Bankruptcy Help Please!

[luckysam]

Hi, it has now come to the point where I need to make myself bankrupt. I am really not sure what to do first, any help would be greatly appreciated.

 

A few questions:

a) Do I need to contact bailiffs and high court enforcement officers to let them know I am declaring bankruptcy?

b) Will they still be able to visit me at home and take any possessions I have (not that I have much of anything!)?

c) Do I need to contact anyone else to let them know?

d) Will my phone be cut off (I am with BT)?

e) What do I do first?

 

Thanks for your help.

[toddle2u]

Hi lucksam,

In answer to your questions;

a) No the Official Receiver will do this once you are BR

b) No

c) No. OR will let all your creditors know

d) No

e) Go and see CAB or such and get some proper advice on this prior to going BR. Also get yourself a parachute bank account.

 

If you give us some more details I am sure people on this site will be able to give you more help in relation to your problems.

[sequenci]

actually B is possibly, depending on what the debt is. With some debts they can try and chase until the point of discharge from bankruptcy. What is it that they are chasing for?

[seylectric]

It is important to understand that if you own your own home (or if it is mortgaged but you have some equity) it will effectively pass into the hands of a trustee who will then contact ALL CREDITORS and do a search for them/advertise for them to come forward, and you will have to repay them out of the assets of your home/equity, plus the OR's fees, plus the huge amount of fees and interest the OR-appointed trustee and their legal people charge.

 

This will mean that you will either have to raise the money - and you will have no chance of getting a loan - or sell your house to realise the debts. This happened to us, we were badly advised and as a result we had to sell the house at a knockdown price (£20,000 less than valuation) or face the trustee repossessing it anyway, and with all the fees and so on we ended up with a bill approaching £30,000 for around £6,000 of debt.

 

We were made bankrupt - it may be different if you declare yourself bankrupt, but I can't see it myself. I can only conclude that it's only a good idea if you have no assets/equity or owe more than the equity, but be prepared to lose your house either way.

[luckysam]

Thanks for your replies.

 

I was selfemployed last year but had to stop working, mainly due to ill health but I had also had a significant drop in business due to the recession. The business made a loss which has left me with debts to the suppliers. On top of that my drop in income meant I could not afford to pay my own bills (credit cards, catalogue etc.). My illhealth is continuing to deteriorate and the chances of me returning to work in the forseeable future are slim.

 

I am now living on Incapacity Benefit. The stress of constant phone calls and letters is really getting to me. I have had a visit from two high court enforcement officers (I didn't let them in) and I really don't know what to do if they come again.

 

I have no assets, car, jewellery, or house. My partner returned to Uni last year and cannot find any part time work. We have very little to live on and simply cannot afford to pay anything to creditors.

 

I have filled in the forms online for bankruptcy and printed them off. The problem I know have is that my local court cannot hear it until 30th September because they are so busy! How do I deal with the bailiffs until then?

 

As before any help would be appreciated and thank you for for taking the time to read this.

[sequenci]

What are the bailiffs chasing you for?

[luckysam]

One of the bailiffs (from High Court Enforcement Group) came on the 27th July. The chap asked if I had a car or any other assets. I explained that I didn't have anything of value and that I was living on Incapacity Benefit and therefore unable to pay the amount owing (£8300 with costs). He asked me to send a letter to his company explaining this and he would recommend bankruptcy to his clients. I sent the letter and have heard nothing since.

 

The second bailiff came yesterday while I was out, he left a letter and I called the company today (Marston Group). I explained all of the above and that I would be going to court on 30th September for a bankruptcy hearing. He said I needed to gather as much money as I could and send it to them with a letter explaining everything. He also stated that the clients are not willing to negotiate and that they would be pushing for them to reattend my home to remove goods! The amount due plus costs is £1900.

 

I am now really worried. How do I hold them off until 30th September?

 

I do not own anything apart from a few books, my clothes and some costume jewellery. My partner owns everything else in the house.

 

My partner and I are very stressed and scared. Any advice?

[sequenci]

Do you know what types of debts these are?

 

Bailiffs powers vary depending on what they have been instructed to chase you for. E.g. Council Tax, Magistrates' Courts Fines, etc.

[luckysam]

Do you know what types of debts these are?

 

Bailiffs powers vary depending on what they have been instructed to chase you for. E.g. Council Tax, Magistrates' Courts Fines, etc.

 

The debts are for suppliers from my failed business last year. They each have a High Court Writ.

[sequenci]

The debts are for suppliers from my failed business last year. They each have a High Court Writ.

 

Have the bailiffs gained entry to the property? Have you signed anything?

 

For the record the writ would stop once you've been declared bankrupt.

[luckysam]

No they haven't gained entry to my property and no I haven't signed anything.

 

I realise that the writ would stop once I have been declared bankrupt, I am just not sure what to do while I wait for the hearing?

[sequenci]

No they haven't gained entry to my property and no I haven't signed anything.

