About to go bankrupt / IVA. Would like to know the differences?

Skintnorthernmonkey · 14 September 2017 at 7:06PM

Thank you for all the advice.

So, today I "hit the button", pulled out a credit card, and filed for bankruptcy. I was absolutely honest on the paperwork, declared everything, it was quite hard remembering everything actually!

When I filled in the budget form, it was actually quite frightening how close I am the the breadline anyway, even without the debts. I guess I always thought things would just magically get better somehow.

I even declared the long-term classic car restoration project that, right now, is basically a shell worth about £50 in need of a LOT of work - I am really hoping that they will let me keep that because working on that is my "zen". I had hoped that, completed, it would be worth a little money and I could pay off some debts, but that pipe dream just kept slipping further and further away, every step forwards with the project meant three back. But it's a labour of love...

Anyway, there is some good news, the issue with the house is actually fixable! So I can't get a surveyor to come and look (there are none available anywhere locally, it's crazy!!), so I pressed on with the repairs in front of me and found an apparent end to the damaged mortar. It looks like remedial wall ties and an exterior render might sure up the rest well enough, so while expensive, it's not the soul destroying nightmare I thought it might have been. I've started making repairs.

What was interesting while I was filing for bankruptcy was the lack of emotion. I really didn't feel... Anything. I'm not in arrears so there's no phone calls that are going to stop, because I'm not getting any. There's no debt collectors that are going to stop hassling me. It's an odd feeling.

So, lets see how things go from here... Typically, how long does it take to hear anything?

Skintnorthernmonkey · 19 September 2017 at 8:53PM

Heard from the OR today. Was just a "touch base" phone call.

I found her very direct, very blunt, and quite cold to start with. However, she listened to everything I had to say, answered my questions, and was really helpful. It was a fairly "clinical" conversation, but it was without judgement and very matter-of-fact which I found helpful given the circumstances.

My interview is next week.

Not feeling stressed or upset, it just feels like another financial transaction, numbers on a bit of paper somewhere. In terms of real-world effect, there's nothing at all.

I explained to her why I "own" three cars... One is essential, and worth less than the sofa I am sitting on, one is identical to the essential one, albeit not roadworthy and is a parts donor for car number one and will be scrapped once I have harvested what I need. The third is a long-term restoration project, which is currently a few pieces of steel and nothing else. It is worth, at best, about £50, but I have a huge emotional attachment to it. There's a lot of blood, sweat and tears in it, and though I cannot afford to continue with the project, I would be heartbroken were this scrapped since the project has been my "Prozac for the soul" and a coping mechanism, finishing it one day is really, really important to me. But she said scrapping would likely happen to it.
However, I have since read that I can offer the OR a token sum to keep the car, since it is not worth anything. I am hoping that I can do this to legitimately keep it. Lots of people have told me I should have "sold" it to a friend before hitting the button and hidden it, but morally I would struggle with saying that, I don't like weaving webs of lies one bit.

Anyway, that's where I am up to now!

Skintnorthernmonkey · 30 November 2017 at 11:54AM

So a little while on, everything is fine.

The interview was absolutely painless.

The process has been easy.

I bought the RO's interest in my life insurance (though need to actually send the cheque for that!), I bought the interest in the project car and scrapped the parts donor, and that's that. Creditors still send me post, Capital One were the worst, they sent me a letter saying that they would take me to court after the bankruptcy was discharged. I ignored it.

So, life sort of potters along. I do have another question, but I will start a new thread about that one rather than ask here.

Butts · 30 November 2017 at 7:11PM

Skintnorthernmonkey wrote: »

So a little while on, everything is fine.

The interview was absolutely painless.

The process has been easy.

I bought the RO's interest in my life insurance (though need to actually send the cheque for that!), I bought the interest in the project car and scrapped the parts donor, and that's that. Creditors still send me post, Capital One were the worst, they sent me a letter saying that they would take me to court after the bankruptcy was discharged. I ignored it.

So, life sort of potters along. I do have another question, but I will start a new thread about that one rather than ask here.

With regard to the Life Insurance you can pay online by Bank Transfer to the OR. (I did).

Not sure if you have still got a cheque book after going belly up.:D

About to go bankrupt / IVA. Would like to know the differences?

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