The Bankruptcy Club & Supporters Club

Addicted2Chocolate

thanks for the correction, i should have known that.

less2303 wrote:

Whilst formerly an undischarged bankrupt could not hold office in local government whilst bankrupt this has been amended by EA 2002 so that he is only disqualified from so acting if there is a BRO in force against him.

Also an undischarged bankrupt is no longer disqualified from holding office, or continuing to hold office, as a school governor. Only those subject to a BRO will be disqualified from holding office as a school governor.

njc12

Hi - I'm really sorry to sound dim but I'm trying to make sense of what steps to take.

Am I right in thinking that it is as follows:

1) Seek independent advice
2) Submit forms and apply to court for date
3) Following court date, OR will contact you

Also how much does it cost?

Thanks!
njc12

ZTD

Brokeandbothered wrote:

I thought so. But what I'm worried about is the fact that he's already with a debt management company - can he add this on top of the rest of his debts and carry on as he is? Or will it go to court? He doesn't want to go bankrupt and I don't want to drag him down with me

That depends entirely on the creditors involved. It's up to them. I would expect they would be a little more careful/understanding in case they send him into bankruptcy, but you're talking sense - and a lot of them don't have it.

less2303

njc12 wrote:

Hi - I'm really sorry to sound dim but I'm trying to make sense of what steps to take.

Am I right in thinking that it is as follows:

1) Seek independent advice
2) Submit forms and apply to court for date
3) Following court date, OR will contact you

Also how much does it cost?

Thanks!
njc12

If you are thinking along the lines of Bankruptcy what you need to do is seek professional advice.

One thing that is becoming more and more vital is the need to show that you have sought professional advice before entering into bankruptcy!

Certainly this is now one of the most frequently asked questions by the District Judge and they can refuse your application for bankruptcy unless you have.

If it is refused you will again have to find the complete set of court fees, which can add even more cost to your bankruptcy petition!!!

Details of your local County Court can be found here:

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


You can obtain free and impartial advice from the following organisations, and they will offer you advice to suit your particular circumstances:

PayPlan - https://www.payplan.co.uk

Consumer Credit Counselling Service - https://www.cccs.co.uk

National Debt Line - https://www.nationaldebtline.co.uk

Citizens Advice Bureaux - please make sure you book your appointment with the specialist money advisor as many of the volunteers don’t have the necessary experience and knowledge:

https://www.citizensadvice.org.uk

If you live in Scotland, then there are different rules that apply, so you should in he first instance make contact with:

https://www.moneyadvicescotland.org.uk/

If the debts are related to your business:

https://www.bdl.org.uk/



You can also find a lot of information from the Insolvency Services website, including a large number of downloadable leaflets about varies aspects on bankruptcy, such as Income Payment Orders, Bankruptcy Restriction Orders, What will happen to my house, etc, along with links so that you can either download the necessary forms (Form 6.28 and Form 6.27 for personal bankruptcy) and you can even fill them in on line:

https://www.insolvency.gov.uk

But the key point is that you MUST obtain professional advice first


The fees consist of £150 Court Fees and £325 Official Receiver Fees, however if you are on a low income you may be able to get the Court Fees waived.

normd

Hi mike LOL I have to say what an excellent thread and count me in, my wife and I went bankrupt 3 years ago, lost our house ect and don’t regret a minuet. Only thing is after 3 years we are still treat like scum by The Nationwide its like been 5 again can’t even have a debit card after 3 years of been good :A but hey ho it was the only answer to our dept problems and a good one.

PS Has anyone else had creditors hassle them for money included in there bankruptcy, the Royal Bank OF Scotland were still sending me demands 2 years later lol they finally got the message though

desmonds

What amazes me is that after seeking advice from over 3 Insolvency Practitioners all of the opinion that I would not be accepted for an IVA since I was in deficit each month by £900.

So, how come now I have chosen Bankruptcy they find I can sort of come up with £170 per month to support an IPA for three years???

Surely, if I have £170 then that would have been sufficient to fund an IVA in the first place??

Not that i'm backtracking because 3 years IPA is better than 5 years IVA apart from the fact that an IVA is less of a stigma and one's home is not an issue in an IVA like it is in Bankruptcy.

I wonder how many people do go BR unnecessarily?

Just a thought that's all

Desmonds

sandralovescats

desmonds wrote:

What amazes me is that after seeking advice from over 3 Insolvency Practitioners all of the opinion that I would not be accepted for an IVA since I was in deficit each month by £900.

