Bankruptcy And Bank Account Advice Needed

bluemoondays

I hope someone can give me some advice. I have decided, after 6 years of trying to keep my head above water, that I need to file for bankruptcy. I am self employed and my contract finishes in a weeks time and there is absolutely no work on the horizon. I have no savings, no assets and rent a flat. My debts total 55K+. Having decided to file, I set up a co-op account but unfortunately my boss paid my salary into my old bank account where I not only owe them 22K but also have a 1500 overdraft. I am not currently in arrears with any payments but know I need to file in the next 2 weeks before things start to spiral out of control. I have already cancelled every direct debit, apart from the loan payment to my old bank account.

My question is this - would it reflect badly on my application if I transfer all monies in my current account into my new co-op account. Bearing in mind I have a 1500 overdraft and have been living up to this overdraft, would it look even worse if I transfer money up to my overdraft limit to my co-op account and then file for bankruptcy.

Secondly, as I have been self-employed, I pay my own tax. However, as I have had such huge loan outgoings, I am not in a healthy place tax wise. I still owe £500 from 2006/2007 and I haven't even begun to work on my tax return for 2007/2008 - however I'm expecting my tax to be at least £4000. I don't want to be in a position where I file for BR and then find I've got a huge tax bill afterwards and can I even put unpaid tax into a bankruptcy order?

Any help/comments/advice gratefully received

RichOneday_2

The tax will be included in your BR as it was incurred prior to your BR date.

As for moving cash so you have living expenses, of course you should do it, you'd be expected to.

Also, if you've definitely made the decision there is absolutely no point in trying to keep all your payments up to date - it wont get you any brownie points with the OR.

Make sure you have enough to pay your outgoings and bankruptcy fees.

philnicandamy

and make sure you contact any of the free debt helplines before you start on bankruptcy procedings as one of the questions the judge will ask when you attend court is "have you sought professional advice before coming here today"

bluemoondays

hi - thanks for the response. So, the tax I haven't yet been billed for, as I haven't done my accounts, should I just include that anyway? or I suppose I need to quickly do sums and work out how much the tax would be prior to filing? I want to file asap as I will sign on for benefits next week and yr right, it's pointless hanging around plus the loan companies are like of pack of wolves the minute a direct debit doesn't go through!

do you also know whether the OR will always tell your landlord? obviously a major concern is that I will be made homeless and it will be really difficult to get new rental accommodation with no job and a BR order over my head!

I did think about doing this 18 months ago you know - and I got the forms and they just freaked me out - seems a huge task! as creditors start to slap late fees/interest on the minute you don't pay a DD - what figure am i supposed to give the OR as it might take a few weeks to even get in front of the court. Am concerned that I will stick figures in and then find out the creditors have slapped so much interest/late fees on, that I end up owing money after the BR - or does the OR get final figures when they contact creditors?

thanks again

bluemoondays

hi - I spoke to Payplan - they are linked somehow to citizens advice. They always try and push an IVA your way until they realise you have no job on the horizon, no savings, no property - they told me on the phone that BR was my best option - but hasn't put it in writing.

also contacted CCCS 18 months ago - and was told to do it then - but I got a job and just thought if I keep going I might be able to work my way out of it - but had a nightmare with the creditors at the time - and now just think I can't keep going and get into that again, better to just call it a day and go for BR

RichOneday_2

You're actually going to come out OK if on benefits as you won't be subject to an IPA, which is a monthly payment out of your disposable income for 36 months.

Your LL will not be contacted if your rent is up to date. And even, if by some chance he did find out just explain that the rent payments are much more secure now because you've lost a lot of your outgoings. It would be illogical to kick you out.

And please don't be scared of creditors harassing you, take your time.

Any individual communication you're concerned about just ask on here we'll find a way of dealing with it.

deedee_3

Rich you cannot say the OR won't contact your LL if you are up to date with your rent. The OR have an obligation to check with the LL that every thing is running smoothly. If you are lucky some times if you provide your tenancy agreement and show you are upto date with your rent and plead with the OR not to contact your LL then some are very kind and won't.

Blue if the OR says he is going to contact your LL then post on here and we can help you with a letter to our LL if you feel he may get a bit arsey.

If you have been advised bt CCCS that bankruptcy is an option then that is fine. But I would get back in touch with them and talk to their bankruptcy section just to talk over things.

RichOneday_2

Fair point Deedee, should have said 'usually'.

fermi

Yep. Have to agree.

If I read the technical guidance correctly, the OR has a duty to contact a landlord regarding the BR. But if you can show you are up to date then some will agree not to do so, or decide on their own initiative not to do so.

However, there have certainly been examples on this forum where an examiner has insisted on contacting the landlord/agents regardless. So it is to certain degree 'pot luck'.

If you are going to request that the OR does not contact the landlord then it may be best to mention that on your BR forms. If I remember correctly someone a while back intended to ask this during their telephone interview, only to find that the examiner had already sent the letters.

bluemoondays

thanks guys for all your comments - they are very useful. It's thanks to this website that I even knew about setting a separate bank account up with the Co-op so all advice gratefully received.

I'm going to probaby fill the paperwork in online the week after next - does anyone know how long it takes to get an appointment with the Court?

re outstanding debt - does the OR get the final figures from the creditors - do we just give an idea of how much it is - or do I have to get figures from creditors?
thanks

philnicandamy

Appointments with courts can vary.....you'd need to ring your court & check some offer a walk-in service some a few days & some a few weeks so it just depends.

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

A rough idea of whats owing to creditors whould be fine..the OR will contact them anyhow to sort final figures so no real need for you to contact creditors...my OR accepted guestimates on all figures