Bankruptcy advice and questions

[geministar2007]

thank you ferni. I will wait. I will ask the OR what my best option is.

[palomino]

Of course - provided it is a legitimate and provable debt. Given the family connection the OR will probably show a high degree of interest in this.

[phat256]

geministar you have to put down all of your debt on your statement of affairs nto matter if it is securede, unsecured, family, utility arrears, council tax everything should be included.

if you forgot some don't worry the OR will ask you more about your debt during your interview if you go BR.

 

If you owe money to your family and if they want your money back they will have to go to the OR to ask for it back.

[nevos]

Is Bankruptcy your only option left open?

[phat256]

sorry gemini o just received your message and pardom me for answering here as aparently we re nto allwed to respond to private message incase u receive bad advise so here we go my answer

 

forgive me in advance if

Hello

 

You have posted on some of my threads in relation to my bankruptcy process. I noticed you stated in the council tax thread that your partner is BR too. Would you mind me asking... How do you both find this? Does both of you being BR make life any more difficult?

 

My partner is thinking of going BR too, however his situation is a bit different to mine, most of his debts are in joint names - his wife who he is no longer with and who is living in NZ. They both ran away from their debts, so far he has not heard from any of the creditors and its been a couple of years or so.

 

Would just like to hear your thoughts if that is ok?

 

Thanks again

 

hi geminie normally we are not supposed to give advise through personal message (apparently rule of the consumer action group not mine lol)

 

Bnakruptcy is a personal matter anyway so you will have to go through individually.

the difficulty rely much more on the stigma attached to BR and the feeling of failure .,.

 

then u will have also t not to rely on credit for anything and learn to budget everything right down to the penny..

 

However to my partner and I it had given a new life and a new start and of course no more argument about finance....

Bith if us have f difficulties regarding making payment etc.,, we have a barclays bank account which do not offer a debit card and i can tell you he can be a pain sometiems as we cannot buy through internet, to do food shopping we have to withdraw the money first and if it goes over well you have to put some back etc... .

 

the co-op turned us down as we owed them money apparently they only accept undischarged Br if they are not your creditor .

regarding you rpartner if he goes Br , then his wife will become liable solely off all the joint debt and the creditor will go after her . i can tell you running away from your debt is usually not a very good idea as if they have a CCJ well they can enforce it when they want too.

[phat256]

oh i forgot to mention family debt does not have priority over you other creditor they will have to queue same as the rest . The Or doe snot favour one creditor than an other one

[geministar2007]

ok well it hasnt got to that yet and he is hoping to have something in place with the council by the end of the month.

[geministar2007]

no i do not, i was thinking more in terms of a secure home sometime in the future but i defo do not want anyform of credit anywhere else.

 

thanks for all you advice phat256

[phat256]

as long your partner is upfront with them he will have no problem whatsoever make sure your partner keep to the agreement ( and make sure in writing sent recorded delivery) as i know sometime the council can get a bit too heavy by our own experience

[phat256]

your welcome geministar we are thinking too to get a mortgage at some point but we know that won't be soon especially in this current economical climate.

[geministar2007]

he plans on calling them within the next week (we would have had a letter by then i guess) they will then know i have gone BR which he will also tell them and i think he plans on offering a sum or setting up some sort of payment proposal we are hoping this will be ok and will not get sent to the bailiffs just yet. 400 odd quid is nothing and he is hoping to raise it somehow the debt will increase by a further 88 1st feb. Really the full amount for the the year left to pay is only just over 600. So as long as they understand him and agree to a lump and reduced payments hopefully all will be ok. fingers crossed!

[geministar2007]

ok after searching net and also martin lewis moneysaving expert forums. I seem to have established the best bet for a bank account when i go Br is the Co op cash minder, however my nearest branch is Plymouth about 50miles from me!!! I note you can use the post office to pay into the account... does anyone know if this means cheques as well.

 

I owe nothing to co op whereas barclays i do. Just want as little stress as possible.

 

Does anyone know anything about Halifax? I know someone who opened a basic account with them after going BR.

 

Look forward to hearing further thoughts

[palomino]

Cheques have to be posted to the Co-op's office in Manchester (or is it Liverpool?). Take five working days to clear plus the the time in the post.

[geministar2007]

thanks i looked on the post office site and it states all the banks that you can use the post office for. The co op one states cheques can be paid in at the post office if you have a basic cash minder account. Aslong as you have the deposit envelope. And will take up to 5 working days to clear.

 

Who gets cheques that often these days.

[geministar2007]

Ok so the big day for me is tomorrow, i feel a bit sick and have so many things/questions etc going around my head.

 

Ok does anyone have an idea of the sort of thing the OR will ask when they call me?

 

I have a list of things to ask them:

 

What bank acc would they suggest?

 

What happens with nil tax and how will they recieve tax, how long for?

 

and so on.

 

I also have made a few notes of thing they may ask me.

 

E.g why did i take a loan out? Why did i have a further catalogue and so on.

