Living Through Bankruptcy

MTDancer

kepar wrote: »

We take a lump sum out at the beginning of the month and use this to live on for the month. We pay cash for everything, so if you did that would the OR want to see all your receipts. Somehow I do not think so.

We do that also. I have nothing to hide - I just don't like having to account for every penny I spend

Grandadto2

I sometime feel prisoners have more freedom. What's next - will they start and ask for proof of spending from those on benefits who are not bankrupt?

alastairq

I get the feeling something about BR is being lost in the translation?

BR does not simply mean a method of disposing of one's debts.

By the very nature of BR, it means completely handing over one's financial and property affairs to a Receiver.

In other words, the Receiver has control over everything you own, everything you earn..in order to deal with the debts equitably.

In practice that means a Receiver recognises the debtor has to live, and has to continue to earn....the Receiver recognises that certain 'assets' are best left alone, or will not be worth attempting to realise.

To this end, the Receiver has guidelines to assist with decisions.

When all investigations are done and dusted, then the debtor is discharged.

If you like, the above is the 'penalty' that accompanies BR.
Some, perhaps due to their work, nature of income or whatever, may have to provide the OR with more in-depth information than others.

However, consider this...in return for the inconvenience, one's debts are lifted.

Unlike prisoners...or those 'on benefits', dealings with the Receiver are subject to mutual agreement...in other words, cases or arguments can be put forth, as needs be......for or against an action.


If agreement cannot be reached, then the only re-course, for both OR and BR, is to allow a Court to decide, based on the evidence provided by both parties.

The Court is an arbiter

Not a weapon used by the OR..[or a creditor..or anyone else, for that matter] to emphasise a pre-ordained decision.....

Don't forget, the BR has used the Law as an equally effective weapon against those that beset us?


As for the 'proof of spending?'
well, it wasn't too far off that for benefits at one time.....tokens, for example? Did they not 'control' spending?

alastairq

seems to me your beef is with the legal system , and Government....not the individuals who post on here.


When an individual comes on a public forum as specific as this one, seeking advice, or pointing towards some sort of solution, then that individual risks reading facts they do not want to 'hear'.

What this particular forum is noted for, is a certain lack of judgemental attitude.

Unlike some of the forums on MSE, for example?


A post such as the last one will inevitably have folk [especially on here] simply leaving you to wallow in the quagmire you find yourself in.

We know the current system seems counter-productive.

We do not defend it.

However, it has always been there...and thankfully for most of us, the OR has come between us and the regulations.

The living allowances on a BR's SOA..that are 'acceptable' to an OR are far more generous than those deemed acceptable by the State for benefits..or indeed, a Court.

On this forum there is considerable, practical experience of how much, and what is..or is not...allowable as a living expense.

There are no do-gooders on here...simply folk who have been there and done that.....dealt with the pitfalls, and suffered accordingly........and one of the pitfalls facing someone about to petition for Bankruptcy is the mind-set.....not realising that changes to life-style, for example, have to occur in order to make the best of the situation.

Up until your last post, there was no clue as to exactly what sort of life-style you live....so your comments are unfair at best.

From your last post, your description of how you live..to me...seems quite normal.......many on here made do with less...including me...at some point of other during recent times.....

As for the gym subscription?

Well...others have posted on the OR's criteria needed to include it as an allowance....if that cannot be met, then costs need to come from within the existing allowances on your SOA.....in the same way smokers have to fund their habit from elsewhere.

Same with running a car!

Your car will be deemed an asset by the Receiver.....it will be up to you to present evidence as to why your car should be exempted as an asset.

There are loads of threads on here detailing exactly what arguments will support the BR's case for car exemption...[and, importantly, the running costs included within the SOA]

If the BR's argument is weak, then the car is treated as an asset......this does not means a BR cannot have a car...just means that the vehicle's running costs cannot be included in the SOA...and the OR's interest in the car may have to be purchased.

If all this seems unacceptable to you, then maybe BR isn't the route you need to follow, to deal with your debts.

kepar

As it stand this month im £450 short on my expenses from my saliery thats without spending a penny on myslef for food or petrol in the car to pick my kids up at a weekend.

I don't understand, you are not bankrupt only thinking about it. so how are you £450 down on your expenses.

You are right that any extra you do will go to the OR, but if you are not given an IPA during the year you are bankrupt , once you become discharged you can earn what you want.

freddy911

kepar wrote: »

As it stand this month im £450 short on my expenses from my saliery thats without spending a penny on myslef for food or petrol in the car to pick my kids up at a weekend.

I don't understand, you are not bankrupt only thinking about it. so how are you £450 down on your expenses.

Quite simple, from my saliery im 450 short on my expenses, (rent, utility bills, loan payments etc) Hence why im here looking at br. Before i even start ive got loans, ccs and hp payments that come to £1350 and a take home saliery of £1800. This has arose from taking a 10k pay cut just before christmas then splitting from my wife around the same time. I've lived in denial for the last few months with everything else thats been going on in my life, but now I have to face facts that BR is probably unavoidable for me. An IVA wont work as I have a mortgage on a house we carnt sell even at break even then a 22k secured loan ontop of this.

Is there any where I can calculate my allowed expenses to see if an IPA would be likely?

evenasus

I believe this is what you need.

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

philnicandamy

Fill in the SOA calc as suggested...figures what you pay NOW

and if after all this your left with £20 or more per month after living expenses then the receiver will take from you for a total of 3yrs or shorter if your circumstances change