bankruptcy help very worried...

arghhh

ok so once the bankruptcy is filed, we are given allowances based on circumstances, how we spend those allowances is then up to us, he will not check back or do a review?

he can at any point over a 3 year period from the filing of BR ask us to release equity in our property if any becomes available within those 3 years?

assets, we dont have anything i think would be of interest to him anyway so think that area is pretty much sorted.

car i think will be a will have to see what happens thing but be fully prepared to not have the use of a car.

The BR will run for 1 year then that will be it with regards to assets and the SoA? after that the only thing we have to 'watch' is the house and any equity that is changing or not as the case maybe?

after the 1 year is up we can resume a 'normal' ish life and not have the worry of anyone watching us to see what we're spending and where? (again with exceptions to the house which is tied in for 3 years?)

additional debts that have accumulated since the IVA can and should all be included? (gas and elec debt with previous company and the remainder of the years gym membership due)

am i on the right line of thinking now with the above?

debtinfo

arghhh wrote: »

ok so once the bankruptcy is filed, we are given allowances based on circumstances, how we spend those allowances is then up to us, he will not check back or do a review?

he can at any point over a 3 year period from the filing of BR ask us to release equity in our property if any becomes available within those 3 years?

assets, we dont have anything i think would be of interest to him anyway so think that area is pretty much sorted.

car i think will be a will have to see what happens thing but be fully prepared to not have the use of a car.

The BR will run for 1 year then that will be it with regards to assets and the SoA? after that the only thing we have to 'watch' is the house and any equity that is changing or not as the case maybe?

after the 1 year is up we can resume a 'normal' ish life and not have the worry of anyone watching us to see what we're spending and where? (again with exceptions to the house which is tied in for 3 years?)

additional debts that have accumulated since the IVA can and should all be included? (gas and elec debt with previous company and the remainder of the years gym membership due)

am i on the right line of thinking now with the above?

Yes that pretty much sums it up. One thing just to add is that whilst in the IPA as i said they dnt check every penny BUT you do have to report any major changes in your income or expenditure during the 3 years, so your IPA could go up, down, stay the same or stop completely depending on how your circumstances change

debtinfo

its amazing what you learn in 1 evening of asking questions isn't it:D

arghhh

it is amazing what i've picked up on here this evening... Thankyou but i have also learnt what a complete load of tosh companies will tell you!

The only thing i think left for me to figure out is the IPA

from what i can gather if you have any surplus money greater than £20 they take this as your IPA payment for 3 years?.... as you said this can change if circumstances change and you have to inform them of any income or expenditure changes throughout those 3 years

if you dont get an IPA and you are discharged after the year and still dont have an IPA to pay do you still have to declare any changes for the 3 year period.... any winfalls, monies left in will's, hubby's yearly february bonus etc. or if i should return to work (which i cant do for 2 years anyway due to childcare costs) would all these still need to be declared?

is the IPA put in action from the time you go BR or is it when you are discharged?

debtinfo

ok

An IPA can only be started during the bankruptcy, so if you survive until discharge without one then you won't get one at all. The IPA can be started at anytime during the bankruptcy, some near the start some near the end depending on how long they take to set up, The 3 years of the IPA starts counting from when it is first set up not from the date of bankruptcy.

It is important to make a diffence between assets and income.

Assets such as a windfall, money in a will etc need ony be declared and handed over during the bankruptcy itself.

Income including bonus's have to be declared thoughout the IPA as well

arghhh

ah ok so if we should come into money via a will for instance then we would only have to declare that if it was within the 1 year BR period even if we had an IPA running we still wouldn't have to declare that new 'asset' after the 1 year was up?

(i'm asuming that even if you get an IPA the BR still ends after 1 year, you just continue paying the IPA?)

if we escape an IPA then then we don't have to declare any additional income either after the discharge?

(i was told... again by bogus companies... that the BR could be discharged in as little as 6 months is this true or do they always run the full year)

Ineedaname

Wow, loads of information from Debtinfo while I've been off watching TV.

I'm guessing from what Debtinfo said in post #126 that you wouldn't have to disclose any windfall after BR, even if still in an IPA.

Yes, the BR still ends after a year, it's just the IPA that would continue for 36 months from when it was set up.

Yes, no IPA, post discharge, you get full control of your finances back.

It is possible to get an early discharge, but this is a bonus and shouldn't be counted on. Apparently there's been a lot of redundancies at OR offices recently and ED is at the bottom of the list of priorities.

Just wanted to add about a question from earlier. If you have no joy getting a full up to date list of creditors from your IVA company, then just apply for all three of your credit reports. The DCAs will most likely be updating those so you'll have fairly up to date info from that. It only costs £2 each for the Statutory reports.

arghhh

thanks for that, will they list who we owe and what we owe?

will give the IVA company a call in the morning and ask them to send it out if i've not had it by Tuesday then i will request those reports thankyou

am not going to let on that we might be going it alone without their help tho hopefully then they will be quite prompt at sending out the info


Thankyou for answering all the quesitons tonight it has helped me no end and i think i may even get some sleep tonight instead of lying awake mulling it all over in my head! i certainly have a much clearer path now

Ineedaname

If you get all three you should be able to piece together all your debt info for the SOA. Don't worry if you miss one though as all debts accrued prior to BR are included regardless.

Debtinfo has been a stalwart tonight and hopefully you do feel more at ease with the process now. Have a good night's sleep with a clearer head and we'll be here tomorrow to answer any new questions that pop up.

imustbedreamin

just to let you know we have just been asked to get a valuation on our house (nearly 6 months into BR).

it is definatly in negative equity and the or office said it this is the case we could buy back our interest for 1K plus £211 court costs and we would have to pay for a solicitor to act on our behalf.

now obviously this is a ridiculous amount of money to try and find when you are BR but it is an option which is there to get the house back before the 3 yr mark.

im not sure if all offices will act like this but ours did/have.........(valuer arrives today. one step closer to getting the house back:T)