Some questions about bankruptcy

Honest_Doc

Hey guys, first of all thank you and great job on what has got to be one of the most supportive and helpful forums on the web.

I'm 99% sure I'll be filing for bankruptcy shortly with debts of just over 25k. I just have a few questions that I haven't been able to find answers for anywhere, but if there is a faq somewhere with them in then please just link me and forgive my bothering you on here.

The first one is what is the actual process at court? I know you turn up, check your paperwork, sign it, but then are you called for or what? and what happens in the actual court, like what kind of questions (if any) are asked of you?

I have been living with my parents for the last couple of years but didn't start paying rent until I got a new job a couple of months ago. Can I still pay them rent once made bankrupt or will the OR not count them as a proper landlord due to them being family?

How far back will they want to see on my statements? I can print out the last three years from my online account but I have nothing beyond that.

Purchases in 2005 include about £1200 of IT equipment and a £300 tv, which have long been sold to pay to eat, will the OR send people round to my house to look for them?

What's the dress code at court?

Can the court actually turn down your application for bankruptcy? And if so why would it do that?

Thanks in advance. Very much.

tigerfeet2006

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Honest_Doc wrote: »

Hey guys, first of all thank you and great job on what has got to be one of the most supportive and helpful forums on the web.

I'm 99% sure I'll be filing for bankruptcy shortly with debts of just over 25k. I just have a few questions that I haven't been able to find answers for anywhere, but if there is a faq somewhere with them in then please just link me and forgive my bothering you on here.

The first one is what is the actual process at court? I know you turn up, check your paperwork, sign it, but then are you called for or what? and what happens in the actual court, like what kind of questions (if any) are asked of you? After you see the clerk, who checks your paperwork, you swear an oath that it is tru and pay your money. The clerk will take the paperwork to the judge who will either stamp it without seeing you or will ask to see you, he will generally want to know what advice you have taken and if you understand what you are doing. once the paperwork is stamped the clerk will draw up your bankruptcy order and then you will either go home and wait for a quick call with the OR or you may have a chat with the OR at the court by phone. The OR will then send you a pack with a full phone interview date and a list of statements he wants.

I have been living with my parents for the last couple of years but didn't start paying rent until I got a new job a couple of months ago. Can I still pay them rent once made bankrupt or will the OR not count them as a proper landlord due to them being family? Yes you will still beable to make a contribution to the household. Put up your SoA before you submit it for checking. http://www.makesenseofcards.co.uk/soacalc.html

How far back will they want to see on my statements? I can print out the last three years from my online account but I have nothing beyond that. They usually ask for 12-24 months unless they feel they need to look back more. Anything you don't have they can get.

Purchases in 2005 include about £1200 of IT equipment and a £300 tv, which have long been sold to pay to eat, will the OR send people round to my house to look for them? No one will come to your house. And stuff bought 4 years ago is of no interest. You only have to list valueble assetts worth over £1k.

What's the dress code at court? Whatever you are comfortable in. Smart casual is the norm.

Can the court actually turn down your application for bankruptcy? And if so why would it do that? The 2 biggies are if you haven't taken advice from a debt charity and don't understand the implications or you are not insolvent. If you have taken advice then you won't be refused.

Thanks in advance. Very much.

Hi and welcome to the board. Hope that helps you a bit.

Honest_Doc

Nice one! Thank you for taking the time to reply, you've answered my questions completely.

One other thing - How harsh are they with the SoA? I get paid minimum wage so there isn't that much to begin with, but I'm concerned they'll think I overspend a lot on food. Being diabetic means I have to have a fully balanced diet, which means expensive things like red meat, granary bread and a ton of fruit and veg, so I don't have a lot of choice. Obviously it's not like I'm having lavish steak dinners, but it's not exactly the pauper stereotype of beans on toast every night either.

Will they have a set amount of outgoings they will try and knock me down to, or is it a case of they trust that I will be honest in what I can spare at the end of the month?

tigerfeet2006

Ther are some trigger figures but a lot of it is dependant on individual circumstances. For example the OR will allow a single person in general £200 a month for groceries but if you can prove that you need more ie a Dr's letter some are understanding and will agree to that.

If you use the link I posted and pop up your SoA someone will check that it is reasonable. Obviously we can only go by what we see is generally accepted and there will be some OR's who have their own little foibles.

what_happens_now?

Hi

I get paid JUST above minimum wage and after doing my SOA i still find that i am able to save £150-£200 a month.

I pay £77 a month as part of my agreement.

When i originally filled in my SOA i didn't put very much down for groceries as i wasn't sure what the going rate was, then i received a call from my OR saying that i should change it and add more on for my groceries otherwise i would have to pay more every month.

So far i have found that as long as you can justify costs of items to the OR then they are very understanding.

Honest_Doc

Thanks a lot guys. I have my court fees now so I'll be ringing tomorrow to sort out a date. I'll be back to say how it went.

Cheers everyone!

tigerfeet2006

Don't forget if you need help with the forms then there is usually someone who can help with that and if you want someone to check your SoA then they will, either post it up here or PM someone with it if you don't want to put it on the forum.

http://www.makesenseofcards.co.uk/soacalc.html