Newbie looking for help & advice with Bankruptcy

[KEF]

Hello,I'm new here,only just registered today after finding the site by luck,I'm looking for help & advice regarding bankruptcy.

 

My story goes like this:

Over the years I got myself into approx 26k of debt which I was coping with,although I was broke all the time as a result ,anyway all was ok until around the end of 2007 when I really started to struggle because in my job we only got paid for the work/jobs done (ie no work = no money) & things were starting to get really quiet & my earnings had fallen significantly.

I decided to enter into an IVA (with hindsight I should have just gone bankrupt there & then but I did want to try & pay my debts off) in order to reduce my outgoings & hopefully get me through the quiet patch,unfortunately shortly into my IVA work got worse - to the point where I wasn't even earning enough to pay my rent let alone the IVA,bills etc & food for myself.

 

I had been looking around for alternative employment but I couldn't find anything I could do that would pay enough to cover my outgoings,it got to the point that I could no longer afford to pay my rent etc & I had to move out & sell everthing I owned to raise some cash & move back in with my parents otherwise I'd be homeless,the problem with that was my parents live abroad so I also had to leave my job & move abroad.

 

I continued to pay my IVA with the money I had left & when that I ran out around March 2009 I wrote to my IVA people explaining the situation & gave them my new address & phone number but I never heard back from them.

 

After 18 months unemployed & almost a year of worrying I contacted the IVA people directly by phone & have found out that they have failed my IVA so I have now decided to apply for bankruptcy as I just want to put all this behind me & get on with my life once more.

 

So now I have a few questions:

 

I've been told the it will take 4-6 weeks for the IVA failure to be processed & to receive notice/paperwork of this,will I have to wait untill I get the paperwork or can I petition my bankruptcy now & let the OR deal with it all - I just want to get the bankruptcy sorted asap now!

 

I have 3 basic accounts with Barclays,2 cashcard (one without a card as it was only ever used for direct debits for bills) & the other is a basic current account with a visa debit card,none of the accounts have more than a pound in & have been unused for around 18 months.

 

Will I be allowed to keep one or any of them incase I manage to get a job & return home?

 

If I can't keep one account will I be able to open a new basic account with Barclays in case I find work as I will need an account for wages.

 

As I am unemployed & have been for around 18 months will I have to pay the £150 court fee? as I am totally broke & will have to rely on my parents for the costs anyway.

 

What happens if I do find work during my bankruptcy?,what % of my income (if any) will they expect me to pay if they demand an IPA?

 

Apologies for the mini life story but I thought a bit of background would help with the answers to my noob questions & any help & advice you guys can offer me

[spamheed]

Hello,I'm new here,only just registered today after finding the site by luck,I'm looking for help & advice regarding bankruptcy.

 

My story goes like this:

Over the years I got myself into approx 26k of debt which I was coping with,although I was broke all the time as a result ,anyway all was ok until around the end of 2007 when I really started to struggle because in my job we only got paid for the work/jobs done (ie no work = no money) & things were starting to get really quiet & my earnings had fallen significantly.

I decided to enter into an IVA (with hindsight I should have just gone bankrupt there & then but I did want to try & pay my debts off) in order to reduce my outgoings & hopefully get me through the quiet patch,unfortunately shortly into my IVA work got worse - to the point where I wasn't even earning enough to pay my rent let alone the IVA,bills etc & food for myself.

 

I had been looking around for alternative employment but I couldn't find anything I could do that would pay enough to cover my outgoings,it got to the point that I could no longer afford to pay my rent etc & I had to move out & sell everthing I owned to raise some cash & move back in with my parents otherwise I'd be homeless,the problem with that was my parents live abroad so I also had to leave my job & move abroad.

 

I continued to pay my IVA with the money I had left & when that I ran out around March 2009 I wrote to my IVA people explaining the situation & gave them my new address & phone number but I never heard back from them.

 

After 18 months unemployed & almost a year of worrying I contacted the IVA people directly by phone & have found out that they have failed my IVA so I have now decided to apply for bankruptcy as I just want to put all this behind me & get on with my life once more.

 

So now I have a few questions:

 

I've been told the it will take 4-6 weeks for the IVA failure to be processed & to receive notice/paperwork of this,will I have to wait untill I get the paperwork or can I petition my bankruptcy now & let the OR deal with it all - I just want to get the bankruptcy sorted asap now!

 

I have 3 basic accounts with Barclays,2 cashcard (one without a card as it was only ever used for direct debits for bills) & the other is a basic current account with a visa debit card,none of the accounts have more than a pound in & have been unused for around 18 months.

 

Will I be allowed to keep one or any of them incase I manage to get a job & return home? If the accounts are basic accounts with no overdraft or credit facility the the OR should let them be, howver the banks may themselves freeze the accounts. Co-Operative Bank operate the Cashminder account for situations just like yours, where there are credit/bankruptcy issues - you can apply via the telephone

 

If I can't keep one account will I be able to open a new basic account with Barclays in case I find work as I will need an account for wages. See above

 

As I am unemployed & have been for around 18 months will I have to pay the £150 court fee? as I am totally broke & will have to rely on my parents for the costs anyway. You should be able to get an exemption due to your financial status, but the OR fees would still need to be paid

 

What happens if I do find work during my bankruptcy?,what % of my income (if any) will they expect me to pay if they demand an IPA? Generally after all allowable living expenses, the OR would want 50% of everything above £100, this is not an exact figure, but is a good rule of thumb - but if you don't work for the 12months or so before you're discharged, you would pay nothing

 

Apologies for the mini life story but I thought a bit of background would help with the answers to my noob questions & any help & advice you guys can offer me

 

If you have nothing coming in, then you can be expected to pay nothing towards your creditors

[KEF]

wow,over 100 views & only one reply

 

Thanks Spamheed,all my accounts are basic with no overdraft so I'm hoping the OR will have no interest in them & let me keep them.

