping out the very last of our money in any account and leaving my family with what was in the cupboards for the next week and a half until payday.
Standing there, in my own front room with a bailiff sitting on my sofa making a payment via debit card to get my car released was the tipping point. The point I realised not only could this not go on but also the point when I decided I could not let it go on!! The stigma attached to Insolvency, the problems I had foreseen and dreaded just had to be the only way to get clear and maybe, just maybe start again.
The bill paid, I wished the bailiff a good day and set off to work, on the way back I would call into the local County Court and find out how I went about making myself Bankrupt.
The plan for this Blog is to check in and write everytime something of importance happens, or if anything about the process strikes me as odd, unfair or just strange!
End of the line.
The end of the line for me came on a Friday. Months and months of fighting to keep up the repayments on the 18k of debt I had managed to aquire had left me stressed, ill and basically at the end of my tether. I had gone through the options, IVA's, Equity release on my property, arranged payment plans and none of them worked for me. I had tried to keep up my payments but a period of unemployment took all my savings and left me, well, broke.
So I was on benefits (eventually), no job, no future I could see and most importantly, 18k of debt (plus another 11k I will go into later) that wasn't getting any smaller! The letters and calls had increased, we were getting at least ten a day from collection agencies and worse still we were beginning to get visits from the agencies themselves which scared my wife to death. Every time we got a call or a visit I conned myself that I could sort it, it would be sorted and everything would be ok.
The Friday in question started brightly enough, I had just that week secured a job and thought things were looking up, it was a lovely day and I was up bright and early for an important meeting. But my mood changed immediately I started down the stairs, a note pushed through my letterbox looked very ominous.
It was from a bailiff. An unpaid debt had finally caught up with me and opening the front door I saw what I feared the worst, the car had a bright yellow clamp on it wheel.
I was mortified, neighbours were out and about and alreay I had been given a few odd looks from one or two wondering what was going on. I grabbed the letter to see it was in relation to a £300 debt. For a £300 bill they had clamed £5k worth of car! I was both humiliated and furious in equal measures, I had a meeting to get to, if I didnt get there I would lose the job I had only just managed to get!
I called the bailiff and explained I needed to get away asap, 'I'm only around the corner Sir, I can be there in 5 minutes.' he said, managing to sound like it was the most normal thing in the world to wake up to your car being clamped.
True to his word 5 minutes later the bailiff appeared at my door with the paperwork needed to release my vehicle and a jolly attitude like all was fine in the world.
Was there any way to release the car without making full payment? No. Was there any way to set anything up? No. Why clamp a £5k car over a £300 bill? It was his job, naturally. I had no option but to pay the full amount, wiping out the very last of our money in any account and leaving my family with what was in the cupboards for the next week and a half until payday.
Standing there, in my own front room with a bailiff sitting on my sofa making a payment via debit card to get my car released was the tipping point. The point I realised not only could this not go on but also the point when I decided I could not let it go on!! The stigma attached to Insolvency, the problems I had foreseen and dreaded just had to be the only way to get clear and maybe, just maybe start again.
The bill paid, I wished the bailiff a good day and set off to work, on the way back I would call into the local County Court and find out how I went about making myself Bankrupt.
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