Petition for Bankruptcy - Have read lots but still have questions

Simon7685

Hi Everybody

I have been advised by one of my creditors that they intend to petition for my bankruptcy.

This could actually be a blessing in disguise for me, I have multiple debts, which due to my circumstances I will not be able to pay off added to that a CCJ and terrible credit file and a fresh start would be better for me. I should also add that I have been advised to consider doing it myself by my solicitor but couldn't afford the cost.

I have searched the internet and read up on threads on here and elsewhere but still can't find answers to all my questions, so hoped that some of the more knowledgeable on here could help.

I am disabled and totaly reliant on my Income Support, DLA, Child Tax Credit and Child Benefit to support my familyand myself.

I live in privately rented property and get full housing benefit and Council Tax benefit.

I have debts amounting to approximately £15k

I know my home is obviously not at risk but what about the things in it? We don't have anything flash or valuable.

Does someone actually come and go round your home tottting up what things are worth and can they take my daughters laptop or toys?

Also I have an 8 year old car which is used for going to the supermarket, the doctors, hospital and other things I have to do. Will they take that from me?

If they are going to take my car is it worth selling it now before anything has even started, or transfer it to another family member?

These are the main issues that I am worried about and just can't seem to find any answers for, so any help would be appreciated.

Thanks in advance
Simon

t0mm

Hi Simon, I should be able to answer a few of your questions for you, others will hopefully chip in where i'm not sure.

Nobody will come around to your house to look around at stuff they can take. Your daughters possessions should also be safe, as they do not belong to you - your daughter is not the one that would be going bankrupt - so the Official Receiver (who will deal with your case after you are made bankrupt) will have no right to take away her possessions.

There are certain assets that are excluded from being taken away from you during bankruptcy. Generally, these include assets that you cannot live without, such as clothes and household appliances etc. Your car is a slightly different matter however.

From reading about your situation, I would imagine that your car would be unlikely to be taken away from you. As with all of your major assets, you are legally obliged to declare it on your bankruptcy forms, however this does not mean that it will be taken from you. It is your responsibility to demonstrate to the OR that you would be unable to live without the car - i.e. taxis/buses would be too expensive, or they do not run to the places you need to go to, or your disability prevents you from using public transport. From your description, it doesn't sound as if your car is worth a huge amount, however the OR may decide to sell that car and give you a smaller allowance from the proceeds to buy another car in order for you to get around.

Remember, even though nobody will come out to visit your home, you are legally obliged to declare any major purchases or assets etc on your forms - not doing so could result in a BRO if the OR finds out. The same goes for any major assets that you have recently sold - these must also be declared. There is a list of items that are excluded from being taken from you in bankruptcy, you should be able to find it on the insolvency service website: http://www.insolvency.gov.uk/

As an aside, you should be able to get help paying court fees as you are on benefits.

Hope this helps a little

Simon7685

Hi T0mm

Thank you very much for your help, I do appreciate it as these are the things that have worried me more than anything else. We don't have any major purchases in our home, not since I had to give up working in 2005 and anything we did have of value has been sold over the last 4 years. My car is only worth around £850 according to Parkers price guide, so I guess wouldn't be the end of the world if it got taken.

Thanks again for your help

Simon7685

Another question I am unsure of the answer to;

If this all goes ahead do I include details of Council Tax debt? I have £3.60 a week taken from my Income Support for it, can it be included and written off with the other debts? Also the £390 I owe my electricity supplier?

Thanks

tigerfeet2006

Yes they can be included in your BR.

Are you absolutly positive that this creditor will petition for your BR? Although it is not unheard of, it extremely rare that they do as it cost them about £1200 to do so.

What was the wording on the letter you have recieved?

If you do decide to beat them to it then you would get a remission on the court fee of £150 and just pay the OR fee of £345.

Have a good read of the Bankruptcy Help sticky especially the first post.

Welcome to the board and ask any thing you need.

Simon7685

Hi Tigerfeet

Thanks for your help.

The creditor in question is taking me through the county court for £995 for private parking tickets that I have refused to pay. I was very surprised that they would incur the expense of bankruptcy to get nothing back but it is about the bigger picture for them. Due to the nature of the debt, I believe the creditor would use my bankruptcy as a tool to try and make others pay their obscene charges. The wording they have used to me is;

We petition for your bankruptcy (you indicate this may be a possible option you yourself need to

consider). Our debt would then be treated equally with those from all your other creditors.

As I say should they win their case, I believe after obtaining the CCJ, they will follow it through to show people how far they are prepared to go. It may cost them money to do so but if the example could be used by them to 'frighten' other people (of which there are many) into just paying their extortionate charges then it would be a cost effective exercise in the long term for them.

At the end of the day, it would do me a favour and allow me to make a new start, which I would like to be able to do, I would have done it myself if I had the £345 to pay to the court.

It would just be a big relief if they do what they say and I can get rid of everything and not have the worry of the knocks on the door, the letters through the post or anything else. A debt free life with a clean slate and new start is where I want to be.

Sorry to go on a bit!