Question for Skippy13

[Helhan]

Hi Skippy,
I have been reading your threads with interest (you always make me smile!!)
I notice you said bankruptcy wasn't as bad as you thought?
We are in the process of proposing an IVA, but we are not confident it will succeed due to our high income/expenditure, and bankruptcy may well be an option we need to consider, although I must add with huge reluctance. (We are in the unusual position of owing a huge amount £105K [:I]to relatively few creditors-6, with the debt being accumulated mainly through consolidation loans over the last 12 years)
We have little equity in the house, so hopefully would be able to stay in it. (Although I don't understand the bit about BI??)
Did the judge give you a grilling? [}:)]
We have three daughters, and I just want their future to be safe and secure....any thoughts will be much appreciated.
Helen

[Skippy]

Hi Helhan, I'm glad I can make you smile!!!

I found that BR wasn't anywhere near as bad as I thought it would be. I owed £65k to about 6 creditors, and like you, a lot of it was due to consolidation loans and I then used the credit cards to live.

I don't really understand BI, as I don't have a house, although I know that you can make an offer to the OR for a family member or friend to buy the BI - hopefully Scaredkez will be along later as I'm sure she can answer that better than me.

I wasn't given a grilling at court at all. The only person who I didn't like was the security guard and I got the impression he was just a miserable b****r anyway! The BR clerk went through my paperwork, stamped it and took me up to wait for the judge, who I saw in his office, not in a court. I admit I was shaking like a leaf at that point. The judge wasn't scary at all, he read through my BR application, asked me if I had taken professional advice and then signed the petition granting my BR. The main things I can remember are that the chairs in the office were really heavy and I was shaking so much I could hardly move them, and the judge's phone rang while he was talking to me!

Once he had signed the paperwork I had to wait while the clerk typed up the BR order and then I was on my way. I saw the judge at 10.10am and I was back at work by 11.45am - the feeling of relief was (and still is) fantastic.

Some people see or speak to the Official Receiver the same day, but the examiner called me the following day to arrange the telephone interview. That was when everything hit me, and when I put the phone down I sat down and cried - not because it was so terrible, but because I had actually done it and could move on with my life. Even the OR interview wasn't as bad as I thought - she was business like, but efficient.

It was the best thing I could have done in my circumstances. I wouldn't worry too much about the stigma of BR - no-one has come up to me and told me that they have seen my notice in the local paper. Most of my friends know, and they have been really supportive, except one, but hey ho, I knew there would be one, and I'm not surprised at who it is!

I now feel as if I am moving on with my life, and I'm much more relaxed now as I'm not panicking about how I'm going to pay my creditors, or latterly how I was going to make my IVA payment.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Helhan]

Hi Skippy
Thank you so much for your response. If our IVA isn't accepted, then I feel lass daunted by the bankruptcy route having read your experinces.
Helen

[scaredkez]

hi helhan in regards to the BI in your property, it depends on how much equity you have, if there is very little, a friend or family member may be able to buy it for you for £1 plus solicitors costs, if there is a lot more, they will ask you if you have anyone who is interested in buying the BI, depending on the OR they make take into consideration any penalties you have to pay back, not all do this, to reduce the amount of BI they ask you to get an update valuation and make an offer, we reckon our BI will be about £30k so now we have no chance of raising anywhere near that amount, some have offered half the BI and been accepted, if you post how much equity you realistically have then we maybe able to tell you what they would be looking at as a reasonable offer, they donot throw you out on the streets and give you at least 12 months to find other accommodation, hope this isn't too confusing.
they also charge you £211 in solicitors costs.
good luck with everything.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/