Can a judge deny you bankruptcy?

Hi, I have a friend who is in an IVA at the moment but was borderline bankruptcy recently. She got herself into a bit of a mess by always buying the best of everything, flat screen tv, fancy car, ipods, computers etc, buying a house with a 100% interest only mortage because she was desperate to get on the housing market & overpaid for her house because when she is down she doesn't think & just spends etc. She earns a very good wage (£38k) but her problem is she doesn't know how to cut back.

She has been having a bit of bad spell lately financially. Her IVA has just started but she has had a few unexpected expenses, having to pay back the difference on her car, washing machine broke down & flooded her flat, 2 of her car tyres got a puncture. Talk about bad luck following you around!

I was reading elsewhere that a judge can deny you bankruptcy if they deem you to have got yourself into the mess by spending recklessly. She is hoping for bankruptcy because she really thinks she can't cope and wants to start with a clean slate.

Has anyone ever known anyone to have been denied bankruptcy?

Comments

  • Broken_hearted
    Broken_hearted Posts: 9,553 Forumite
    Yes they can but i've never know it happen.
    Barclaycard 3800

    Nothing to do but hibernate till spring






  • Pigeongirl
    Pigeongirl Posts: 617 Forumite
    Part of the Furniture Combo Breaker
    I knew a man who was denied bankruptcy (by his own petition) because he had assets that the judge said he could cash in and pay off a large chunk of the debts.

    As for being denied because of frivolous spending - in my experience judges don't even bother reading half the stuff you write in your statement of affairs so I wouldn't worry.
    Official DFW Nerd Club - Member No.11.

    "When the storm is raging round you, stay right where you are."
    Queen, 'Don't try so hard'
  • athina_2
    athina_2 Posts: 79 Forumite
    Thanks, that will make her feel so much better :)
  • snake666
    snake666 Posts: 361 Forumite
    read about my time in court looking at the posts i made here may be of some help
    snake
  • jesster_2
    jesster_2 Posts: 393 Forumite
    They can deny you bankruptcy, but my understanding is that that's usually because they reckon you could sort things via either an IVA or an administration order. The latter usually only applies to people with fairly small (but still unmanageable) debts, max around £5,000. And if you've already tried an IVA and failed I suppose it's even less likely that the judge would rule an IVA more appropriate.

    Dec 2005 £8,500

    April 2007 £0

    Paid Off Since Lightbulb Moment £8,500

    Debt Free Date: APRIL 16 2007

    :j :j :j :j :j :j :j :j
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