low income low asset bankruptcy

[alan1971]

hello

folks i am hoping some of you might be able to help me with a couple of things...

 

we are about to go through the L.I.LA route to bankruptcy we have been to the citizens advice and while they have been a real help they couldnt answer some things.

 

i am a bit worried i wont have all the paperwork/credit agreements/debt letters etc that they will want to see, will they want exact dates and reasons we got into every debt? why did we let it get to this stage and so on...

 

also i have old debt from maybe 5+ years ago should i include this and who do i say it is with the original company i owed money to or the countless debt recovery people who have took it over?

 

can anyone tell me briefly their experience of lila?

 

many thanks in advance, alan

[IdaInFife]

Hi Alan,

 

Not got any experience with LILA but do with bankruptcy.

 

they won't ask how and why but you would need to declare everyone, even the ones thats over 5 years cause then they cannot demand any payment etc.

 

 

just try and gather any papwork you have, when i went Bk the trustee came and seen me at my home and he was very helpful and proded me along even when calauting my outgoings minding me that i smoked etc and need monies for things like that.

 

if by any chance you do forget any creditor your BK is placed in the edinburgh gazette inviting creditor to contact the trustee and if you ask your trustee about this i am sure mine said just elt us know if anyone contacts you or just tell them you BK ref no etc.

even if you know you r a due a company money but donlt have any corress just write it down as well and apporx amount etc

 

this is what you will be filling in so you can have a nosey at it:

 

http://www.aib.gov.uk/Resource/Doc/4/0000671.pdf

 

ida x

[Crocdoc]

Cab will only require details of the debt and reference numbers in most cases. The only reason they may ask to see an agreement is if Hire Purchase is involved as this adds a slight complication in relation to ownership of the goods.

 

One important factor, always open a basic bank account in advance of application, try and avoid RBS and HBoS who have been known to close accounts when a customer Sequestrates.

[JohnnySocrates]

"One important factor, always open a basic bank account in advance of application"

 

I don't think this advice is accurate. I understand that you have to disclose all accounts so there is no point in having a new account with £1 in it as the Trustee will take this as an asset. The advice I have read is to wait until after not before.

 

I understand there are a number of banks willing to give you a cash account. The co-op appears to be the peoples choice.

 

Can anyone more experienced than me comments, Ida?

[alan1971]

i really appreciate all the replys

 

i already have all the forms and am going to fill them in tommorow it took us a while to save up the £100 each and have had a lot of phone calls and letters in the mean time which will hopefully stop!

 

i already have a basic bank account and my partner had two accounts one of which she owes a lot of money too and one where the child benefit etc gets paid in so i believe they wont close it as there is no money lying in it.

 

i am still a bit confused on the application wether to put the original company or the debt collection company who is currently chasing the debt?

 

on tha aib website 10% of applications get checked thoroughly what could that mean? i cant help feeling that even though we didnt mean to get into this position we are going to get into trouble from someone!

 

once again thank you all very much for taking the time to reply and if anyone else can add anything that would be brill.

 

alan

[IdaInFife]

you wonlt get in trouble, I promise what the mean is a lot of people use BK but maybe do not include ticky loans from provident or greenwoods and keep them up so they can still get more etc etc and obviously you delaring what income you have.

 

re the bank account: unfortunatley some banks are unhelpful during BK.

 

At the time of my BK i bank with TSB and my waged went into it paid my dd's and was not due TSB a penny. But every payday they wouldnlt let me use my cashcard and had to go into a particular branch to withdraw funds which when working fulltime was difficult.

 

I spoke to some at BOS, who incendently were one of my creditors, and they opened an account for me with a visa electron ( I used ebay and bought online so needed some type of debit card) and had great pleasue going into the TSB branch and closing my account and the reason for it. Then relacimed the 3 bank charges with them and they made a mistake nad paid me 6 .

 

SO just beware and when you file the BK and make an appointment with someone at the bank you bank with and ask them if them if your banking with them would be affected.

 

anyhoo, as on a thrd i hvae just posted, when you file your BK and it goes through, think it of as a new start. It was great for me. Couldnlt get credit so anything i needed or wanted we had to save and are not due anyome anything , have no credit at all and donlt want it. Update to date with all utilitied and have everything we need with a litlle abit more. Made up appreciate money and everyhthing else and more and very happy and content ( second time tonight i have said similar things )

 

 

Don't worry there will be no lecture about bad spending.

 

Your new life starts here

 

ida x

[Crocdoc]

I complete these forms almost on a daily basis. If you are being pursued by collection agents the ammount owed and their reference is sufficient. The AIB will make contact with all creditors.

 

The only details that will be checked is the information you provide to ensure that it is accurate. So long as you provide truthfull information the whole process will pass without any problem.

 

In normal circumstances the only corespondence you will receive is a tick the box Questionnaire to confirm the replies you gave in the original form.

