Before bankrupcy - what to do

li0ness

Hello all,

This is my first post. I am in the position of having to file bankruptcy or an IVA in the next few months. To make a long story short, this is due to some dodgy deals done by my ex-husband (without my knowledge) and a huge shortfall after the family home was auctioned off. Other than that my credit is impecable.

After doing the relevant calculations, I think my best option is to file bankruptcy. I'm only pending a valuation of my property by a chartered surveyor (as I believe I have very little or no equity) to make the final decision between bankruptcy or an IVA.

I am trying to get a feel for how my case is going to be perceived by the OR, since I have been managing my finances impecably until now. I'm not even gonna try to negotiate with the bank to whom I owe the shortfall. I'm just gonna go straight thru and file bankruptcy. It is unfair to my other creditors but I literally cannot carry the shortfall or even begin to negotiate. It's about 80,000 Euros.

An IVA would be a possibility, but they would only get 17 pence on the pound and it would be unfairly detrimental to my other creditors. The truth is that my other creditors will lose out anyway but I cannot help it. Should I try to negotiate the IVA first?

My first priority is to get this over with and move on with my life. I've been trying to move on from the divorce for many years now and I really need a fresh start. So bankruptcy is the most attractive option because it will be quicker. But I have a daughter to provide for and send to University and I'm afraid of losing my home and being unable to buy a new one after the bankruptcy.

How harsh are the OR's when trying to recover your beneficial interest? how likely are they to scrutinize my financial situation and look for suspicious transactions, or the concealment of assets? I'm a bit scared of losing control, or the little control I have over my life and my ability to provide for my daughter.

Your opinions will be appreciated.

Thanks,

li0ness

miss_spooky

Hi & welcome li0ness,

Just a quick question. You mentioned Euros in your post. Are you from Enlgand or Ireland or another country? BR rules are different in Scotland & England and different rules apply else where?

Your first port of call will be to have a look thru this sticky.

http://forums.moneysavingexpert.com/...html?t=1056083

It's at the front of the board. You will also need to get advice from one of the FREE debt charities –

National Debtline - http://www.nationaldebtline.co.uk/ - if you ring them they will go through everything for you then you can come back here for help thru your br journey. Be prepared to hold as they are busy.
CCCS - http://www.cccs.co.uk/ - you can do an online debt remedy and request a ring back. They will go through most stuff but may make an appt for a later date.
CAB - http://www.citizensadvice.org.uk/ - a drop in where you'll first see an advisor who will make an appt with a money advisor. Most CAB are booking approx 8 week ahead as really busy. I'd say NDL is the best bet for a quicker answer.

You could post up a Statement of Affairs so we can get an idea - you will have to go thru this with charities anyway.

http://www.makesenseofcards.com/soacalc.html

When completed, press the MSE button to format it for here. A new window will open, copy & past into yr thread.


Good luck.

li0ness

Thanks a lot Miss Spooky. That was really helpful. I will spend some time getting my figures together and post my status.

I will be here for quite a while by the looks of it. Hoepfully we'll have time to exchange posts in the future.

Have a nice weekend