Bankruptcy: Just starting out...

northantsandy

Following several month's of stress, depression, divorce, redundancy, bad advice and dire financial crapness in general ( http://forums.moneysavingexpert.com/showthread.html?t=122862 ), I am writing to my creditors, including mortgage lender, inviting them to make me bankrupt.

The CCCS were pretty useless: I have recently started a new job but am yet to have any payslips and I have sold a second property with a small profit, but they said they couldn't help me for a few months.

I saw a local insolvency practitioner who suggest the course of action above.

Will I need legal representation in order to deal with bankruptcy and, as I sit here two weeks before payday with no money in the bank - I had the letter this morning - can I get legal aid?

2005 was a bad one for me, 2006 isn't shaping up to be much better

IN_LIKE_EVERYONE_ELSE!

What was wrong with CCCs?

bank_of_slate

Hi Andy,

Ok so it has started out as a crappy year, but it's only January.
Now that you are facing the problem, whichever route you face; it CAN get better.

Have you dealt with the depression? It sounds like the accumulation of all the things you listed have just got on top of you.

Keep posting for lots of advice and support, you won't be judged on MSE, there are many who have been through what you're going through and, amazingly enough have come out the other side!
Good luck hunny!
...Linda xx

kevker

First off, no you won't in theory need legal representation to go bankrupt. However, we do need to know a few things. Do you own a house, or have an interest in any property? Do you own a car? Do you own a lot of expensive electrical equipment? All this will have a bearing on how much you will lose during bankruptcy. What are the level of your debts at the moment and are they secured or unsecured?

As you said, the year has got off to a pretty crap start, but believe me it will get better from now on. You will get loads of support on here. I am at the mid-point in my bankruptcy, so if you have any questions please feel free to ask. You will find, that if you do declare, then it will be an enormous weight off your shoulders and it is not something to be afraid of.

The most important thing at the moment is to only pay the essential bills and of course look after yourself. Make sure you have enough money to pay your heating bills and to put food on the table as well as making sure you pay your council tax. Everything else can wait at this point.

Addicted2Chocolate

It is very expensive for a creditor to make someone bankrupt. They have to employ a solicitor after serving you with a statutory demand, the solicitor will normally issue the bankruptcy petition. If the petition is not satisfied there will be a hearing which you should attend. You do not need legal representation. the judge will ask you why you have not paid the debt, you will have to very briefly explain you cannot afford to pay your debts, and the judge will declare you bankrupt. Then you will hear from the Official Receiver, usually within a few days for a creditor petition case.
Please look at the info on https://www.insolvency.gov.uk , including the Guide to Bankruptcy and other leaflets. If you own a home see 'what will happen to my home'.
good luck, remember its a fresh start.

northantsandy

I have had the info from insovlency.gov.uk and bankruptcy is my only option.

When I first tried to get help when I wasn't sure of any of my options, I went to the CCCS. Because I had no job and two houses (one up for sale) they told me they couldn't help me but gave me the standard letters to use and come back when I was working. The second house has now sold (well subject to contract) and I am now working but 50 miles away from where I am living. CCCS then said really need three payslips with my actual taxcode not my emergency one before they could help.

I therefore went to yourclear.com who started off okay but then said one thing on the phone and the opposite in correspondence. I stopped using them and saw a local IP who suggested asking my creditors to make me bankrupt.

I have gone through all the research into bankruptcy and am resigned to the fact I am going to lose pretty much everything I restarted again with after my divorce. Now the leaflets and advice are one thing but basically I want to know the "nuts and bolts" of what to expect rather than the high level stuff I've had to now.

jellycat40

Hi there
I am going to go bankrupt as well so know how you feel.

You can declare yourself bankrupt and this may be the most stress free way. If you don't have an IP then you only need to pay £305 to the court on the day and you will have your bankruptcy declared in a couple of hours. You need to be in court but you may not be called.

After the court hearing you will have an interview with the Official Receiver either on the phone or in person. if on the phone you will have a face to face appointment later.

You may lose your car unless it is worth £2500 or less and you can prove you need it. You will lose any expensive electrical equipment such as tv, hi-fi or digital equipment. Not likely if it is over 2 years old. You may lose your house, be forced to downsize or have a charge put on your property for when you do sell it.

The good side is that you are likely to be discharged within a year and the OR is likely to issue letters to your creditors to say he has no further interest in your case within 6 months. One way of keeping tabs on this is to let someone pay your court fee for you. This will make them one of your creditors although for such a small amount not one that the OR will worry about. then when the OR issues letters your friend will get a copy of the letter.

Well that is about all, I tried Payplan and found them to be lovely people they just could not help me. Probably similar to your experience with CCCS.

Louise

Conor_3

"You will lose any expensive electrical equipment such as tv, hi-fi or digital equipment."

Err, no you won't unless it'll fetch alot at your local saleroom.

Biffa

And if your vehicle is worth more than £1500, the Official Receiver will want to know. Anything less than that and should be ok if you can show you need it to get to work.

Conor_3

northantsandy wrote:

I have gone through all the research into bankruptcy and am resigned to the fact I am going to lose pretty much everything I restarted again with after my divorce. Now the leaflets and advice are one thing but basically I want to know the "nuts and bolts" of what to expect rather than the high level stuff I've had to now.

YOU DO NOT NEED LEGAL REPRESENTATION. I did mine myself. THere's no need for it at all as it's in effect a chat with the judge to make sure that you're going bankrupt for the right reasons. You only need legal representation to fight a bankruptcy petition.

Either you submit a notice to declare yourself bankrupt, which you can get for the County Court or (highly unlikely) a company will take you to County Court to have you declared.

You will be given a date for the hearing. You turn up to the County Court. You'll be given a time and called into see the Judge, usually just in his office. You'll be asked why you're declaring bankrupt. He'll look at it and declare you. Immediately after you come out of the meeting with the Judge, you go back to the reception and they'll take you into the Office where you're put in contact by phone with the Official Receiver who will then make an appointment for you to go and see him. After that, you're given a notice from the County Court which shows you as declared bankrupt stating your name and a case number.


Before the appointment date comes around, which can be weeks, you'll be sent a wad of forms to complete. You have to complete them all. BE COMPLETELY HONEST. They can see through the BS.

The day after you declare, your bank account will probably be frozen by the bank. If it's the one you live on and there's no debts, you can get the OR to order it unfrozen.

When you are declared bankrupt, you are no longer in control of your financial affairs up to the date you were declared - the OR is. What this means, if any creditors contact you, the only thing you have to give them is the case number and the telephone number and name of the Official Receiver. You cannot help them any further. If you get any mail from creditors, you forward it to the Official Receiver.

kevker

Conor wrote:

"You will lose any expensive electrical equipment such as tv, hi-fi or digital equipment."

Err, no you won't unless it'll fetch alot at your local saleroom.

Kinda says it all, if it's expensive then it should get a good price, hence why you will lose it.