Four months

Yesterday was exactly four months since my bankruptcy. Interestingly, I didn't notice - has real life finally replaced bankruptcy as my number one priority?

Last week I received confirmation of my Income Payment Agreement (IPA). I am to make all payments to a firm of solicitors based in the South of England called Moon Beever. My first payment is due soon - I've actually paid it already online and I'll set up a standing order for the rest of the payments. Glad I can actually begin payments.

Still no news on the house though.

A message from the BBC

A few weeks ago I was contacted by a BBC researcher called Jonathan Davenport. He asked if I would be interested in appearing on a show due for broadcast on BBC TV sometime in July - the programme (actually a set of three programmes I think) is to cover many money related issues and as part of that they want to hear stories from people who have gone through insolvency. After much thought (you wouldn't believe how much) I decided to decline his offer. It was a very difficult decision as I feel very strongly that it is important to get our insolvency experiences to a wider audience - if only to counteract the ridiculous stories of bankers being paid millions in bonuses! Last year one in every 320 adults in our country went insolvent, one in ten never clear their overdrafts each month - we are a substantial group and our voices should be heard and our experiences should be told.

In the end my decision wasn't based on what my family and friends thought of me (everyone to a man has been totally supportive), but based on my work. I'm employed in quite a large organisation and there was always the possibility that my bankruptcy being made public could make my position untenable - and frankly I need the money. To assuage my guilt I offered to post a message on this blog for Jonathan - I hope that some of you will contact him. Here is his message:

Are you in an IVA/DMP or going bankrupt?

Have you had the right advice?

Do you want to share your story?

My name's Jonathan and I'm researching a new series for BBC 2 called Money Watch - looking at people's real life financial stories across the country. I'd like to hear your experiences about what it's like dealing with debt. If you're interested this could lead to some filming for the show. I look forward to hearing from you - my number's 020 8008 3989 or email's jonathan.davenport@bbc.co.uk

----------------------------

Jonathan Davenport

Money Watch

MC4 B4, BBC Media Centre

London, W12 7TQ

Tel: 020 8008 3989

Received this recently from Marc :

Hi Joe,

I came across your blog this morning and have just spent 30 minutes browsing through it – shame I didn’t come across it earlier! I went through the bankruptcy process myself late last year and like you I found it all a bit surreal in the end. I declared bankruptcy in Hull along with 4 other people on the same day, also just average Joes, if you’ll pardon the expression! I’ve starting telling friends and family now, and they’ve been quite supportive. To be honest, I really ought to have confided in them earlier.

It really doesn’t surprise me the statistic you quote on your blog, about 1 in 320 people in 2009. The attitude and tactics of some of my creditors was pretty shocking, and caused so much stress. I wish I’d gone and made the petition for bankruptcy a year earlier already, there were just so many incidents of paying something off but ending up with a bigger bill by the end of the month. I certainly wasn’t helping myself, and given that I hadn’t been doing anything stupid or reckless to get in to debt it just made me so angry.

One of my childhood friends, it turns out, used to work for the Insolvency Service and we’ve decided to try to do something positive and offer advice to people who are going down the bankruptcy route. You wrote somewhere about having a grand or two stashed away at the end, and I couldn’t agree more! It came in so useful for all the little items, and the not so little items like the £510 fee itself – it’s just ridiculous, isn’t it? Our aim is to help honest people applying for bankruptcy do so in the most advantageous way for them. We put together our website, www.bankruptcy-angel.com just last week and would be honoured if you’d mention it on your site.

I look forward to reading more about how your bankruptcy period unfolds,

Kind regards, and good luck!

Marc

Disclaimer: I've not used any of their services, am not connected with any of them, receive no kick-backs whatsoever, and I'm not responsible for them. If you choose to give anyone any of your hard-earned cash then (as always) 'buyer beware'

One in Ten

Another non-surprise (to those of us in the know) hit the headlines last week - more bad news for all the average Joes out there.

"Five million Britons are permanently overdrawn, and rising inflation could force more to live on their overdrafts, says product comparison website moneysupermarket.com."

From the Guardian, http://www.guardian.co.uk/money/2010/feb/23/five-million-brits-permanently-overdrawn

What's that, 1 in 10 of the adult population?

Accepting the Income Payment Agreement

Life takes its toll occasionally, and so I've taken a brief break from writing about bankruptcy - for a while there I needed to remember that I'm simply a person too rather than just a bankruptee.

I now have some good news to report. The Official Receiver has reduced my Income Payment Agreement (IPA) payment to a lower (and payable) sum. I used the basis of the figures in Data for family expenditure (available as a spreadsheet from the Insolvency Service's website - www.insolvency.gov.uk/DocumentLibrary/Policy/Excel/Household%20Expenditur.xls) to challenge some of the Official Receiver's original views on my outgoings and I was successful in most areas. One thing surprised me - I wasn't allowed £20 a month to give the kids at least some enjoyable experiences during the holidays. No complaints though, I immediately signed the agreement and expect my copy through the post any day. I'm actually looking forward to beginning to pay the IPA - the sooner I start the sooner the 36th payment.

Still no news on the house - but I know I'll hear at some point and I'm not pressing for it.