JSA - bancrupcy option?

andyf1980

It might make things a bit tricky. When you paid back the loans did you know that you might declare yourself bankrupt?

grumpyoldwoman41

Not really, I just wanted to have people I know off my back as this was getting uncomfortable.

The BR thought came afterwards.

andyf1980

There's a good chance that the OR would ask you about that. They ask you to provide a years worth of bank statements so any large transactions are likely to be picked up.

The upshot is that if they think you have favoured one creditor over another they can extend the length of your bankruptcy.

When you speak to CCCS I'd ask them for their advice.

JCS1

How much did you pay back to family/friends?

The OR will probably view that you gave them preferential treatment (in their view, all creditors should be treated the same) and the OR will write to them asking them to repay the amount into your BR estate. It can also lead to a BRO/BRU for you.

grumpyoldwoman41

Thanks for the pointers/advice - What is BRO or BRU?

I really do not care how long would the lenght of BR be to be honest, I am just so tired of all this that simply want to find a way out - as bad as it may sound.

1 year statements are not a problem, I have nothing to hide - they will have to deal with me the way they see fit.

Can they refuse a bancrupcy application though?

Thanks a lot

JCS1

BRO is a Bankruptcy Restriction Order, BRU is the same but an Undertaking. They extend the restrictions of Bankruptcy for 2-15 years.

The judge will normally grant a BR petition as long as you are insolvent and have taken professional advice (one of the free debt charities is fine)

andyf1980

grumpyoldwoman41 wrote: »

I really do not care how long would the lenght of BR be to be honest, I am just so tired of all this that simply want to find a way out - as bad as it may sound.

1 year statements are not a problem, I have nothing to hide - they will have to deal with me the way they see fit.

Fair play to you. To be honest I was exactly the same. Even if my br was extended to 5 years it would still be less time than it would have taken me to repay my debts (assuming I could)

I suppose the main downside is that it makes getting any form of credit (house rental, mobile phones etc) very difficult to to get hold of. BR stays on your credit file for 6 years from discharge.

grumpyoldwoman41

Thanks again... I got very low when I got some statements through the post - although I was paying nearly £600 per month towards my debts via a DMP and the CCCS statemets were showing reduced amounts as if things were getting paid off... when I got the statements from the actual creditors - most balances actually went up (despite my payments) as they did not freeze the interest so I have achieved absolutely nothing trying to be on DMP for a while - my debts would never get paid that way. Despite the original advice being that all would be paid off in 5 years, it was not going to happen.

At least with BR there is that cut off date, isn't it? At the moment I do not work so no IPA (is this what it is called?) could be forced on me really and if I started another job that would be based on my new earnings, wouldn't it?

I doubt I can find a job anywhere near my last salary - whatever an IPA would take from my new job so be it but at least I would know there IS some cut off point to all this, with DMP it would have been never ending....

If I do not find a job for a year or longer - what would happen there? They can not do an IPA on me while I am on JSA so what happens then?

Thanks a lot

grumpyoldwoman41

Could someone please tell me what does an easrly discharge mean?

I thought BR is for 3 years or longer and I see some people get discharged after just few months, how doe it work please?

Also, if at the point of BR I am not working and claiming JSA, I assume no IPA/IPO would be ordered?

What if I start a new job few month later?

What if I can not find a job for few months/a year and in the meantime I get discharged, can an IPA/IPO be imposed after the discharge date?

Thanks a lot....

JCS1

BR lasts for one year in England & Wales, the OR can apply for an Early Discharge from BR so it can be as little as 6 months (though with job cuts and all agency staff gone, I suspect Early Discharge won't happen a lot).

There is no IPA if your only source of income is benefits, and IPA can onyl be put into place prior to discharge.

If you start a new job whilst BR you have to inform the OR within 21 days who will then assess you for an IPA.