Considering bankruptcy

s1h

Can anyone help with a few questions. I have no job, live at home with parents, as from next week will be claiming job seekers allowance of £60.50 a week.

I owe at least £16k all unsecured. I am starting to think that bankruptcy may be the best solution.

Been doing some reading up on it. But I dont really understand it 100%.

Can someone outline the procedure basically for me.

What do they mean when they talk about about paying into your bankruptcy? do you have to pay so much a month or something?

When they talk about dividing up your assessts what do they mean by that? I dont really have any assetts, a tv, a dvd player, a cheap laptop, some books, dvds, cds, clothes and trainers.

Would they take them away? I wouldnt of thought they would get a lot for them. I dont own a house, i own a motorbike worth about £700 but its my only transport and i would need it to get to work if i get another job.

I just dont understand the whole procedure. Is there any good websites I could have a look at, I have done the cccs remedy and bankruptcy has come out as the best option.

What are the pros and cons, i know i should really discuss this with a debt counsellor or something but its sunday and i want to find something out about it today.

maxmycardagain

you SHOULD seek proper advice fron CCCS, national debtline or the CAB.

i doubt the OR would be interested in a £700 bike that will only nett him £250 after all the fees involved in repo+sales.

your probably already on the best site for advice, by all means look around, do NOT pay any subs or fees for anything though

the procedure is quite simple, complete the forms, go to court, pay th efees, see the judge.....job done

about a week later the OR (official reciever) will go thru your statement and thats about it

the only time you have to make payments is if you have earnings giving you a disposable income (after allowable items) of +£99 pcm, if your on benefits that wont happen

automatic discharge follows at 12 months, with early discharge after a shorter time at the discretion of the OR

the OR has its own website http://www.insolvency.gov.uk/

you can register and look at the required forms online, and slowly complete them

s1h

Thanks i thought that would be the case with the possessions

So what happens with my benefits or if I start working again? Is what I earn mine? or will they take money from me each month? Is everything just written off?

What is the difference between discharged and undischarged?

fiveyearplan

Hi Max, you just ruined your new year's resolution of being sharp and to the point! Very good answer and explanation above - was the one word answers just not working for you?

fiveyearplan

While you are an undischarged bankrupt you have to report any additional earnings to the official receiver in case you go over £99 surplus - at that point you would be liable to pay back a percentage of your surplus.

Once you are a discharged bankrupt and no IPA (income payment agreement) has been put in to place - you are free to earn your fortune without paying anything back.

Nigella_2

http://www.insolvency.gov.uk/
(a) You need to complete bankruptcy forms (online & print or paper ones from Bankruptcy county court / High Court etc.)
(b) Depending on your local court you either turn up or make an appt.
(c) You will pay your Court fee (or fee remission as on benefits) and Bankruptcy Deposit (all people pay this)
(d) Clerk will check your forms and if ok you will get your Bankruptcy Order (you may see a Judge briefly)
(e) An Official receiver will contact you for a brief chat and maybe an interview by phone or in person
(f) You will have to complete some further legal forms like data protection and get them witnessed
(g) Your bank (other than Co-Op/Barclays) will probably close your account.
(h) You will have your name listed in the London Gazette / Local paper etc.
(i) If every thing straight forward you could be discharged in 6 months to a year!

Look at the web for more info like how it affects you etc.

s1h

sorry i think you answered part of my question anyway, maybe i didnt read it fully or you edited it.

What does it mean when your discharged?

maxmycardagain

s1h wrote: »

Thanks i thought that would be the case with the possessions

So what happens with my benefits or if I start working again? Is what I earn mine? or will they take money from me each month? Is everything just written off?

What is the difference between discharged and undischarged?

whilst undischarged your affairs (financial, not physical) are the concern of the OR, once discharged you can get the arnage out the garage, the sunseeker out the dry dock and the gold sovs out from under the bed.

fiveyearplan

It means your bankruptcy is over and you no longer have to report any increase in income, you can take out a loan over £500 without informing them of your BR etc.

maxmycardagain

fiveyearplan wrote: »

Hi Max, you just ruined your new year's resolution of being sharp and to the point! Very good answer and explanation above - was the one word answers just not working for you?

no........

s1h

Sorry it was answered again.

Just a couple more questions if thats ok.

Mobile phones if I have one on an existing contract does that have to be cancelled? or am i allowed to keep it.

With regards to bank accounts, my normal account is with alliance & leicester, but i have basic accounts with yorkshire & halifax. would i be able to keep one of these?