Questions about bankruptcy

[basmic]

Basically I owe a total of around £10,500 to two creditors - Halifax and Barclaycard.

I am currently in receipt of JSA, and am making payments of £2/month to each creditor - although Barclaycard aren't playing ball at the moment.

Now I've sat down and thought to myself, that I really would be better off going the bankruptcy route. It is a much more realistic route, than paying £2/month for who knows how long.

I've got some key questions I'd like to ask, and hopefully I can have them ironed out.

1. How much will it set me back to make myself bankrupt?
2. Can I get help with these costs? Or is it case of me saving up for the (guessing) £450, before going bankrupt?
3. What sort of assets will be looked at? I don't own anything valuable, unless you class 2-3 year old computers valuable, and a 7 year old hifi.
4. Can I speak to Nationwide, and have them freeze my account while I am undergoing the bankruptcy proceedings? This is primarily because I have direct debits coming out of that account, housing beneft and JSA are being paid in, and rent is being paid out via cheque (using the ATM or cashier to produce a cheque for me).

Thanks for being patient!

[Dannyboy777]

Originally Posted by basmic

Basically I owe a total of around £10,500 to two creditors - Halifax and Barclaycard.

I am currently in receipt of JSA, and am making payments of £2/month to each creditor - although Barclaycard aren't playing ball at the moment.

Now I've sat down and thought to myself, that I really would be better off going the bankruptcy route. It is a much more realistic route, than paying £2/month for who knows how long.

I've got some key questions I'd like to ask, and hopefully I can have them ironed out.

1. How much will it set me back to make myself bankrupt?
2. Can I get help with these costs? Or is it case of me saving up for the (guessing) £450, before going bankrupt?
3. What sort of assets will be looked at? I don't own anything valuable, unless you class 2-3 year old computers valuable, and a 7 year old hifi.
4. Can I speak to Nationwide, and have them freeze my account while I am undergoing the bankruptcy proceedings? This is primarily because I have direct debits coming out of that account, housing beneft and JSA are being paid in, and rent is being paid out via cheque (using the ATM or cashier to produce a cheque for me).

Thanks for being patient!

Hi basmic

I would definately recommend bankruptcy as an option for you, given the fact you have no assetts to speak of, right, to answer some of the questions you've raised;

1. The cost to petition for bankruptcy is made up of 2 elements:

a) £435.00 this is the OR's(official receiver) fee and must be paid

b) £150.00 court fee, this can be waived if, like you, are in receipt of
JSA


2. If you have no major assetts ie owning your own home, you have nothing to worry about

3. As regards your bankers, Nationwide, dont worry they are one of the outside of the 4 main banks who allow bankrupts to hold an account, providing there is no credit facilities attached to the account, just a basic account, think it's called flexaccount.

I hope the above is of help to you, I am only able to offer you advice based on the extensive amount of research I've done on bankruptcy, thus far, I too will be filing for bankruptcy soon.

All the best!

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[Dannyboy777]

Oooops,sorry, the OR's fee is actually £335.00 not £435.00, there you go, I've already saved you 100 quid!!

[sequenci]

if you're on a low income you might be able to get additional help with finding the money. certain utility companies have trust funds you can apply to, there is also the association of charity officers who might be able to find funding for you through charities linked to you via work/family. They are contactable on 01707 651 777.

your hifi and computer should be fine, tbh they are more trouble than they are worth and wouldn't reach very much at auction at all.

[basmic]

Originally Posted by sequenci

if you're on a low income you might be able to get additional help with finding the money. certain utility companies have trust funds you can apply to, there is also the association of charity officers who might be able to find funding for you through charities linked to you via work/family. They are contactable on 01707 651 777.

your hifi and computer should be fine, tbh they are more trouble than they are worth and wouldn't reach very much at auction at all.

}So you're saying that if I rung up the number you gave me, they could possibly source some funding for me?

Something else that I thought of. I pay Virgin Media, Scottish Power and O2 by direct debit - would any of these be affected?

[powelll]

You need to be aware that all of your bank accounts are frozen when the bankruptcy order is made. The OR will then give you permission to open a new account. So best advice is usually to get giros temporarily for benefits or try to time it so that your money has gone in THEN go down to the court. ( OR will usually wait anything from few days to a max 4 wks to open a new account ).

One of the restrictions of bankruptcy is that you can't get credit of more than £500 without advising the relevant company that you are bankrupt. This will probably include gas & electric if you are billed & mobile contracts. The OR may inform them anyway so you may be asked for e.g. a security deposit or for prepay meters for gas & elctricity.

[tomterm8]

I am no longer welcome on CAG

[sequenci]

Originally Posted by basmic

Something else that I thought of. I pay Virgin Media, Scottish Power and O2 by direct debit - would any of these be affected?

possibly, you will need to check with them. i know some energy providers will expect you to pay a deposit, install a meter or put the bills in someone elses name.

[basmic]

Originally Posted by sequenci

possibly, you will need to check with them. i know some energy providers will expect you to pay a deposit, install a meter or put the bills in someone elses name.

Well I could pay Virgin by paypoint.

O2, I'm not sure about - will they be written off as a creditor, or need I not write them off?

Scottish Power - I'll ring sometime soon, and get the details from them. Hopefully my parents won't mind a DD coming from their account, as long as I give them the money.

[powelll]

Do you actually have debt with O2? If not then you could continue with them ( as long as they are aware you are bankrupt if the credit is £500 or more ). Some companies may decide they don't want your custom but to be honest most should be happy they are getting your money! Or you could get a pay as you go O2 sim?

[basmic]

Originally Posted by powelll

Do you actually have debt with O2? If not then you could continue with them ( as long as they are aware you are bankrupt if the credit is £500 or more ). Some companies may decide they don't want your custom but to be honest most should be happy they are getting your money! Or you could get a pay as you go O2 sim?

Do I currently owe them anything...ermm, yes and no. I have 6 months remaining on my contract (@ £25/month) - but I don't actually owe them anything. As far as O2 are concerned, I am up to date with payments.

I'm more worried that when I go bankrupt, O2 will be seen as a creditor - but a creditor I am content paying for.

[powelll]

They shouldn't be seen as a creditor as long as the OR agrees. As you aren't in arrears it's not a provable debt as such. For example, if you had a car on HP and you weren't behind in the payments and the car is essential for some reason the OR would usually let you keep paying the HP. Who is your water supplier? may be another source of trust fund help as well as ACO mentioned by Sequenci.