The Bankruptcy Club & Supporters Club

sandralovescats

Brokeandbothered wrote:

Hi all, hope you had a good new year xxx
I have a question - I am going bankrupt this month -
My catalogue (even though I've not paid them properly) put up my limit by another £2,000 just before xmas. Stupid them, or stupid me? I bought some xmas pressies for some family and now I'm panicking. Of course, I know, I know I shouldn't have, but I did - what will happen when the OR sees it? Will the stuff have to goback? How will I tell people I need their pressies back? I know it was stupid, but it was xmas and it's done now. What will happen :-(

Maybe you shouldn't have done it but it was done and Christmas is over.

The OR will NOT want the presents back!

However, if you bought things like a computer, computer games, tv, etc, that cost a fair amount of money and they are in your own home you may have to make a cash payment in order to keep them.

The insolvency laws do state if it "was credit taken out at a time you knew you were going to go bankrupt , or should have known". The outcome then depends entirely on the OR.

I wouldn't worry about it for now. At the time of your interview, if you are questioned about it, you can always explain. The worst they can do is land you with a BRU - at the end of the day a BRU isn't going to make much difference to you.

sandralovescats

tight_jock wrote:

Our boys accounts were untouched and we were allowed to keep paying into them but they were not with the same bank as our account. I think it is the bank and not the OR who freeze accounts so you will have to take it up with the branch. Even if you are the trustee, this is not your money it is theirs and they are not the bankrupts.

In the eyes of the bank it is under the Trustee of a bankrupt whom has access to the monies and this is why those children's accounts were frozen.

Totally unacceptable in the minds of right-thinking individuals I know.

The best thing that can be done is to have a word with the bank manager and explain.

sanfrancisco

Can any expert over here answer Micky's questions, on here...much appreciated.

http://forums.moneysavingexpert.com/showthread.html?t=341629

He owes approx 250k (unsecured and secured) on a house worth 190. Would he loose his house if he went BR?

justruth

Hi is it possible to have a quick list of FAQ's pasted to the front of this thread as I think it could solve a lot of the issues and worries that people have when they face BR. As someone who meanders about the forum giving mediokre (sp) advice to poor newbies, it would be really excellent if there was a quick introduction to the process so as to reassure us as we find ourselves in this situation. Far better than some of the IVA vultures out there!

desmonds

Just to inform you all on this VERY LARGE THREAD!! that I have been in contact with the website team regarding having our own bankruptcy forum like DFWannabe and the like. They have wonderfully passed my suggestion onto Martin Lewis.

Hopefully, we will get our own forum and be able to post individual threads.

Keep you posted


Desmonds

jenkie_2

hi, we are not BR yet, but we are in a sticky situation.

Here goes,

My husband has been off work sick since the end of Oct 06.
He is currently on SSP,
his bank loan is covered under his payment protection cover and we are waiting to hear if the mortgage is also covered, (he is off sick with anxiety and depression)
however our car payment does not cover us for depression and anxiety so we are having to pay that or lose the car.

If we have to hand the car back as the payments are high and its looking like my husband wont make it back into work, what happens to the rest of the interest on it.

I have read in the paperwork that the finance company will sell the car but it isnt very clear about the difference left.

Also, my husband has a credit card which isnt being paid and he was thinking about declaring BR.

Can anyone help with advising on this, he has his head buried in the sand at the moment.

Thanks

sandralovescats

jenkie wrote:

hi, we are not BR yet, but we are in a sticky situation.
My husband has been off work sick since the end of Oct 06.
He is currently on SSP,
his bank loan is covered under his payment protection cover and we are waiting to hear if the mortgage is also covered, (he is off sick with anxiety

Here goes,
and depression)
however our car payment does not cover us for depression and anxiety so we are having to pay that or lose the car.

If we have to hand the car back as the payments are high and its looking like my husband wont make it back into work, what happens to the rest of the interest on it.

I have read in the paperwork that the finance company will sell the car but it isnt very clear about the difference left.

Also, my husband has a credit card which isnt being paid and he was thinking about declaring BR.

Can anyone help with advising on this, he has his head buried in the sand at the moment.

Thanks

I am on doing a voluntary surrender of my own car as we speak!

If the car finance is still showing as owing, say, £5000, and the car is sold at auction for £2000 you are still liable for the £3000 left from finance.

Regarding bankruptcy it rather depends how much debt we are speaking of.

Maybe if you let us in on a few more details?

skylight

Got a Bankruptcy query.

Had a long chat with a tearful friend this evening. It appears that she went BR last year in July and has been discharged already. She spent most of the time crying about how ashamed she was and she couldn't tell me. Had to put her straight about our finances, but this is not the point!

In 2004, she did some work on a contract basis. She invoiced the company each month that she did the work for and they paid her directly into her bank account. As it was a contract basis, she was responsible for all her own tax/NI etc. I assumed that she had done this herself - I had no reason to doubt her, I did her tax return for 2003 for the same contract!

Anyway. 2004 she has neglected to declare her earnings from the company. After an audit from the tax office however, the company has had to disclose details of how much they paid her (and others).

She has been told by the tax office that although she declared herself bankrupt in Jul06, at that point in time she did not actually owe the IR any money. Now they say the bill has been worked out and they are telling her that she owes them tax for 2004 and have billed her.

It was my understanding that although "technically" she did not owe any money at the BR point, the "debt" was still accrued in the period upto bankruptcy, therefore would be included although she was not able to declare it to the OR at the time?

Sorry if information here is a bit scatty - it is difficult getting coherent info from blubbery women (and I am one!), but where does she stand? Does anyone have any ideas?

rog2

Hi Charlotte - Unfortunately HMRC could well be within their rights, and COULD possibly accuse your friend of Tax Evasion. :eek:

nikkij

hi,
can anyone tell if they have used the site myvesta.co.uk to go bankrupt as they seem a good site to use but would like some advice, they are a free site but do charge a free should you wish extra help?