Looks like Bankruptcy... a few questions

StuntmanBob

Reposted (was in wrong forum last time. Sorry).

Hi folks, my situation is pretty dire and it looks like I'll have no option but to go bankrupt. I owe about £60k in loans and another £50k in credit cards (you see, there's always someone worse off, and it's me!). I owe the taxman £10k and there will be another £35k due in 6 months.

On the (sort of) plus side, I'm divorced (children non resident) and my house is rented. I have a rubbish car (value £500) and no assets/savings. So I don't really have anything worth taking. Oh, and I'm self-employed. I do earn good money (about £60k gross) but if that sounds a lot I assure you it's all taken up with rent and repayments (plus the usual utility bills and child support etc).

I have a question. In fact I have lots of questions, but one specifically for now.
I have life insurance, written into trust for my kids. If I go bankrupt, will the official receiver be able to get the policy assigned to him, so my debts are paid in the event of my death. Mind you, who would be paying the premiums? Not me in that case. Will he keep it even after I'm discharged? Perhaps I should just cancel the insurance until after I'm discharged?

My next really big question, probably the most important, is how long does it take between the time I file for bankruptcy (take the forms to court and pay the fee) and being officially bankrupt?

tigerfeet2006

The first thing you need to do is phone one of the debt charities and go through your options with them. You need to do this as the judge will ask if you have taken professional advice and can delay your petition if you haven't. Links and numbers in my signature. NDL are open till 9pm I think.

It will depend how the life insurance is worded but NDL will be able to tell you.

You are BR as soon as the petition is signed by the judge.

I think you will get an IPA. Where you will have to pay a % of your income to the OR for 36 months.

Welcome to the forum and any questions just ask.

StuntmanBob

tigerfeet2006 wrote: »

The first thing you need to do is phone one of the debt charities and go through your options with them. You need to do this as the judge will ask if you have taken professional advice and can delay your petition if you haven't.

I did speak to them. In the circumstances, they didn't disagree that bankruptcy was a bad option, but they weren't comfortable about absolutely recommending it.

I'm looking at the long list of forms on the insolvency website. Can anyone point me somewhere that tells me which one(s) I need to fill in? I mean as well as the 6.28?

Dez-Titute

Hi Stuntman,

Under normal cicumstances the OR would put a charge on the policy and you would have to pay a £50 fee to have it released.
The fact that the policies are in trust may be the decider here and not sure how it would work and may depend on the type of trust used ie whethr absolute or flexible so not sure.

The reason for having a charge on the policy is that if you are no longer in good health you might not be able to obtain further cover,however if health is not an issue then youi could cancel but not sure how as a BR you would stand setting up further cover I will check and get back in a day or so.
The other issue is if the policy has a surrender value ie an endowment.

Hope this helps.DEz

tigerfeet2006

If you want to register to fill them in online then you do that here:

https://www.insolvencydirect.gov.uk/isolv/

If you want to download them to fill in by hand then you need these two plus the notes:

Debtors Bankruptcy Petition:

http://www.insolvency.gov.uk/pdfs/forms/form6-27.pdf or http://www.insolvency.gov.uk/pdfs/forms/form6-27.doc

Statement of Affairs (Debtor's Petition):

http://www.insolvency.gov.uk/pdfs/forms/6-28.pdf or http://www.insolvency.gov.uk/pdfs/forms/6-28.doc

Statement of Affairs (Debtors Petition) (Guidance Notes):

http://www.insolvency.gov.uk/pdfs/fo...rsguidance.pdf or http://www.insolvency.gov.uk/pdfs/fo...rsguidance.doc

With thanks to Phil.

StuntmanBob

Dez, tigerfeet,

thanks so much for the very helpful replies.

I'm not keen to fill in on-line... I don't trust my online privacy in this matter.

tigerfeet2006

Just download the forms and print them out and fill them in by hand or ring your local county court and ask them to send you the forms.

http://www.hmcourts-service.gov.uk/HMCSCourtFinder/

StuntmanBob

tigerfeet2006 wrote: »

Just download the forms and print them out

Done. Thanks.

Dez-Titute

Hi again,

You might want to read the following thread

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part4/part_4.htm

StuntmanBob

Dez-Titute wrote: »

Hi again,

You might want to read the following thread

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part4/part_4.htm

Brilliant! Exactly what I need! Thanks.