A Free Bankruptcy, IVA And Simple IVA, Insolvency Advice Forum

[Micjac]

So far so good....

We went bankrupt on 13th Feb 2007. The only things that have changed so far is that the banks that we had accounts with have closed the accounts and we now have a Nationwide Cashcard Flex account. This is causing us no problems as we seldom buy from the internet and when we do we use PayPal.

We are giving our house back to the mortgage company and when they sell it, if there is a shortfall it will be covered under the bankruptcy and they will become a creditor. We have found a farm house to rent and are very happy to be moving there.

Obviously the biggest change is that we no longer have 20K of debt that we are struggling impossibly to pay back and the money we earn is once again ours and does'nt belong to the banks to dip in and out of as they please.

We have been told by the OR that they will probably re-assess or finances in a few months time and if it is still the same then we won't need to make any payments and will be discharged soon after.

We hated being in the paper, but to be honest did'nt actually see the notice as we did'nt know which local paper it was in and don't tend to buy papers anyway. I saw the London Telegraph one online and did'nt like the fact that they saw fit to say what my job was as it could potentially lose me customers, but other than that it did'nt and has'nt to date caused me any problems whatsoever.

For us it was the right thing to do.

xxx

[slowlyrecovering]

I have been told that one way to begin repairing your credit score is to obtain a credit or store card soon after discharge. The idea is to use it very sparingly each month, say £10, and endure that the balance is paid off each month.

Is this a good idea and if so does anyone know of an institution likely to issue a card after discharge. I accept that if there is one, the card would come with a low limit (no problem - dont really want a credit card any more, I just want to improve my credit score) and a high interest rate.

[slowlyrecovering]

I have seen many posts regarding the difficulty of grtting bank accounts and in particular debit cards during and after bankruptcy. In my case I took advice from this forum and applied for a Coop Cashminder account immediately I went bankrupt. My application was accepted and it came with a Visa Electron card. This has allowed me to purchase 'as normal' throughout my bankruptcy. The card can be used on Ebay and PAy Pal. My Pay Pal account is linked to my cashminder account with no problems. I would recommend the Cashminder account to any one in this situation. And of course there are absolutely no bank charges. I am not sure of the advantage of a Cash Plus 'pre paid' credit card. My electron card has not been refused anywhere yet - so why pay card charges for a prepaid card when you can get the same services with a Debit card with no bank charges.

I would like to know though why the banks will not allow you to upgrade after bankruptcy. I believe it will also be difficult to open an interest bearing savings account. Im not worried abount changing my Casminder account - it serves my everyday purposes perfectly, but i would like somewhere to put excess funds and earn some interest - any ideas anyone???

Regards

Tim

[andyn]

Hi,

I'm not sure if this thread is still going (I can't see page 2, it redirects to the home page!), but I thought I would share my experiences.

I went bankrupt in MArch 2007 and was discharged Oct 2007.

I signed up for Experian and have been working on my credit rating, which has gone from VERY POOR to POOR! yay! I have had my bankruptcy marked as 'discharged' and most of my 8(!) defaults marked as 'settled'. I am still awaiting the confirmation of the settlement of my 1 CCJ to be shown on my credit file, which should improve things further! You never know, I might hit 'AVERAGE' at some point! Hmm, yeah right.

I have considered trying to get a small loan to make my credit file look even better. The only people who seem willing to give me a loan, however, are FLM Loans, who require a guarantor who is a UK homeowner. Not entirely sure if this is a good idea or not in terms of improving my rating? Or even in general! any ideas?

I set up my Barclays basic account immediately after going bankrupt, and it has served me reasonably well - Direct Debits and Standing Orders work fine, and it shows on my credit file as an 'up to date payment', which I suppose must be good.

My mother works for Barclays and told me that they use Equifax to find people's credit rating, so I have signed up with them also today (both Experian and Equifax charge fees of course if you want more than the bog standard £2 credit report). She also recommended NEVER EVER going overdrawn, which is obvious I know.

So I went into Barclays today to see if they would let me upgrade my account. I was declined. This was disappointing, as I was told my another branch manager that if I stayed out of trouble for 6 months without going overdrawn, I would stand a good chance of being able to get a real account. The lady I spoke to today said it would take anywhere between 1 and 3 years before I was able to get a proper account!

