Seriously Considering Bankruptcy :(

laura-19851

Hi all, hope you don't mind me posting on here. I am considering LILA bankruptcy (I live in Scotland) but have some questions:

1). Will anyone find out? I understand it goes in the Edinburgh Gazette but would this affect my family in any way (I live at home with my parents)
2). My car is worth £3000 but this is essential for work. Would I need to sell it and get a cheaper one?
3). Can I request for the forms to be sent to me? I don't have a printer at home & can't use the library as they loo at everything you print off.
4). How does the process work? I have read and read about this but everything sounds very complicated to me. Can someone break this down simply so I can understand.

Thank you so much to anyone who can help, Im feeling really desperate right now.

Thanks Laura x

Ineedaname

Hi Laura and welcome to you.

Hopefully a Scottish expert will be along soon to help you out.

confused76

Hi Laura and welcome. I don't know much about the Scottish system, but I did print something at the library yesterday! They barely glanced at my print out so I wouldn't worry too much about that.

MadamKittyKat

Hi Laura

I am in similar situation to you and am going through the initial stages myself, of the LILA route in Scotland.

I am afraid i don't know the answer about the car, but yes you can get the forms sent out to you, if you call AIB Scotland on 0300 200 2600 . They should be able to post the forms out to you. AIB Scotland are who deals with the bankruptcy process in Scotland. Here's their website and contact details: http://www.aib.gov.uk/about/contact-us and http://www.aib.gov.uk

Also, unless someone is doing a very specific search on your name on the Edinburgh Gazette website, i don't think it is something that just appears at the top of a random google search for your name. Also, certain websites where you can search for this information, people usually have to pay a fee, which would put a number of people off anyway from continuing their search. Someone please correct me if i'm wrong, it's just what i've gathered from reading posts here.

I've accumulated three or four threads about bankruptcy in Scotland on here, including one from a kind MSE'r who has been through it themself and explained the process in a much more simplified manner, which was a great help for me understanding it. Here's the links:

A guide to Bankruptcy in Scotland Part 1:
https://forums.moneysavingexpert.com/discussion/2611513

A Guide to Bankruptcy in Scotland Part 2:
https://forums.moneysavingexpert.com/discussion/2611543

Bankruptcy in Scotland; Some Advice (the simpler explanation):
https://forums.moneysavingexpert.com/discussion/2602521

Similar as above: Simplified explanation:
https://forums.moneysavingexpert.com/discussion/2560009

Also, have you sought advice from one of the free debt charities about your situation? I spoke with the CCCS who were very helpful. If not, definitely consider speaking with them to ensure all options have been looked at for you.

Hope that helps a little

hattybee

1. Not in Edinburgh Gazette any more – but recorded in the Register of Insolvencies (available online), so if anyone really wanted to find out, they could. But Credit Reference Agencies will take note of your bankruptcy, which will include your current address. And it is possible that your parents may be affected if they want to get credit. But if so, they should be able to sort things out by writing to the Credit Reference Agencies and explaining the situation.

2. Car valuation cut-off point is now £3,000 , so you should be OK.

3. You should be able to get a form from the Accountant in Bankruptcy or from a Money Advice Centre or CAB.

4. In a nutshell and very very briefly:

• Fill in the form and send it with £100 and all requested paperwork to the AiB - get help from CAB if unsure
• Your assets – anything of value that you own – are sold or cashed in.
• If you earn more than you need to live on, you are expected to pay a contribution from your income for 3 years.
• Your Trustee –the Accountant in Bankruptcy in LILA sequestrations – writes to your creditors, finds out exactly how much you owe, and divides any money they get from your assets between your creditors (after paying their own expenses). If you have nothing, your creditors get nothing
• After a year, you are discharged. Your debts are written off and your creditors can’t chase you for payment (with a few exceptions like student loans)

• Good luck!

broxiebear1

hattybea is very helpfull as usuall but forgot to say your assets anything of value above £1000 is what trustee will be interested in and correct me if im wrong but i thought that once your bankrupt your creditors cant chase you for payment click on the link from madamkittys post for aib thats very helpfull too

hattybee

Whilst your Trustee is unlikely to be bothered with low value, non- essential assets – the cost of selling a second hand Xbox or DVD recorder would be more than it’s worth - they can still take stuff worth under £1,000 – like £500 in a savings account or £200 worth of premium bonds.
Your creditors can’t chase you personally for payment after sequestration, but until you’re discharged, any assets you acquire can be taken by your Trustee / the AiB and sold e.g. if your granny dies and leaves you £10,000 in her will before your discharge, you’d have to hand it over to your Trustee. After your discharge, you’d be free to do what you want with the money (I’d recommend a long holiday!) and your creditors would have no claim on it (though you could always send them a postcard).

laura-19851

Thank you so so much to everyone who took the time to reply!!

I will pick up a form from the CAB tomorrow. My main big big concern is my parents finding out. I'm unfortunately not able to talk to them about this and need to be sure they won't know about it

Don't know what to do about the car though. Should I sell it & get a new one before I send the forms off?

Finally - I work different hours each week (between 24 & 35) so my monthly wage is always different. How much should I say I get income? The amount it would be at very worst or the average?

Thanks again x

broxiebear1

laura-19851 wrote: »

Thank you so so much to everyone who took the time to reply!!

I will pick up a form from the CAB tomorrow. My main big big concern is my parents finding out. I'm unfortunately not able to talk to them about this and need to be sure they won't know about it

Don't know what to do about the car though. Should I sell it & get a new one before I send the forms off?

Finally - I work different hours each week (between 24 & 35) so my monthly wage is always different. How much should I say I get income? The amount it would be at very worst or the average?

Thanks again x

ok first thing to do is STOP WORRYING i dont think selling car and getting another is a good idea , as your going br lila i dont think you might have to pay an ipa your trustee might ask you about your soa
mine went through soa with me in the end he asked me what i could afford to pay i gave him a figure and he was happy with it.
but i didnt go br lila . cant you make an appointment with cab or money advice think there called moneymaters now thats what i done they were brilliant filled in forms and helped me with any questions i had . i was same as you all the questions stress what if that and what if this when i went br in jan.
best advice i can give you be HONEST and STOP WORRYING
BROXIE XX

southgrange

They take all Premium Bonds no matter the value...my £5 one was taken which was bought for me as a new born baby 35 years ago

hattybee wrote: »

Whilst your Trustee is unlikely to be bothered with low value, non- essential assets – the cost of selling a second hand Xbox or DVD recorder would be more than it’s worth - they can still take stuff worth under £1,000 – like £500 in a savings account or £200 worth of premium bonds.
Your creditors can’t chase you personally for payment after sequestration, but until you’re discharged, any assets you acquire can be taken by your Trustee / the AiB and sold e.g. if your granny dies and leaves you £10,000 in her will before your discharge, you’d have to hand it over to your Trustee. After your discharge, you’d be free to do what you want with the money (I’d recommend a long holiday!) and your creditors would have no claim on it (though you could always send them a postcard).

hattybee

You’re allowed to keep a vehicle which is “reasonably required” by you with a value “not to exceed £3,000”
So if you’re confident that your car, which you need to get to work, is worth less than £3,000, you might as well keep it (check value on-line or at friendly local garage)
You need to send in your last 3 wage slips with your application, so they will see that your monthly wage varies. Add a note explaining that hours vary and whether this is temporary or seasonal or whatever.
Get help from the CAB if you’re not sure about the questions on the application form.