advice re tax and bankruptcy

paul10mm

Hi all
some advice please!
We are due to go bankrupt on the 13th of feb with joint debts over £125,000.00 all in unsecured credit My question is i have read/heard that my tax and national insurance will be used to pay creditors is this right? if so how does it work?
second question we understand that we will have to see offical reciver Does that have to be on our own My wife had no idea how bad are debts were and is really really scared about the interview dont know how she is going to handle it shes a very shy quiet person and is streesing a lot Any advice or comments welcome!!
Regards paul

pug_in_a_bed

Hi Paul

First of all, don't be scared.
This is going to change your life, and if you're anything like me it'll be the biggest lesson life ever gives you!

The tax thing happens automatically through your wage slips, in fact there is a discussion about this here.
That should explain a bit.

On the day you declare b'ruptcy, at court, its basically a waiting game while the clerks see to everything.
You will have to hand over your payment and your forms and eveything - make sure you photocopy EVERYTHING before hand, just in case you need it again.

On the day, I didn't even have to see the judge. Not everyone does. I sat outside while the clerk went in, and about 20 minutes later, he came out and that was that. I then was connected to the official receiver by phone, who just checked some details and made an appointment for the interview two weeks later. Don't think it is ever normally on the day.

If you do have to see the judge, he/she will ask you some questions and if you understand the gravity of the decision and so on.

My interview with the OR was also by phone - I beleive it all depends on how straight forward your case is. I don't think you'll know until the actual day what form your interview will take.

I think as you're declaring jointly, you will be seen/interviewed together - this might mean it's not done over the phone for you.

Remember, the OR has seen all this before. He/she is just doing their job, They are not going to judge you, and they know how scared you will be.
In fact, I found it more scary over the phone because every time i answered a question, he had to write down the answer and there were these awful pregannt pauses lol!

The interview will be fine.
Tell the truth, tell your wife to tell the truth.
The OR will be basically going through the forms with you and checking all the details, and asking questions about your situation. They'll also be determining if you have enough income to make any payments. You will probably know this yourself already from making your statement of affairs - if you have anything left after your expenses, then the OR will make a payment order for the duration of the bankruptcy.

Honest, it will be fine. It's going to change your life.

There's a few of us on here who have been through it so sure someone will be along soon with some more advice.

Best wishes,

Pug

EDIT: if i've got 'owt wrong then sure someone such as Addicted to choc. will make corrections, this is basically form my personal experience:)

smokey112

Hi Paul

I replied to your earlier PM

As I mentioned before it is the best thing for you to do - I know it was for us - the relief is so immense.

The interview with the OR is fine - ours is very good and due to a complication in our case we are still in contact with him (due to OH ex home) - generally you will only have the one interview.

Take care and PM me anytime

Ang
x

Addicted2Chocolate

see my reply on the otehr thread. dont worry it is a straightforward process. The appointment letter you received within about 5 days of the bankruptcy order wil tell you if it is a telephone or face to face interview. if telephone your and wifes appointment wil usually be by the same examiner on after the other.

krisskross

Hi Paul in addition to other advice which is sound, you may not have to make a monthly contribution at all. It all depends if you have any available income left once all your priority monthly payments have been made. In Birmingham if you have less than £70 per month then no payments will be necessary. Don't forget there are 2 of you going bankrupt so any available income needs to be divided between you.you also did'nt say if you own your own car or if you have a car on HP,if you own your car and it's worth a few grand then you might have to sell it. Each court is different so can not be definite,if it is subject to a HP agreement then there may be something in the smallprint, you will need to check this out as the Or will inform the HP company of your bankruptcy and they can bring the agreement to an end,hopefully none of that applies and in 12 months it will be all over and you can start afresh.All my clients tell me it's the best thing they could have done.best of luck.ps don't scrimp on the figure for housekeeping