soooo confused :-(

connery33

Hi all,

First just wanted to say thanks to everyone who uses this site and all those who take time out to help others.

Heres my story... I was made unexpectedly redundant early last year. I had bought a car only a month before I was let go (bad timing!) and even though I was always good with debt, my finances started to spin out of control. Since then I have not worked and have suffered from depressive episodes. I started a limited company last year though, but it makes no money, and even though I am a 'director' I cannot afford to pay myself. I will be resigning though for the purposes of BR and my brother will be taking over.

I now have credit card debt of over 16k and a remaining HP balance of 22k. I have no income, assets and I do not take benefits. Now I'm living with my parents rent-free, and rely on their genorosity. They have no problem with this as they would do anything for me but they dont know how bad my finances are (I am ashamed to tell them how badly I screwed up).

Ive been trying to look for work, but it hasn't happened so far, and I can't be certain about the future. Credit card repayments and HP are killing me, and with no income, I find myself juggling credit from one card to the next. It just can't go on like this. Its just too stressful.

Well having done a lot of research, I've decided the only option is BR. This way I learn lessons and I get a fresh start. I called the court today and I have a date set for 2 weeks time. I've been frantic about the form filling, and getting stressed as there are some aspects that I just do not understand. Hope you guys can help..

1) In my Outgoings, I have no income or benefits. Do I just put down nil for all income? I still have expenses like a mobile phone and other bits and bobs, but I doubt it will go above £300. Obviously my parents are paying my way for the time being. I read somewhere thatsometime a judge may refuse a bankruptcy if there is too much of a deficit?? I hope not, but otherwise
should I put 250-300 down as 'Other Income' (from parents)? And will the OR ask me to prove it? I dont want my parents to know about the BR, never mind sign anything!!

2) I invested in some shares late last year in a foreign private company. It never came to anything and now even though I paid over 10k for them last year the shares are clearly worthless. The company still exists, but so do I declare it on the soa? Or just ignore it as the shares are worth nothing? I must sound like a complete plonker, but it seemed like a brilliant idea at the time. Also, i own half the shares in the limited company I set up and tried to run. Again, the company is making no profits and the shares are pretty worthless, do I declare these too or just ignore them again. I'm nor trying to be evasive, I just dont want to put anything down there that will just complicate things and not be viable assets that the OR can use.

3) In the last 24 months i've had some pretty big balances in my account and some big transactions. None of them were for work or to creditors,and they are nothing sinister (they were for those investments). But I am worried that i will have difficulty explaining them if the OR asks. Will he question them?

4) In the assets section of the soa when I was entering my HP finance stuff, there were 2 figures that they asked for, 'Net value, and 'Value of asset' What do these mean? I think I may have got them wrong as the net value ended up being bigger than the value of the asset.. not sure how that is possible... im sorry if i'm not being clear!

I just have to ask someone.. I can't believe how stressful this whole experience can be. Please help if you can!!!

pink-lint_2

you could check to see if your entitled to any benefits here www.entitledto.co.uk,

sorry i cant be of much help.
i hope everything goes well, pinkx

Rylynn

The OR will most probably want bank statements so any transactions will be questioned, so you need to know the replies where the money came from and where it went.

Why are you not claiming any benefits, as OR may ask you that as well, are you entitled to any as if so you should make sure you claim them.

A judge can say no to BR, if you have nothing to live on at all. If your outgoings amount to loads more than your incomings he is likely to not see BR as the best way out, and that you will be back making yourself BR again.

Hiding anything from the OR is a very stupid thing to do, not that you have said you will, but believe me the OR can find out whatever they want, and better coming from you, if not they will go over everything with a fine toothcomb.

On some of the other questions I will leave someone else to comment.

On your parents paying you money, I think yes he would want proof of this, and it would need to be on your SOA for the judge in court to see as well.

Maybe explaining to your parents would be your best bet, I am sure they will understand and be supportive while you go through BR.

Rylynn

connery33

thanks for the help...