Seriously considering BR

[mcuth]

Hi all

 

Things have been pretty much ticking over for a bit, but I'm now seriously considering bankruptcy so I can get a fresh start.

 

Fully expect to get an IPA and maybe even a BRU/O, but I just had some questions so I can sort some stuff out and make my final decision, if you don't mind

 

1. My flat was repossessed in January - it's on the market, but no sale as yet (hasn't gone to auction yet either, as far as I know). There will be a large shortfall (which is pretty much what's made me consider bankruptcy), but obviously until it's sold, I don't know what that is going to be. Is there a problem including this in the bankruptcy?

 

2. If a debt isn't included in bankruptcy, can the lender come after you post-bankruptcy for it, or does bankruptcy wipe the slate clean of everything at that date, regardless of whether you write it down? Reason being that I have several statute-barred debts & unenforceable agreements that are still being chased from time-to-time - on one hand I'm loathe to include them because they're not enforceable and I'd hate to see them get even 1p from what will be a very limited estate, but on the other hand I'd like to have rid of them for the future - i.e. I don't want anyone to be able to come after me after bankruptcy!

 

3. I work ~40 miles away from home, and my car's pretty essential to do that journey (doing it by public transport would cost at least twice as much, and take at least three times as long!), and I'd say it was worth £500 at a maximum. Do you think the OR would grant an exemption?

 

4. I live with my girlfriend in a rented flat. Currently, all the bills are in my name on monthly direct debits, and she gives me ~£500 a month as her contribution. Obviously it's probably best for me to transfer whatever bills I can into her name so that we can carry on paying monthly (and any outstanding balance from it being in my name can be included in the bankruptcy), but I'm unsure as to what the best policy is to sort out whether it's best for us to get a joint account and have the bills paid out of that. Would the OR freeze a joint account on bankruptcy, since it'd have my name on it? I'm more tempted to let her have the direct debits on her account and pay her my contribution each month.

 

5. Can Council Tax debts be included in bankruptcy?

 

Thanks in advance for your help as always

 

Cheers

Michael

[blue4ever]

Hi MCUTH

TRY THIS LINK WWW.insolvency.gov.uk this will explain alot

Good Luck paul

[Goldlady]

Hi, was in a similar situation myself a couple of years ago, but escaped at the 11th hour. The shortfall on the house is something I am unsure about, and need to know for some friends who are facing repossession. I would think that even though the amount is not yet known it should still be included. Likewise with the council tax, but I suspect that might be included.

 

As regards the cards with the statute barred/uncertain cca's - if it was me I would include the lot. I am riding on almost 80k of unenforceable debt and if some case in the future (not including the ridiculous Rankine case) gives the green light for enforcement I will be up the creek so to speak. So even if they will get something I would strongly recommend that you include every last penny you owe.

 

The car should be fine - I think you can have one up to £2k in value so yours should be well within that.

 

The bank account - I would not open a joint account at this stage, unless it is a basic account, which you are allowed to have. You are allowed to live of course, but probably a bad idea to link yourself to the girlfriend's money at this stage.

 

Other people might give you better advice - all I know is what I researched when I was considering it.

 

Best of luck. A friend of mine was discharged last month and she reckons it was the best thing she ever did. Only works if you don't have any assets of course.

[jonni2bad]

Hey Michael,

 

Sorry I can't offer advice to you, just wanted to say I hope things go as well as they possibly can for ya.

 

...and it serves as a bump, if nothing else!

 

Best wishes

[mcuth]

Thanks both

 

B4E - yeah, know about that one ta, it doesn't answer a lot of questions though

 

GL - I'm ready for this one (and the OH is too!), decided I need a complete break (though would love to spend days & weeks going through the dance with all the creditors!). Thanks for your comments - really helps things in my mind

 

J2B - appreciate it me old mucker About time this old tart got himself properly sorted

 

Cheers

Michael

[Goldlady]

I went through the interviews with the OR with my friend and the guy who dealt with her case was really sympathetic and helpful. I would suggest in the current economic climate that it will be a bit of a production line and unless you have committed serious amounts of financial debauchery that you will be OK. My friend was 65, retired and on benefits - she had been given huge amounts of credit and used it to the full - holidays every couple of weeks, lots of presents for her grandchildren etc etc. Whilst the OR was somewhat amazed at how someone could get through so much money in such a short space of time, we discussed the irresponsible lending aspect and as I said above she was discharged after a year.

[ukaviator]

I wouldn't open a joint account Michael, your girlfriend would be associated with you, and that may damage her credit rating too.

 

I know you are a switched on guy Michael, if that's the only way, then good luck. Holler if you need anything. . .

