Tawnyowl -slow acceleration to bankruptcy

[Tawnyowl]

Just coming on here to start new thread-have many but feel this is where i am going to need most help as time passes.As time goes on i hope some of you wise ones will answer probably many questions that will come.Any help and advise will be appreciated..Have many debts and over the years have paid then not paid then made offers then taken to court then sometimes down to token payments-but really the are still there in my mind.Job was hard in winters-resulting in missed mortgage payments etc to sub prime lender-sus possession order broken-so now am waiting for final outcome-but have managed to find flat for family for when the time comes.Just weeks away i feel.In the past been to CAB-CCCS-finally PAYPLAN who agreed this is maybe best thing to do-In fact said it was.Have spent hours each week trying to sort debts with help on here-but have had enough-life to precious to carry on like this.Hope i am in right area-tawnys brain not what it used to be-if not perhaps some wise one will move it.Thankyou for reading this post Tawnyowl:(

[kazdoc]

Hi Tawny Owl

First post of yours that I have read so dont know your history.

If Payplan have said that BR is your best option then maybe its time to go down that route.

It is quite major! and there are lots of things to take into consideration, but with no assets the blow should not hurt too much, but will take some time to adjust to, however you will be debt free with possibly an IPA.

 

As its a new thread, can you share some more details?

[Tawnyowl]

Sure can-Have small Ltd company-i mean small building trade-was set up really when Gordon Brown gave tax incentives to do so-believe at the time 10 k a year no tax-everyone went for it -taxi drivers hairdressers gardeners .Of course it soon changed and was canceled i believe the next year.Accountants idea-not mine-but he was right to tell me to go Ltd.Very nearly went bust 3 or for months ago-but at last minute managed to pull it around and now am busy with 3 workers-sounds good but at moment have major cash flow prob and believe me no bank will touch me-but i wont give up.We make people so happy when work done right but takes so much time-prices don't reflect this-maybe this is a problem itself.

 

I also went down the buy to let route-council house-but maybe this wasn't a good idea-having 4 step children and 3 of my own.Only have one at home now they all have good jobs-electrician brick layer 2 i feel are going to be pro ice skaters. Other son works with me as does daughters husband.So expensive everything.Of course fell into easy route out-sub prime lender etc loans over the years-didn't go mad,but slowly week by week month by month it slipped away-just living that's all.Well ended up in right mess-still really am i suppose -that's when i came on here-received much help-but after spending hours up in room from hell writing learning fighting with banks getting things reduced to token payments-really they are still there,have left them for now as that's when suspended possession order came in with Kensington-broken now-am now packing having found flat for family before they possess me-but i will wait for that cant be far away.No equity in house-so when they poss will be chasing me for shortfalls etc-so feel flat is best as in difficulty then maybe get help with coun tax etc-not as before,subsidising with loans etc.Also the bankruptcy idea or when reality kicked in this is when i realised its going to end this way.Checked with Payplan for IVA if poss but not due to income-so slowly am heading down this road.Am definately not ashamed having tried really hard for 30 years.Just feel this thread needed to be in so i can ask questions when needed and learn -and share experiance-when going down this road.Thanks for replying-nice when that happens.

Edited August 29, 2008 by tawnyowl

[**Tilly**]

Hi Tawny

 

Will be watching your thread, i could be joining you down this road very shortly.

dont know if this link will help.Im sure you get all the help you need here,Good luck

 

 

http://www.consumeractiongroup.co.uk...ling-debt.html

 

 

 

 

 

Tilly

[phat256]

hi tawnyowl i decalred myself BR last month ad even though it is quite severe i found it liberating knowing i don't have to worry anymore about my debt as i don't have any anymore i have no IPA ever wooh wooh !

 

i was like yu felt that it was easy to get aloan this and there same for credit card etc... then i was made redundant and the problem was getting worst and worst finally i had enough , couldn't buy food clothes etc ... and went fro BR . i wish i had it done earlier !

 

however think carefully about BR as it i has serious consequence.

