Debtor application pack 1

mushally

Hi. Myself and my partner who are not married but have lived as a couple for 7 years, are waiting for a creditor to make us bankrupt. A credit card is in her name, a credit card is in my name and a bank loan is in both our names. Do we have to fill the debtor application pack 1 in just my name or is it a seperate application for each of us?

Thanks in advance...

crowman19

I'm not too sure but I think it depends which creditor is making you bankrupt. If it is the joint loan then you will both be included. If it is one of the credit cards then only the person who's credit card it is will be bankrupt. Be aware though if this is the case the joint loan will then be liable to the non-bankruptee.

tigerfeet2006

Are you in Scotland?

Who are you hoping to make you BR and how much for?

mushally

tigerfeet2006 wrote: »

Are you in Scotland?

Who are you hoping to make you BR and how much for?

I am in Scotland. Natwest Visa £1073 (me), RBS Visa £8690 (partner), RBS Loan £8228 and RBS Overdraft £4209 (both). Advice from Carrington & Dean in Glasgow is to wait for creditors to move for bankruptcy and then apply for LILA.

tigerfeet2006

They are quite correct then (different rules in the UK was why I asked.)

You may have to wait a while for them to do this, so expect lots of hassle. If you need any help with letters to keep them at bay, some one will be able to help.

coolcait

mushally wrote: »

I am in Scotland. Natwest Visa £1073 (me), RBS Visa £8690 (partner), RBS Loan £8228 and RBS Overdraft £4209 (both). Advice from Carrington & Dean in Glasgow is to wait for creditors to move for bankruptcy and then apply for LILA.

Hiya mushally

Can I just say that that advice doesn't make a lot of sense to me .

If you and your partner meet the LILA criteria, you can apply for your bankruptcy without waiting for your creditors to do anything. If you don't meet the LILA criteria, then you will have to wait for a creditor to take action first.

When you get to the point of making the application, you would have to fill in a Debtor Application each.

Did Carrington Dean go over the LILA criteria with you? If not, you can find info on the Accountant in Bankruptcy website www.aib.gov.uk. Or feel free to ask, and I'll try to dig it for you (I think they've just increased the minimum wage by a few pence, so that wil have changed for LILA too!).

HTH

mushally

coolcait wrote: »

Hiya mushally

Can I just say that that advice doesn't make a lot of sense to me .

If you and your partner meet the LILA criteria, you can apply for your bankruptcy without waiting for your creditors to do anything. If you don't meet the LILA criteria, then you will have to wait for a creditor to take action first.

When you get to the point of making the application, you would have to fill in a Debtor Application each.

Did Carrington Dean go over the LILA criteria with you? If not, you can find info on the Accountant in Bankruptcy website. Or feel free to ask, and I'll try to dig it for you (I think they've just increased the minimum wage by a few pence, so that wil have changed for LILA too!).

HTH

Hi coolcait. Yes they went over the LILA criteria. From our conversation I took it that it was better for creditor to make the first move but I did think there was nothing to stop us sending of the applications. I'm a little confused again...

coolcait

Hiya again mushally!

Well, one advantage of waiting for a creditor to make you bankrupt would be that you don't have to pay the fee. One disadvantage of doing it that way is that you lose the bit of 'control' you have over the process - on timing and choice of Trustee for example (though,for LILA cases, the Accountant in Bankruptcy will always be trustee).

Here's some info on LILA from the AiB website http://www.aib.gov.uk/MainNav/Services/Legislation/accesstobankruptcy/Debtorsapplication/Lila

(Although the maximum allowable income per week has gone up to £232.00 - http://www.aib.gov.uk/News/releases/2009/10/14131251).

If you meet the LILA criteria, then you can apply for bankruptcy yourself, and you don't need to wait for a creditor to do anything. The form is fairly straightforward to fill in - but your local CAB can probably give you a hand if you need it. They can also double check that you meet the LILA criteria, if you have any doubts about it.

Unfortunately, if you don't fit LILA, then you will have to wait for a creditor to serve you with a Charge for Payment or Statutory Demand . Once the time for payment has expired (after 14 days for a Charge for Payment, after 21 days for a Statutory Demand) then that would show that you're 'apparently insolvent', and you can apply for your own bankruptcy.

HTH

mushally

Thanks to everyone for your replies...Cheers