can i still go bankrupt

tigerfeet2006

Dodo give National Debtline a ring and ask to speak to some one who knows about Scottish BR. Also check out their website.

http://www.nationaldebtline.co.uk/scotland/debt_advice.php

coolcait

Hiya

I'm afraid I think that the advice dodo has been given is correct. He wants to apply for bankruptcy under the Low Income Low Asset route, and he can't do that with a car which is worth more than £1000.

If it had been an HP agreement, it might have been OK, as the car wouldn't have been his asset. As it stands, LILA isn't an option.

dodo, you can still make youself bankrupt if you can show that you are 'apparently insolvent'. Have any of your creditors served you with a 'charge for payment' or a 'statutory demand'?

I know you'll be thinking 'broken record', but I really do urge you to go and see your CAB. They can look at the paperwork you have, and look at the options open to you.

dodo50

sorry i'm on two threads here getting confused. why i cant go br is because in scotland they have a LILA system low income low asset route to br (from apr 08) and no asset can be over 1k and all assets must be under 10k. i have criteria for low income (on benefits or under 230 per week) but the car is about 1.2k to 2.8k depending on whether a trade in value or dealer or private sale. however i believed the car to be on hp (credit agreement in showroom and told that by salesman) but its apparently a loan. if hp the car doesn't belong to me, therefore meet the criteria for br, but on a loan it does?!! cos it belongs to me i am unable to petition for my own br.

i will have to wait for creditors to make me br and i just cant see that happening. worst of all because i paid some of them token payments then they can keep chasing me, but some i didn't pay as never rec'd any letters may be time barred in about 1.5yrs. advice would suggest that if you are stuggling to pay don't pay anything unless you know you can clear it in 2/3 years.

my only option to use the lila route is to wait for car to devalue and suffer the harrassment meanwhile.

what is worrying me more is i cant afford to pay for fuel never mind car tax and insurance so i'll get in trouble with police (i've been sent letter from debt co saying they will collect car and demand all money due but probably wont collect car just hassle me for money). i cant sell car as not allowed under br rules so i need creditors to raise charge for payment letter or statutory demand letters and i've got none of these so stuck.

nat debtline advised to check glass's car guide to find out value but since it varies so much i've no idea what value the acc in bankruptcy will use.

anyone from scotland on lila br?

dodo50

hi coolcait thanks got your post after posting mine. yes i have emailed them and phoned them so waiting for them to arrange appointment. as you say i need charge for payment and stat demand but i'll see what they advise.

i also have prob with not knowing all details of creditors acc nos and addresses as i've no paperwork for some and they require this so cab might be able to help here.

was hoping this would be a solution should have known better! thanks for advice everyone.

dodo50

while i'm waiting for cab is there anything i should be concerned about that creditors can do to me like freeze my income support now that i've stopped paying them the token payment? scared in case they arrest my bank acc which is all the money i have.

also i read posts that people need to apply for br before creditors apparently take them to court or whatever? don't really understand this.

LilyBart

Thanks for the local expertise, Coolcait. Dodo, very sorry to have misled you. This LILA thing sounds hideously inflexible. Clearly the system is very different north of the border. I hope you manage to find a way through this while keeping body and soul together. Meantime, in lieu of useful advice, I send good thoughts!
Lily

dodo50

thanks lilybart, i'm learning all the time so at least i'll be able to give advice to others soon and maybe there is another route for me.

beanielou

LILA is actually very simple & is helping lots of people to go bankrupt.
Low income, low assets of less than £1000 and pay £100 and you dont have to be taken to court.Applications are way up since this came in in April.

LilyBart

Beanielou, does Dodo have no option but to wait for her car to drop in value?

dodo50

yes thats what i thought and loads will be helped. feel a bit trapped tho as cos of car that i cant do anything about i dont meet criteria. i should be able to give car to aib or back to finance. wonder what valuation aib would use as i have 5.

trade-in ex cond 1500
trade-in av cond 1350
trade-in poor cond 1200
dealers 2890
private sale 2350

if lower then i wouldn't have to wait too long for it to come down but if the highest then ages. if i sold it for private sale can i prove i gave money to finance or share it between creditors and as long as i didn't spend money woud they accept that?