 

If I did get a job will my employer be obliged to tell the OR or is it down to me,how soon after starting any work would I have to notify the OR?

 

What would be the situation with casual/temporary work?

 

Will the OR be able to find out what work (if any) I do if I don't tell them myself?

 

Anybody know if I can petition my bankruptcy before I get written notice of my failed IVA?

[palomino]

wow,over 100 views & only one reply

Most of these are probably people in a similar situation yourself yourself. Others may have looked in and found they cannot contribute to you specific issues. Remember the vast majority of people on CAG started off by being in straitened circumstances and came looking for help. A few of these have stayed on to help others as best they. Unfortunately CAG doesn't have any resident legal experts (although a few ordinary Caggers have some technical and legal training) - it is a mutual help affair.

 

I cannot help much other than to point you at the government's insolvency website where there is much useful information and more definitive answers to your question - http://www.insolvency.gov.uk.

[spamheed]

wow,over 100 views & only one reply As observed by Palomino, not everyone is in a position to help, people take a look to see what is being posted and if they feel that they can contribute then they do so, if they can't then.........

 

Thanks Spamheed,all my accounts are basic with no overdraft so I'm hoping the OR will have no interest in them & let me keep them. Even if the OR allows you to keep the accounts, the banks themselves may close the accounts due to your BR, you are better off opening a new account specific for the purpose.

 

If I did get a job will my employer be obliged to tell the OR or is it down to me,how soon after starting any work would I have to notify the OR? I believe that you sign an undertaking that you would inform the OR of any material changes to your circumstances. Any monies that you earn would need to be declared immediately so that the OR can establish what (if anything) you should pay

 

What would be the situation with casual/temporary work? As above

 

Will the OR be able to find out what work (if any) I do if I don't tell them myself? they can find out from HMRC as soon as your P45/P46 is processed

 

Anybody know if I can petition my bankruptcy before I get written notice of my failed IVA?

 

In the interests of simplicity and to make the OR's job a little easier, I would suggest you end one formal arrangement before entering into another. You should also seek advice from a recognised source, CAB, A solicitor, or one of the Money Advice charities. The courts/OR will need to see that you have sought proper advice before taking such a step

[debtinfo]

Most judges will not make the bankruptcy order until you have your IVA certificate of failure.

 

I strongly suggest you are honest with the Official Receiver, the penalties for dishonesty are far worse than for the mistakes you may have made to get to the current situation

[KEF]

Thanks again Spamheed & thanks debtinfo

 

Sorry if my 2nd post came across as ungrateful,it wasn't meant like that,I was just suprised at the lack of responses in relation to the high amount of views,I just thought more people might have come forward with help or advice based on their own experiences,sorry if I offended anyone I really didn't mean to

 

I've contacted the NDHL via email (the 0808 number doesn't work from here ) & I'm waiting to hear from them,I'll also be visiting the CAB when I return to the UK to help with all the paperwork so formal advise will be taken care of

 

So I'll just have to wait until my IVA failure confirmation turns up,no problems there apart from the delay.

 

I fully intend to be 100% honest with the OR I was just after some advice on the best way to go about changes of circumstance regarding work & income etc so as to avoid getting into trouble.

 

Any more suggestions,help & advice will be greatly appreciated

[KEF]

Well,I will be coming back to the UK this week so I phoned what will be my local CAB office to talk to them & make an appointment to get some formal advice re my failed IVA & petitioning for bankruptcy.

 

It took me ages to get through,the phone was getting answered then hanging up straight away or it was just left to go through to the answerphone so I guess they must be really busy!

 

Anyway,the guy on the end of the phone was vague to say the least & said they were unable to make an appointment as they have to prioritise & they could only offer help & advice regarding to specific questions I may have about my bankruptcy paperwork & that would have to be done over the phone.

 

He also said that if I was asked to prove I had sought formal advice before petitioning my bankruptcy then it is ok to tell whoever ask's to call the CAB office to confirm I had phoned them! - is this true?

 

Is this normal for a CAB office?,I've never had any experience with the CAB before in my life but I was expecting them to be a little more welcoming & helpful,I don't have anyone to help me through this & was hoping the advice the CAB give me would give me a bit of moral support & confidence but after this morning I'm feeling a bit lost & alone.

[debtinfo]

Hi KEF, like all companies different offices and staff vary, i know some good ones, but there must be some bad ones out there. If they couldnt help you, you can also try CCCS and national debtline who do help over the phone like a mini phone interview, im not sure if you have to call from the UK

[KEF]

Thanks Debtinfo,I tried the national debt helpline but the number won't work from here,I have emailed them on the 8th but have yet to receive a reply,I'll give them a call when I get back to the UK.

[palomino]

In the current economic climate the CAB offices are totally snowed under. This means they can't cope and often cannot help you. In addition some of their advice is less than top notch.

CCCS and National Debtline are similarly overwhelmed.

 

In your case I cannot imagine a judge picking up the phone to call the local CAB - and having to keep on trying because the phone was constantly engaged. You will have to arrange this with the court clerks, although you probably won't get very far. You will have to rely on a personal statement.