The Bankruptcy Club & Supporters Club

Richard_S

Happy New Year Everyone,

Here’s to hoping that 2007 turns out to be the year where we all managed to turn our financial fortunes around.

I do try to keep a positive perspective on life and its ups and downs but the last week of 2006 really tried my ability to maintain a “joie de vie”.

A couple that we were friendly with had run into some quite serious financial difficulties and the guy committed suicide just before Christmas. After the problems we had faced during 2006 and knowing how the balance of your mind can become seriously skewed, it was absolutely devastating to witness at first hand just what desperate outcomes financial problems can result in.

We were petitioned for bankruptcy by the property company that we leased a commercial outlet from. We were responsible for the Non Domestic Rates on the premises until they were re-let which didn’t really seem to be a problem at the time given our impending bankruptcy. Of course, just to finish 2006 off in real style we had a letter just after Christmas from the relevant Local Authority stating that we were responsible for the rates from the date of our bankruptcy to date and until such time that the premises were re-let.

I really don't want to taint 2007 with last year's problems but I suppose that's just being naive.


Grrrrrrrrrr, and it’s my first day back at work,

sandralovescats

Richard_S wrote:

Happy New Year Everyone,

We were petitioned for bankruptcy by the property company that we leased a commercial outlet from. We were responsible for the Non Domestic Rates on the premises until they were re-let which didn’t really seem to be a problem at the time given our impending bankruptcy. Of course, just to finish 2006 off in real style we had a letter just after Christmas from the relevant Local Authority stating that we were responsible for the rates from the date of our bankruptcy to date and until such time that the premises were re-let.



Grrrrrrrrrr, and it’s my first day back at work,

When were you declared bankrupt? Or when are you going to do it?

If you are still an undischarged bankrupt you are not responsible for the rates from the date of your bankruptcy to date - it is all dissolved with the bankruptcy! All debts before during and whilst undischarged just disappear.

skint_geordie2007

Hi guys,

I have known since before Christmas that I need to go bankrupt.
I know you can fill the forms in online on the insolvency website , but I have a few more questions if you would be so kind.

I get paid on the 1st Feb and plan to go bankrupt as soon as I can get my cash out of the account.
I assume I need to cancel all debt related direct debits before then?
Can I tell the any creditors who call me thats my intention?
I noticed you can fill the form in online to print out on the insolvency service web site. I assume I take them here ?
http://www.insolvency-service.co.uk/office2.asp?office=newcastle (I live in Newcastle).
Do I need to book in advance, and if so is the above the place I contact?

Thanks In Advance

sandralovescats

https://www.insolvency.gov.uk is the site you need for the forms.

No - go to the link I posted yesterday - it will tell you which is your nearest court which deals with insolvency.

You may need to book an appointment and you may need to wait a few weeks, just depends how busy they are.

You can tell your creditors you intend bankruptcy - it won't make a jot of difference - as soon as you cancel your dd's they will start with the phone calls and the letters!! Yes, cancel your dd's straight away.

sandralovescats

Link to find courts which deal with insolvency


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

sarah_skint

not so much been hiding, the kids have all been ill first they took it in turns to have colds then over christmas they decided to share D and S and then give it to me. Fab!!
New Year, fresh start I intend to find and use coupons for alot of shopping this year and stop wasting food to save money. I actually bought myself a top and some trousers today, something i haven't done for about 6 years!!

skint_geordie2007

sandralovescats wrote:

Link to find courts which deal with insolvency


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

Thanks, there seems to be an option for "Insolvency" and one for "Bankruptcy" in the Court Work type search. They return a different number of results.
The nearest one to me is South Shields County Court. I am suprised there is not one in Newcastle. However this deals with Bankruptcy and not insolvency. The nearest that deals with Insolvency is probably very far away.
Assuming the South Shields County Court (http://www.hmcourts-service.gov.uk/HMCSCourtFinder/Search.do?court_id=545) is ok, I just ring them and see what their system is for appointments?

missimaxo

sandralovescats wrote:

When were you declared bankrupt? Or when are you going to do it?

If you are still an undischarged bankrupt you are not responsible for the rates from the date of your bankruptcy to date - it is all dissolved with the bankruptcy! All debts before during and whilst undischarged just disappear.

This advice is incorrect. The only proveable debts in bankruptcy are those owed at the date of the bankruptcy order.

