Full & final offers, on the brink of bankruptcy

worried_jim

after 12 months the bankruptcy would be satisfied but if he just carried on it would effect him/her for 6 years. why torture yourself for 6 years when the whole thing can be done and dusted in 1 year.

seh567

Thankyou all for the advice but it looks to me that there is no clear answer.

As far as going down the CCA route I believe them to all be enforceable, 2 x loans (I have the agreements) 2 credit cards (both have been CCA's and look to be ok) 1 overdraft which I cannot dispute.

I am now tired of trying to pay off these debts by doing the right thing, although I would have stayed on the DMP if I had kept my job it was not ideal as a couple of creditors would not stop charges & interest and the allocated payments did not cover these charges so those debts would have increased.

Since I am now unemployed and god knows when I will get another one I thought it best to go down the BR route to get it over with and get back on track with my life.

These debts (although small in some eyes) have caused me nothing but worry & fret and I am tired of all the hassle, phonecalls, text messages and trying to do the right thing. I realise BR will stay on my credit file for 6 years but that no big deal because I don't ever want to borrow money ever again

fatbelly

As always, seh, the decision is yours...

Bankruptcy would work from what you say but you have a couple of issues.

The car would need to be accounted for but the OR would give you the opportunity to buy it back and your parents might help with that.

You have £1400 in the bank but will need £360 for the OR fee and it's perfectly OK to have next month's rent in your account ready to pay it. You might have to pay the rent for the next month anyway before the HB kicks in. Your aim should be to go bankrupt when the account is in credit but not by very much, so that you have a fighting chance of keeping the account open.

You will need to complete the bankruptcy forms and book an apointment at your nearest bankruptcy court so that's going to take a few weeks. You will also need to complete an EX160 to get off the court fee and they will want evidence of your JSA dated within one month of presenting the petition. So that JSA award notice is going to be useful for a month.

You're clearly insolvent and don't qualify for a DRO.

Regards

seh567

Hi fatbelly

I realise I have to get the account balance down so am thinking maybe bankruptcy in early January. I applied for benefits on 2nd November but nothing has kicked in yet so I am living on the current credit balance.

I have already requested forms from Reading Magistrates court and they tell me when forms are ready and I have the money I can telephone them for an appointment, they tell me there is no waiting list so could be done within a week.

Your right, even if I did manage a settlement with 1 x creditor (bring debt down to £15k) I don't qualify for a DRO because I have a small pension policy which sends me over the £300 asset limit.

My main worry is my car worth by Parkers Guide - poor £1300 but bodywork and interior in bad condition (although the engine is ok and reliable) due to being used when working as ceiling fixer on building site. I really need to keep it for when I get work because I won't be able to afford another one even at low value. My parents have already offered to buy it back from OR if this is a possibility. However does anyone know if it would be at the full cost of £1300 what the OR would sell it for after costs?

hart_2

The Bankruptcy will be recorded on your credit file for six years from the day on which the court made the Bankruptcy Order.

None of your creditors are going to make you bankrupt as it will cost them £1500 just for starters! Also the debt has to be over £750.

Even if you want to make yourself Bankrupt it will cost at least £500, can't see the point when you could easily settle all these debts for a nominal amount £1600 - 2000 max and negotiate full & final settlements with all the defaults removed and any onerous data. Even if I had to borrow a bit from family I know which route I would go down.

Only someone like the Inland Revenue or Customs & Excise are likely to make you Bankrupt, very unlikley any banks or credit card co's would unless you owed 100's of thousands and would seem to be hiding some assets on the side.

property.advert

I would hold the BR and try to negotiate a settlement. Even 30% on 16k is £5k and less than the £7k you are considering throwing into a black hole. You will still owe your parents and you need to get that amount down.

Somehow you have to get them to understand that the options are a little or zero and you. I guess you'll have to raise your offer or 3 times and you have to factor that into the equation. Can you sell your car to your dad (but still retain the use of it) and then offer £2000 from the sale of the only asset you have ?

hart_2

If you live in rented accommodation then your landlord will be informed of your Bankruptcy.
You should check your tenancy agreement and seek legal advice to find out how your tenancy might be affected by Bankruptcy.

Could be very important to check as your Landlord could terminate the tenancy agreement?

property.advert

hart wrote: »

If you live in rented accommodation then your landlord will be informed of your Bankruptcy.
You should check your tenancy agreement and seek legal advice to find out how your tenancy might be affected by Bankruptcy.

Could be very important to check as your Landlord could terminate the tenancy agreement?

Would you care to enlighten me just why the landlord would be informed of a tenant's bankruptcy ?

fatbelly

seh567 wrote: »

I have already requested forms from Reading Magistrates court and they tell me when forms are ready and I have the money I can telephone them for an appointment, they tell me there is no waiting list so could be done within a week.

Usually a county court?

seh567 wrote: »

Your right, even if I did manage a settlement with 1 x creditor (bring debt down to £15k) I don't qualify for a DRO because I have a small pension policy which sends me over the £300 asset limit.

That would get you into trouble as it would count as a 'preference'. The car also sends you over the (1k) limit for a DRO.

seh567 wrote: »

My main worry is my car worth by Parkers Guide - poor £1300 but bodywork and interior in bad condition (although the engine is ok and reliable) due to being used when working as ceiling fixer on building site. I really need to keep it for when I get work because I won't be able to afford another one even at low value. My parents have already offered to buy it back from OR if this is a possibility. However does anyone know if it would be at the full cost of £1300 what the OR would sell it for after costs?

I think you should hop over to the bankruptcy board where you will get accurate advice form those who understand your position.

hart_2

The debtor must allow all his financial affairs to be scrutinised, and can face crinimal charges if irregularities are found. Any Landlord would be automatically be informed of the situation.

Also, some tenancy agreements contain a clause stating that an undischarged bankrupt cannot be a tenant.

being declared bankrupt is not good if you are considering any of the following:-

<LI class=mvd-P>

1. The Effect on Your Employment or Business
2. There are certain jobs you cannot have if you are an undischarged bankrupt: Company Director (or concerned directly or indirectly in the management of a company), MP, Councillor, Magistrate or Estate Agent. A bankrupt usually can't be a school or college governor and there are restrictions under charity law as to the role a bankrupt can serve on management committees.
3. Security firms may not wish to employ an undicharged bankrupt, particularly where money is involved. And the same applies to the civil service. The rules for professions such as solicitors and accountants make it virtually impossible for people who've been bankrupted to work in these professions.
4. For a sole trader the effects can be even greater. Whilst bankruptcy does not necessarily mean the busines will close, continuing to trade will be made more difficult:
5. If the business needs credit, the requirement for the debtor to disclose that he is an undischarged bankrupt will make suppliers unlikely to provide credit;
   

<LI class=mvd-P>

The bankruptcy order will be advertisied locally, which could damage the reputation of the business in addition to that of its proprietor;
<LI class=mvd-P>The debtor cannot trade under a name other than the one under which he was made bankrupt;
[*]If items of business equipment are used by the debtor's employees rather than the debtor personally, exemption from sale cannot be claimed and the trustee may order them sold. This also includes stock in trade which the trustee can sell on behalf of the bankrupt's estate.