Things I must do before filing for bankruptcy

meehank

This is the problem I am struggling with - any suggestions/advice?

- Creditors refused settlement offers made via C.A.B. last summer (total debt 37k)
- Have not yet defaulted on minimum payments, but they are being paid from last remaining UK asset - 11k cash in BS account - my share from sale of marital home - and this is dwindling fast as monthly minimum payments amount to 700.-
- No longer live in the UK (moved with my 2 pre-school kids to live near my parents in Austria after divorce). Austrian debt advice people won't / can't help as debt is in the UK.
- Once cash is used up, my salary here in Austria will barely cover rent, childcare and basic living

Will the judge refuse bankruptcy as there is still some cash?
Will it be refused because it will be difficult for OR to administer the bankruptcy from the UK? (Obviously, if there is no spare cash, I can't keep flying over to London for meetings with the OR or for court hearings, although I would make sure I file the bankriptcy forms in person initially.)
Will it be refused because there are some other approaches I need to try (although the CAB advised me to file for bankruptcy after the settlement offers were all refused)?

I REALLY would appreciate some advice from the experts on this board!

postingalwaysposting

this maybe wrong/illegal - so if it is dont do it and the rest of them here will tell you. Can you not get your mum to open a bank account (or simmaler in austria) and tell her to put all the 11k in it. Then when you file for banckrupcy (spell?) you name will not be against that money, then give it a year or so and transfer the money into your name (of course you can still use the money in all this time) then when you go to court you will have no assets/money?

otherwise good luck on becoming debt free

meehank

when I fill in the forms for the bankruptcy, I have to declare any property owned and sold in the past 5 years, so the cash in the UK will definitely need to be listed in my name ... shame

Kevicho

Could you make settlement offers using the 11K and then splitting it within debts
(explain this is all the money you have and say this is the best you can offer)

Im sure lots of these companies would prefer some money rather than none

I think if you take the money abroad (the 11k) then UK banks cant touch it (again this is amateur advice so ask an expert)

To be honest id seek legal advice, either use some of the 11K to pay for it and get yourself a good lawyer or contact CCCs or payplan

Kevicho

I suppose you could just stop making payments alltogether, one of the companies will probably petition UK bankruptcy, so if you are staying in Austria it probably wont affect you

meehank

I was really surprised that the companies didn't accept the settlement offers last summer - it was closer to 20k then, but I had to keep making minimum payments and also live off something while I was looking for work here (which took 6 months), so that is why it is down to 11k. If they didn't accept it then, how can I persuade them to do so now I can offer less?

Any tips?

crystal_clear

Hi Meehank

I am no expert but do see a possible flaw in your plan.
You want the creditors to accept a full and final settlement figure on accounts that have been maintained. Why would they even consider this ( they are there to make money not throw it away).
If you want to go for F & F you would need to stop paying them even the minimum payments then you are in a stronger position to offer them this 11k and possibly even get it accepted if they think its the only way they are going to retrieve any of the debt you owe them.

Hope this helps
Crystal

mattp_3

postingalwaysposting wrote:

this maybe wrong/illegal - so if it is dont do it and the rest of them here will tell you. Can you not get your mum to open a bank account (or simmaler in austria) and tell her to put all the 11k in it. Then when you file for banckrupcy (spell?) you name will not be against that money, then give it a year or so and transfer the money into your name (of course you can still use the money in all this time) then when you go to court you will have no assets/money?

otherwise good luck on becoming debt free

Errrr afraid this is highly illegal!

You will be signing a legally binding document to say that all your assets and liabilities are included in the bankruptcy (and no selling your Ferrari to your brother for a £1 hoping to keep it out of bankruptcy - that is called a Transaction an an Undervalue and they can investigate back 10 years to see if you have made any such transactions so be careful)

im1dful

mattp wrote:

Errrr afraid this is highly illegal!

You will be signing a legally binding document to say that all your assets and liabilities are included in the bankruptcy (and no selling your Ferrari to your brother for a £1 hoping to keep it out of bankruptcy - that is called a Transaction an an Undervalue and they can investigate back 10 years to see if you have made any such transactions so be careful)

Very true. You would certainly get a BRO for that. It might have little effect on you in Austria, but such clear misconduct would be higher bracket misconduct and so probably last for more than 10 years. But you can only go back 5 years for a TAUV.

Back to your query.

Yes you can go bankrupt with that asset. I dealt with a bankrupt the other day who took over £5k with him to court. It was quickly banked.

You are able to go bankrupt while living abroad, but you have to (it is in the Insolvency Act or Rules) petition in the High Court in London (although county courts may do it although they are not meant to). You would have to have to speak to someone at the OR's office in London and I would expect that they would ask you to attend the office (Bloomsbury Street, about 15 minutes walk from the court) for an interview.

I would also think that you should ask, while at court, for permission to leave jurisdiction, as you are not meant to leave the country (especially as you won't be coming back). Not exactly sure what you have to do.

Of course you have a duty to cooperate with the OR and so if he requires you to attend, you have to. But you may be able to provide the information by letter or email.

meehank

sorry to ask, BRO? TAUV?

TheDebtCollector

Offer the settlement figures by mail and make it perfectly CLEAR that you live in AUSTRIA and these will only be the amount you can offer or bankruptcy will be declared with no assets......just say it, they will accept