New bankrupt journal

[gordonb]

Hi folks,

I went BankRupt last week Jul 1st.

Had got nowhere with token payments, the penalty charges kept mounting up, falling further behind.

 

I filled the forms and went to the court, having rung the day before.

I paid the full whack although I think I will try to claim back the £150 discount as I was also on benefits - does anyone know how to do this?

 

My situation was very fluid, lots of stress, new part time job playing havoc with my benefits allowance, plus a house move to pay lower rent.

Then my car failed mot which didnt help my mood!

 

Turned up at court at 8.30 and was 2nd in line.

7 other cases that day, and the previous day they had to turn people away!

 

Handed over money and forms, the judge saw me for 2 minutes, and that was that.

Spoke to Official Receiver on phone, will hear from them, nothing after 1 week so far.

 

So it shows how many people it is happening to.

 

I then opened a basic account with co-op bank. My jod told me my wages may go into my old account as the date for changing details had passed!

That's not good, as that account is frozen and I'll unlikely see much if any of it - they will try to get me paid by cheque.

 

I'll try and keep you all updated on progress.

 

G

[gordonb]

Heard from OR today, 8 days after the BR.

Have an appointment with them for the 20th. Pain as it right in the middle of a work shift, so will try to rearrange, but the 20th will be nearly 3 weeks already into the BR.

[gordonb]

managed to get the appointment with OR later in the day so as not to clash with work, which is great.

have to take statements, cards, cheque books, etc.

She said the meeting had to be finished by 2pm, and since it's a noon appointment, my maths says it's a 2 hour max visit, so shouldn't be too bad.

I have nothing to hide anyway so fingers crossed!

 

I also had a result in that my first wage from temp job was given to me by cheque.

They couldn't guarantee it wouldnt go into my old frozen one, but now I can pay the cheque into my new co-op basic account.

 

That new account didnt take long to come through, basic debit card and internet functions, so us lot going BR these days have it so much easier than even 1 year ago.

[joemay]

Hi gordonb

 

Good to see things are running smoothly for you.

 

Keep us posted on how the meeting with OR goes, it good for others who are contemplating going the BR route.

 

All the best

[gordonb]

went for interview with OR on Monday. Main reason it was not over phone was because my work history has been varied, including self employment, so they wanted to go over the details.

Felt like I was repeating the same stuff yet again!

 

She said she would 'write a report'. All seems a bit slow to me, but today marks 3 weeks into the BR, so that's 3 down already.

 

She said they would write to the creditors so that hadnt been done yet, and I have received a couple of default notices.

 

I also took my statements and cut up cards, only to be told they didnt really need to see them! Found that a bit strange, almost as if she a bit unsure of what she was doing.

Also no comment was made about my outgoings claims on my statement of affairs. I don't know if this has to be agreed by OR, or whether it's just accepted.

 

Maybe that will be covered in the 'report'.

 

Oh well, not for me to wonder why at the moment.

 

Also in the middle of house move, so a bit stressed, but pressing forward!

[gordonb]

Is there a guide for what to put as outgoings claims?

Are there general guideline figures that work, or is it really an individual thing?

 

I have yet another questionnaire to fill in about them!

 

Still surprised that the OR has not been in touch with creditors, it's now a month since I was BR.

 

Cheers,

Gordon

[gordonb]

Filled in income payment order questionnaire.

I shouldnt have probs, as my current job has flexible hours, and is only a 12 week contract.

Therefore my income is unpredictable, a big part of why I am in the position in the first place!

 

I was also asked for last 2 years accounts of my self employment.

Since I am sole trader, I dont have to publish accounts. All I have to do is fill in my tax return, and then inland revenue send me the calculation.

I have sent those for the last 2 years as it's all I have.

 

Weird, since I have signed authority fo the OR to see all my bank accounts and inland revenue details - why they are asking me still seems a bit weird.

 

Anyway I have nothing to hide, so will keep telling them what they ask.

I have no house or assets to liquidate, so early discharge would be nice, but I have suspicious feeling my self employment may be a spanner in the works...

G

[42man]

I think you will be fine GB, I can't see the fact that you have been self-employed as a problem.....and thank you for keeping us updated.

[danboy381]

Hello Gordonb,

 

 

Glad to hear all ok with the BR. Its nothing to worry about.

How are you getting on with the co op account is it any good? I'm looking for a basic one myself.

 

cheers

dan

[blaufin]

hi gordonb, its goood of you to share your expesriance of br with the rest of us , my wife and myself are going to go br pretty soon, so its very helpful to hear some one else story, we had our own company which went into to involuntary liquidation thanks to the bank, we don't have the accounts for the last two years as the OR who was dealing with it now has all the paper work now, so its intresting to hear what they have asked you for. many thanks for sharing, please let us know how you get on.

[danboy381]

hello blaufin. similar story here, if you need any advice just ask, it can be a bit daunting but its pretty straight forward really. i had a v good advisor who showed me the way through so if you have any issues i could always put you in contact. hopefully you will be discharged in 6 months as you where directors i imagine.

