Bankruptcy advice and questions

[fermi]

The OR will ask to see you and normally make an appointment within 2 weeks of your BR order....then when you go to your interview they will give you a big folder to fill out full of questions about your finances, why you think you are BR, they get you to fill in all the debts that you know about (they will ask you to put a big 'D' in a circle if you dispute any of the debts (excessive charges etc).....they will ask you to bring in all details of pensions, bank cards, cheque books, premium bonds, wage slips...they will also note your outgoings....(they aren't allowed to help you - but mine was very friendly and 'guided' me on certain points....

 

That is the procedure if you are made bankrupt by a creditor.

 

If you do it yourself then the OR should already have most of that information in the 'statement of affairs' that you submit to the court on the day.

 

Unless your case is very complicated then it is likely that any interview required will be by telephone, unless this is one of the very few courts where you pop along to see the OR on the day of the bankruptcy hearing (Liverpool is one......).

 

On the day you may see the judge or you may not. Some are happy to sign off the papers without seeing you, while some will want a brief chat to make sure that you know what you are doing and understand the consequences.

 

Most judges are very nice, understanding and genuinely wish you well in a 'fresh start'. The court staff are normally the same.

 

At most courts you will have a brief conversation by phone with the OR's office to confirm details and deal with any urgent matters.

 

After a few days you should receive a pack with information and some forms to sign and return. Most people will also have a letter with that to say what type of interview (if any) is required. Although you may be telephoned separately to set that up.

 

The prospect of it all seems very scary before you do it, but the reality isn't as you imagine. I couldn't begin to count the number of people I've heard say that "they shouldn't have worried".

 

Good luck.

[fermi]

You OH's contribution should go in the box 6.7.

 

This should be helpful (but a long read).

 

OR's Technical Manual - IPAs Assessment of real disposable income

 

And if you can open an Excel file, this should let you work out roughly how much an IPA (if any) would be:

 

Income Payments Calculator (Excel spreadsheet)

[fermi]

OH = Other Half

 

Sorry. Too used to forum/internet shorthand.

 

That spreadsheet is a calculator, so it's a bit hard to put it into another format.

[fermi]

These are the IPA bands.

 

 

or in full:

 

[fermi]

The mobile may well be OK. It is nowadays seen as a reasonable expense.

 

If your bills were much more than you say then you might be required to meet the extra out of any surplus you were left with.

 

Sky is non-essential though.

 

But if you wish to pay for that out of any surplus you have left over after any IPA is deducted, then that is up to you.

 

For example; if you hadd £100 per month surplus, then an IPA would claim £50. If you decide to spend the £50 you are left with on Sky, that is totally up to you.

[fermi]

does anyone have any info on what figures are deemed as acceptable in expenses eg food, dentist, clothing and so on....

 

Check your PM's.

[fermi]

Lloyds is unlikely to allow you to keep an account open. The occasional person has managed it, but they close the vast majority and refuse new accounts until you are discharged.

 

That applies even to the basic account. And for most other banks as well.

 

The only two realistic options are Barclays and the Co-op.

 

I know quite a few people who have managed to get a basic Barclays or Co-op account once they are BR, despite owing said banks a lot. However, the Co-op seem less inclined to do this lately.

 

Where is your income from? Can you get it paid into the account of someone trusted temporarily?

[fermi]

Definitely nothing to worry about at those levels.

 

Natural to worry though.... Please don't.

[fermi]

Income Payments Agreements and Income Payments Orders

 

HMRC applies nil tax codes for various reasons, and the new tax code will not tell your employer you are bankrupt.

 

I also noticed an examiner for the OR post this on another forum a while back. I hope it's true.

 

A bankrupts employer (being nosey) once requested a full breakdown into why his member of staff was on a nil tax code, and had a 27 page reply with every possible reason this could happen the guide book that explained it and a little note at the end that said

 

"cause we told you to, and will not tell you why"

 

HMRC is a bit of law on to themselves

[fermi]

Halifax will most likely close the account as soon as they learn of your BR.

 

Sorry to harp on, but the only two realistic options are Barclays and Co-op. While they occasional person has managed to keep a basic account from somewhere else, this is VERY MUCH the exception to the rule and you can't expect it or realistically hope for it.

 

That even applies when bank staff tell you the account will be OK. This applies to the "basic" accounts as much as normal ones. Just because an account is "basic" does not make it safe. I've lost count of the number of times I've heard of people being told this only to have the account closed anyway.

 

Really, the safest way to do things is to open a new account after the BR. That way it will be unaffected. That may be inconvenient for a while until it is set up, but it avoids any nasty surprises if an account is suddenly closed or frozen.

 

Tis up to you what you do, but I was concerned that you may get tripped up here if you are not forewared enough.