I have also decided to open an mini ISA and put a small amount a month in it, just to show that I am capable of saving money, which hopefully will give me some brownie points? Barclays allowed me to open one today with a £1 payment and a SO starting next month. (hmmm, wonder if the OR can get their mitts on this account?)

For online payments, ebay etc. I use the Cash Plus card. £4.95 per month is pretty reasonable in my opinion.

To be honest, I sometimes forget I am bankrupt. I was about to change Mobile phone provider when I realised that a phone contract requires a credit check. Ooops.

Anyway I'm probably boring people now...

[slowlyrecovering]

Thanks for the info.

I had to smile recently. My electron card was refuded for the first time - to pay council tax over the phone, the only card they wouldnt accept!!. However ive now set up a dd on my cashminder account so thats sorted.

The overdraft thing is interesting. A Coop Cashminder account will not allow you to go overdrawn. If on occasion there are insufficient funds for a dd it just refuses to accept it.

I had a discussion with the coop about opening a savings account. They said I should write to their customer services dept and complain that my application had been refused. He said normally they reverse the decision and allow you to open it. I might try it although an isa is certainly another option.

Cheers

[Linda]

I was left with no choice but voluntary bankruptcy for debts of £35,000 in 2002. This was caused by someone who owed me £65,000 managing to get out of paying me. I was at that time living in a rented house and had never missed a rental payment. I actually considered my landlord and his family as friends and although the house and garden had been a mess when I moved in, over the 3 years I lived there I had made it look very nice, including lanscaping the garden, at my own expence. My contract said nothing about bankruptcy, but I wanted to be honest about it (also incase anyone contacted him) so I told him I had been declared bankrupt. Within a month he had written to me saying my tenancy would not be renewed when due as he and his family would be moving in. I was devastated as he had previously told me I could stay as long as I liked. I was already filled with guilt and embarrassment at the bankruptcy and this was a further kick in the teeth. I duly moved out and guess what? He never did move in and he still has tenants to this day! No prizes for guessing why he really ended my tenancy.
I have lived since bankruptcy with having a simple Barclays cashcard account (which incidentally Ebay registered fine). I was discharged in April 2005 but even so haven't tried to apply for another bank account or any credit. Out of curiosity I recently requested my Experian credit report and was amazed and overjoyed to see not only no mention of the bankruptcy, but that my score is one of the highest it can be! So I decided to take a chance and apply for an upgraded account with Barclays. I was honest about the bankruptcy and was warned that even if I wasn't successful the application (and refusal) would show up on my faultless credit report. I was over the moon when the application was accepted and I feel like my life has started afresh after the stigma and guilt of the last 6 years. The only hiccup is that in order to get online banking for the account I have to pay £60 to get a certificate of discharge to show the bank. Small price to pay in my opinion as it will open up a whole new world to me again and the next step will be applying for a mortgage.
The moral of the story and my advice? I know it seems like forever, but it's better to wait 6 years from bankruptcy before applying for anything. The bankruptcy disappears from your credit report after 6 years and anything you apply for within that time will doubtless be refused and leave a negative 'footprint' on your credit record.

[twinklywillow]

