How I turned £42k of debt into a fresh start.
OK, picture this. In February 2004 I split from my wife (who was and still is the biggest cunt on the entire planet, I shit you not). At the time she was earning £15k per year, I was earning £24k per year and had personal debts of £20k, with a house that was mortgaged for £110k and worth £140k. At this point everything seemed manageable...however, horrid ex wanted CSA money on top of me paying all of my debts, 50% of the mortgage and a shed-load of other crap that came with my impending divorce proceedings.

Anyway, we came to the agreement that we'd put the house up for sale and in the meantime I'd service my debts by bouncing them between credit cards, leaving me with my wages to pay CSA and my half of the mortgage.

Great plan, thinks I, the house will sell in 3 months tops, I'll get my share of the funds and I'll clear my debts quickly.....

Nine months later and silly-bitch has only just put the house on the market, after stalling me using every legal (and illegal) trick in the book. By this time I've bounced my debts around that much that I've accrued a total debt of £42k, sending me into debt management with the CCCS.

One year later (October 2005) the house sells for roughly 2k more than it's mortgaged for (all that stalling by the she-bitch saw us land in the middle of seasonal price slump in the local area), and her solicitor demands 70% of the house sale profit in her side of the divorce settlement, leaving me with about £600 in cash and still £42k in debt.

Did I mention I'd also had a breakdown and been suspended from work on full pay in September 2005? No? Oh well, just thought I'd throw that in...

Fast forward to September 2006 and I resigned from my job (which by this time had an annual salary of £27k, which they still paid me while I was off sick), started a BA in Management and Marketing at Uni and three weeks into the semester I declared myself bankrupt.

In defence of the SLC, they knew what my plans were before my bankruptcy date and have been nothing but supportive. Their payments have been made on time, their communication is spot on and they weren't bothered about me having a shite credit rating.

Also...big thanks to Nat West for sorting me out with an account to use while I'm an undischarged bankrupt at Uni, which even came with a Solo card. Providing I can clear up my credit reference files after my discharge next year I'll be back on to a proper Switch Card, though I have no desire to get an overdraft!

With the exception of my student loan, I don't have any debts now. I pay rent to my parents (moved in to their house after my divorce), have enough money to pay my bills, to go out and to see my girlfriend (Who never complains about the length, just thought I'd get that one in there). Also, thanks to the UK Bankruptcy laws, my company pension fund (which ran from my 17th birthday up to my 32nd birthday...two weeks before starting uni) is untouched and stands at a healthy £27k - the only smart financial decision I've ever made - starting a pension early and having payments deducted at source.

The moral of this story - NEVER borrow more than you can afford to pay off in one month, NEVER rob Peter to pay Paul and NEVER marry a psychotic ginger woman.

For the record, of the £42k of debt I have nothing to show for it. Let this be a warning.
(The Graduate Adding to the confusion since 1974, Mon 27 Nov 2006, 1:57, Reply)