What happens at an Offical Receivers interview?

Elleyce

Hello
I am a new to this site, and have found the advice given on bankruptcy helpful to my own plight.

I am currently off work sick with a mental illness/ Bi polar disorder, on half pay. I am not a sure if I will be returning to the job, as the nature of it has added to my condition. I am in debt of approx 28K, partly caused through my condition. Anyway I am under a specialist Psychatrist at present and am awaiting CBT therapy.

I have taken advice from National Debt line and informed my creditors of my situation and informed them how much I can pay at present, which is £9.42 each (they not that happy with this!).

I am contemplating Personal Bankruptcy because the worry of the debts and the negotiations are impeding my recovery. I would be glad to have a fresh start, even if it meant I would have a bad credit for a few years.

From previous threads I understand the process of going to court, but I am concerned about the Offical Receiver interview. I have visions of this superior person wagging their finger at me and tutting away, saying "what have you been spending all your money on, you silly idiot?" and having to give excuses for my situation.
If any one can give me an idea what happens this would help with my decision.

Thank you

Wonder_Girl

It isn’t the Official Receivers job to find out what you spent your money or why you are in debt, that’s the Judges job. All the official receiver will do is go through your budget with you, take a list of all your creditors, discuss your assets and he or she will then deal with your creditors on your behalf from then on. The appointment generally takes about an hour and is normally done over the phone.

Pobby

Elleyce, wonder-girl is spot on.I have mentioned before a friend being made bankrupt.He was amazed at how painless it is.Nothing to worry about with either the judge or the OR.Best of luck.

Eager_Elephant

Can I just clarify it is the judges job to read your forms, ask a few questions and then possibly clarify a few points about whether you understand the restrictions and then he makes you bankrupt.

The OR is there to check the income/expenditure and set an amount for a IPA (income payment arrangement - if there is one), he will ask questions about the debt and also run thorugh a time line of how the debt built up. He will question you about assets.

When the interview is finished he will decide whether it is necessary to query any of the debts by doing things such as asking for statements or whatever.

Please be aware that it is not always by phone, in my area you are judged bankrupt then you go straight to the OR's office to be interviewed by one of his assistants and afterwards they say that if any questions need answering they will get back to you.

Best ring the court in your local area to check the procedure.

I have been in a number of bankruptcies and they are very nice, not that intrusive and generally helpful. They are slightly intrusive but then that is their job - they have to make sure that you are not defrauding anyone or hiding money.

So far I have found them to be nicer to people who are ill and on benefits.

If you are worried you can take a friend but they must not speak during the interview or if it is by phone you will be given a time and date so maybe you could arrange for a friend to pop round just after.

EE

jellycat40

Hi there, sorry you are poorly. I was made bankrupt in May this year and I have to say that I did not see the judge and my meetings with the OR were fine.

You don't actually see the OR but a clerk. They see you or speak to you on the day and advise you what it means to be bankrupt. Then you have another appointment which takes about 1 hour. Maybe on the phone with a low amount like yours. They just ask the same questions about each debt. When you took it out, why you took it out and what you spent the money on. They read from a script. You can stop for breaks if you need to.

The bankruptcy will last probably about 6 months for a low amount providing you can supply statements etc to show where the money went. Providing you have not gambled, drunk or fraudulently used the money then no problem. It will be a year probably if you can't provide the statements. Then it stays on your record for 6 years but you can have the words discharged added to your credit record when you have been.

Good luck. One more point if you are going bankrupt stop paying your creditors there is no point. I didn't make a payment for 9 months before my bankruptcy.

Louise

Mike_St_Helens

Can I ask a question as there seem to be a few people in the know here. I have a hopse that is worth around £78k, mortgage around £75k. If i were made bankrupt (some may know my issues already here...), can I keep my home, i so what are the rukes etc etc....

Elleyce, sorry about your woes, but you have your head truley screwd on and can only look to the future now... with good health and no stress !.. Well done.

Mike

Eager_Elephant

Hi Mike,

Can I just ask now much debt you have and whether the mortgage is joint with anyone?

Also do you have any secured loans?

Thanks

EE

In_Search_Of_Me

Elleyce...just wanted to send a hug & to say well done for recognising things that you can do to help your own situation and are doing things to help. Good luck with the CBT...was thinking of getting some to help me sort my weight "issues". Let mw know how you get on!! Good luck & big hug...hope you sort out the bankrupcy issue - cant advise here I am affraid but know lots of people will be able to!

Mike_St_Helens

Eager_Elephant wrote:

Hi Mike,

Can I just ask now much debt you have and whether the mortgage is joint with anyone?

Also do you have any secured loans?

Hi there, No secured loans, mort is joint and between us we have about £80k in unsecured debt (bad business adventure !). We would both go 'bust' if we decide.

Thanks for reading.

Eager_Elephant

Hi Mike,

Sorry about the delay in getting back, I am trying to cook tea, tidy the house and...... you get my drift.

So the house is worth £78k with a mortgage of £75k - who told you it was worth that amount - have you had it valued?

Lets use them figures so you have £3k equity between you, so £1500 each - what they would do normally is ask that someone buys your share out so your girlfriend/partner could buy your half of the equity for an amount set by the OR or Trustee which would be used in your bankruptcy.

To be honest you haven't much equity at all.

Try this website:

http://www.kronos.moonfruit.com/

Go to the section about bankruptcies and what happens next and it explains about beneficial interest.

I have a slight connection with this website in that the guy who runs it is a regular poster on another forum I use and is like a God to us all.

HTH

EE

jellycat40

Generally the OR will want all your asetts. So your house would def be one. If you don't have to sell it now then he may appoint a trustee who will want to share out the equity when you do sell it. That could be one, ten, twenty onwards years. It is called a trustee in perpetuity.

Louise