Bankruptcy Help.

missgem

Hi

Looking for a bit of advice, as im really confused and scared!

Myself and My Husband have around £27,000 worth of debt between us, and due to prices rising in everything are finding it really difficult to survive.

We have 3 children under the age of 3, which as you will be aware cost a lot of money to provide for.

I have spoke to a few different companies, with regards to IVA's and Debt Management Plans, but every company have stated they are not an option due to the disposable income being a minus figure, of £200. So Bankruptcy would be our best option.

I have done some research online regarding bankruptcy, but there are so many threads and different answers that contradict each other, which leads me confused as to what the honest answer is.

Im just wondering whether anyone on here can give me any advice or help me in anyway, i.e anyone who has been through it recently.

Questions are as follows:

1) When do i stop paying the creditors?

2) Do i stop paying just the creditors or all of my household bills too?

3) Will the Official take my personal belonging within my house, i.e TV, PC, CD Player, Games Console?

4) Will they take our family car? (worth around £2000-£3000)

5) Been told to get a basic bank account with no overdraft facility, but then read the Official freezes and you must stop using the bank immediately is this true? If so how are we meant to survive without access to the money in the bank and paying bills?

6) We currently rent our property from the local authority will they throw us out if we are made bankrupt?

7) Does anyone know the Expenditure Guidelines for Bankruptcy?

8) How soon do you get a court date?

9) Ive read the Official requires 2 years worth of bank statements what is this for and how would i get these if i havent got them?

10) Under what circumstances would Bankruptcy be declined?


Many thanks in advance )

jez123cars

Hiya missgem, you've come to the right place! everyone's lovely on here, no judgement, just support. I've just come out of BR so I do sympathise with what you're going through. I'm no expert but I can tell you about my own personal experience, and I'm sure someone will be along soon to sort out any misinformation I give (albeit unintentionally!)

First step, go see the CAB or CCCS - when it comes to bankruptcy I believe they are the best people to go to. They can talk you through the steps and if BR is recommended help you with forms etc.

Yes change your bank account now (especially if you have an overdraft) - you want a basic account (ours is a step account w Natwest) you can still pay bills out of this account and as long as no further debt is put on and you only use it for basic living expenses they will let you keep it. We had ours for 3 months before going BR, and OR and bank were happy to keep it on.

See what CAB says about creditors, we had to send everyone a letter and just pay them £1 a month until BR was sorted. Keep paying your household bills and council tax. This is V importantant!

OR didnt take any household possessions from us. Don't think it's usual unless you have a lot of expensive items. You might be able to keep your car (we were told £2000 value) especially if you need it for work.

BR should not affect you renting from local authority. There is a link on this forum somewhere about the expenditure guidelines.

Once you have the money together to go bankrupt you simply take your completed forms to court, pay your fees and wait, there's not usually a separate court date. But you will have to wait for the date to meet the Official Receiver (usually within 2 weeks I believe).

We didnt have 2 years of bank statements, but if they are needed you can get copies from the bank.

I've not known of bankruptcy being declined.

And it goes without saying, the harder you've tried to get yourself out, the easier the process is cos you know you've done your best. I'm assuming you've stopped using credit cards already - if you haven't, cut em up - NOW!

The very best of luck - and you know where we all are xxxx

missgem

Thankyou ever so much jez, how very kind and thoughtful of you to take the time to write that long reply )

I really am terrified, as its all the questions there going to ask, like why do you want to go bankrupt, what has changed, why can you no longer pay, to be honest i dont know how weve managed these past few months, i really dont, but we have, and what scares me is if they say well youve managed to keep up payments up until now so whats different, and therefore NO your not allowed to go bankrupt.

I was going to pay a company £850 to do the forms would you not? Would you do them yourself? As im told there very confusing?

My loans etc are due to come out the end of this month do i just cancel them? As one of them is with my actual bank will they not freeze any money i have in? (

missgem

PS we dont have any real expensive items only tv's which are probably worth £400? x

jez123cars

sounds like your TV'll be fine, lol. Defo don't pay someone else, the £850 your looking at paying is probably only a smaller amount than the cost for you (both?) to go BR. They make the forms sound scary but they really aren't. Any problems you have with em just post on here before filling in and we'll help you. If you can't see the CAB before the end of the month, ring up your creditors and explain you can't afford the whole payment (don't mention BR just yet) and offer them whatever you can afford. We ended up paying our mortgage and loans on the credit cards so it always looked like we were coping. But as soon as it was down in black and white you could see we were'nt, ringing any bells? Most creditors don't panic until you become a few months behind. As long as your outgoings are more than your income, you can go BR, don't forget though, if after doing it you have expendable income they will have that to pay towards your debtors, but small price to pay for a new start?? xx

Angiepange

missgem wrote: »

Thankyou ever so much jez, how very kind and thoughtful of you to take the time to write that long reply )

I really am terrified, as its all the questions there going to ask, like why do you want to go bankrupt, what has changed, why can you no longer pay, to be honest i dont know how weve managed these past few months, i really dont, but we have, and what scares me is if they say well youve managed to keep up payments up until now so whats different, and therefore NO your not allowed to go bankrupt.

I was going to pay a company £850 to do the forms would you not? Would you do them yourself? As im told there very confusing? You really do not need to pay a company to help you with the forms. Lots of us here have filled them in ourselves and you can get help from the free debt charities too. I know they look daunting but there's lots of help and assistance in this forum

My loans etc are due to come out the end of this month do i just cancel them? As one of them is with my actual bank will they not freeze any money i have in? If you have decided to go BR, I would recommend you withdrawing your money from your current bank and opening a basic bank account asap. The Co Op cashminder or Barclays connect. I wouldn't notify the loans that you are not paying just leave the DD's to go uncollected. As soon as you cancel, you will start to get hounded with letters and calls. (

missgem wrote: »

PS we dont have any real expensive items only tv's which are probably worth £400? x

These items will be quite safe, don't worry. You won't have to list them.

HTH

missgem

The company in question want £425 each so thats £850 for both of us for them to deal with the whole of the bankruptcy and then you have to pay the additional £600 court costs on the day of the court.

PS where do i get the bankruptcy forms from to fill in myself?

Ive just been down to my local CAB office and it was over an hour and half wait just to see some advisor, and didnt have the time, i did ask about the forms and she said they only help you with the forms if you actually are entitled to legal aid.

gtanny

i picked up the BR forms from the court, it was as simple as going in and asking, they were very nice.

i actually sent my wife in as there was no parking and i waited in a taxi area, then i called them the next day to book an appointment.

how long you have to wait depends how busy they are as at my local court they only have 2 slots a day and its before the judge starts his 'real' work at 10am

missgem

Ive found some forms on the internet on the insolvency website, do you think they will be the same ones? Also do i have to fill in 2 sets of forms for both myself and husband, as it only has space for one name on the forms on the internet? x

missgem

Just rung the court and they have said we are applying on two seperate forms therefore are individuals so the court costs are doubled so it will be £1200!!!!! You can get the forms of the internet she said from here http://www.insolvency.gov.uk/

Will have a look now, not looking forward to getting a headache trying to fill them in! x

missgem

Oh my god is it every single one of these i have to fill in?

http://www.insolvency.gov.uk/forms/englandwalesforms.htm