Bankruptcy.

uglysmithy80

Hello Everyone,

Is there anyone here who have gone bankrupt in the last 6 months who can tell me what actually happens after your court day.

Is it that bad with spare money ? does the OR do take all my surplus money?

how did i pay him each month what he is asking for?

At the moment i am living with my parents and i only get 700 per month i get for wages but i will start earning commission it will be a bit more.

Is bankruptcy that bad ? do you have spare money for holidays or things for the next 3 years ?

One other thing can they refuse the bankruptcy when i go court ???


PLEASE HELP??

FuzzyCub

uglysmithy80 wrote: »

Hello Everyone,

Is there anyone here who have gone bankrupt in the last 6 months who can tell me what actually happens after your court day.

Is it that bad with spare money ? does the OR do take all my surplus money? You are allowed to meet you reasonable living costs, after that surplus income will be paid to e OR for 3 years by means of an IPA (income payment agreement)

how did i pay him each month what he is asking for?

At the moment i am living with my parents and i only get 700 per month i get for wages but i will start earning commission it will be a bit more. You will be expected to inform the OR of all changes in your financial circumstances with 21 days whilst undischarged and if you have an IPA throughout it's life. Payments can then be adjusted up or down.

Is bankruptcy that bad ? do you have spare money for holidays or things for the next 3 years ? You may be allowed to budget for a modest holiday.

One other thing can they refuse the bankruptcy when i go court ??? The judge will have expected you to have sought advice first before applying and you must be unable to pay your debts i.e. Insolvent


PLEASE HELP??

You should start by contacting one of the debt charities who will be able to give your free advice based on your personal circumstances. Here's the links:

National Debtline | CCCS | CAB

They're non-judgemental and very supportive. Once you've sought advice and decided BR is right for you post all your questions and concerns they guys n gals here are very supportive! Realising you need help and asking for it is the hardest part, good luck getting things sorted.

Angiepange

Hi and welcome

I didnt go BR under the new rules but the OR will only take any surplus over £20, however the allowances are fairly generous in BR so depending on your income/outgoings you may not have an IPA set. If you do have to pay a company called Moonbeever will collect your monthly payments and please bear in mind the IPA is flexible to your cicumstances, so if your income goes down it can be reduced or even suspended. And all the months you would have been paying still count towards the 36 months (duration of the IPA).

As for holiday, an allowance for that is usually worked out too, so don't panic!

As for being refused, have you had professional advice yet? We always advise on here to first contact the free debt charities, links here, and discuss your situation with them. If BR is recommended there are many good people on here who can help with your questions.

Main recommended sources of help:

• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Good luck

cherry-pie_3

Hi there

I probably can't answer all of your questions as our situations are a little different, but I hope I can be of some use.
I finally had to go bankrupt 3 weeks ago, due to losing my job in October last year.
I still haven't been able to get another job, so the only choice I had was BR, there really was no other option for me with debts of almost £18k.
I can only say, even though I was terrified, I came through the whole court thing and it wasn't as bad as I feared.

I have had my interview with the OR, very straightforward, and I've sent them my bank and CC statements for the last 12 months.
I'm hoping they won't take any money from me as I only have JSA coming in.
I believe if you are on a low wage then they may not take anything from you, but obviously every case is individual.
I don't know how common it is for people to be refused BR once they get to court. I can only say the judge I saw was very sympathetic, and obviously appreciated the terrible effect that my debt had had on my mental and physical health.

I would urge you to read as much as you can, and also to call one of the debt charities, as they are very easy to talk to and can look at things calmly with you.
You need to know everything you can before you go BR as obviously it is a big step to take.
All the best
Cherry.