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Reason for Bankruptcy

Hi,

I am preparing my SOA ready for BR in February. I have seen that a few people have posted their reasons for BR for examination here.

Could you possibly have a look at mine. Do I need to add more detail at this stage?

I am no longer in a position to make repayments to my creditors due to a big reduction in my disposable income. I have a joint bank account with my wife and everything is paid from that account. My wife became ill in 2006 and had to take a lot of time off work. She appeared to make a recovery and returned to work, but not on the full hours that she was used to. This reduced our income to a degree, but we were managing. Then after the summer of 2007 my wife had the same problem again and this resulted in her losing her job in December 2007.

This reduced our income by almost half. We had two large loans which only had insurance cover for myself being made unemployed, as I was the main name on the loan agreements.
It is highly unlikely that my wife will be able to return to the kind of job she had before her illness and is still on incapacity benefit, which means we would find it impossible to repay all that we owe.
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Comments

  • Hello jaydub,

    Welcome to the forum! :hello:

    I am a relative newbie compared to many on here, I was declared BR this Monday and it is an enormous relief! I am sorry about your difficulties and your wife's poor health. What a lot for you two to cope with.

    Your "cause of BR" seems fine - it is self-explanatory and clear. The only thing I would suggest is that you include the fact that you have sought help and taken advice from one of the debt charities, and put who.
    I am assuming that you have done this, you will be asked at court.

    Very best wishes and Good Luck.

    SA
    2011 - New year, New start, New me
    [STRIKE]Planning on [/STRIKE] making my dreams a reality
  • dalip
    dalip Posts: 7,045 Forumite
    jaydub wrote: »
    Hi,

    I am preparing my SOA ready for BR in February. I have seen that a few people have posted their reasons for BR for examination here.

    Could you possibly have a look at mine. Do I need to add more detail at this stage?

    I am no longer in a position to make repayments to my creditors due to a big reduction in my disposable income. I have a joint bank account with my wife and everything is paid from that account. My wife became ill in 2006 and had to take a lot of time off work. She appeared to make a recovery and returned to work, but not on the full hours that she was used to. This reduced our income to a degree, but we were managing. Then after the summer of 2007 my wife had the same problem again and this resulted in her losing her job in December 2007.

    This reduced our income by almost half. We had two large loans which only had insurance cover for myself being made unemployed, as I was the main name on the loan agreements.
    It is highly unlikely that my wife will be able to return to the kind of job she had before her illness and is still on incapacity benefit, which means we would find it impossible to repay all that we owe.

    How about adding something like since dec 07 we have constantly struggled to live on our income and find we are no longer able to meet our creditors demands and sustain an acceptable standard of living.

    It looks fine as it is. There just seems to be a gap from dec 2007 and now where no mention is made to debt.Dx
    Free impartial debt advice available from: National Debtline - Tel: 0808 808 4000 | The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111 | Find your local Citizens Advice Bureau
    Laugh at yourself and others laugh with you.Laugh at others and you laugh alone. BSC No 107:D
  • it would be better if you could put some figures to show by how much and when the income dropped: eg
    prior to wifes illness in 2006 our combined income was £ pcm on average
    She took approx X months off sick leave in 2006, reducing our income by approx £
    as of dec 2007 whern my wife lost her job our household income was reduced to £ pcm
    so prior to my wifes illness our average houshold monthly income was £pcm but now it is £Xpcm. The reduction of £Xpcm has meant we can no longer service our existing debt committments

    just suggestions...
  • jaydub_2
    jaydub_2 Posts: 29 Forumite
    Thanks for all of your suggestions and advice. I have been trawling the posts in this forum for a couple of days now and have found that there are a lot of helpful people in here.

    Thanks again, I'm sure I will have a few more questions before I go BR.
  • startagain_2
    startagain_2 Posts: 2,135 Forumite
    jaydub wrote: »
    Thanks for all of your suggestions and advice. I have been trawling the posts in this forum for a couple of days now and have found that there are a lot of helpful people in here.

    Thanks again, I'm sure I will have a few more questions before I go BR.

    A lot of us have done our forms this way - one question at a time - get it right and then move on to the next one. It makes it a lot easier - for yourselves and for the court on the day....

    SA
    2011 - New year, New start, New me
    [STRIKE]Planning on [/STRIKE] making my dreams a reality
  • jaydub_2
    jaydub_2 Posts: 29 Forumite
    Hi,

    I have added a little to the statement after listening to your advice. Do you thik this is better.

    I am no longer in a position to make repayments to my creditors due to a big reduction in my disposable income. I have a joint bank account with my wife and everything is paid from that account. My wife became ill in 2006 and had to take a lot of time off work. She appeared to make a recovery and returned to work, but not on the full hours that she was used to. This reduced our income to a degree, but we were managing. Then after the summer of 2007 my wife had the same problem again and this resulted in her losing her job in December 2007.

    This reduced our income by almost half. We had two large loans which only had insurance cover for me being made unemployed, as I was the main name on the loan agreements.
    It is highly unlikely that my wife will be able to return to the kind of job she had before her illness and is still on incapacity benefit. Which means we would find it impossible to repay all that we owe.

    We contacted CAB in February 2008 and arranged an interview with them to find help with our situation. We were told that the best option for us would be bankruptcy. Unfortunately we did not have the funds to go down that route. The CAB advisor told us that we could enter into an agreement with our creditors and make offers of payment after we had put together a financial statement. The advisor also said that we would still be able to go bankrupt at a later date if we wanted to. Offers were made to all of our creditors, but the two main ones refused to accept our offer and we have been harassed by them ever since.

    Since February 2008 we have struggled to live on our income and find we are no longer able to meet our creditor’s demands and sustain an acceptable standard of living. We now have the funds available for bankruptcy fees and this is why I am petitioning for bankruptcy today.
  • You have not added and figures to show how much your income has dropped.
  • dalip
    dalip Posts: 7,045 Forumite
    Would that statement not be good for the actual petition(not a large space) and then put dates ect into a letter when the OR asks for all the paperwork ADTC?:D .

    Thats what i did. A basic statement on the SOA then a 2 page letter giving dates and events that led to my bc.Dx

    PS looks very good to me Jay.
    Free impartial debt advice available from: National Debtline - Tel: 0808 808 4000 | The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111 | Find your local Citizens Advice Bureau
    Laugh at yourself and others laugh with you.Laugh at others and you laugh alone. BSC No 107:D
  • Yes that would be ok. I still think better to have numbers in 11.2, the examiner when reviewing the case likes to see reasons supported by numbers. Sometimes, actually often, papers atatched to the S of A are not sent on to the OR. If all the info is in the S of A the examiner may decide no interview necessary!! No guarantees but all info being in S of A makes this much more likely.
    dalip wrote: »
    Would that statement not be good for the actual petition(not a large space) and then put dates ect into a letter when the OR asks for all the paperwork ADTC?:D .

    Thats what i did. A basic statement on the SOA then a 2 page letter giving dates and events that led to my bc.Dx

    PS looks very good to me Jay.
  • dalip
    dalip Posts: 7,045 Forumite
    Yes i did think the more info the less they need to ask at the interview;) . I just found the space very small:o . Good to see how it is viewed from "the other side" so to speak.lol
    Free impartial debt advice available from: National Debtline - Tel: 0808 808 4000 | The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111 | Find your local Citizens Advice Bureau
    Laugh at yourself and others laugh with you.Laugh at others and you laugh alone. BSC No 107:D
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