[kazdoc]

Evening,

 

I too am BR, but still awaiting OR meeting which terrifies me. How was yours Phat?

 

I'm sure I made the right choice, but as its all so new I have not encountered anything severe yet. What can I expect? House in negative equity so hopefully should be able to keep?

 

TawnyOwl. Salute you for not being ashamed. Like you say, you have tried. No crimes committed, just someone trying to do their best.

[phat256]

the OR was fien and very polite although i found the interview quite intimidating as it felt very probing like ! she knew much about my financial affairs than i did !

 

severe well for coems when i had difficulty opening bank account after declaring BR. Co-Op refuses me i owed them money so this was out of the question . then ihad to check with my job if it was k to carry on i deal with money on a day to day basis but i was fine etc... .

 

if your house is in negtive equity then your OR may have no interest whatsoever soemtimes they let you buy the beneficial interest of it so keep crossing finger.

 

good lcuk kazdoc with your OR interview

 

keep going tanny owl the end we will be soon over with ! trust me BR allow u to start afresh !

[Tawnyowl]

Am going to read about many of your experiences you have been through leading up to and during bankruptcy-i know this may sound daft but i want the repo thing to go ahead- no equity-even if could afford which cant when fixed rate ends -no chance, have dealt with this by finding alternative accom-bankr thing bit scaring at mo-OR meet sounds big thing.I have read a few things about shortfalls-and maybe im wrong but things are moving fast with debts-maybe if go bankrupt before sale of house poss shortfall can be mentioned.Also one small secured CCJ on housethat sounds like poss complication.Excuse me perhaps for rambling-so much to read yet.

[Tawnyowl]

Have now really moved onto this thread-eviction date will soon be made.Have received solicitors letter saying eviction date will soon be applied for.Am now in rented accomodation because felt health of family was at risk.

Also this week received letters saying charges on house are going to be made and baliffs calling unless arrears on loan is paid.This week am going to find the forms needed to fill in and find out whether shortfall in house can be mentioned even though it is not yet known how much this will be, hoping that this may be the case.Thanks for any advice given and any other advice most welcome.Tawnyowl

Edited September 13, 2008 by tawnyowl
wasnt clear enough must have baffled you for moment tinkerbell

[Tawnyowl]

Am now reading Gizmos helpful thread

http://www.consumeractiongroup.co.uk/forum/formal-solutions-bankrupty-administration/56970-insolvency-dealing-debt.html

Just in case anyone else wants this info

Feel like things are quickening-mind is made up on the bankruptcy-has been for month or two.

[tinkerbell20]

Have now really moved onto this thread-eviction date will soon be made.Have received solicitors letter saying eviction date will soon be applied for.Am now in rented accomodation because felt health of family was at risk.

Also this week received letters saying charges on house are going to be made and baliffs calling unless arrears on loan is paid.This week am going to find the forms needed to fill in and find out whether shortfall in house is not yet here can i mention possibility that this may be the case.Thanks for any advice given and any other advice most welcome.Tawnyowl

 

 

Don't file untill after they take possession so that any shortfall in the money owed is unsecured and crystallised and therefore written off with the BR

[Tawnyowl]

Thank you for that helpful important post.Shortfall is a major worry for the future.I will wait for possession to take place so it becomes a unsecured debt.However after possession takes place would like to move on bankruptcy as soon as poss-pressures immense.Would i be able to say to OR possible shortfall in house needs to be included even though i do not know what this will be.Feel like shortfalls this day and age are major point to be mentioned when going for bankruptcy after repossession.Have now registered for online forms and service on the Insolvency Service Thankyou Tawnyowl

[tinkerbell20]

Thank you for that helpful important post.Shortfall is a major worry for the future.I will wait for possession to take place so it becomes a unsecured debt.However after possession takes place would like to move on bankruptcy as soon as poss-pressures immense.Would i be able to say to OR possible shortfall in house needs to be included even though i do not know what this will be.Feel like shortfalls this day and age are major point to be mentioned when going for bankruptcy after repossession.Have now registered for online forms and service on the Insolvency Service Thankyou Tawnyowl

 

 

Yes because it was unsecured at the DATE of bankruptcy. The amount will be sorted out by the OR later but the net effect is that the lot is written off under the BR

[Tawnyowl]

I also have charging orders on the property 1 at moment but others following suit suppose for the house to sell these will have to be made unsecured- but i suppose by then this will not be my concern-after Mr Baliff takes over for the mortgage company.

mmm-thread says slow acceleration to bankruptcy-feel i have just jumped into Ferrari.

