Bankruptcy 9 Months in

Hi there

Well it is now 9 months since I went bankrupt. With any luck it is only 3 months until I am discharged……. The time really has passed quickly.

So what has been going on? Well I have been paying my income payment agreement of £100 per month on time. My wife and I have been coping quite well sticking within our living expenses budget. In fact this is not as restrictive as I thought it would be. It is certainly easier than living with the pressure I used to be under trying to find the money to pay the £40k of debt I owed.  I have found that once you get in the rhythm of living within your means it becomes easier and easier.  All of our general living expenses are covered and we are trying to keep a little aside for any emergencies too. Of course there are things we have had to do without such as meals out but I am not worried about this. I feel it is a small price to pay to be debt free.

As I mentioned last time I borrowed the £1250 from my parents to buy back my share of the equity in our house. In fact it was not the Official Receiver themselves but another part of the insolvency Service that I had to deal with to organise this. I provided the home valuation I had got and a copy of a recent mortgage statement to prove the equity situation which they were happy with. Then it was just a matter of paying over the money. It was a massive relief to do this as we now know that if the value of our house increases there is no longer any threat of being forced to sell it or having to release anymore equity.

Another thing I am pleased about is that bankruptcy has turned out to be a very private process. Not even my employer was told. As you know my wife is supporting me through this and we told my parents as they lent us the money for the home equity. However we have not told anyone else so no other friends, family or colleagues are aware. I think this is one of the big concerns I had about Bankruptcy. I was feeling pretty ashamed about the financial mess I got myself into and I did not want people I know judging me in a the wrong way. I am sure there would be a certain amount of this if they found out so it is good to know they won’t.

One thing that did happen to me which is worth mentioning is that I forgot to include a debt on my original application form. One day I had a letter out of the blue from a debt collection agency chasing for an old overdraft debt of £600. I had completely forgotten about this. Initially I was concerned about how I was going to pay it just when we were getting back on our feet. I thought that I may actually have to ask my parents for help again. But then I called James who reassured me that the debt would be added to my bankruptcy. All I needed to do speak to the Official Receiver about it. I did that and they just told me to forward the letter on to them and not to worry about it. I did this and have not heard anything since.

The other thing I want to say is that having faced up to my debts and gone through bankruptcy my stress levels have really reduced. My marriage has definitely benefited as a result. Before I was feeling bad all the time and the smallest thing my wife said would make me snap at her. Of course she did not understand why and so she snapped back. Now I feel so much happier and the bickering has disappeared. Maybe bankruptcy has also saved our marriage. Now there’s a statement…

Until next time when with any luck I will be discharged.
Rambling on

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