Bankruptcy deposit question

paul&nat

Hi,

I know from reading other posts on the board that there is a deposit of £310 to be able to file for bankruptcy.
Is this payed back to you with it being a deposit ??

Thanks

devon-gnome

Hi
My daughter filed for bankruptcy last April and had to pay a large sum to the court to initiate proceedings. I can't remember the amount (around £500?) but it was difinitely not refundable.
As she is employed, the Official Receiver arranged for her not to pay any tax on her wages. However, she now pays what she would have paid the taxman directly to the Official Receiver's office via a payment book at a bank. :think:
When the Official Reciver was sorting out what was owed or repaid and to whom, my daughter told her that she had repaid me a £450 debt. I later received a letter from the Official Receiver's office demanding that I pay them this sum! I did this but most reluctantly.
Perhaps some of this will help you. If you have any questions, feel free to ask.
Best wishes with it all.......

pug_in_a_bed

You fill in a form at court with your outgoings and incomings and they have a look to see if you can pay it. I think it was £460, I have my receipt somewhere but can't put my hand on it.

paul&nat

hiya

Im not working at the moment, im studying at collage and will be there for another year and a half. My girlfriend is working, but none of the money owed is ib her name and i wasnt with her when i took out the loans etc.

I know that i might not have to pay the court costs of £150 because of my low income. But there is a deposit of £310 which i was going to borrow (if it is refundable)


Thanks
Paul

pug_in_a_bed

Ok, just had a search and the 'deposit' is only refundable 'if no Bankruptcy Order is made'. So I guess you'd only get this back if the court decided you couldn't file. I'm farily sure this is correct. Hope that helps.

Have a look at this site if you haven't already, I found it helpful and it answers alot of questions.

Biffa

The offical receivers fee is £310, and the Court fees are £150. If you are on a low income, you can apply to have the Court fees waived, but everybody has to pay £310 for the Official receiver.

im1dful

It is a deposit on the Official Receiver's fee and is not refunded to you.

The Official Receiver's fee is actually £1625. This fee would have to be paid before any distribution is made to creditors from any money that the OR recovers.

I should also point out that any debt you have at the time that the order is made is a debt in the bankruptcy, therefore if you borrow money to pay the deposit, it is a debt in the bankruptcy that you are unable to repay yourself.

robertbruce

Hi
I assume from your post that you have not yet filed for bankruptcy, and my view is avoid it if you possibly can, especially if you have any major assets in your name, such as your house. Resolve the issues instead by using all the techniques for debt reduction which are seen throughout this website. The outcome will be far better for you financially and you will also feel better even though it takes a little longer to fix.

Bankruptcy was always seen as an option when debts spiralled out of control, but with so many other options now, I can tell you from experience that negotiation is the best route. If I can help further, feel free to ask. Regards. Bob.

paul&nat

hi

thanks everyone for the info.

Bob - i have no major assets. The only asset i have is my car (1994 ford escort) worth about £300. We live in a rented council property which is in my girlfriends name. Everything in the house is hers. I have debts of about £7000 and can not afford to pay them at all the only invcome i have is £30 a week stundent learning grant.

Do you think bankruptcy is the best option in my case ??

Thanks

Paul

fatbelly

Hi Pau&Nat

The phrase 'sledgehammer to crack a nut' comes to mind. 7k isn't a lot in the general scheme of things and once you start to earn money, you could probably sort it out quite quickly. The judge might also look at it that way if you petitioned for bankruptcy. I'm not sure how small a debt they would consider.

You could put the creditors on hold with token offers of £1 per month. I don't know how many you have - two or three i guess. Well, that's a lot less than £310 over the next year or two. The CAB are good where there is no real money available for creditors. I'd suggest a chat with them.

The creditors might threaten all sorts of things but there's not a lot they could do to you, is there? It would be quite a legal process to even get their hands on your £300 car.

Interest should get frozen, eventually. Then, in a year or two's time, when you can increase the offer, you can start to make serious inroads into your debt.

pug_in_a_bed

Could you possibly start a new thread posting yuor incomings and outgoings? You might be surprised and be able to avoid bankruptcy, £7000 really is a low figure to declare with. The advice offered by mse-er's might help get you sorted without going down this route?

Speaking personally as a discharged bankrupt, if there's another route you can go, then please try it.

Just a thought, don't give up just yet