Hi I am not sure if I am posting in the right place. I am trying to follow the thread about life after bankruptcy.
I did mine in 2007 and I have been pretty okay. I got a Cooperative basic account immediately and the staff were very pleasant over the phone and face to face. I also now have an ISA-not that there is anything in it this week! I have been studying and working and living without any credit.
I find my visa electron card works for everything except british Rail. I regularly shop on the internet including buying and selling. Occasionally people will turn up their noses at the card because they do not recognise it or occasionally they do blip -BP petrol station for instance. On those occasions I stay my ground and ask them to try again as I think the blips are probably due to the electronic method having an off- moment. It's easy to feel like you want the ground to swallow up but its more effective to put best foot forward if you know you have the funds in your account.
I am with Utility Warehouse. I knew the rep and although I was really squirming when I mentioned BR she was very kind and told me about her relative and was completely unruffled and set my account up. Likewise BT would reinstate me for a £50 down payment.
I have basically barely altered a thing. My credit record needs attention and I have tried but they are a bit tedious. I will tackle this very vigourously once I have the time and space.
As for how I feel. I don't think about it that much as long as I have enough money and can do part-time work. I have a few friends, nice people who have also been in this predicament. In the end it can come down to self-preservation and starting again and being able to do positive things with your life.
Maybe it will bother me more when I have graduated but I am watching the world and seeing how so many people are not in the real world because their entire existence is wrapped up in credit and pushing money that doesn't belong to them around on cards. That isn't to be mean. Many of us have done it and the financial institutions positively encouraged us. I was one of those for a relatively short time and for the last eight years I have lived without credit cards etc.
The hardest bit I have found is this month when I am still studying and catching up with parts of the course I missed owing to illness and yet I have no student loan as it's the final year when they stop it in June. I cannot get any benefits as they seem to keep saying I am a student therefore I don't qualify. This really does suck as I am in rent arrears and can't take on any extra work owing to my course commitments.
I would like to know if anyone knows if there are any ways of obtaining small loans of say £500 without being sold down the river or having to involve a guarantor. I have tried every avenue possible, hardship fund, charities, selling on EbAY (hopeless as they charge too much). This is the only time I have been without a safety net the entire time so far
If anyone does know of anything I would love to hear.
My take on BR is that is really is a call to change. I felt there had to be a more organic way to live. We shouldn't have to be obtaining credit to stagger payments for things other than the really crucial stuff, car, house.
Obviously it's a personal thing but I believe, from my experience of the last few years, that it is possible to restructure your life. It's really hard and it does involve some denial which can be infuriating but I am okay, touch wood, on the whole.

[youngbankrupt]

They charge high interest but if your strap for cash then try Provident but that should really only be used last minute as they charge stupid interest but its an option

[twinklywillow]

Thanks for the tip about Provident. I did have an application from them and it was okay repayments actually but they wanted to not only visit me at home, they wanted a guarantor who is a home owner. The whole reason I was Br in the first place is because I would rather cut my feet off than be indebted to any person I know.
In the event I got emergency funding from my university which is great but humiliating. I have just had a financial car-crash of a week all in all. It's a tricky path we tread trying to re-establish ourselves, but right at this moment I am relieved, once again not to have had to borrow from a shark. Think have done well to manage university for three years with no debt except the smallest of student loans and if can get through the next few months it will be an absolute victory.
Have a good weekend folks

[Hg]

The provvy interest rates are so horrific that if you really do become that desperate for money, the social fund might be a better option.

It might be an idea to join and credit union and save what your interest payments to the Provvy would have been. That way you could a) have some savings and b) have someone who *might* be willing to lend to you if a desperate need arose in future.

[Thomas]

Although the Provi interest rate is high, they are very quick with money, the same day or next and no penalties that seemingly lower interest rate credit car lenders love to impose at the slightest opportunity and which are rarely taken into account when interest rates are compared. And what is the point of comparing rates with organisations that wont lend to you anyway? Provi is in the risk business which is why it is kind to bankrupts - and defaults are low because it is repaid weekly. However, for those who find weekly collections awkward there is a way of paying them by telephone and debit card.

[realpersonagain09]

Hiya everyone !!

I wanted to introduce myself x I am really pleased about finding this site as you all know there isn't a great deal of easy access information for us.
I have recently been dischard (last Week) whoo hoo !! and feeling really positive about everything.... you know like the year from hell is over type thing, time to draw a line under it and move on. By reading some of the posts it is suggested that it's a good idea to inform these credit agencies of the discharge. Would someone be so kind it replying with a list of these so I can get cracking please ?

Many thanks

Nel xx

[lyonsmc]

