I am officially bankrupt.
There I have said it on print for my blog – the first time I have heard myself say it.
I am not writing this post to brag about it or show off, because although I am actually relieved to be on my way to becoming debt free, it is also mixed with a touch of regret and emotion because it is not a nice thing to admit to either. Afterall the stigma that used to be attached to bankruptcy has gone now, and I should therefore not feel ashamed. However, despite this I have not yet told some of my family members!
No, I am sharing this because I know I am not alone with having large uncontrollable debts, that I have no way of paying back and nowadays bankruptcy is very common. I just thought that if anyone reading this is contemplating it themselves then maybe I can help them to make the decision and go for it.
the number of individual bankruptcy petitions made by creditors (to whom the debt is owed) was 4,329
the number of individual bankruptcy petitions made by debtors (the person who owes the debt) was 16348
My bankruptcy was voluntary. In a nutshell, before I had Burton I owned and ran my own business (a cafe) and although it did ok I never really made a decent wage for myself and due to a VAT error and borrowing from the bank I just could not make it financially viable anymore. I sold the business at the end of last year for less than I bought it in the end because I was a new Mum and just wanted to get out and start afresh as soon as I could. Truth be told I should have gone bankrupt a couple of years ago, but in true Jenny style, I struggled on not wanting to lay my staff off, hoping it would all be ok in the end! Hmmm!! I worked my arse off, as you do when it’s your own business, rarely taking time off and with notable exceptions working 6 days a week even up until 10 days before I had Burton! So yeah there is also a little bit of frustration that I lost money and owed so much by the end as I worked so hard for 5 1/2 years for so little return.
Anyway, after months and months of worry (spanning about 3 years), having no nails (yes all these years of worry has made me have no nails!), visits to my local CAB and, more recently, letters and phone calls from debt collectors I have made the step to becoming debt free. I know there is still a way to go yet, but there is light at the end of the tunnel at last!
While waiting to see the judge and speak to a receiver today, I thought to myself that going bankrupt is NOT the end of the world and at the end of the day I have something far more important to worry and think about now and that is what IS important. When I got home my little boy gave me the best hugs and squeezes a mummy could possible ask for – he is my future whether bankrupt or not and he is the most important thing in my life.
If you have debt problems I can recommend contacting:
who are there for you to offer free and confidential advice
Don’t wait for your debts to mount up out of control – take the plunge and sort them out 🙂
Thank you xx
Well done for putting this post out there and getting on the road to recovery. It does take a lot of courage to do and you’re right, you definately should not be ashamed. Part of the problem is actually realising and coming to terms with, the fact that you do have debt. Debt in the UK is a massive issue and everyone I know, including me has some. Wish it could be resolved with the pill though. Be strong and take care 🙂
Well done on your blog. I did something similar to highlight mental health issues yesterday – letting people know they are not alone in what can seem a very dark place is really important. I have just goneback to freelance work and I know money will be tight but as you say, there are more important things in life. Good luck!
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I am struggling with debt at the moment and will be visiting the CAB again in September. Well done for being brave about this
Great post and well done to you for being brave enough to share it. I can totally understand how you feel, we have been to hell and back in the last 5 years. Sadly its not so simple to write off our debts as we own our own home. If you have your own home with equity it is def not a recommended route. We therefor struggle on. Our financial future looks bleak and we will be paying back debts incurred trying to just live after my husbands business failed for many years to come.
Hope you get to sleep better from now on and move forward positively.
Hugs
Karen
A very brave and powerful post, hopefully your experience will help others in the same boat. I think it’s really important that anyone considering bankcruptcy realises that it should be a last resort – the same with IVAs, because the long term consequences can be catastrophic. You obviously did everything you possibly could to stay afloat and I really hope you’re able to sleep a bit better now xxx
Hey, well done with finding the light at the end of the tunnel. Although we arent in massive debt we do owe money and working hard to pay this off, always looking for little avenues to make a few quid here and there.
Just a question, when you file for bankruptcy and your a home owner with a mortgage, do you lose your house?? also what happens to the debt??
Sorry if that sounds very thick of me just never really understood it
well done and hope life gets easier for you now
x
Well done and good luck. I hope it feels like a huge weight off.
Dear Anonymous
I am fortunate in that I do not own my own house at the moment. I am not sure of exactly what happens if you do and then decide to go bankrupt. Best thing is to speak to one of the above helplines or use the Internet tom search for answers. I am sorry I am unable to help you.
I do know that once you declare yourself bankrupt your case gets passed to an official who speaks to those you owe money to and explains how you do not have the funds and then the debts get written off eventually. Once this happens, like me now, I will,have a bad credit rating for the next 5 years but then I will be able to start again with no history of that I believe.
Well done on getting it all sorted i bet you feel like a weight has been lifted. I wish i had no debt but after i’ve sold my house we’re renting for a while to use the sale to clear some of our debt and start afresh. xxx
No regrets, just a totally realistic outlook for a brighter future with Master B, it is the experiences we gather along the way that shape us and by doing this you will definitely become a much stronger person, learning along the way. Well done. Kx
I hope things have gotten better for you since writing this 🙂
That was a very brave post, well done for writing it. We have very nearly been bankrupt a couple of years ago but got through by the skin of our teeth, was a very worrying time though.
I hope things are starting to get better for you now.
My OH went bankrupt just before we got together, but as we were friends before, i knew him throughout the process. He was so worried and uptight about mony before hand, but the relief afterwards was immense. he is so much more relaxed and laid back, and much more fun too. whilst i dont think bankruptcy is the easy way out, i do think sometimes its for the best! good luck with whatever you do next 🙂 xx
I can only imagine the stress that leads up to making a decision like this, trying to best to sort it out and putting off doing it in the hopes that you can recover. It is a brave decision and I hope you have a lot less stress these days. Thanks for joining in Blog Gems. Jen