 

I know all cases are individual but any advice would be great.

 

Also is it possible for the OR to call you at the court, do they have a small office for this? I am concerned as i am busing it (the court knows) that something may happen and i wont get back in time E.G the bus breaks down. The OR will be calling my mobile (i have no landline).

 

[**Tilly**]

Hi Geministar

 

I can't help much im afraid, on the same route, but would like to wish you good luck for tomorrow, this link was posted on my thread hope it helps

 

 

Income Payments Agreements and Income Payments Orders)

 

 

 

Tilly

[geministar2007]

if myself and partner are not married, does he have to prove his income? I am getting confused perhaps too much info etc everywhere? I thought if i was not married the Or has no interest in my partners finances, however if they go for an IPA which i dont think they will i have read on the insolvency site that they will require proof of my partners expenses etc???? HELP

[palomino]

They will ask about all your debts. Include them in the list even though they might not be relevant (eg. secured debts such as mortgages, and things like student loans).

 

Then they will ask about your income.

 

Then they will ask about your assets. This includes property, vehicles, bank accounts, shares etc etc.

 

This form http://www.hmcourts-service.gov.uk/courtfinder/forms/ex140_0403.pdf is for somewhat different circumstances but will serve to give you a good idea of what they will ask.

You will need to have all documentation to hand - things like payslips, bank account statements, proofs of all your debts etc etc. There can be a lot of work in getting all this together.

 

Always tell the OR about any income, assets or debts even if you think they might not be relevant. Let the OR decide.

 

Don't bother mentioning about disputes on bank or c/c accounts and things like that. If it's all going to be taken over by the OR who cares how much it is.

 

Any court cases you might have in progress will also be taken over by the OR.

 

I did once go to a seminar where the guest speaker was the OR. Over lunch I hi-jacked and asked him many questions. He was a very approachable chap and very understanding, although sharp as a knife. One point I put to him is that the DCAs keep adding vast charges in order to increase the total debt on the basis that any payouts by the OR are on a pro rata basis, and they will thereby get a larger share of any pot. Naturally all the DCAs do this which completely negates the effect. He laughed and said he was very well aware of what happens in these circumstances.

 

Another interesting point he made is that the Official Receiver is a statutory position and this means he can't be leant on by polititians or others of that ilk. Nor can he be directed what to do by the courts.

 

I have to confess I would sooner he was on my side than the opposition's. Which is why I always say to be open, up-front and co-operative when dealing with the OR.

[palomino]

Yes you can take cheques to the Post Office but all they do is put them in an envelope send them off to Manchester/Liverpool to be processed. Saves you a stamp I suppose.

[palomino]

Also the links in this post are very well worth looking at.

http://www.consumeractiongroup.co.uk/forum/formal-solutions-bankruptcy-administration/174981-br-form-help-sec.html#post1889356

[geministar2007]

that link just brings me back to the consumer forum home page??

[gizmo111]

Ok so the big day for me is tomorrow, i feel a bit sick and have so many things/questions etc going around my head.

 

Ok does anyone have an idea of the sort of thing the OR will ask when they call me?

 

I have a list of things to ask them:

 

What bank acc would they suggest?

 

They won't suggest a bank account - it is up to you where you bank.

 

What happens with nil tax and how will they recieve tax, how long for?

 

and so on.

 

I also have made a few notes of thing they may ask me.

 

E.g why did i take a loan out? Why did i have a further catalogue and so on.

 

Whatever the reason was?

 

I know all cases are individual but any advice would be great.

 

Also is it possible for the OR to call you at the court, do they have a small office for this? I am concerned as i am busing it (the court knows) that something may happen and i wont get back in time E.G the bus breaks down. The OR will be calling my mobile (i have no landline).

 

 

They will usually give you a time they are calling and it is unlikely to be straight after the hearing. If you think it is an inconvienient time before you are home then say so - they will adjust to reasonable circumstances.

 

Above all don't panic - just be honest about your situation and they will guide you through the process - they do this every day!

[geministar2007]

i was told when i made the appointment last week that i would be called the afternoon of the bankruptcy petition as there is no back log.

 

Which i prefer as it gets everything out of the way on the same day.

[geministar2007]

I know a few people who have gone bankrupt over recent years and none of them have actual seen the judge in person. The clerk has submitted the petition on their behalf. Whilst the person waits. Why is this?

[Trilby274]

I think it depends on how the bankruptcy is approached. The person being made bankrupt can make an application to set aside the petition and would then most definitely see the judge. If the bankruptcy petition is undefended (ie no application to set aside) then there is no reason for a judge to see them. Submitting an application to set aside would not in itself prevent the bankruptcy and would involve additional costs.

 

However, if the defendant can show the judge that they have made efforts to pay the debt and are willing to continue to try to pay it off, the application may succeed, with the judge giving an order as to how to proceed.

 

In many cases, however, the bankruptcy can be a life-saver for the defendant even though it generates other problems. It all depends on the individual circumstances.