About to go bankrupt

Help_needed

I’ve been advised to go bankrupt but I have a few questions.

1. I know I can have a cash bank account once I’ve gone bankrupt, my question is do I open it before or after I have gone bankrupt?

2. I have loan with a family member of £5000 which im paying £100 per month, do I have to include this as part as my bankruptcy? Or can I continue to pay it as part of my living expenses’?

3. What happens with stuff I have on contract i.e. mobile phone, sky and internet. Will they have to be cancelled or can they be included as living expenses.

I would be grateful for any help.


Many thanks :mad:

Merlinexcalibur

Just regarding Sky ... if you are outside your 12 month initial contract period with them, then you are no longer in a contract with them. If you are, disregard but many do not realize this once the 12 months is over with. It is then month by month, leave anytime with the usual notice given by either party.

shadowdragon

Help_needed wrote: »

I’ve been advised to go bankrupt but I have a few questions.

1. I know I can have a cash bank account once I’ve gone bankrupt, my question is do I open it before or after I have gone bankrupt? Some open before some open then afterwards (i did the latter) but if there is a problem with it being frozen the OR can unfreeze it for you.

2. I have loan with a family member of £5000 which im paying £100 per month, do I have to include this as part as my bankruptcy? Or can I continue to pay it as part of my living expenses’? This is still a debt and any payment you arrange will have to come from your surplus and cannot be included in a SOA, also when you stop paying creditors you need to stop paying this too

3. What happens with stuff I have on contract i.e. mobile phone, sky and internet. Will they have to be cancelled or can they be included as living expenses. these can continue unless the contract has a bankruptcy termination section, but sky ect will have to come out of your surplus, a lot bundle the internet in with there telephone. Internet can be included if proven its needed for work/education purposes.

I would be grateful for any help.


Many thanks :mad:

Hope this helps a little

eklynne

The OR will not allow £100 per month to pay your loan to your relative, unfortunately. He will only allow you a surplus of £100 per month over and above normal living expenses.

shadowdragon

eklynne wrote: »

The OR will not allow £100 per month to pay your loan to your relative, unfortunately. He will only allow you a surplus of £100 per month over and above normal living expenses.

incorrect, you are allowed 100 before you qualify for a IPA, then its a % of anything over 100 that you pay towards an IPA on a sliding scale (theres a table knocking about on the forums somewhere).

You could technically have 10000 per month surplus, the OR wont take 9,900 of it. ( i know thats an extream example) just the highest rate 70% of it i think!

Help_needed

Thanks for your replys.

What bills do they allow under living expenses?

shadowdragon

Help_needed wrote: »

Thanks for your replys.

What bills do they allow under living expenses?

Depends what you have to be honest. do a search for SOA on the forum for some examples.

Or post up your own and people will tweak it for you.

Rent/mortgage
Utilities
council tax
dentist
haircuts
drycleaning (if you need suits ect for work)
prescriptions

stuff like that.

Think it took me three goes to get it just right.

december

house/pet insurance is also allowed, a modest amount for clothing, food

fiveyearplan

Here is an SOA calculator - once you've filled everything in click on the MSE button to format it for this forum then post it on here.

http://www.makesenseofcards.com/soacalc.html

shadowdragon

fiveyearplan wrote: »

Here is an SOA calculator - once you've filled everything in click on the MSE button to format it for this forum then post it on here.

http://www.makesenseofcards.com/soacalc.html

Hi FYP you dont have that IPA table that shows the percentages repayment over surplus do you for the OP?

Help_needed

Here is the list i have made so far.

Rent £450
Life Insurance £13
Mobile phone £55
TV licence 0
Petrol £50
Car MOT & service £17
Car tax £17
Car insurance £50
Car repairs £20
Bank insurance £8
Maintenance £238
Sky £17
Internet £35
Cigarettes £80
House keeping £195
Clothing £20
Dentist £10
Christmas £15

Birthdays £15

Total £1305
Income £ 1340

Please can you let me know whats not allowed....

Thanks :mad: