Welcome to Bankruptcy and living with it, a completely impartial site on debt problems, and methods used in debt collection agencies, here you can also find advice to help you understand insolvency, being insolvent, bankruptcy, IVA's and debt relief orders.
This site is run by private individuals that have personally been through debt problems and ultimately bankruptcy, and survived! We have spent the last few years studying all aspects of debt, dept collection and debt solutions with one simple goal, to offer true, impartial advice on how to find the best solution for you, based on both the facts we have learned, and how they are applied to real peoples situation, our goal, to dispel a lot of myths and untruths that surround the issue of debt.
No sales pitch, no financial gain, no product to sell or profit from, just pure free advice from others that know what your going through, and want to try making it at least a bit less overwhelming
We strongly argue you should not have to pay for any company to help you sort out your debt problems ,but that choice is ultimately yours, all we wish is you do so with your eyes open, hopefully after reading this site you will agree you don't need to pay for help, if not that, at least you will know if your getting what your paying for!
We find it quite ironic, that the fact you are here reading this, means you are struggling financially, yet so many people facing debt problems pay for help, spending money they simply cannot afford, when in most cases there is no need, as you can either do anything a company can do for you, for free, or with the help of the free debt charities.
One of the reasons people do so is fear of the unknown, so rush into the first apparent solution they see, which is usually by a glossy advert on television or in the media, which is the worst thing you can do, as it has been proved, a small percentage of these adverts have been very misleading, but even if the solution is presented accurately, it does not mean it is the correct one for your current position, so while the service they offer may be an option, is it the best one?
It is understandable, when creditors or debt collection agencies send letters threatening legal action in 7-14 days why you, the debtor, panics and takes the first solution they can, thinking they must do so quickly before they end up in court.
The truth however is the creditors or debt collection agencies rarely have any intention of carrying out a threat of legal action, it certainly will not be that quick if it is the first legal threat you have received in nearly all cases, so don't panic, don't rush, take your time to get the best advice you can, from sources that will not financially gain from your situation.
This site is more about Insolvency than Bankruptcy
It is just as much about insolvency, understanding insolvency, and what being insolvent actually means, dealing with being insolvent early enough is important, doing so may help avoid the need to face bankruptcy, if possible, by using the other methods available to deal with debt problems such as a Debt Management Plan(DMP) Or Individual voluntary Agreement(IVA). But where that is not possible, this site hopes to make the bankruptcy process seem a little less frightening, dispel many of the myths surrounding insolvency and bankruptcy, and help guide you through the process
This site is primarily aimed at dealing with debt in England and Wales, while some of the content applies to the whole of the UK, Scotland for example, has a different system regarding bankruptcy and different legislation the courts can use both to the benefit of the creditor and protection of the debtor.
It is also about how to deal with your creditors and debt collection companies while you get advice and decide which solution is best for you, and also how to deal with the awkward ones that wont accept that decision
If you are failing to meet your monthly commitments, then you are already insolvent, a term that is greatly misunderstood, and is frequently confused as meaning the same as being Bankrupt, it is not. Being insolvent is the problem; Bankruptcy is just one of the four solutions how you can deal with being insolvent:
- Debt Management Plans (DMP)
- Individual Voluntary Agreement (IVA)
- Debt Relief Orders (DRO)
- Bankruptcy
The most important thing is that recognise you have a problem, and deal with it!
Sticking your head in the sand and ignoring it does not work, it only makes things a lot worse, however the credit industry makes trying to deal with debt harder than it need be, so it is understandable why so many people can not face dealing with there debt problems.
The authors of this site have been helping others through bankruptcy in various different ways, for the past two to three years, having gone through the process of dealing with debt, and dealing with creditors and debt collection companies, and finally Bankruptcy ourselves.
We have spent that time learning the true facts behind the bankruptcy process, and how they are applied in real cases in an attempt to help others get past the myths and stigmas attached to bankruptcy and see it as a viable solution when appropriate.
But in doing so we have also gained a great deal of experience of dealing with Creditors and Debt collection industry, and the tactics they use, so can also expose the tactics used by them, and help you deal with the pressure they place on you, the debtor, when you can not meet your commitment too them.
So if you are in financial difficulty, first read the warnings below, they are very important, and then continue to the first section Dealing with Debt
First Things First
Before we go into depth on insolvency and bankruptcy, and other possible solutions, we think it is more important you take on board some words of warning, so important in fact they take prominence on the first page of this site.
While that may seem odd, there is a very good reason we have chosen to do so, so please head these warnings
First Word of Caution:
The laws and guidelines that creditors and debt collection companies should follow, and those covering bankruptcy, debt relief orders and individual voluntary agreements are many and complex, and constantly changing, so completing this site, let alone maintaining it will be a mammoth task.
Please take advantage of our Forums for specific advice on your situation
While every effort will be made to keep this site both up to date and accurate, it should not be used as professional advice, more in conjunction with it.
A second Word of Caution: About so called Free Advice
We can not stress enough how important it is that you take professional advice before considering any of the four solutions to Insolvency. The problem is finding good, but more importantly, free and impartial professional advice. There are a lot of firms out there on the internet and advertising on television, claiming to offer advice, and solutions on insolvency, some charge money from the first contact to do so, some appear to offer advice for free, however they are not.
Their aim is to sell you a "Product", which they can make a profit from, whether that be a Debt Management Plan or an IVA, In comparison Bankruptcy is not that profitable, yet there are companies out there offering to "Hold Your Hand" through the process by offering to help fill out forms etc, for a ridiculously high fee, but it is still only a one off payment of £500-£850, whereas an IVA or Debt Management Plan can net them sums in the multiples of thousands of pounds, the average charge of administering an IVA nets the company £3000 to £8000, for, quite frankly, not that much work.
For this reason we have seen time and time again, companies "selling" an IVA to a client where Bankruptcy or a Debt Relief Order was the more suitable solution.
And equally there are companies targeting people in an IVA's, trying to convince them the IVA was miss-sold, that bankruptcy is a better option, and they will help you out of the IVA and into bankruptcy for a small fee, of up to £2000.
This is nothing more than a scam, yes some IVA's have been miss-sold, but not all, and even if they have, coming out of an IVA and petitioning for bankruptcy certainly does not require anyone's help, in fact, in some IVA's it is done automatically if you miss three payments as it can be part of the arrangement.
For that reason, and while there are exceptions out there, the golden rule is, "If they charge a fee for there services, chances are high they are looking after their interest, not yours!"
- NEVER pay up front for advice
- NEVER give any company your debit or credit card details
- NEVER give any company your bank account details
- NEVER sign a direct debit with any company
In fact, you should NEVER have to pay ANYONE for advice.
Any company that asks for a fee, or payment details up front, will most likely be a scam. Always seek further advice from the organizations below BEFORE giving any details to any company, no matter how desperate you are, or how friendly and helpful the company seem to be, if they charge a fee, profit WILL ALWAYS come before your best interests
If you need professional advice on insolvency you should always talk to one of the following, their advice is always impartial, they do not charge for their services:
- The Citizens Advice Bureau
- National Debtline
- Business Debtline
- The Consumer Credit Counselling Service *
* The Consumer Credit Counselling Service, are a registered charity, however they are mainly funded by big financial institutions, and there parent company also runs an IVA company, which is NOT a charity, but a profit making company. For that reason, there is the possibility of a conflict of interest. Therefore if advised an IVA is appropriate by them, we recommend you get a second opinion from one of the others listed above. In fact it can be prudent to get advice from more than one of the above anyway.
A Third Word of Caution: About Profit Making Companies "Pretending" to be one of the above charitable organisations
There are companies that mimic some of the above charitable organisations, having very similar names, and internet address's to the above.
These are no more than con artists, trying to make money of the back of these free services, a disgusting marketing ploy, in our opinion, but illustrates just how profitable the Debt Solution business is, and how low some will stoop to take advantage of those in debt.