One week until County Court date...Advice needed please

Davemac

Hi again.

Posted on here twice recently and -as ever - was hugely grateful of the help and advice that has come my way.

Predictably (!), I'm after a bit more if you don't mind.

I'm due at the County Court next Wednesday (12th Nov - where and when I will file for Bankruptcy) and after today's meeting with the CAB, I admit to being very nervous indeed.

I've recently come clean about a hideous gambling addiction that has cost me dear. I owe roughly 29 grand to six different credit cards, not mentioning two overdrafts on current accounts totalling 3 grand roughly.

I'd say that 90% at least of the debt incurred on the credit cards is due to gambling. Pitiful I know. I have at least gone to a local Gambler's Anonymous meeting of late, which I now intend to go to on a regular basis for therapy's sake. Good for the soul!

Even so, the CAB told me that when I attend the County Court next week, the judge will tell me there and then - Yes/No -as regards whether they will allow me to go bankrupt. I was well aware of the bollocking and subsequent penalties the OR would likely hand out, but naiively thought that the Judge would say 'yes' and pass me over to the OR.

Given my recklessness with the gambling, is it likely then that the Judge will say a wopping, resounding 'NO!' next Wednesday?

Does anyone know of any similar/identical scenarios? I'd be interested to hear - whatever the outcome may have been.

I'm shuddering at the very thought and would not know what step to take next if that were the case. Up to now, there's only two creditors who have contacted me by phone/text/letter and I've been advised to ignore them and not enter into any conversation with them.

Even so, they will increase steadily i would have thought. I suppose the idea of bailiffs knocking at the house (I live with parents) is something i can't help worrying about. Despite only one letter from a company called RMA (Risk Management Assesment - acting on behalf of MBNA), I can't help but worry that little.

I'm told it would be highly unlikely bailiffs would be round before the 12th anyway and that they would have to get injunctions served in court and inform me in writing before that would happen. Is this the case does anyone know?

Also, I've done my best to be as clear as day about assets...in that I have none. I'm a non-driver, non-home-owner etc. I did have an ISA, but closed it to pay off my parents some of what I owed them.

However...my Mum took out an insurance policy 14 years ago (think it's classed as an Endownment) at a mere 10 quid a month (which she pays by the way). It is in MY NAME although it isn't due to be cashed in full until 2024 (30 year policy) - when it will pay out £2300. Will this be classed as an asset and am i likely to be stripped of it?

As for the court appearance itself, I presume it doesn't require over-dressing, or is it indeed considered a formal occasion?

Sorry for the vague nature of the above. Just trying to get a clearer picture of what awaits.

Many thanks once again for any help.

Regards

Dave

peachyprice

Hi Dave,
Sorry, but that advise from CAB is well dodgy, the judge won't refuse your BR because your debts are due to gambling. He'she is only interested in whether your debts outweight your assets and whether you understand the implications of BR.

There have been a few here already with debts due to gambling, and yes, the OR has been firm, but they were still allowed to go BR.

For bailiffs to be sent round a creditor would have to get a CCJ, which you would then have to default payment of. The process before bailiffs are involved takes 6-9 months at least to get to. I'm surprised the CAB didn't advise you were a long way off from that.

I'[m not sure about the endowment, but if the OR can take it you can buy it back for £50.

Court is fairly fromal, smart casual will do. It won't be anything like you imagine, everyone at the courts from the doormen up to the judge are usually very understanding, and many don't even need to see the judge.

HTH

chelseabun_3

Hi Dave,
Peachy's advice is very sound. The judge will look at whether you're aware of the implications of BR and who you've taken advice from. As you've been honest about your income and assets (or lack of!;)) the judge should have no problem with making you BR. He might ask you some questions about the gambling (not sure on that) but if you tell him you're really trying to change and attending GA he should be fine with that - although I suppose he may be a bit sterner than otherwise. But maybe not - depends on the judge!:rolleyes:

I would think the OR would take the endowment as it's in your name, but as Peachy says you can buy it back for £50.

