I need Help Understanding Bankruptcy

sonic55_2

Let me get this right:

1. Re free Advice. Note what I said: "The free services you mention in the links are of course extremely helpful". Of course free advice from CAB etc is good. Advice should be obtained from all these sources of free advice. Why though should we discount advice from professionals such as IP's and insolvency lawyers, particularly if these individuals will give you the benefit of free advice and guidance when you meet them.

2. Re CAB. I refer back the very first post where the poster specifically asked for sources other than the CAB. I am not advising the poster to avoid the CAB. I gave a response to the specific question by suggesting IP's and insolvency lawyers. This is one source only and they should be considered alongside the other free services and organisations. Are IP's and insolvency lawyers to be discounted entirely merely to encourage advice from free sources, or is it not prudent to seek advice not only from the free sources but also from the professionals.

In more difficult trading bankruptcies (such as landlords or publican's etc), I think it would be foolish to discount advice from IP's or insolvency lawyers. Would the CAB advise fully on issues such as premises licences, preservation of premises licence, time scales in which to deal with premises licences, trading insolvencies, management & trading agreements, TUPE, termination of employment contracts, asset sales, licences to occupy, lease obligations, use of intellectual property, set off, distraint, execution, appications under section 314, annulment applications tied in with exit into a voluntary arrangement? All of these points need very careful advice and strategy. Should we therefore discount the IP or insolvency lawyer? I would suggest not.

3. Re IP's having a "vested interest". This is true in many cases, although definately not in all. I know of many IP's who have seen clients and given them advice that is not "beneficial" to the IP's business and have advised the debtor to pursue alternative debt relief procedures. They are after all officers of the court and should act appropriately. [I am sure that this comment will open a can of worms so for the record please note that I am not an advocate of the IP].

4. Re early discharge - the statistics show that 45% of bankrupts get early discharge within approximately 7.5 months of the bankruptcy commencing. Granted, there is no right to early discharge and each case is dependent on the facts [as I said earlier]. Given the cuts in the IS, it may be that fewer bankrupts get early discharge. We need to remember though that bankruptcy figures nationally are down this year and I suspect therefore that the 45% early discharge figure will remain.

5. Re cost of bankruptcy - I have acknowledged an error. I was thinking of the cost of engaging an accountant to assist with the petition and statement of affairs on a trading bankruptcy. I agree that the free advice providers can assist with this also. Again, I acknowledge the error.

Let's not forget my main point though in response to the poster: Why spend £700 doing a debtor petition when a creditors petition could still get you bankrupt and save you having to struggle to get the £700 together.

Look forward to your responses.:)

Ineedaname

IPs may give free advice initially, but they are in the business of making money from their knowledge and experience so may well encourage a further (charged) visit. The majority of us on this forum have petitioned our own BR without the need to pay anyone to help us do so. So we generally only advise seeking guidance and assistance from the totaly FREE sources, of which the CAB is only one.

So the OP has been given alternatives to the CAB which they will never be in danger of having to pay for.

sonic55 wrote: »

Let's not forget my main point though in response to the poster: Why spend £700 doing a debtor petition when a creditors petition could still get you bankrupt and save you having to struggle to get the £700 together.

Because the stress of continuing to be chased for debts until such time as a creditor takes that leap is far greater than the pressure of petitioning for yourself and therefore reducing the stress. It can take years of letters, threats and CCJs before a creditor will make someone BR as it costs them a lot more than £700.

Do you truly think that is considerate advice? To suggest someone just sits and waits it out because eventually a creditor may make the move for them?

philnicandamy

and if you think a creditor will take bankruptcy procedings against the OP rather than the OP paying themselves your sadly mistaken

A creditor pays much much more to start bankruptcy procedings thats why they'll NEVER do it not saying they'll threat but thats a different story

sonic55_2

what if you haven't got £700?

philnicandamy

sonic55 wrote: »

what if you haven't got £700?

then there are ways through various charity options...although most take the cash they used to pay to creditors save that & use instead

another way is some people will sell household goods to raise funds as well

dojoman

sonic55 wrote: »

what if you haven't got £700?

Have a look here:)


https://forums.moneysavingexpert.com/discussion/1167839