Bankruptcy - what will they take from my house and what to expect?

[wurzelyzf]

Antarctica,well done! I'm so glad you managed to do it,proper weight off your minds i'll bet? The phone call is nothing to worry about,really just to check through the details on your forms and generally to assertain how you got yourself in the situation. He (or she) doesn't judge in any way just doing their paperwork too. Then they contact all your creditors. Actually i had 2 debt letter s arrive today,i called them and as usual they were very aggressive initially trying to get me to pay and telling me how much more it would cost if i didn't blah blah blah,then i mentioned that i was declared bankrupt and they immediatelt deflated,and when i gave them my ref no for the bankruptcy i thought they were gonna cry lol. Don't get me wrong i'm not proud that i went bankrupt as i would have preferred to be working and paid what i owed but at the same time i can't deny that i felt a slight twinge of glee when i shut them up. Can't wait for a letter from either Blair oliver scott or Bryan Carter and co. Well done once again to both of you,the worst is over now.

[antarctica]

Hi there

 

Not a single creditor has called so far..

 

....wondering if they ever will.

[Regulus]

It's surely a testament to how screwed up the financial climate of the common man is in this country when something portrayed as being the final admission of failure (Bankruptcy) is actually a moment of genuine happiness and joy. But the fact is, despite the attached stigma, Bankruptcy can make people's lives far better and far far happier.

 

Personally I prefer to try and pay off all my own debts, but being in debt, I understand how sometimes its just not possible and I personally respect people who take the Bankruptcy road despite the stigma around it.

 

In many ways I wish that everybody who has serious debt would take Bankruptcy just to shove it in the face of the banks and the Government. They'd be bolloxed if that happened. Would finally make them wake up and realized the consumer needs to be treated fairly rather than demonized.

 

Respect to you on this front Antarctica.

[sequenci]

But the fact is, despite the attached stigma, Bankruptcy can make people's lives far better and far far happier.

 

EXACTLY, although I don't think the stigma is ANYWHERE like it once was - especially since the changes to the Enterprise Act made bankruptcy a much more simplified option.

 

In many ways I wish that everybody who has serious debt would take Bankruptcy just to shove it in the face of the banks and the Government. They'd be bolloxed if that happened. Would finally make them wake up and realized the consumer needs to be treated fairly rather than demonized.

 

Respect to you on this front Antarctica.

 

A fantastic statement.

[Tawnyowl]

12 Days from thinking about bankruptcy to going bankrupt.I am very impressed.Maybe now you can warm up Antarctica and perhaps change your name to Tropicana,mmm,time for me to shut up,Good luck and best wishes for the future,Tawnyowl.

[antarctica]

12 Days from thinking about bankruptcy to going bankrupt.I am very impressed.Maybe now you can warm up Antarctica and perhaps change your name to Tropicana,mmm,time for me to shut up,Good luck and best wishes for the future,Tawnyowl.

 

Thank you

 

I rather like my username though!

[Tawnyowl]

Ive just noticed how long youve been a member Antarctica,that must put you as one of the first,even more impressed.

[antarctica]

Ive just noticed how long youve been a member Antarctica,that must put you as one of the first,even more impressed.

 

 

I joined in 2006 for help with reclaiming bank charges!

[Tawnyowl]

I also was very impressed with your husbands account of the bankruptcy day.A journalist couldnt have written it better.

[boston3603]

I have just read your posts and I am sorry you are so worried. The OR is not interested in anything other than can be seen as a viable asset. A computer say, bought for 600 is not going to get 50 if it was taken and will not touch such a huge debt. ( we owed the same). Your car will not be taken if under 1000 and your partners car will not be taken either , there are loads of reasons you will keep both vehicles. ORs are alright and not out to get you. They know when creditors cannot get anything. I had 300 in the house in cash which I had to hand over and things like shares need to be handed over, Life and pensions , for a fee of £50 per policy will be protected. I wouldnt bother going down the paying a little to each creditor route because they WILL keep hounding you. We tried this for 6 months and they dig themselves in. I had loads of jewellery but I did not tell the OR. instead I sold it at booties and put the money into a cheap holiday in summer. We have managed to save 1000 since january, because the benefits cannot be touched. This is our rainy day/emergency fund. Your home is safe as you, like us, rent. The OR can approach your landlord, but its of no benefit to them. Your landlord only cares about the rent, not your debt. There is nothing in our or any contract that says if you go bankrupt you will lose your home. Going BR is not easy because its mentally and emotionally draining. Logically, it is the only thing to do. Its easier than struggling continously. BR is a practical solution to a long term problem. Just take small steps at a time and before you know it, you will hear the words, "declare you BR". Chin upa nd take care xxx

[Tawnyowl]

Best wishes antartica and husband for your new start free of debt and worry.Tawnyowl.

[Glenndalf]

Hi,

Just a quick question(and sorry if i should have started a new thread) if you go bankrupt and you have a job do you have to pay your creditors for a length of time after you go bankrupt or is all the debt written off? Dont really understand the process sorry.

[GottaDoit]

The way the OR explained it to me was, they look at your income and your outgoings and if there's anything left over they can set up an Income Payment Arrangement (IPA). Your outgoings need to be only enough for your basic living expenses, no luxuries. The IPA would then last for a maximum of 3 years. If your income goes up in that time you must tell them and the IPA will be adjusted.

 

If you are on benefits your income is exempt and they don't set up an IPA. However, if you get a job before you're discharged then the IPA issue rears it's head again.

