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Uncertainties of going Bankrupt

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Hi All

This is my first posting although I have been a member since 2008!


I am sitting at the laptop with the banckruptcy forms in front of me and my brain scrambled. :violin:


I have been struggling with debt for the last 5 years and have now hit a brick wall emotionally and physically when dealing with it.

Currently I am looking at total debts of 45k all unsecured. During the last 5 years I have tried informal arrangements organised by myself, informal arrangements organised by debt management companies, all of which have not worked. Also I have experienced divorce, job loss, losing my business, which all contibuted to me not paying my debts.


I am now in a new relationship of 3 years, and am living with my current partner in her house. All my debts were accrued before this new relationship. We have agreed the only option since being made redundant in April 2010 is bankruptcy, and have done some research.


I have some questions which another Cagger may be able to help with.


1) Do I have a beneficial interest in my partners house? I am not a joint owner nor do I pay the mortgage but I do share household expenses 50/50 eg food, gas, electricity, council tax. We have no joint credit or bank accounts.


2) I will be getting a monthly payment from an income protection policy I have had for 2 years to cover any redundancy. it pays me 60% of my previous monthly salary which equates to my half of the household bills. Will the OR want this money?


3) Being unemployed I have decided to be self employed and start a business. How does the OR view this? Does anyone else have experience of this?


4) I already have two basic bank accounts - will I have to close these? One recives my JSA and benefits, the other one is little used and has no balance.


5) I have made payment under pressure over the phone to very persistent DCAs who were phoning my house several times everyday, and my mobile whilst at work. As Iused to work away from home a lot it was always my partner who got the house calls and she wasnt very good at dealing with the stress of this, so I paid just to shut them up and save my relationship. How does the OR view this?




I hope my fellow Caggers will e able to help or point me in the right direction.



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1) No, if you have split the bills 50:50 ie yu haent been paying more of the bills instead of the mortgage then you have nt acrued an interest, be prepared that the OR will obviously ask you about this and will want details of what you have and have not been paying so they can ascertain that this is the case.


2) They will treat it as your income, and you will be assessed for an IPA as if this was your income, but if it is just enough to cover your share of the bills then you wont be asked to pay anything


3) This is allowed subject to a few restrictions, you may only trade in names that are on your bankruptcy order, a £500 credit limit aplies without disclosing your bankruptcy, so that would apply to trade accounts and deposits from customers, the OR will expect you to keep accounts and may want ti inspect them after 6 months, any money you make will be subject to the same IPA assessment, ie if you make enough money the OR will start wanting some


4) It will be down to the bank, the OR wont care, the main banks that still allow you an account for free are the co-op and barclays


5) Yu wont be in any trouble so dont worry, if anyone gets into trouble it will be the DCA. The OR is looking for where you have voluntarily preferenced one creditor because you wanted to put them in a better position, usually they are looking for payments to family and friends


hope that helps

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