Bankruptcy advice and questions

[gizmo111]

I am about to apply for bankruptcy and have a couple of questions.

 

Firstly i am on a DMP with Payplan currently paying £25 per week, what is the likelihood of this being helf while i file for bankruptcy, the money i am paying to that i need to pay for the bankruptcy. Also seems ridiculous throwing money away that is going to be wipped via bankruptcy.

 

Stop paying this and use the money to save up for the BR fees. The creditors will probably start harassing you with calls and letters, but just tel lthem you are planning ot BR and will be in touch in due course.

 

Secondly, when i started my DMP i had to open a basic bank account, which i did, a Lloyds cash card account, no overdraft. Do i have to open another basic account? As i am aware bank accounts get frozen.

 

Thirdly, i do not have all my bank statements and so on, i keep each new months as they come in and throw the old ones away. Is this a problem?

 

You will most likely have to open a new account after BR. Most people do this when they leave the court. That way it is guaranteed that nothing will get frozen. Draw out in cash any money for living expenses in your account as well as the BR fees.

Don't worry about statements, just take what you have with you. The OR can request any more he may need direct from the banks.

 

Fourthly, can anyone advise me anything else regarding the bankruptcy process i am nervous however can no longer go on paying back my debts, when creditors still charge interest i have tried! Which i am hoping goes in my favour!

 

Have a read here.

What is it you hope will go in your favour?

[gizmo111]

I have a question if you don't mind answering. Are there any assets the OR will allow you to keep whether it was purchased recently or not? i.e clothes, electrical equipment, safe, computer equiptment etc?

 

Is there a definitive list somewhere?

 

Regards

 

There is no definitive list, but the OR is not interested in your personal things unless they have a significant resale value. He would not be interested in your clothes and household electrical items, but for example if you have a valuable electric guitar, or persian rugs he will be interested in them.

Are there particular items you are worried about?

[gizmo111]

Thanks gizmo111,

 

A computer purchased 12 months ago for £1,700, a car with a sale value of approx £4,500 (worth more to me) and a few very recent purchases around the £100 - £150 mark.

 

I suppose my question was/is, will puchases be seen as taking money out of my bank account to avoid the OR/trustees?

 

What is classed as avoidence or laundering?

 

Regards

 

The car will go I'm afraid. Do you need a car for work? If so you will be given back an amount from the sale of around £2k to replace it.

No they are old purchases - the OR wouldn't like it if for example you booked a holiday knowing you were going BR the next month.

You'll be Ok on the rest I think.

[gizmo111]

There isn't really a do and don't but some very good advice here TMF: Bankruptcy - questions and practicalities / Dealing with Debt

[gizmo111]

If the rent is up to date and there are no other problems with your tenancy it is unlikely that the landlord will do anything.

Any joint debts your partner has with his ex will become her responsibility.

 

Mor einfo here http://www.consumeractiongroup.co.uk/forum/formal-solutions-bankruptcy-administration/56970-insolvency-dealing-debt.html

[gizmo111]

Does it matter that he hasnt spoken in some time and doesn't know her exact whereabouts? just that she is in NZ somewhere?

 

 

Once he is Br it is not his problem anymore and is up to the creditors to find her.......he just needs to be honest with the Official Receiver.

[gizmo111]

Also what tends to happy if you have spent some of the debt on gambling? And i mean a small amount £300-£400 over a period of time my debt is currently at around 15k.

 

Nothing is likely to hapen for such a small proportion of the debt being gambling related.

 

ok if i dont have a tenancy agreement we literally just moved in... what is the likelihood of being evicted? We get on with our landlord and landlady very well (they live next door). Have never paid rent late in 8 months and myself and partner both work.

 

Also how would it work if i decided to state i was living back at my mums address? I have recently submitted our new working tax claim pack. But that will take time to sort, so i could leave out that i receive workin tax as at the moment we dont. And basically just be living back at home with my mum (her home is a housing association).

 

i hope that made sense???? So many questions all the time.

 

I strongly advise that you tell the OR the truth and nothing but the truth. If you get on well with your landlord why dont you ask him now what his reaction will be to you being BR? Most wont care as long as they get their rent, and you are honest with them.

[gizmo111]

DO NOT MAKE UP ANY STORY TO THE OFFICIAL RECEIVER FOR ANY REASON.

 

Your laptop will be safe, they are interested in items with a single second hand value of around £200. This is an old item and has a low resale value. If you had bought it last month then it would be a different story, but this will be of no interest to the OR at all.

[gizmo111]

Whose name are the arrears in?

[gizmo111]

Your income is after tax - what have you actually put in the expenditure?

have you included absolutely everything, with provision for emergencys, holidays, haircuts, car tax maintenance etc?

[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!