[gizmo111]

Hi all

 

Things have been pretty much ticking over for a bit, but I'm now seriously considering bankruptcy so I can get a fresh start.

 

Fully expect to get an IPA and maybe even a BRU/O, but I just had some questions so I can sort some stuff out and make my final decision, if you don't mind

 

Why do you think you would get a BRO? Very few people do.

1. My flat was repossessed in January - it's on the market, but no sale as yet (hasn't gone to auction yet either, as far as I know). There will be a large shortfall (which is pretty much what's made me consider bankruptcy), but obviously until it's sold, I don't know what that is going to be. Is there a problem including this in the bankruptcy?

 

There shouldn't be a problem with including it, AFAIK including the debt in the BR is enough, the size of it is irrelevant.

2. If a debt isn't included in bankruptcy, can the lender come after you post-bankruptcy for it, or does bankruptcy wipe the slate clean of everything at that date, regardless of whether you write it down? Reason being that I have several statute-barred debts & unenforceable agreements that are still being chased from time-to-time - on one hand I'm loathe to include them because they're not enforceable and I'd hate to see them get even 1p from what will be a very limited estate, but on the other hand I'd like to have rid of them for the future - i.e. I don't want anyone to be able to come after me after bankruptcy!

 

I think you should list them all and let the OR sort out what is relevant or not, you can make the point to the OR. In your case BR is a fresh financial start, and no point in you worrying about it anymore. Include them all, just to be sure.

 

3. I work ~40 miles away from home, and my car's pretty essential to do that journey (doing it by public transport would cost at least twice as much, and take at least three times as long!), and I'd say it was worth £500 at a maximum. Do you think the OR would grant an exemption?

 

I would be very surprised if you were not allowed to keep this vehicle.

4. I live with my girlfriend in a rented flat. Currently, all the bills are in my name on monthly direct debits, and she gives me ~£500 a month as her contribution. Obviously it's probably best for me to transfer whatever bills I can into her name so that we can carry on paying monthly (and any outstanding balance from it being in my name can be included in the bankruptcy), but I'm unsure as to what the best policy is to sort out whether it's best for us to get a joint account and have the bills paid out of that. Would the OR freeze a joint account on bankruptcy, since it'd have my name on it? I'm more tempted to let her have the direct debits on her account and pay her my contribution each month.

 

Any account you have pre BR will be closed. After BR you will need to get a basic account, Nationwide and the Co-op are the most accommodating for bankrupts, and both supply an electron card and online banking with their accounts, be sure that when you apply to open the account you inform them of your status.

I think it would probably be easiest for your girlfreind to open an account and get the bills set up from there, and post BR you make a SO to transfer your contribution to her.

 

5. Can Council Tax debts be included in bankruptcy?

 

Thanks in advance for your help as always

 

Cheers

Michael

 

Have a read here , it may answer some other questions you have.

[mcuth]

Thanks again everyone - knew I'd get the answers here, you're all brilliant as always & it really helps a lot

 

I tried a DMP a few years back, but that worked out at around 22 years to pay back. Also looked at IVAs, but that would mean creditors continuing to rule my life for the next 5 years. Besides, the rules under BR seem to actually allow you to live a relatively normal life and everything's sorted there & then - whereas with an IVA you've got more allowance restrictions, need agreement and also there's a longer impact on your credit file (another 6 years from IVA completion)!

 

BTW, on the bank account front, I knew about the Co-Op being good, but it's good to hear about Nationwide offering an account too - I might end up with them as their branches are better for me

 

Why do you think you would get a BRO? Very few people do.

 

Well, more a BRU really - I was thinking that they might view some of my borrowing as irresponsible, etc.. anyway, I don't really see a BRU/BRO being a big problem - I've lived without getting new credit for long enough to be used to it

 

Cheers

Michael

[gizmo111]

I doubt if it would be considered irresponsible, unless you have been buying luxury goods regularly and taking expensive holidays with no chance of paying it off.

 

What have you been spending on and how much we talking about here?

[mcuth]

I doubt if it would be considered irresponsible, unless you have been buying luxury goods regularly and taking expensive holidays with no chance of paying it off.

 

What have you been spending on and how much we talking about here?

 

Well, some holidays have been involved, but I wouldn't have called them luxury ones - and I don't have luxury goods anywhere. Mind, at the time I could afford it - it was before I went through a bad patch a couple of years ago, and I was earning a very good salary before I became unemployed (should've bloody well done it then when I wouldn't have had to pay the court fee!).

 

The amount....well I haven't actually totalled it up properly yet, but I think it's prob £50k or so Of course, it could well be £25-30k more if/when the mortgage shortfall's confirmed.

 

Cheers

Michael

[gizmo111]

If you spent it when you thought you could repay, it cannot be considered irresponsible, however you spent it.