Thanks for replies-Tawny

Edited September 13, 2008 by tawnyowl

[Tawnyowl]

If your debts are so serious that you face the prospect of going bankrupt, you need to be aware that there are charges for declaring yourself bankrupt. These consist of a £140 court fee and a £310 deposit to help meet the costs of the Official Receiver. So this amounts to total costs of £450:eek: which you are legally bound to meet yourself.

If you are on means-tested benefits, then you will be exempt only from the court costs of £140.

 

 

Was wondering how much it would cost now i know-better start saving now.Going to take some doing. Tawnyowl

[Tawnyowl]

Citizens Advice has two broad conclusions to the proposals set out in this consultation.

Firstly we support the proposal to remove the court from the debtor’s petition process as the court system cannot currently guarantee a quick and easily accessible service to people seeking the protection of bankruptcy. We do not currently have any evidence to suggest that any essential safeguards will be lost by removing the court from the process per se. We respond to the detailed questions on how the revised process might work below.

However, Citizens Advice does not support the current proposals for application fees for the reasons stated above. We recommend that the Insolvency Service should reconsider these proposals with a view to establishing a system of remission for low income debtors. This should provide for full remission of the application fee for applicants in receipt of the following benefits:

 

• Income support
  
• Income based jobseekers allowance
  
• State pensions guarantee credit
  
• Working Tax Credit
  
• Child Tax credit where the payment includes any of the child element
  
• From autumn 2008, income related employment support allowance
  

The remissions scheme should also make provision for full or part remission for people in receipt of low incomes who are not otherwise entitled to the benefits listed above.

At the same time we would ask the Insolvency Service to consider CAB evidence showing how the deposit acts as a more general barrier to bankruptcy for those that need it. The introduction of the DRO will help reduce these barriers but we expect many lower income debtors to continue to struggle to find the bankruptcy fee and deposit. Therefore we believe that the Insolvency Service should use this review of the debtor’s petition process as an opportunity to consider how else access to bankruptcy could be improved for lower income debtors.

In particular we recommend that the Insolvency Service consider introducing a remission scheme for the Official Receiver’s deposit fee as CAB evidence suggests that this is the single most significant barrier to accessing bankruptcy experienced by CAB clients. Indeed, based on the predicted number of cases for 2009/10 (model A) and the 44 per cent of debtors currently receiving remission on court fees, we estimate that the equivalent cost of remitting the Official Receiver’s deposit would be around £16.4 million. However, the consultation paper estimates that removing the courts from the process will save the taxpayer a minimum of £166.44 on every case, which equates to a 2009/10 saving of £18.4 million on the same predicted number of cases. This saving would be more than enough to fund a remission scheme for deposits and such an approach would seem to be in line with the government’s overall aim for dealing with the problems of over-indebtedness restated in this consultation as being ‘to improve the support and processes’ for people getting into debt.

 

 

Maybe in time there will be more help for people with low incomes- i hope so-as there must be many who just cant afford these fees.And i suppose asking charitys etc for help with these fees this day and age with i suppose increasing bankruptcys is overwhelming them.But so many people need help who surely will never be able to save these fees.

Edited September 14, 2008 by tawnyowl

[gizmo111]

Tawny have you stopped paying all your debts now? How long will it take for you to save the fees?

[Tawnyowl]

I think these fees can be saved over a period of 6 weeks possibly.All debts and mortgage are not being paid now.Just cant keep up with them anymore-mind is muddled with it all-bin bags full of correspondence.Many debts have charges that i have only half dealt with-but maybe after bankruptcy will finish-i just don't know.

I have broken suspended possession order and received solicitors letter saying if the debt is not paid in 7 days they are applying for a eviction date -which really for me can not come soon enough.Due to conditions and stress for family have already moved out.Neighbour looking after and keeping eyes on things till Mr baliff calls. I feel this is not far away perhaps 3 weeks or so.

Really at moment first priority seems to be final possession then Bankruptcy for me and my wife but due to financial cost feel i will go first due to most loans etc being in my name.The possible shortfall is another reason to go down this route but understand this is best to do after baliffs and Mortgage company have taken possession of property.Things are moving fast with creditors applying for charging orders -baliff visits-redetermination of court decisions-and door collectors-don't mind them -tell them to clear off-and they do.Bankruptcy is right thing to do for us-that's for sure-had years of grief-enough is enough.Thankyou Gizmo for your reply your thread helped me so much-pointed me in the right direction.Bye for now Tawnyowl.

Edited September 15, 2008 by tawnyowl

[Tawnyowl]

Just quick question -have small Ltd comp-scraping along-but employing three at mo including self now what happens to them.Believe me just keeping going but like workers-and one is learning job fast-took him off unemployment.Nice lad from council estate like me-if going bankrupt would like to continue afterwards-hope it can be done.Got many ideas for business could still make it yet.

[palomino]

If your debts are so serious that you face the prospect of going bankrupt, you need to be aware that there are charges for declaring yourself bankrupt. These consist of a £140 court fee and a £310 deposit to help meet the costs of the Official Receiver. So this amounts to total costs of £450:eek: which you are legally bound to meet yourself.

If you are on means-tested benefits, then you will be exempt only from the court costs of £140.

 

I don't know where you got your figures from - it's now £150 for court fees and £345 for the OR. Total £495. At least that is what I was told.

The court fees can be exempted in appropriate circumstances - you need form EX160. I think this available from the HMCS website.

[tinkerbell20]

Just quick question -have small Ltd comp-scraping along-but employing three at mo including self now what happens to them.Believe me just keeping going but like workers-and one is learning job fast-took him off unemployment.Nice lad from council estate like me-if going bankrupt would like to continue afterwards-hope it can be done.Got many ideas for business could still make it yet.

 

 

Yours shares etc in ltd company will revert to receiver and normally business is closed down. You can't be a director while bankrupt. However that doesn't stop you trading self employed or even a family memeber starting a new company and employing you and the other employees

[blue4ever]

This Link Will explain INSOLVENCY (BANKRUPTCY)

 

The Insolvency Service Website

 

CHEERS B4E

[Tawnyowl]

Tawny have you stopped paying all your debts now? How long will it take for you to save the fees?

We will see how long it will take 50 pound under mattress for bankruptcy-sure at present time not putting in bank.They don't trust each other think im going to-don't think so-noooooo way.10% Closer to amount required.

[blue4ever]

We will see how long it will take 50 pound under mattress for bankruptcy-sure at present time not putting in bank.They don't trust each other think im going to-don't think so-noooooo way.10% Closer to amount required.

 

Hi tawnyowl i have read the above and i have found a thread that the poster got a grant(full) for their bankruptcy

 

http://www.consumeractiongroup.co.uk/forum/formal-solutions-bankruptcy-administration/154615-advice-needed-please-bankrupcy.html

Go to Post 47

Do Hope This Helps You

Cheers B4E

[miaow99]

Yours shares etc in ltd company will revert to receiver and normally business is closed down. You can't be a director while bankrupt. However that doesn't stop you trading self employed or even a family memeber starting a new company and employing you and the other employees

 

 

This is possible but you need to be VERY careful that you aren't acting in a way that a director would at all - that means you don't touch finances, and can't be seen to be involved in the "management or promotion" of the company.

 

Otherwise you can be said to be a "shadow director", and then liable to prosecution for acting whilst disqualified.