Bankruptcy has been reccommended

SouthCoast

just need to find out more about my job first and whether it will affect it as i am a building society cashier.

What does your contract of employment say on the issue and are you a member of a union?

hunt85

i am going to double check it when i'm back on monday but i'm sure it says you may be affected in higher roles etc, but not so much in my role. i do have to inform my manager though and yes i'm in the union but i'm still in my probationary period as its a new job so i'm going to check that too, i think its a 6 month period and i've been there for 4 months so i would put the bankruptcy off til after that time.

hunt85

another quick point? i've just come into £3600 of compensation from a car accident in 2007, i want to use £2000 of that to pay of my sofas which we took out a few months ago on HP (haven't even made the first payment yet) so that they can't take them off me through bankruptcy. I've noticed in the info i've had about bankruptcy they look back at the last 5 years of bank statements etc and assets and questions you on stuff, will they try and make a case to take my sofas because i could have used this £3600 towards other credit cards/unsecured loans i have? or can i just say that was my choice, i wanted to get rid of this particular finance so i did? i'm trying to prepare for what sort of questionning i might get thanks

JCS1

How is the insurance settlement split? Any money for pain and suffering is yours - the OR cannot touch that.

They will be interested in any money for in repsect of loss of earnings, etc.

tigerfeet2006

You will have problems if you pay the sofas as you will be favouring one creditor over another and the OR will not look favourably at that. When is the first payment due?

I would save the money and use some it to pay your fees.

Flyright

I can only echo what tigerfeet says there, you certainly shouldn't be paying off your HP sofa creditor and no other creditors with those funds..from what I understand of the process the OR will probably want to know why you incurred the credit relatively close to your bankruptcy when it's likely that you were already insolvent...this could result in a BRO. You will need to be able to explain why you incurred that credit and what you did with the £3600.

fatbelly

Are you sure the sofa agreement is Hire Purchase and not just a credit agreement? Check your paperwork. I agree with tigerfeet.

hunt85

i will check, it might just be a credit agreement then? the only thing in my favour is i have not missed one payment yet on anything, i have perfect credit etc and had a well paid job when i took the sofa finance (and its only £40 per month, £20 a month each for me and my partner agreed although its just in my name) i'm now in a lesser paid job and have realised the extent of my debt. I'm thinking i'll just pay it off now, they wouldnt know i was struggling at this point and chose to pay off the sofas with the £2k owed since i'm preparing for bankruptcy, they would just think thats a decision i made and since i wasn't missing payments etc at this point it won't go against me? does that make sense. The payout is all for the physical and psychological damage, only £50 is for loss of earnings as it was a few days of basic bonus i lost, as i got sick pay. So anyway it would still leave me with £1600 to make a few extra payments to my credit cards so it would look more even if that would make things better? i'm not trying to beat the system but the only asset i really have is my car which i'm making arrangements to sell and downgrade to another car, i don't want to risk losing my sofas as that is the only other thing i have. Anyone got further insights? this forum is so helpful! sorry for waffling!

Flyright

I think you're wrong in saying the OR wouldn't know if you decided to pay the sofa finance off in full..the OR will be able to gauge from your creditor details and your income position that you likely made the payment when you were aware that you were favouring that debt over your other debts AND at a time when you were probably insolvent since you say you are now receiving a lesser income. I would be careful about any attempt to pay off the sofa debt in full.