So, how come now I have chosen Bankruptcy they find I can sort of come up with £170 per month to support an IVA for three years???

Surely, if I have £170 then that would have been sufficient to fund an IVA in the first place??

Not that i'm backtracking because 3 years IPA is better than 5 years IVA apart from the fact that an IVA is less of a stigma and one's home is not an issue in an IVA like it is in Bankruptcy.

I wonder how many people do go BR unnecessarily?

Just a thought that's all

Desmonds

Your IVA would have cost you a LOT more than £170 per month that is for sure!

You must have at least £340 surplus income post bankruptcy for you to get an IPA of £170.

It is only for 36 months as you said, you have a clean slate, a new life.

You are a lot better off you know!

sandralovescats

normd wrote:

Hi mike LOL I have to say what an excellent thread and count me in, my wife and I went bankrupt 3 years ago, lost our house ect and don’t regret a minuet. Only thing is after 3 years we are still treat like scum by The Nationwide its like been 5 again can’t even have a debit card after 3 years of been good :A but hey ho it was the only answer to our dept problems and a good one.

PS Has anyone else had creditors hassle them for money included in there bankruptcy, the Royal Bank OF Scotland were still sending me demands 2 years later lol they finally got the message though

If you had used the Co-op post bankruptcy you could have had a Visa Electron card immediately.

desmonds

sandralovescats wrote:

Your IVA would have cost you a LOT more than £170 per month that is for sure!

You must have at least £340 surplus income post bankruptcy for you to get an IPA of £170.

It is only for 36 months as you said, you have a clean slate, a new life.

You are a lot better off you know!

They have included my wife in the equation and used her Child Benefit and Child Tax Credits to form a Total Income.

My wife has no income as she is a full time mum looking after our 3 year old.

My wife is not joint to any of my debts and I am the Bankrupt not her and apart from our joint mortgage she has no share in my debt.

So, really we don't have any surplus income since I earn £1600 per month and my wife gets CB of £17.45 per month and Tax credits of approx £380 per month.

Our mortgage is £1550 per month and Council tax £173, elec/gas £70, buildings/contents ins £45, and then there's food allowance.

So work that one out!!

How can they honestly issue an IPA when our mortgage eats up all my salary to begin with.

We can't sell 'cos we are on a fixed rate till april 2008 and a redemption penalty of £12K

Estate agent fees would cost us £7K!!!

We have only £5K equity in the house so that's why it's important a third party buys my beneficial interest of £2.5K.

You may wonder how will we manage with an IPA of £170 per month for 3 years when all the moneys spent just paying the mortgage.

You tell me!!

It's ridiculous that an IPA has even been contemplated when we have no surplus income!!!

There seems to be no consistency within the Insolvency department and one relies on the luck of the draw.

Desmonds

debt23

Hi all,

Sorry, this might be a bit of a long post, so apologies in advance.

I’m going to read through this thread in detail – lots of great info here by the look of it, but I have a burning question so again, an apology if this has come up lots of times before.

I’ve also been on various government sites etc to figure this one out, but only seem to come away more confused – so here goes………

I brought my house in 1996 with a mortgage. My wife and I both paid £2500 towards the £5000 deposit and I got a mortgage in my name only for £50,000

For the next seven years, I paid the mortgage and the wife paid bills etc – a pretty even split

I would say that up to this stage, we both had a 50% interest in the property.

Now, I ran into debt problems (all of my own making) and my wife was not happy that I could keep the mortgage up. Fearing for the family home, my wife said that unless I allowed her to take over the mortgage, we would split.

So, she arranged her own mortgage with another lender, stumped up all the deposit and legal fees herself and, in effect, purchased the house from me.

However, she only paid the cost of the outstanding mortgage – about £40,000. The market value of the property at this time would have been around £110,000

That was four years ago.

She has, by means of lending from family, an inheritance and good saving, now paid her mortgage off in full and is the outright owner of the property (no Building society involved)

Over these last four years I have lived in the property but made no contribution to the mortgage payments. I have made weekly payments towards the housekeeping etc, but in all reality, it’s been my wife’s good accounting that has enabled her to buy the house etc.

House is now valued at £170,000

My debts are £60,000 – if someone were to bankrupt me, would there be any moves against my wife’s property?

Hope that’s all clear enough and thanks in advance for any advice.

All the best

Debt23