Hi all, i was discharged from BR on 19th Sept 2008 and thought i'd leave checking my credit file for a year or so, yesterday i received a letter from First Credit Services who have bought a debt which i included in my BR from Barclays Bank i have read on this site that this can sometimes happen. So i telephoned FCS and had to go through all about my BR and the man asked me to fax my BO over to him i said i didn't have a fax but gave hime the order number and telephone number of the OR. This promted me to check out my credit file and low and behold Barclays Bank had entered a default notine on my file whilst i was BR, also the file showed HSBC is showing a default on my file lodged on 06/12/2009 but C L FINANCE shows satified on 03/01/2010. CABOT FINANCIAL (UK) shows 6 payments late and the amount still owing as of 01/03/2009 this is after my discharged, so it looks like i will have to sent letters to all credit reference agencies and to the companies i previously owed money to and get them to update their files to show SATISFIED or SETTLED. As for life after BR well nearly two years on i have hardly any work as i'm a self-employed worker i struggle to meet the rent each month and expect a letter from the letting agent giving notice to quit in the next month. I'm applying for jobs which means if i get a job i will have regular money coming in but i have had no sucess so far, but he i don't owe any money to lenders that feels good. So now i'm working on getting my credit file sorted out and in four years it's clear and it will only show my jacamo account which i buy one item every four months and always pay double the monthly amount to what they are asking and my credit file shows satus (satisfactory) so it's a long road that we BR's have to make but we will get there in the end, my wife says we should have done it years ago and we wouldn't have had half the stress. Yes us BR's have been to hell and back and people say we are better off then people who have credit but we are in control of our finanaces we don't owe £££'s we want to start over again a fresh start that's what the OR told me!!! well thanks to the resession i'm still in the mucky stuff but, one day things will improve for us and for you people, it will take time, you may have to send letters to companies to sort errors out but this is a small price to pay for BR.

[CillaToor]

Hi, as you may already discovered I am recent here.
Hope to get any help from you if I will have any quesitons.
Thanks in advance and good luck!

[lyonsmc]

This website has helped me so much, i call this the "BR CLUB" the imformation and help that we all can provide each other from people worried about going BR and also during and after BR. If people can give as much info as they can this will help others in the future. I'm 2 years post BR and although life is hard for me and my family at the moment due to being self-employed and also the ressesion i feel alot better than pre-BR. i don't owe any money and i watch my money and i always come back to this site to update things as they come around, so don't be afraid to ask questions that is what we are here for. Everyone worries about going BR bur here you have friends who can help so feel free to ask what your thinking and someone will leave an answer.

[lyonsmc]

Hi realpersonagain09

Here are the main 3 credit refernce agencies.

EXPERIAN - www.creditexpert.co.uk

EQUIFAX

CALLCREDIT

If you google them their contact details will come up, the first two are offering 28 day free trial for you to look at your file but you must contact them within 28 days to cancel. All but one of my previous creditors is now showing outstanding and i expect this to show as settled within the next 28 days. The first of the defaults on my files comes of next year and in four years my file will be clean.

Good luck for the future and yes it does feel good now your over the worst and also we don't get that horrible creditcard statement coming through the post each month which we know we cannot pay, no more threatening phone calls (i use to get upto 7-8 calls a day from CAPQUEST but remember to take each day as it comes you will have some ups and some downs but you are debt free.

[lyonsmc]

Hi, as you may already discovered I am recent here.
Hope to get any help from you if I will have any quesitons.
Thanks in advance and good luck!

Hi CillaToor
We're here to help

[chrisb1810]

Hi all,

Just new to all this and thought this thread was v.gd and gave some v. helpful info which i am going to follow up.
I have just been discharged from sequestration (Scotland) in Jan2010 and recently got a copy of my credit report from Experian along with my credit score. I had 9 creditors at the time of going in to sequestration and they are showing all different default dates (some showing Nov09)?? I dnt see how i can possibly have default dates then as i entered sequestration in jan 07. any advice?

I also applied for Trust deed but this was refused but still showing on my Credit report. I feel like i have now got my life in some order and since this has all happened i have now met someone and thinking of moving in together. We have £15k deposit for a home but cant seem to get a mortgage anywhere. I feel that it's because of my past as my partner has good credit score. Any help you can give would be much appreciated. Thanks!!!

[Hg]

Hello

You can ask the creditors to correct the credit report.

In England the "correct" data would be a default on the date of the sequestration, and satisfaction as at the date of the discharge.

I assume it should be the same in Scotland!

The credit report company themselves should update the trust deed info.

I am afraid that in the current climate this may not altogether help you actually get a mortgage. You're probably correct in that it is your record that is preventing it, and unfortunately it's probably the case that a mainstream lender will not touch you until 6 years after the sequestration. I'd suggest speaking to a specialist broker and seeing if there's any way they can help.