 

Hope this helps.

[Glenndalf]

Thanks alot for this very helpful cheers Gottadoit

[blondie80]

Hi everyone, hope you don't mind me butting in! My mum has just gone bankrupt through her pub not working and closing down. She owns a house and is very worried this will be taken from her (and the rest of the family) Does anyone know what to expect. She also can't get a bank account, plus can't claime anything except £20 a week. HELP! thank you.

[Tawnyowl]

Hi blondie 80, Been trying to track you down.If you are still around i will try to help you.The Which banks offer bank accounts to bankrupts?

A. If you have not yet been discharged the following bankruptcy bank accounts are available:

• Co-operative Cashminder bankruptcy bank Account
  
• Barclays Cash Card bankruptcy bank Account
  
• Nationwide bankruptcy bank accouny
  

Basic bankruptcy bank accounts were set up through a Government scheme to help poorer families and those who have problems opening a normal bank account. The scheme is aimed at everyone access to banking facilities.

Bit of info here on bankruptcy http://www.insolvencyhelpline.co.uk/bankruptcy/index.php Will try to help find some info on the house problem if you are still around.Best wishes Tawnyowl.

Edited August 12, 2009 by tawnyowl

[Regulus]

One thing I don't understand, and hopefully someone can clarify this for me, is how the OR works, what does he or she do? Is he/she the person who decides what assets you have and then take if they deem them worthy?

 

And on that subject, how is all that worked out anyway? Does someone arrange to come to your home and have a look around and see what you have that could be worth taking or are you asked to list what you have at some point then someone calls you to discuss them?

 

ooh, another question, what about the aftermath of BR? Are you essentially left alone then or do you maintain regular contact/meetings with OR and/or others to monitor your situation?

[Tawnyowl]

Hi Regulas ,will answer the one on assets.Have a look around this link i am sending you ,may answer a lot of your questions What happens to your assets in Bankruptcy? | Bankruptcy | The UK Insolvency Helpline Sorry to hear of your unemployment.Something will turn up i hope for you soon. Will answer about the aftermath of bankruptcy next Good luck in finding a job. Tawnyowl

[Regulus]

Hi Tawny, thanks for the reply, just to play dumb for a moment and clarify what I've read, its is down to the Bankrupt to declare all assets to the OR right?

 

Then what would stop someone neglecting to mention certain luxury items or passing them to a family member for safe keeping or somesuch?

 

It just strikes me that if someone knows they are facing BR, then they can arrange in advance a method by which to keep their material assets such as PC's, TV's Video games etc whether it be by them neglecting to mention certain items or just moving them out of the house for a while.

[Tawnyowl]

I suppose this is certainly possible and does happen.If caught i suppose they would get a good telling off and possibly face a bankruptcy restriction order.Tawnyowl.http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/bro.pdf

Edited August 12, 2009 by tawnyowl

[antarctica]

Hi Tawny, thanks for the reply, just to play dumb for a moment and clarify what I've read, its is down to the Bankrupt to declare all assets to the OR right?

 

Then what would stop someone neglecting to mention certain luxury items or passing them to a family member for safe keeping or somesuch?

 

It just strikes me that if someone knows they are facing BR, then they can arrange in advance a method by which to keep their material assets such as PC's, TV's Video games etc whether it be by them neglecting to mention certain items or just moving them out of the house for a while.

 

the items you listed aren't assets, they aren't worth enough and wouldn't be touched.

[Tawnyowl]

True Antarctica,pcs,things of small value the OR wont be interested in.Its when things lets say above a thousand they might be interested in.Thanks for pointing that out.I will say this the OR has seen it all heard it all heard it all before and is not fooled easily,best to be completely honest i feel.That way you cant be tripped up.If you are genuinly going bankrupt,you usually have next to nothing left.Think i had better put this link in.Will explain more. http://www.insolvencyhelpline.co.uk/bankruptcy/bankruptcy-faqs.php#faq6 Tawnyowl.

Edited August 13, 2009 by tawnyowl

[iwant2bfree]

Hi all,

 

After reading through all the previous posts in this thread, I still have a couple of questions.

 

Would I still be able to have the internet? - I currently pay monthly be DD.

If I am not able to do this could I have someone else set it up but for my address?

 

What would happen with my mobile phone contract? Could I still keep it?

 

If I have a catalogue or a credit card which I have a zero balance on - would I be able to keep them but not use them until I have been discharged?

 

I hope these all make sense!

[GottaDoit]

Internet you can keep. The OR isn't interested and as long as you don't owe the ISP money there is no reason for the OR to inform them.

 

You will need to sort out a new bank account for the DD, unless you have a basic account e.g. Natwest Step or Co-op cashminder which you'll be allowed to keep. Alternatively pay by another method.

 

Not sure about the mobile contract. Again if you don't owe them anything there is no need for them to know. Don't know if they do periodic credit checks during the contract but I wouldn't think so.

 

The catalogue and credit card you will not be able to keep no matter what the balance.

 

By the way, to answer the previous question about assets and them sending someone round to see what you've got, it just doesn't happen any more. They just don't have the time, unless they have reason to be suspicious. They are not interested in TVs, DVD players, Fridge-freezers, etc. either no matter what you paid for them. Second hand they are worth a fraction of the original cost so they just don't bother. An expensive painting is a different matter but there would have to be some evidence of you buying it in something you give the OR. Having said that you could have sold it for cash to live on at any time.

 

Hope this helps

Edited January 14, 2010 by GottaDoit