You will then be forwarded confirmation that the Trustee has granted Sequestration.

Job Done

[Crocdoc]

THe application for LILA disregards singular assets under £1000 and total assets under £10000.

 

The Basic Bank Account, which is the same as a cash account can be opened with relevant ease in advance of Sequestration. The checks are minimal as no borrowing can be obtained on these accoumts.

 

Perhaps, I should have provided more detail in my previous post.

[alan1971]

well thanks very much folks my bankruptcy went through on the 11th august although i have not had any paper work yet i phoned and they told me. ill post again soon with more information that might help someone else out after i get paperwork about it all.

[JohnnySocrates]

Hi Alan, thanks for posting an update keep us informed about how it goes and your thoughts about it.

[lotsofdebtscotland]

hi just a few questions myself regarding this matter can anybody advise

 

#1.i have a bank account with rbs is basic current account which i use to get my benefits paid and and direct paid out this also has a saving account attached with no money it. but i also have a easy cash account with nothing in it with halifax. will i have declare all 3 and will these be closed down.

2. with my debts i have letters from different agencies chasing same debt over a period. do i have right all these down or just the name of the orginal creditor and ref number.

3. i have debts that i have no letters for by rough idea what i owe can i leave the ref bit blank

TIA

[sequenci]

1. you will have declare all three, it is likely although not guaranteed that the accounts will be closed down.

 

2. you should put down who the most recent creditor is (I appreciate that debts can go 'round the houses' pretty fast.

 

3. yup, put down as much info as you possibly can.

 

You may wish to run these questions by the accountant in bankruptcy too:

 

0845 762 6171

[lotsofdebtscotland]

thanks form was posted last thursday got CAB to help so it aint sent back to me all wrong lol

so here,s hoping here something some soonish and ill be able tell those nice folk that constantly phone were to go

[sequenci]

thanks form was posted last thursday got CAB to help so it aint sent back to me all wrong lol

so here,s hoping here something some soonish and ill be able tell those nice folk that constantly phone were to go

 

Best of luck with it all.

 

Will you stick around on the forum? It's always good to have people who have been through the process on hand to help those just starting out.

 

Best wishes,

 

Seq.

[lotsofdebtscotland]

Best of luck with it all.

 

Will you stick around on the forum? It's always good to have people who have been through the process on hand to help those just starting out.

 

Best wishes,

 

Seq.

 

 

cheers i will do 8)

[lotsofdebtscotland]

hi just posting about were am at well got the questionaire last week, still not hard anything back yet anybody got any ideas how long it will take. not wanting to call incase they ask why i got into the situation.

[IdaInFife]

I don't know how long it takes to get any paperwork through but the postal strikes are ongoing and sme peopkle havenlt had mail for over 4 weeks. the are striking at different parts of the country each day so some people arenlt affected at all but most are delayed. that could be one reason.

 

it was different in my day the trustess actually came to my home and went over everyting and he was very nice. didn't as questions like how this happened but was very helpful with my outgoings. he mde sure that everything was accounted for like any vet bills that may arise

 

bu anyhoo, if the have confirmed it went through that's the main part confirmed.

 

 

do they not have an email address you can use for contact?

ida x

[lotsofdebtscotland]

hiya yes they do ill email them after postie been and i have nothing lol cheers for advice

[lotsofdebtscotland]

hello again well decided to call them and was made bankrupt on the 14th sept woohoo get to tell those people on phone were to go. just need to wait on paperwork coming through. need to check see if i get my name in the gazette now.

[lotsofdebtscotland]

called yesterday and from the 16th sept im bankrupt just waiting on the papaerwork coming through now:D

[JohnnySocrates]

Thanks for continuing to post, I'm more likely than not to be walking down the same road so it's very useful to get your insight from the process.

[vivienne1]

Thanks for this thread. I've an appointment with a money adviser at teh CAb in two weeks and I suspect this is the route they will suggest for me as I'm no longer working through ill health. Any further info as to how you found the process would be a great help.

[Crocdoc]

Sorry, I haven't been through the process, I have however completed over 150 applications during the last 18 months.

 

For many people,(Not All) it is the best solution and stops the pressure.

 

Best of luck

[lotsofdebtscotland]

well its been a few weeks now and the phone calls are dying down and just tell them ive been made bankrupt and give them the ref number and hey ho off they go prob not pleased at all

a lot of folk will say that it will affect you getting anything from a tv to a house in future but by not paying your debts your credit file is ruined anyway. i would have loved to have paid everything but it just wasnt possible and at end of the day its only money. its now back to the days were you had to save for what you wanted credit is given so easily its no wonder people like me get into probs robbing peter to pay paul. im glad i did i sat with form for a year scared of what the AIB would say why i got into such a mess in first place but no questions were asked.

so those folks wondering whether to do it or not id say go for it

[IdaInFife]

glad your feeling alot better now