[mcuth]

If you spent it when you thought you could repay, it cannot be considered irresponsible, however you spent it.

 

Now, that's logical

Thanks {{HUG}}

 

Cheers

Michael

[sequenci]

Gizmo bringing gerat advice to the table as usual.

 

btw: c.tax arrears CAN be included although they may try and recover the debt up until the point of discharge.

[phat256]

hi mcuth good luck i am also declaring myself bankrupt in 2 weeks time a bit the same as u took a lot of loan without even thinking of the repayment! good luck .

[mcuth]

Gizmo bringing gerat advice to the table as usual.

 

Absolutely

 

btw: c.tax arrears CAN be included although they may try and recover the debt up until the point of discharge.

 

Thanks for that, but would I just counter that with "I've gone BR, here's the order"? Would they still be able to make a liability order?

 

hi mcuth good luck i am also declaring myself bankrupt in 2 weeks time a bit the same as u took a lot of loan without even thinking of the repayment! good luck .

 

Thanks - might be a little bit longer than 2 weeks for me (gotta find that £500!), but good luck to you too

 

Cheers

Michael

[phat256]

to pay for the official Reciever and the court fee i had to stop paying my creditor, this was advise to me by National Debtline, and i can tell you there are not very happy bunny !!!

 

anyway i can tell you that i learn my lesson no more loan, credit card, etc.... i wished i had been more careful when i was younger.

[mcuth]

to pay for the official Reciever and the court fee i had to stop paying my creditor, this was advise to me by National Debtline, and i can tell you there are not very happy bunny !!!

 

Aye, well, more important to get the BR fees sorted Personally, I think it makes it a lot easier dealing with creditors when you've got BR sorted in your mind..

 

anyway i can tell you that i learn my lesson no more loan, credit card, etc.... i wished i had been more careful when i was younger.

 

Completely, totally & utterly agree!

 

Cheers

Michael

[tomterm8]

personally, I would recommend not going for bankruptcy until the shortfall (if any) is known. it is always possible that there might not be a shortfall... you never know...

 

Worth talking to the national debt line, though.

 

Once you've decided on BR, the creditors are irrelevant. There is nothing more they can do with you.

[mcuth]

personally, I would recommend not going for bankruptcy until the shortfall (if any) is known. it is always possible that there might not be a shortfall... you never know...

 

Thanks - ideally I'd like to do that too, but with the current housing market if they sold right now for the price being asked (which has been reduced by £25k), the shortfall would be ~£30k! So I can't see it making it to any positive equity in the near future...

 

Worth talking to the national debt line, though.

 

Aye, I keep meaning to call them....

 

Once you've decided on BR, the creditors are irrelevant. There is nothing more they can do with you.

 

That's always nice to hear, thanks matey

 

Cheers

Michael

[ChipnNick]

Micheal,

 

I think you have posed an interesting question here.

You know, I have a similar problem in that all I seem to be doing is working to pay off interest on cards and loans from long ago.Divorce,losing equity and a bad move with a relationship resulted in making my financial situation a complete disaster zone.

Anyway, I have now met a dual citizenship Australian who wants to move back to Australia and take me with her.

I have thought many times about BR but worry about the consequenses in the post BR situation. Just what happens, will I be able to get a mortgage and all the other practical applications in the process of life.

Still in a situation of owing a great deal of money with no hope of paying off in the short term. Would BR be a solution and would I be allowed to emigrate to Australia.

As a note, My GF is completly solvent, has a house with mortgage, has investments. So....do not want to harm her credit rating which is 100 per cent. Would the BR option harm her ratings as we living at the same address?

As a footnote, Michael I wish you the best of luck.

 

Nick

[Goldlady]

I would suggest that you move to Australia and then go BR as I suspect it would not work the other way round:D

[blind-as-a-bat]

Just a quick correction to gizmos post Nationwide are no longer Bankrupt friendly, changed there policey about 6 months ago (they wont allow you to open one if BR) your only choices seem to be the basic accounts at barclays or the co-op

[babybear39]

Barclays have been very good with me, but they do freeze the account and send the money to the OR. You have to prepare for this by taking out enough to live on while the OR returns the funds. You also have to make alternative arrangments to pay items set up on D/Ds and S/Os during this time. They even refunded a charge for a returned D/D that I forgot about.

[blind-as-a-bat]

All the accounts that where connected to me where empty when i went BR (wasnt hard to do as they never had much in them anyway:rolleyes:)

 

And everything DD wise was moved to my OH,s account with another bank.

 

My OR was very impressed apparently as not many do that and it creates them a hell of a lot of work so she said

 

First thing financially i got right in about seven years then:oops: talk about too little too late, sigh:rolleyes: