Bankruptcy Advice

Carrie1980

Hi all

I have been doing some research into petitioning for bankruptcy, but I am unclear about a few details, I would appreciate if someone might be able to help in answering a few questions:

1) I live with my parents – how will my bankruptcy affect their credit history?

2) I do not have any assets – will the OR have right to my parents assets?

3) How are the payments you make for 3 years calculated? If I get a better paid / second job, are these payments increased? What if I lose my job?

4) Are discharged bankrupts ever likely to get a mortgage in the future?

5) I have read that the OR will want to know exactly what you spent the money on and to have all your paperwork – well I couldn’t tell you what I spent it on really – as my Dad said to me ‘I basically p*ssed it up the wall.’ And also, don’t have every single credit card bill / statement etc. How will that affect me?

Many thanks in advance

lazy&indebt

I see this is your first post - are you absolutely sure bankruptcy is the way to go? Have you looked at every other option?
Also (blonde Moment) Can someone please tell me what OR stands for?!

i_am_really_rich!!

I think 'OR' stands for official receiver.

Carrie1980

Not definietly going down that route but just wanted to look into all the facts - and also try and inform my parents about what it involved if it did happen. But its not looking good to be honest really and can't really see another way!

lazy&indebt

There is always a way
If you want to 9it's up to you) if you let us all know your state of affairs - income vs expenditure, how much you owe and to whom and the APRs...we may be able to help you

Macduff_3

Carrie1980 wrote:

Hi all

I have been doing some research into petitioning for bankruptcy, but I am unclear about a few details, I would appreciate if someone might be able to help in answering a few questions:

1) I live with my parents – how will my bankruptcy affect their credit history?

2) I do not have any assets – will the OR have right to my parents assets?

3) How are the payments you make for 3 years calculated? If I get a better paid / second job, are these payments increased? What if I lose my job?

4) Are discharged bankrupts ever likely to get a mortgage in the future?

5) I have read that the OR will want to know exactly what you spent the money on and to have all your paperwork – well I couldn’t tell you what I spent it on really – as my Dad said to me ‘I basically p*ssed it up the wall.’ And also, don’t have every single credit card bill / statement etc. How will that affect me?

Many thanks in advance

1. Your bankruptcy will not affect them at all - credit searches are done on the indidvidual not the address. As long as they have not applied jointly for credit with you they are safe.

2. No.

3. The payments for 2/3 years are calcualted as a percentage of your budget surplus after essential payments are made. They are flexible depending on your situation but they will be monitored closely.

4. It will be very difficult until the bankruptcy is removed from your credit file 6 years after it is granted.

5. The Bankruptcy petition asks for details of what loans were for but they do not expect you to be able to detail every purchase. They will discuss with you your spending habits but do not tend to penalise for being young and daft!

Hope this helps. Let us see your SOA though as you will probably find that you don't need to look at bankruptcy at all.

bluezone

Carrie1980 wrote:

Hi all

I have been doing some research into petitioning for bankruptcy, but I am unclear about a few details, I would appreciate if someone might be able to help in answering a few questions:

1) I live with my parents – how will my bankruptcy affect their credit history?

2) I do not have any assets – will the OR have right to my parents assets?

3) How are the payments you make for 3 years calculated? If I get a better paid / second job, are these payments increased? What if I lose my job?

4) Are discharged bankrupts ever likely to get a mortgage in the future?

5) I have read that the OR will want to know exactly what you spent the money on and to have all your paperwork – well I couldn’t tell you what I spent it on really – as my Dad said to me ‘I basically p*ssed it up the wall.’ And also, don’t have every single credit card bill / statement etc. How will that affect me?

Many thanks in advance

Hi there - here is my tuppence worth!

1) Only if they have joint credit with you
2) Not a chance
3) From what they told me the payments are calculated from your income whilst your bankrupt (12 months), if you were to geta pay rise after you have been discharged, the payments asked for will stay the same.
4) You can get a mortgage after you have been discharged but as with most things you have a high interest rate for a while and will be restricted of who you can get one with. You would be better of renting for up to 5 years and then trying to get a mortgage.
5) You can order old statements for credit cards and bank accounts in preperation for this.

I hope that helps,

Bluezone x

P.S. Just to add - you should look at all the other options before going for bankruptcy.

Carrie1980

Thanks!

I only bring in on average £700 a month - I live at home and pay £100 a month so that takes care of all the utilities and things like that - others below:

Petrol £60
Insurance £30
Eyes £15
Phone £40


I couldn't tell you the exact amounts I owe and the APRs yet because I have requested settlements figures etc, but my monthly payments are as follows:

HSBC loan £297
Cahoot loan £123
A&L CC balance £625 - min payment £25
Cap One CC balance £1000 - min payment £50
Egg CC balance £850 - min payment £15
Next balance £175 - min payment £30

Total outgoings on debt = £540

I'm also in arrears with HSBC and Cahoot.

So already I'm short £85 a month - and thats before I even step out of the door! So with everything that crops up like food, toiletries, bdays, xmas, car trouble, going out! The CC are on the max!

I wrote to HSBC and Cahoot to request reduced payments. HSBC sent me a form for a Managed Loan of £13900 - 142 monthly payments of £180 - so i would be paying back £25,560 in total and I'd be nearly 40!!!! Cahoot will accept £80 but they haven't sent me any paperwork yet so don't know about the details of that offer.

Basically my Mum found the HSBC paperwork last night and I had to come clean and tell them the full story - I also rang CCCS and arranged an appointment (15 August was the frist one!).

I used to have a fairly good job but I was sacked through ill health. I had the two loans before then but I could easily manage the payments - its only since I lost my job that its all gone to pot. I used my CC's to pay for things while I was out of work - (also had very unhelpful BF who I lived with at the time who couldn't or more likely wouldn't help me out - so rent etc went on the CCs too) - I've since left him and gone back to the parents. I didn't tell them about all this cos I was embarrassed to admit it and also didn't want them to worry. Also didn't want my stupidity to affect their credit rating because they are A1 when it comes to money - my Mum is incredible - she should run the Bank of England! But I was too proud to ask for help and tried to muddle along on my own, but then it all got worse!!!!

So any help is greatly appreciated!

Phew that was a long one!!!!!

bluezone

At the end of the day I was in the same boat cos I didn't want ot admit to my parents as I thought they would be ashamed or think of me as a failure.

Your parents will no doubt be angry but only because they feel hurt that you couldnt tell them sooner! You can see by my signature the amount I owed thanks mostly to my ex! :rolleyes:

DOnt wait any longer and phone up payplan TODAY. They will arrange an appointment with you sooner than 15th Aug!

How much were your loans for?

moxie_2

Try Payplan, they're usually a bit quicker than CCCS https://www.payplan.com
I've got a Debt Management Plan with them and have found them to be very good.

Carrie1980

The Cahoot one was for £7000 I think it was £12.1%, the HSBC one was a Graduate Loan - started off at £2000 and they kept offering me more and more - so I stupidly took it - think in the end it was about £15000 the last time they upped it and that was March 2004.