bankruptacy and carers help please

[mlore]

hi there can someone help re way of advise,i am seriously considering bankruptcy,I am a full-time carer and have been for 11 years,and have about 12,000-14,000 worth of debt that i will never beable to pay off,i have nothing of any value no house(rent)

 

The only thing that is of value is a mobility car that is not owened but paid for via motorbility,i don`t think the OR would be interested in this as it is not mine i just drive it?

 

Also i was thinking about using the money that i have been using to service my debts to pay for the fee,does anyone know how long it takes to go bankrupt,and how do i hold off the creditors whilst the whole process goes through?

 

many thanks

[Wintry]

Hi MloreThe O/R does not normally have any interest in cars subject to the mobility lease hire scheme (even if it is in your name) as they can never be owned by the hirer therefore cannot be treated as an asset.If your income is soley made up of benefits then there should be normally no question of a bankruptcy IPA or IPO. Waiting lists / times vary and can be numbered in weeks depending which court you come under, best to contact your local court on this to give you some idea.If your debts are under £15000 it might be worth looking if you meet the criterea for a Debt Relief Order as this would cost you £90 against bankruptcy fees of £510 or £360 if you are deemed exempt from the £150 court fees (this is likely if your only income is benefits). A word of caution - There has been some confusion at a number of courts where bankruptcy petitions have been presented with debts of less than £15000 and it has not been clear if advice on a Debt Relif Order has been given.Could you provide a little more information on your circumstances for example-* SOA* What stage of recovery are your creditors at - eg DCA, CCJs etc* Housing status - private or social* AssetsI know this is stating the obvious.... but it is always wise to get indepedent, impartial advice on all your options and solutions, preferably from one of the FREE charities such as CCCS, CAB (if you can get in) before deciding anything.

[mlore]

Hi Wintry,

and thanks the total debt is about 13,000 i don`t qualify for DRO,very very few people do,as i recieve carers allowance which for these purposes counts as income,i have no assets and am a social tenant,all i have been doing is services the debts and making no impact on the actually debts for about 3 years now.None of the debts have gone to court,but inorder to service the debts i am having to pay with money from sons disability payments and therefore it is impacting on him which it shouldn`t be,can the courts refuse a BR order and do i stop payments to my creditors?

Thanks for your advice it is very helpful

[Tawnyowl]

hi there can someone help re way of advise,i am seriously considering bankruptcy,I am a full-time carer and have been for 11 years,and have about 12,000-14,000 worth of debt that i will never beable to pay off,i have nothing of any value no house(rent)

 

The only thing that is of value is a mobility car that is not owened but paid for via motorbility,i don`t think the OR would be interested in this as it is not mine i just drive it?

 

Also i was thinking about using the money that i have been using to service my debts to pay for the fee,does anyone know how long it takes to go bankrupt,and how do i hold off the creditors whilst the whole process goes through?

 

many thanks

If you have debt you will never be able to pay off i understand why you want to go bankrupt.You as you say have no house ,just renting ,no assets.How to hold of your creditors,maybe offer token payments till you can afford the ORs fee.The court fee you may be able to get relief from due to your benefits.Just check again about DROs, http://www.adviceguide.org.uk/index/life/debt/debt_relief_orders.htm just make sure once again this is not possible.Then if not possible get in touch with perhaps CCCS - Free Debt Advice from the UK's Leading Debt Charity perhaps you allready have,to take professional advice.Then i suppose if they agree this is the best option for you which as you put it ,it seems to be,then its petition time.Good luck Tawnyowl. Edited August 14, 2009 by tawnyowl

[Wintry]

Hi Wintry,

and thanks the total debt is about 13,000 i don`t qualify for DRO,very very few people do,as i recieve carers allowance which for these purposes counts as income,i have no assets and am a social tenant,all i have been doing is services the debts and making no impact on the actually debts for about 3 years now.None of the debts have gone to court,but inorder to service the debts i am having to pay with money from sons disability payments and therefore it is impacting on him which it shouldn`t be,can the courts refuse a BR order and do i stop payments to my creditors?

Thanks for your advice it is very helpful

 

Hi there mlore.just a little confused here.From what you have posted, you seem to understand the qualiying criteria for Debt Relief Orders (DROs) eg very very few people do qualify as i receive carers allowance for which these purposes count as income? How do you know this? Have you already had professional advice on your options / solutions?We may be able to help you further if you put up your full SOA.

Edited August 16, 2009 by Wintry