 

I realise that the writ would stop once I have been declared bankrupt, I am just not sure what to do while I wait for the hearing?

 

Simply don't let them in.

 

You could consider applying for a 'stay of execution' , have a look at this matey:

 

http://www.bdl.org.uk/images/31_dealing_with_debts_in_the_high_court.pdf

[luckysam]

Thank you so much for your help! I feel a bit better now I know I can just refuse them entry. The link was very helpful.

[sequenci]

Thank you so much for your help! I feel a bit better now I know I can just refuse them entry. The link was very helpful.

 

Just keep the house secure and hide any outside assets (e.g. a car, if you have one!)

 

I would imagine you will have to just sit tight 'till the bankruptcy date

[wurzelyzf]

Hi luckysam,so sorry to hear of your situation. I declared myself bankrupt on the 30th of june and my wife is doing it at the end of sept just as you are. With reference to the baliffe i agree,keep them out until after the bankruptcy. Even if you hide behing the sofa,so long as they don't get in they can't take anything. It may sound silly but have you got any friends or family you can stay with until after the bankruptcy date? At least that way you won't be sat at home going through hell juming at every sound outside worrying it may be a baliffe. Keep us informed and try to stay positive,once the bankruptcy is declared it really does stop instantly.

[luckysam]

Hi luckysam,so sorry to hear of your situation. I declared myself bankrupt on the 30th of june and my wife is doing it at the end of sept just as you are. With reference to the baliffe i agree,keep them out until after the bankruptcy. Even if you hide behing the sofa,so long as they don't get in they can't take anything. It may sound silly but have you got any friends or family you can stay with until after the bankruptcy date? At least that way you won't be sat at home going through hell juming at every sound outside worrying it may be a baliffe. Keep us informed and try to stay positive,once the bankruptcy is declared it really does stop instantly.

 

Thanks so much wurzlyf. I am trying to stay positive and not jump every time someone knocks the door but it is difficult. Only two weeks to go so hopefully I won't be a complete nervouse wreck by the end of it!

[luckysam]

Hi all, just need a little bit more advice because I am panicking now!

 

I received another letter from the bailiff today which says, and I quote:

 

This execution has not been settled and I now write to give you fair warning that my Officers will attend your premises with REMOVAL CONTRACTORS on 30/09/09. The purpose of this visit is to seize and remove sufficient of your goods to satisfy this writ.

 

It is imperative that you or your representative is available to meet them on the day in question. I suggest therefore that you telephone my office upon receipt of this letter to arrange a mutually convenient appointment.

 

As I have told you previously the effect of the writ I hold is to bind your property in your hands from the time the writ is lodged until it is withdrawn. (Schedule 7 section 8 (!) of the Courts Act 2003). Section 9 places a duty on me to sieze sufficient of your property to satisfy the judgement debt and related costs in the absence of paying voluntarily.

 

What I would really like to know is the following:

 

a) if I refuse access or not answer the door can they break in?

b) can I stop them coming?

c) as this is the actual day of my bankruptcy and I obviously won't be in, will I come home to find my house emptied?

d) should someone stay at home while I am at the court to make sure they do not get in?

e) will they hang around and alert my neighbours of what is going on? (I know this is a silly and proud question but please humuor me!)

 

If anyone can help I would be grateful.

[debtinfo]

this is not my area of expertise, but i believe that they cannot force entry unless they have previously been in the property to take a walking possession. Therefore keep your windows, doors etc locked on the day.

 

hopefully someone with expertise in this area will answer soon

[toddle2u]

It is imperative that you or your representative is available to meet them on the day in question. I suggest therefore that you telephone my office upon receipt of this letter to arrange a mutually convenient appointment.

 

Ring them up and say that 30/09 is not convenient and make an appointment after you have been declared BR. Ring them on about 27/09. Then send them a copy of the Bankriptcy Order and tell them where to stick their writ and the OR will be in touch with them.

[luckysam]

Thanks for your help, I will ring them and rearrange as suggested.

[Dodgy Geezer]

Ring them up and say that 30/09 is not convenient and make an appointment after you have been declared BR. Ring them on about 27/09. Then send them a copy of the Bankriptcy Order and tell them where to stick their writ and the OR will be in touch with them.

 

I would ring them sooner. Say you are trying to get the situation sorted. Ask them if you could postpone the visit for one day as you are away on the 30th.

 

Thanks for your help, I will ring them and rearrange as suggested.

 

Well done. Dont whatever you do remind them that you have a Bankruptcy hearing on the 30th.

 

For the sake of peace of mind, can you not put anything of value into storage for 10 days?.

 

Best Wishes.

[toddle2u]

I would ring them sooner

 

If you give them too much notice they may turn up before the BR Hearing

[Dodgy Geezer]

If you give them too much notice they may turn up before the BR Hearing

 

Agreed. But if you speak to them ASAP you will lead them to believe you are trying to raise the cash. If they say no, you deal with it accordingly.