Any debts that acrue after the date of the BO still have to be paid - even whilst you are undischarged. Your council tax/ utility bills will still acrue whilst you are undischarged so you have to pay these. The relevant companies should write off all debts to the date of the BO and bill from then on. There is one exception - and that is with council tax. IF the council have billed you for the whole year (eg. you are in arrears, they have taken you to court and demanded the whole payment) then the whole amount should be written off in bankrupcty - but this only happens in a few cases.

missimaxo

Breadsticks wrote:

Hi everyone, may I have a number please?

I am married with a 1 year old son and in £40k of unsecured debt (all in my name). I have sought advice from CCCS who have advised best route is Bankruptcy. I immediately said no as I work in a bank and would lose my job (my employers have no idea). However I have now resigned myself to it and after reading every post on this thread I have been motivated to get myself sorted out. I have also learned a huge amount!!!!

I live in a mortgaged property which is in joint names and both mortgage and secured loan are up to date although the repayments total £1100 per month. It is currently on the market but we have no equity (possible even a few thousand negative equity). We are looking to relocate closer to work so that we can cut travel and living expenses. We will be renting instead of purchasing.

OH has debts in his name but he is on a DMP for them now from years ago (probably about £7k remaining), he also has an up to date carloan which we can ditch if we move as we won't need the car.

I have some questions if anyone can help:

1. We were thinking of both going BR but now think it may just be me. Any pros/cons on this at all?

2. Am I right in thinking if there is no equity in a property OH would be able to buy my BI for £1?

3. If OH does buy my BI will mortgage companies possible decline him as loans will be based on 1 income now not 2?

4. Would it be better to wait until the house is sold before going BR or will it not make much difference as no equity to release. My only concern is not being able to rent somewhere decent whilst BR and scared of being homeless.

5. If I voluntarily stopped work would the OR frown upon this? (I take home £1051 per month but if I stopped work I would actually save £912 per month, most of which is childcare. Which means I work for under £35 per week!!!)

6. Would I be subject to an IPA if I am SAHM and no income apart from Child Benefit and Childrens Tax Credit?

Can't think of anything else for now but I'm sure I'll be back.

Cheers

Breadsticks x

Hi Breadsticks -

Point by point

1 - Pros/ cons of both going BR. If you have any joint liabilities then your OH will become solely liable for the loan. Only liabilities in your sole name will be completely written off.

2 - OH will be offered the BI for £1 PLUS FEES (about £260 I think - sorry its a while since I did one). The OR will obtain a drive by valuation and write to your mortgage co.s to confirm neg equaty before agreeing to this.

3 - Sorry I do not know the answer to this as i is beyond what I do. Common sense says it is likely.

4 - I can't see it making much difference. You should not have to rent if OH is buying BI. If you do try and rent - you could maybe do it in OH's name. In my experience the forms from letting agents either ask if you have ever been bankrupt - therefore you would have to answer yes whether br or not. If you do enter a rental agreement - the OR will write to your landlord in any rate asking for a copy of the contract. It would be best to be up front and say you are considering it, or do it in OH's name only (if you become a SAHM then you would do it on his income only anyway!)

5 - No OR would not frown on you giving up work if it makes that little difference. There is no scope for doing a BRU for giving up work. Just be honest when asked about income/ expenditure whatever your circumstances.

6 - No - no IPA if your only income is benefits. The OR may ask q's about your total family income (ie. both you and your OH's). Just be honest about your expenditure. Think of everything (eg. school dinners/ pocket money) make it reasonable and if you have less than £100 surplus then no IPA will be sought.

Any other q's I (or others) will try and help!

T xx

sandralovescats

missimaxo wrote:

This advice is incorrect. The only proveable debts in bankruptcy are those owed at the date of the bankruptcy order.

Any debts that acrue after the date of the BO still have to be paid - even whilst you are undischarged. Your council tax/ utility bills will still acrue whilst you are undischarged so you have to pay these. The relevant companies should write off all debts to the date of the BO and bill from then on. There is one exception - and that is with council tax. IF the council have billed you for the whole year (eg. you are in arrears, they have taken you to court and demanded the whole payment) then the whole amount should be written off in bankrupcty - but this only happens in a few cases.

Debts which occurred prior to the bankruptcy which may not have been known at the time of the bankruptcy are also included in the list of debts within that bankruptcy.

However, I misread the post re it being on domestic rates - mistook it for the lease!