Bankruptcy Advice

david1978

At age 18 i found myself in debt for a couple of hundred pounds, now 30 and its a whole lot more. I'm considering bankruptcy but have a few questions.

Council tax. This is both my and my partners name, what will happen if i put this through bankruptcy? We've already had a lovely baliff who took note of our handful of worldly goods. She is also seeking an IVA.

What assets will the official reciever be looking at using to raise cash. Much of our home is furnished with gifts/loaned furnishings. Childrens toys, are they counted? Do they visit, or rely on your honesty?

Car. Living in a rural and poorly served bus route, whats the likelyhood of keeping it?

Utilities. Were currently on water rates- could the OR push for a water meter to be installed. Will other utilities be put on token meters? What about mobile and broadband- will OR cancel these?

Debts to family. Can these be put through. Obviously no paperwork, but quite high figures.

I'm currently on jobseekers allowance. What happens when i get a new job? Working tax- thats usually paid to my partner, would the OR expect this?

How involved does my partner need to be?

fiveyearplan

david1978 wrote: »

At age 18 i found myself in debt for a couple of hundred pounds, now 30 and its a whole lot more. I'm considering bankruptcy but have a few questions.

Council tax. This is both my and my partners name, what will happen if i put this through bankruptcy? We've already had a lovely baliff who took note of our handful of worldly goods. She is also seeking an IVA. It will fall to her

What assets will the official reciever be looking at using to raise cash. Much of our home is furnished with gifts/loaned furnishings. Childrens toys, are they counted? Do they visit, or rely on your honesty? They do rely on honesty and none of your normal things will be taken unless you have a Picasso hidden somewhere.

Car. Living in a rural and poorly served bus route, whats the likelyhood of keeping it? You have a good argument to keep car but this is a gray area.

Utilities. Were currently on water rates- could the OR push for a water meter to be installed. No Will other utilities be put on token meters? Are you in arrears? If not no they won't. What about mobile and broadband- will OR cancel these? Mobile will be fine unless you are on an incredibly expensive tariff - do you also have a landline? I think they allow £60 for telephone whether mobile, landline or combination. Broadband is only allowable if you need it for work/study or it will have to come out of surplus.

Debts to family. Can these be put through. Obviously no paperwork, but quite high figures. Unfortunately not - well you could list them as creditors but you wouldn't be allowed to keep paying them unless it is through your surplus. Many people do choose to keep paying them one way or another.

I'm currently on jobseekers allowance. What happens when i get a new job? Working tax- thats usually paid to my partner, would the OR expect this?

How involved does my partner need to be? Not at all[/quote]

Hi and welcome David. If your partner is planning on an IVA has she taken advice (have you for that matter?)? IF wo with whom? Try ringing one of the debt charities like CCCS or National Debtline. Many people on here regret going into an IVA and subsequently it crashed and they paid all that money into it for nothing.

Do you own your own home or rent?

Any children?

david1978

she is seeking advice from Gregory Pennington/Think Banking - she had previous debt scheme with them. How do you mean it crashing?

I mentioned the baliff for the council, would they be entitled to possess whats now no their schedule, or will bankruptcy supercede their dealings?

We have one 2 year old and rent from housing association.

tigerfeet2006

David, stay away from GP :eek: Do not touch them with a barge pole. Give National Debtline or CCCS a ring tomorrow and talk to them. GP are just in it for the money. CCCS run their own IVA's and if one is suitable then they will recommend it. IVA's are only suitable for 3% of people. GP will just put you on one regardless as they will make lots of dosh out of it. The first £7000ish of the IVA will go to them before your creditors see a penny. A lot of people on here have tried IVA's and then circumstances have changed and they have had to go BR anyway wasting a lot of money or as 5YP has said 'crashed'. Your credit report is trashed whether you go BR or get an IVA.Martin has a great article on IVA's, will get a link.

Do you have a mortgage? Do you have children?

fiveyearplan

If you have no assets to protect (house) then an IVA is not a suitable solution. Stop her speaking to this company immediately before she signs something. They are out for what in it for them and not what is best for your partner. Get her to ring one of the debt charities like CCCS or National Debtline. If she still wants an IVA then go with CCCS as they will give less biased advice. Read as much as you can on here about problems people have with IVAs and ending up bankrupt anywas - they all wish they had gone the BR route in the first place. IVA is a form of bankruptcy and her credit file will be no better off doing an IVA as opposed to bankruptcy.

Hopefully Rylynn will see this post and tell you about her experience. You could always PM her if you want to.

If the council has already sent a bailiff that must mean they have issued you with a statutory demand. If so, then yes your BR will supercede that.

fiveyearplan

tigerfeet2006 wrote: »

Do you have a mortgage? Do you have children?

Thanks Tiger. David is with a housing association and has a 2 year old child.

tigerfeet2006

Thanks 5YP I saw GP and then missed the rest as I had this sort of mist come across me, if you know what I mean

It is possible that NDL or CCCS will recommend a DMP and they will not charge for setting this up and administering it. I bet GP did.

fiveyearplan

Thanks again Tiger. I edited out my mistake above in case anyone new reads it but doesn't get as far as your correction!

tigerfeet2006

Edited :d :d

peachyprice

david1978 wrote: »

At age 18 i found myself in debt for a couple of hundred pounds, now 30 and its a whole lot more. I'm considering bankruptcy but have a few questions.

Council tax. This is both my and my partners name, what will happen if i put this through bankruptcy? We've already had a lovely baliff who took note of our handful of worldly goods. She is also seeking an IVA. The order should be reversed and council tax arrears up to the date of bankruptcy will be included.

What assets will the official reciever be looking at using to raise cash. Much of our home is furnished with gifts/loaned furnishings. Childrens toys, are they counted? Do they visit, or rely on your honesty? They won't take anything from your home.

Car. Living in a rural and poorly served bus route, whats the likelyhood of keeping it? if you need it for work you should be able to keep it, if it's just for your wife taking the children to school and shopping you may have to battle for it and prove public transport isn't available. How much is it worth, if it's high value the OR can take it and give you an allowance to buy a cheaper car.

Utilities. Were currently on water rates- could the OR push for a water meter to be installed. Will other utilities be put on token meters? What about mobile and broadband- will OR cancel these? Absolutley not to the water meter, the OR won't get involved with utilities at all. if the Mobile contract is high they may expect you to PAGY, but this will get you out of the contract. Broad band you can keep, but you have to pay out of your surplus.

Debts to family. Can these be put through. Obviously no paperwork, but quite high figures. No, if you include them on your forms as creditors they have to jin the queue with everyone else. You can juggle your budget if you want to pay them, but you will not be allowed to include payments on your I&E.

I'm currently on jobseekers allowance. What happens when i get a new job? Working tax- thats usually paid to my partner, would the OR expect this? The OR will take a percentage of any surplus after all reasonable living expenses have been taken into account.

How involved does my partner need to be? Not very involved, all the OR will need to know is how much she contributes to the household.

Hope this helps some, any more questions, just ask.