Basic questions on bankruptcy on behalf of a friend

Tixy

Hi All

I'd like some advice to help my friend who is going to apply for bankruptcy. I know there will be answers to all of these questions already on the board but would appreciate if you could be patient with me and answer them again. I'd like to be able to print off the thread to help her (no internet access).

Firstly I'm sure bankruptcy is the right thing for her - over £20k of debt, a lot of which is on CCJs plus arrears for gas & water. No assets. Not worked for 2years, on JSA. Lives alone, no dependants.

But what I don't know about bankruptcy is the practical side of things. What do we need to do first? request court forms? where from and how?

I know we need a reason for bankruptcy and getting into debt and I think we have that covered, and we need to do a post bankruptcy SoA. Does she need to submit any type of SoA as it is if she is not made bankrupt?

I'm not sure if she knows all of her debts. "Head in sand, paperwork in bin" issues in the past. Presumably she is supposed to include a full list - but I think that even if one is forgotten about then it would still be part of the bankruptcy? In terms of the petition is there any difference between her debts with CCJs and her other debts?

Does she have to have sought professional advice about her bankruptcy? She is too embarrassed to go to her local CAB (I know she shouldn't be), she could get phone advice from CCCS but is worried about the cost of phoning them for her mobile.

I know about the bank account bit - hers will be frozen, open a new one straight after. If her benefits are due at the same time as her bankruptcy date then is there something else she can do? can they pay her by cheque? or perhaps have her wages paid into my account so I can withdraw the cash for her to live on?

She is already on prepayment meters for gas & elec, the gas has large arrears, these I assume are part of the bankrupty so then she'll only have to pay for her current usage? At the moment she never uses gas as she cannot afford arrears.

After it has happened does she inform her creditors she has been made bankrupt or does the OR do that on her behalf?

When she has to attend court will it be a local court?

If she were to find work in 6months or so then would she need to start a payment arrangement then. What about if she found work after say 14months (so after the bankruptcy period of 12months but before the 3years of a normal payment arrangement is up)?

I'm sure I have other questions but can't think right now.

Many thanks for any responses
Tixy

IF

Hi Tixy, yes you can do it yourself. Judges these days do like you to contact a debt advisor first though! It is worth a call to be honest.

Do it yourself bancruptcy

http://www.ned-cab.org.uk/debtselfhelp/bankruptcy.shtml

Online forms for bankruptcy

https://www.insolvencydirect.gov.uk/isolv/

find court

http://www.hmcourts-service.gov.uk/HMCSCourtFinder/

I'd open up a coop cashminder account now to hav benefits paid in and DD's.

If she finds work within the 12 months of bankruptcy a IPA will be set up.

If after 12 months she starts work, after discharge no payment is required.


Hope this is a start x

sizzler

Hi tixy

If wishes is right.

Sorry cant answer any beeter at mo. but best of luck sizzler:)

IF

Hi Tixy, to find how much she owes, I would get all three credit files Experian/Call Credit/Equifax around £2 each for paper copies. To find out how much she owes x

IF

And yes the OR contacts all here creditors when she's made bankrupt. x

Tixy

Yes I was going to get her credit reports (but thought we'd wait a little in case it starts some of her creditors hassling her again, so we'll get them close to the time).

Thanks for the info and advice Ifwishes and sizz. That ned-cab site looks very useful and simple to understand. I'll print some of that info off for her to look through.

So if we get and complete the forms and submit them online how long (roughly_ is it likely to take to get a court date etc? Do people wait months or is it usually pretty quick?

sizzler

depends on the court some you can just turn up at some are appointment. ring your local one and they will advise.

Forms can take couple of hours to fill in, make sure they are saved plenty of times or info will be lost.

good night sizz:)

IF

Tixy wrote: »

Yes I was going to get her credit reports (but thought we'd wait a little in case it starts some of her creditors hassling her again, so we'll get them close to the time).

Thanks for the info and advice Ifwishes and sizz. That ned-cab site looks very useful and simple to understand. I'll print some of that info off for her to look through.

So if we get and complete the forms and submit them online how long (roughly_ is it likely to take to get a court date etc? Do people wait months or is it usually pretty quick?

With the court it depends, on find a court, ring up and ask what their system is appointments or just call in. It's really hard to say some wait a week/two or next day!!!

With the forms you don't submit them on line you print off 3 copies and take them with you to court (sometimes the court photocopy for you, when you ring for appointment ask what they require 1 or 3 copies.)

Tixy

Blimey so if she starts getting this sorted (has been thinking about it for a while) she could actually be declared bankrupt within a couple of weeks or so? Somehow I thought it took much longer - although maybe thats because of people saving up the fees etc. (I shall probably lend her the deposit fee, the other fee she should be exempt from I think).

IF

Tixy wrote: »

Blimey so if she starts getting this sorted (has been thinking about it for a while) she could actually be declared bankrupt within a couple of weeks or so? Somehow I thought it took much longer - although maybe thats because of people saving up the fees etc. (I shall probably lend her the deposit fee, the other fee she should be exempt from I think).

Yes your right, normally the delay is saving for the fees. If she is on benefits she will be exempt. Hope this has helped xx

I nearly forgot to get the fee exempt, she will need a letter saying she receives such and such benefit.

fatbelly

ifwisheswerehorses... wrote: »

I nearly forgot to get the fee exempt, she will need a letter saying she receives such and such benefit.

Yep, and it needs to be dated within one month of the bankruptcy appointment. Prescribed benefits are: JSA, IS, income based ESA, pension guarantee credit and WTC but no CTC.

You'll need an EX160 and the notes are in the EX160A