LILA route to bakruptcy

[happymummy]

Hi, after doing some research I've decided to go for this option, I'm a single mum of 4, work part time and have about £8k of debt the majority of which is doorstep lenders.

I'm awaiting my debtors application pack from AIB, I'm to attempt this myself as the CAB could not even give me an initial appointment until April and I can't wait that long.

 

So I have a couple of questions, my shopacheck agent is due to collect £220 from me in friday but I don't have it, would it be worth me phoning in to the office to let them know of my intention to go bankrupt and ask them to stop calling for payment in the meantime or would that be detrimental?

I already spoke to Buchanan Clark and wells and they've put a hold on my account with them for 30 days while I sort it all out.

It'd going to take about a week before I can submit the forms but I'm unsure what to do about paying things while I'm doing it, I simply don't have it to give them as I have to buy food and pay my rent.

 

Also wondering what happens if I miss any debts off the form when applying, some of them defaulted years ago and I've moved house twice since then and don't have all the details.

 

And would it be worth opening a new bank account now or after? I have outstanding bank charges with hbos that I intend to include in the bankruptcy so not sure they'll be to keen on me continuing to bank with them!

[IdaInFife]

Hiya,

 

I would stop payments if you are deffinate this is what you want to do .

 

When you go BK your BK is advertised in the gazette inviting any creditors to come forward. as long as you are not deliberately withholding them.

 

For your own sake of mind i would open another parachute account as the account may be frozen until things sorted - i opened a coop cashminder account and started transferring all payments into that one.

[happymummy]

Thanks for replying. The trouble with stopping paying the doorstep loans, I've been dealing with the woman for almost 15 years, she isn't gonna take kindly to me saying I'm not paying her anymore, she has almost become a family friend but that's part of their tactics isn't it.

 

I'm trying to collate everything I can think of, got my credit file and searching for any letters and emails I have. So if anything gets overlooked it definitely won't new done on purpose because I want to do this right.

 

You have to disclose all bank accounts on the application don't you? This is what's confusing me as I've read some banks will close your account when you go BK but I have tax credits paid in weekly so would need somewhere else for them to go asap.

[IdaInFife]

Some do or freeze them til bk finalised so would open another but the coop accept bk individuals and will not close the account

 

 

Just need to be upfront and direct with the doorstopper it won't be the first time she has been through this x

[happymummy]

Is there anybody else I can get to check the form is filled in properly? I can't afford to wait until April to be seen as that would only be the initial appointment I'd still have to wait and.go back.and forward...

 

My sister is going to help me fill it, she used to deal with sequestration when.she worked for hmrc but that was years ago and she hadn't heard of LILA.

 

What happens if I pay the £200 but the form isn't filled in right?

[Crocdoc]

Thanks for replying. The trouble with stopping paying the doorstep loans, I've been dealing with the woman for almost 15 years, she isn't gonna take kindly to me saying I'm not paying her anymore, she has almost become a family friend but that's part of their tactics isn't it.

 

I'm trying to collate everything I can think of, got my credit file and searching for any letters and emails I have. So if anything gets overlooked it definitely won't new done on purpose because I want to do this right.

 

You have to disclose all bank accounts on the application don't you? This is what's confusing me as I've read some banks will close your account when you go BK but I have tax credits paid in weekly so would need somewhere else for them to go asap.

 

It is extremely important that you open a NEW BASIC BANK ACCOUNT with a bank that you don't owe any money, that way the bank will not be contacted by the AIB following your Bankruptcy application. When opening the account all you need to state is that you intend to pay your tax credit or benefit entitlement into the account,make sure you do this in advance of the application to ensure that there is no suggestion of providing false information. Once the account is opened make sure that all income is paid into the new account to avoid off set by your existing bank.

 

As for the debts stop paying as of now and don't talk to them over the phone, the doorstep collector as Ida states will have seen this situation many times, providing for your family is the most important factor here.

 

As for completing the form if you have difficulty , post up the question number and I will assist from a blank form. Do not rush the application as it is important that is completed properly to avoid losing the application fee.

[happymummy]

Thanks, just having a look at basic accounts now.

Are RBS any good? There's a branch here and the account sounds ok.

[IdaInFife]

remember that they rbs are linked to companies like natwest etc so make sure they are no links

[happymummy]

Links to other accounts in my name? Both my accounts are hbos so should be ok I think.

[happymummy]

First big sigh of relief, spoke to my shopacheck agent and told her what I'm doing. She was absolutely fine about it and I'm not taking food off her table really she's only gonna be down by £16 per month by not having me as a customer anymore, phew!

[IdaInFife]

[happymummy]

Form arrived today. It seems straightforward enough. The hardest part is going to be tracing all the debts as quite a few of them have been passed on more than once so its getting a bit confusing as to which is which and what it was originally!

[Crocdoc]

If you can't establish who the original creditor was, simply list the latest collection agent. One more impotant thing that MUST be included is either 3 months proof of income or bank statements if your earnings and benefits are paid through the bank. If in doubt please don't rush this as it is important that the application is accepted on the first attempt to avoid any risk of losing the £200.00 payment. If need be come back with any questions or alternatively contact the AIB who are very helpful.

[happymummy]

I'm still in the process of getting all the paperwork together and ringing round for balances etc. Almost on top of it all I think

[IdaInFife]

Good Good