I decided to go bankrupt there were few questions I needed to ask for myself regarding the topic now the thought of going bankrupt was quite scary so today’s blog is going to look at how me going bankrupt impacted on my family’s lives coming up next before we start to I’d like to thank you guys for liking and subscribing to my channel and for the newbies welcome to my channel bankruptcy were like a new financial start, it was basically like licking the restart button on my financial game, bankruptcy write-off most of your debts. These are some of the debts that bankruptcy can write-off and the ones that it cannot write off, now from April 2016 you can basically apply for bankruptcy online the need to go to the court to file your application need not apply but that wasn’t the case for me I had to go to the Courts and file my application which was pretty scary, now when my application for bankruptcy got accepted the official receiver who’s the person in charge of looking after your financial affairs after you’ve been accepted for bankruptcy, looked into my assets, basically to see if I had any assets worth selling to go towards paying off my debts.
Most people don’t lose any assets when their bankruptcy gets accepted. The official receiver also looked into whether or not I should be making any monthly payments towards my financial affairs and it was made in my favor that I need not make further payments towards this. I’ll be discharged from bankruptcy after a year from when the application goes granted. After being discharged there will be no further restrictions on my actions the reason why I chose to go down the bankruptcy route was basically I did not want to owe any creditors anything, so the thought of finding it hard to attain credits or to get a mortgage was never really a negative for me.
This bankruptcy timeline basically gives you an idea of what happens and when during the timeline of the bankruptcy basically You see, i was worried when I went into the courts to apply for bankruptcy I’ll be told my application will be unsuccessful and I should just carry on making payments towards my debters, i know what your thinking . . . . why didn’t you just make the payments to begin with but sometimes things happen in life beyond our control and I was left with no other action, no other position i could take than to take the bankruptcy route when the application was made this had to be approved by an insolvency services adjudicator who took a look at my financial situation and he/she had to decide if going down then insolvency route was the right route for me. Before i actually went it went through bankruptcy I first had to take some legal advice from a national debtline that line which is a charity that helps people in financial struggle. I hear you ask what about your job? Now there are few jobs which you cannot do once you’ve been declared bankrupt like an MP which im not or a director of a company which im not are not, but that’s just to name a few jobs, a lot of people worry unnecessarily about their job and bankruptcy now ask yourself this question have you ever been asked in an interview or when you were applying for a job if you’ve ever been bankrupt or if you are bankrupt, if the answer is NO Then your employer probably doesnt care doesn’t care now when it comes to renting there may be a clause in your tenancy agreement that allows your landlord or landlady to end your tenancy agreement when you’re made bankrupt now if you live in a council or housing association property its extremely unlikely that you’ll lose your tenancy or your home.
If your renting privately then your landlord is highly unlikely to want to keep you as a tenant after all you’ve managed to pay your rent even though you’ve had financial difficulties with your other debts look at this way it is rare for landlords to want to kick you out and look for other tenants and risk losing income on his property when you’ve been making payments without any late payments or missed payments Renting somewhere new when bankrupt can be or yeah can be very very difficult because you’d fail and the credit check however you credit rating may already be very very poor and this would not make much of a difference anyway so.
. . Don’t let this discourage you, there are four ways to overcome this type of problem, the first way is to find somewhere to rent privately through a landlord not estate agent as a landlord can find some common sense, can apply some common sense into your situation where as a real estate agent tend not to have any discussion, they’d either have you have a guarantor for the property. To put down a really large deposit it or you could do is apply for the tenancy through an estate agent before you apply for your bankruptcy when it comes to your car you should expect to lose it unless its essential, a simple case is if you need your car to go to and from work using it for work and there’s no public transportation as in buses, trains or taxis in and around your area you may also be able to have the car for other reasons health problems school runs, care responsibilities.
Now in these situations you’ll need to prove that this is the only method of transportation viable basically or it’s the cheapest or the only alternative you’ve got dont for one second have false belief that the reasons outlined above will help you keep the car because you won’t, if your car is quite expensive and by quite expensive, I mean if it’s over a thousand pounds, but if you do drive a car thats over a thousand pounds or over and the car does not belong to you then this car will be safe this applies whether or not you are the registered keeper of that vehicle, keep in mind you might be asked to provide a proof of purchase to see who bought that vehicle where that was yourself or someone else, you see in my situation i had no financial assets that the official receiver could take to go towards paying off my bebts, by financial assets I don’t mean (Pensions) this excludes pensions no matter how small the assets value lets say life insurace policies, stocks shares, stuff like that.
Children’s toys were safe but I had to declare all my other assets when I applied, broadly speaking the official receiver is not interested in the tools of your trade personal possessions, the household goods in your property unless, unless the properties of the goods in your property is worth than 500 pounds on the resale market “secondhand” no one visited my property to make inventories of my belongings to be sold off to pay off my debts, so partner’s belongings and my children’s possessions were all safe or weren’t at risk should I say in that respect. Now because I’m not of age yet to be drawing money from my pension that in itself was never at risk, under extremely and I’m going to stress this extremely unusual circumstances where it seems your pension has been funded by the debt, in this situation your pension will be at risk.
The official receiver notified all my creditors regarding my bankruptcy and a notice was published in the London Gazette regarding my bankruptcy. If one of your creditors was to threaten you into making your bankrupt, it may well be a bluff into making you pay more money to them. It’s very unusual to be made bankrupt from one or more normal types of credit card or loan type of debt, this happens more often than not in Tax related debt this includes council tax and commercial loans, see I had to step back and ask myself a question, did I have any chance of attaining credit or a mortgage before I went bankrupt, and it was quite easy . . . . . NOPE If you arent that young and don’t want a well paid job and also living in an expensive part of the country the prospects of owning your own home may just be a dream with no real chance of materialising, Dont let this wishful thinking stop you from taking the necessary steps or necessary measures to deal with your own debt.