Our experience at court was that everyone was very pleasant and non-judgemental. OH was disappointed the judge didn't have a wig on, but that's just his little fetish.:D:D:D Good luck! CBx

peachyprice

chelseabun wrote: »

OH was disappointed the judge didn't have a wig on, but that's just his little fetish.:D:D:D Good luck! CBx

Ooo errr missus!!:rotfl:

tommo20

Hi Davemac,

First of all, well done for getting this far.

I can't comment on your situation but as far as what to wear is concerned. I would say that as smart as you can manage if you have a sober suit and tie wear it, but if the only suit you have is lounge lizard green then don't but go as smart as you can. (Trinny & Suzanna eat your heart out)
There is no official dress code for HM Courts (except for officials) but I found that it helped me on the day. After all no harm in paying due respect to the system that you are asking to Judge you for 'wot u dun'
The Judge (if you see him) is liable to be wearing an expensive tailored suit and you will be in chambers up close and personal so you might feel a bit shabby if you turn up in jeans and an Iron Maiden T-shirt
I worked in and around the court system for many years and I base this on my own experience.
Having said all that some courts are more relaxed but the Judge will like it and although he can't do anything about it if you are a sack of s**te I'm sure it will give you confidence - just don't wear the Armani.
Good luck and I shall expect to see you on the front cover of GQ soon.

tommo20

Davemac,

Have you thought about trying to get someone from your GA meetings to accompany you to court for moral support.
It might be something to consider for the OR interview even if it's on the phone.
It all helps

Good luck

Richard_S

peachyprice wrote: »

I'[m not sure about the endowment, but if the OR can take it you can buy it back for £50.
HTH

Hi Peachy,

Spot on advice as usual, the only minor error is the treatment of endowment policies as opposed to life assurance / insurance policies.

Life policies are only worth something if the assured / insured life expires, whereas endowments have an intrinsic value, and the O.R will look to sell or surrender the policy if there is any value.

If Dave's policy doesn't mature until 2024, and then only for a relatively modest amount, the chances are that it's current value is negligible; especially with the recent drops in property and share prices.

If it's not worth anything then it'll be treated as an assest with no value and ignored. If there's a life policy attached then presumably Dave will be given the option to buy the policy based on it's potential value.

If any cash could be realised by selling or surrendering the endowment then the O.R would do that, with no option for the policy holder / beneficiary to buy it back; unless it was a third party purchase.

Richard

peachyprice

Thanks for clarifying that Richard:D

Richard_S

peachyprice wrote: »

Thanks for clarifying that Richard:D

Hi Peachy,

It's one of those things that I made sure we had a 100% knowledge about.:D All investments including endowments realised before bankruptcy, all life policies cancelled the day after, and new policies taken out in trust for the benefit of our children.

Only slip up was £10 worth of Premium Bonds that I found the other day when I was "de-cluttering". I feel morally obliged to send them to the O.R's office.:rolleyes: :rotfl::rotfl:

Richard

peachyprice

Richard_S wrote: »

Only slip up was £10 worth of Premium Bonds that I found the other day when I was "de-cluttering". I feel morally obliged to send them to the O.R's office.:rolleyes: :rotfl::rotfl:

Richard

Yeah, I bet!

Davemac

Many thanks for the responses.

peachyprice - much obliged for the clarification. I was worried there for a bit. That is a huge relief to be honest. The lady at the CAB (though helpful) did seem a little unsure. I doubt bakruptcy was her area of expertise (she did have to keep referring to her printed notes come to think of it).

Also interesting to note the 'buy-back' option on the endownment. Cheers!

chelsea bun - appreciate the advice. Thanks again.

tommo20 - I take the hint mate. I'll swerve the Iron Maiden T-shirt (which I do actually possess circa 1990!!!) and any Armani (which I don't!). A modest two piece with a decent shirt might be the order of the day. Cheers.

Richard_S - thanks indeed for your advice and subsequent clarification as regards the Endownment.

I bid you all goodnight.

Thanks again