Bankrupt advice needed please

[agile]

I have just sold my house & paid off my mortgage & 2nd secured loan I will have 5k left after the sale.

 

Is the best route to go bankruptcy?

 

I have about 32k of unsecured debts, these include loans, credit card, student loan, council tax, gas & electric, money to friends & family. I realise I will have to hand over the 5k to the official receiver

 

Will I have my bank account frozen? & will they want me to contribute some of my disposable income as I may have about £100 left over when I move into my friends house. I know it will effect my credit rating, but its not that best anyway, What other repercussions will it have & how long does it normally last?

 

 

Thanks in advance

[Wintry]

I have just sold my house & paid off my mortgage & 2nd secured loan I will have 5k left after the sale.

 

Is the best route to go bankruptcy?

 

I have about 32k of unsecured debts, these include loans, credit card, student loan, council tax, gas & electric, money to friends & family. I realise I will have to hand over the 5k to the official receiver

 

Will I have my bank account frozen? & will they want me to contribute some of my disposable income as I may have about £100 left over when I move into my friends house. I know it will effect my credit rating, but its not that best anyway, What other repercussions will it have & how long does it normally last?

 

 

Thanks in advance

 

Hi

 

Whether you have to hand over the £5000 may depend on how much of this you have left, if and when you decide that bankruptcy is the best option for you.

 

Living with a friend may not be a long term option.

 

Also it is difficult to say whether bankruptcy would be the best long term option from what you have put so far.

 

How much you may have to pay in any possible bankruptcy IPA or IPO would depend on your overall circumstances, could you put up your full Statement of Affairs including details of any assets such as a car?

 

Was the house sold for its market value?

 

In the meantime have a look through this CAB debt remedy tool & bankruptcy guide for some pointers -

 

http://www.mymoney.nedcab.org.uk/moneyadvice/index.asp

 

http://www.mymoney.nedcab.org.uk/moneyadvice/bankruptcy.asp

 

Other useful charity sites worth a look that may help you below -

 

https://debtremedy.cccs.co.uk/start.aspx

 

https://www.mymoneysteps.org/

[stu007]

Hi

 

Also have you considered with the unsecured debts if you can reclaim any PPI?

 

Have you been paying the unsecured debts any amounts if not when did you make the last payments?

[agile]

Thanks for the reply i'll have a look at the links

 

The house sold for about -£10,000 under the market value as its wasn't selling & I was also heading for 2 x repossession orders. I was advised to sell it quick rather than get it took off me where I could end up owing the mortgage & secured loan company money. £5,000 is what I have left after paying those 2 off

 

I realise living with a friend may not be a long term option.

 

What do you mean by Statement of affairs? Now I've moved in with my friend, my disposable amount each month will be about £100. My assets, I don't own a car (I do drive a company car) I don't have any major valuables ie jewellery. I do own a bed, couch, fridge, freezer, TV, etc.

 

I have looked at an IVA, but I have 32k debts, £5k from the sale of the house, this would leave £27k & the IVA companies fee's are £2.5k & don't they last 5 years? Wouldn't bankruptcy be shorter? 1-3 years

 

I'm not too bothered about my credit rating being effected as its bad anyway because all of these debts.

[agile]

Some of the unsecured debts. i.e loans & credit cards are from about 10 years ago. Would PPI still be a option?

[stu007]

Hi

 

Yes PPi was around then and if you suspect miselling then get reclaiming. Now the BUT if you do start the process of reclaiming and them go bankrupt you should be aware that this would go into the bankruptcy.

 

Now the loans and credit cards have you been paying these off if not can you remember when you made the last payment to them?

[agile]

I dont think that claiming the PPI back on those loans & credit cards is an option as its over 10 years ago possible longer since I've used them. They have been since sold to a debt collection agency. I used to be in a DMP & paid them a small amount every month but this was about 2 years ago, when I last made a payment to those. You can only got back 6 years to claim back PPI & since I haven;t used them in that time. I don't have any paperwork showing statements for these in the last 6 years.

 

My main concern is should I go bankrupt or go down an IVA route?

[abc123def]

Student finance is rarely written off by going bankrupt (there was a small pocket of time when it could be the Government swiftly closed that loophole).

 

How much is your total debt not including the student loans?

 

Also you say much of the debt is ten years old, have you paid nothing towards paying it off in this time? If you haven't and over 6 years has passed since you have it is often written off anyway as it becomes 'dead'.

 

It does sound likely that you will get an IPA if you have money left over after living expenses, depending on the amount of your debt when the student finance is not included as to whether other options would be better for you than Bankruptcy.

 

You would need to have taken proper legal advice before doing so anyway.

 

Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111

National Debtline - Website: National Debtline Telephone: 0808 808 4000

Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

[dx100uk]

if the org debt was sold toa dca

then all rights for the OC to 'off-set' the PPI against the debt has gone.

 

just how this 'fits' into 'if' you go BK or IVA is another matter, as it 'could' be deemed as an asset.

 

it might well be better to reclaim the PPI FIRST bfore BK/IVA

 

there is NO time limit on PPI reclaims...

 

go get 'em!!

 

dx

[agile]

Thanks for your input guys, I've spoken to CCCS & i've got a further phone call with them next week to go through my figures & work out the best route for me to take

 

Are you saying that if some of my debts have been sold on, I can no longer try to claim back PPI? for example A credit card I had with halifax has since been sold to 'robinson way debt collection agency'

 

I have made a contribution to some of the debts about 2 years ago when I was in a DMP

 

My total debt excluding the student loans (which is £1650) will be around £30,000

[dx100uk]

you paid PPI, it was obv missold.

it matters not the age of the PPI

all PPI is reclaimable.

 

if the debt has been SOLD by the OC

they relinquish all rights

 

so you reclaim the PPI [which will be from the OC - the ones that levied it]

 

they cannot off set it against the debt.

 

if you go into an iva/bk and then reclaim the ppi, that will be an asset

it will go off your debts

 

do the reclaiming before, and

it will go to your pocket.

 

dx

 

dx

[Bandit127]

If you got BR the official receiver (OR) will conduct a review of your finances - generally going back 2 years.

 

If he finds that you have treated your creditors unfairly he can ask for a bankruptcy restriction (BRU or BRO) which can increase the length of the BR.

 

Pocketing the results of a PPI claim may be seen as unfair as you are expected to pay your debts with any spare cash you have.

 

BRU/BROs are very rare and it is unlikely in my opinion that they would go for this on a few thousand in PPI reclaim - but it might be worth seeking some formal advice on this.

 

You could claim and pay the Student Loan off with the proceeds as it looks like this would be exempt from the BR.

[brokebutnotbeatn]

You have a company car? So you are working? Who is chasing you for your debts? What is showing on your credit files?