[blaufin]

hello danyboy381, thanks for the offer, i might well take you up on that offer a bit latter on, its been very intresting reading every ones exp of dealing with creditors, i was starting to think i was the only one talking to a brickwall! the bank have been truly awful and bk realy is the only option open to us now.

[gordonb]

I have a new question as of today, but first a quick answer about my trading accounts.

 

I sent a letter explaining to the OR that as a sole trader I didnt have accounts, just the yearly letter from taxman after I had sent my tax return, so I sent them those taxman letters.

 

My new question, which hopefully someone can help me with - today I got a letter from OR with an Income Payment Agreement.

 

It's for £50 a month for 3 years.

 

Firstly, I'm a bit surprised as they know I am only on 12 week rolling contract at work, with flexible hours, so my income is variable and unpredictable.

Presumably I would have to tell the OR each month if I no longer had the £50 disposable income they think I will have!

 

Second question - it says that during the term of the agreement, i.e. 3 years, I have to tell them of any increase in income, and the OR may claim any increase for the creditors. That by definition means after discharge.

 

I thought that after discharge I could earn what I wanted and that was that, but this seems to suggest otherwise.

Can someone advise please?

 

Thanks!

[debtinfo]

The IPA can be varied at any time during the IPA, up or down depending on income

[gordonb]

ta debtinfo - the thing is my income varies every month, so presumably as my expense claim is steady every month, I have to negotiate every month with the OR as to how much I pay?

[debtinfo]

the OR will take an average over 3 months and will expect you to save up in the good months to pay in the bad months, they will not change it every month but might do every 6 months if you have a general change in income

[gordonb]

the OR will take an average over 3 months and will expect you to save up in the good months to pay in the bad months, they will not change it every month but might do every 6 months if you have a general change in income

 

still seems a bit strange since I am only on a 12 week contract.

 

And it lasts for 3 years?

That means my situation will stay the same even after the BR is discharged?

 

I thought once the discharge happened, you could earn any amount, and the debt was cleared?

 

Cheers.

[Louise40]

still seems a bit strange since I am only on a 12 week contract. - I would speak to your OR again about your contract, they may have misunderstood you when you explained it was only a 12week contract.

 

And it lasts for 3 years? an IPA does last for 36 months even after being discharged

That means my situation will stay the same even after the BR is discharged? until the IPA is completed.

I thought once the discharge happened, you could earn any amount, and the debt was cleared? Not if you are subject to an IPA, basically if you have disposable income of over £99 a month then the OR wants a share of it, anything from 50% to 70% depending how much you earn.

[gordonb]

Thanks Louise,

My disposable income for the 2 months since BR has not been over £99.

According to my expenses claim anyway, but that did include £50 a month for leisure.

 

Maybe I should also ask the OR for a breakdown of how they reached the figure?

 

It could be I should just sign it, it can be renogotiated, but I worry that once signed the renegotiation may be hard!

 

Thanks for the continued advice.

[Louise40]

I agree with you, I think once you have signed it I think you will be commited for the 3 years, although my understanding is that if you have months where you have no disposable income the clock on the 36 months still ticks away so you may end up only making a handful of payments, however I feel it is like being bankrupt for 3 years as you have this hanging over you.

 

I would speak to your OR before you sign anything.

[gordonb]

Hi Folks,

I thought I'd update you, since it has nowbeen 3 months since the BR.

 

I wrote to the OR on 2nd Sep about the IPA they had sent me, I told them my contract was only temporary and flexible hours, so was queryng the IPA.

No answer a month later.

 

In fact in the 3 months since BR, I have still yet to have any comment about my expenses claims whatsoever.

 

The contact has been minimal to say the least, and I suspect their office is swamped with work.

 

I will just plod along until I hear further.

 

One downside, my work pays every 4 weeks, meaning 2 paydays in October.

That could present problems when I tell the OR!

 

Will keep you updated on any developments.

 

G

[blaufin]

thanks for sharing gordonb, the wife and i are of to court tomorrow to declaire ourselves bt, so the information you have given has been a great help.

[gordonb]

ok, so BR was 4 months ago now.

Not much change since last month to be honest.

Still no response from OR since I queried IPA.

Still no news about the expenses I put down.

 

I know they must be busy chasing bigger cases, after all the court was turning people away when I went, but I do find that strange.

 

I am also still getting calls from BOS, which I dont answer, and letters from MBNA, still saying they are charging me late payment charges.

 

Is there someone I should be reporting them to for this?

 

Regards,

G

[spamheed]

You should send the communications to the OR and let them deal with the creditors, that's what the fee you paid was for

[babybear39]

If they persit, send copies to your IP and report them to TS and the OFT.

 

I've been BR since November 2007 and it's like having a great big weght lifted of my shoulders

 

It was also very satisfying because some of the idiots after me said, 'oh but you can't afford BR if you can't afford to pay your alleged debts'. Those comments spured me on and CCCS told me to ask an ex emloyers charity to pay, which they did. The even paid my moving costs and flooring costs when I moved house in June