So what happens now. 2 questions

GOODLIFE_NOW

Good site this, it is worth potential BR keeps a eye on these boards as they do offer a lot of infor.

Anyway:

1. I went BR in March , purposely did it then as had just gone on to benefits. OR said they would recommend ED but it hasnt been granted. Case passed over to RTLU in stoke because i have a mortage but neg equity, i rang them in August they said , case filled till March when automatic discharge comes through and they will keep a eye on property for approx 3 years, they did offer me the opportunity to reinvest - chose not to due to a lot of negative equity.
I do think if i had they may have done the ED then.
They said I had nothing to be concerned about .

They also said they are not following through the recommended ED's due to having a huge backlog.

So far my BR has been a breeze, following the interview (telephone) with the OR, ive not heard a dickybird. So should i expect to show them something near to the date of AD ie bank statements to show my income/expediture etc, it seems very loose if im honest, i could have been working and they have made no attempt to check.
Def not what i had expected- i would have thought more ongoing checks , it appears they take a lot based on the BR being honest .

2. Mortage costs are met currently with the DWP, so mortage is up to date, however do have a secured loan, which ive not been paying, i have been waiting for a application for a court order, simply because i will get a better deal in the CC than with the lender who are endeavour, case was passed to restones but when i went BR he passed it back to Endeavour, has anyone been pursued for repossession for non payment of a secure loan when huge negative equity, my thought process would be my first charge would object and if possession was ever given , the secure company would not receive a bean and the first charge would be placed into a unfavourable position as well, and when the asset had gone , those debts would be coupled in with my former BR.

Opinions greatly received.

silvercar

1. If you were working, you have to notify the OR within 21 days.

If you were dishonest you risk getting caught and your discharge being suspended.

2. If the secured loan went for repossession, they wouldn't get a bean and the loss would fall into your bankruptcy.

Is your long term aim to keep the property? If so you will have to address the loan at some point.

GOODLIFE_NOW

I didnt say i was being dishonest or intended to be - my question was, would anything now be required that i would need to evidence for my AD.

It was a opinion i gave about being a bit of a breeze , i expected a lot more scruitiny if im honest esp re income and expenditure.

i am on benefits and am addressing the secure loan on the property, im hoping to find work soon, difficulty i have had with the secure loan , is the lender who are endeavour have acted inappropriately on many occassions and because it is a a loan pre 2006 FSO can not act for me . something to do with being regulated or not - ive forgot.

i was intrested in if anyone had been through something similar.

Im fully aware of informing the OR of any changes and am aware of actions if you dont.

GOODLIFE_NOW

silvercar wrote: »

1. If you were working, you have to notify the OR within 21 days.

If you were dishonest you risk getting caught and your discharge being suspended.

2. If the secured loan went for repossession, they wouldn't get a bean and the loss would fall into your bankruptcy.

Is your long term aim to keep the property? If so you will have to address the loan at some point.

i understood a BRO is put in place for dishonesty and normally 15 years for undeclared income.
Not suspension of AD.

kepar

31.7.89 Payments to additional secured creditors

(Amended April 2011)

Where there are additional secondary secured creditors the official receiver should take into account all payments to be made. Where there is no equity available to secondary charge holders, the official receiver should not include any payment to these creditors in an income payments calculation as there is no enforcement action that can be taken in respect of these debts as the asset is already fully charged, and as, in effect, the secondary charge holder is an unsecured creditor, any payment to it could be considered to contravene the provisions of section 285(3) of the Insolvency Act 1986.

Ineedaname

I believe a BRO is different from suspension of discharge. A BRO extends the restrictions of the BR but discharge itself can still go ahead. So you could be a discharged BR and start to rebuild your life but still have certain restrictions place on you as to how you conduct yourself in your financial affairs - something like that.

A suspension of discharge means you would continue to be BR for a longer period and unable to start rebuilding your credit records.

I'm sure someone will be along soon who can explain it properly.

As far as the OR 'checking up on you' is concerned, they are short staffed and have plenty of admin to do without checking up on BRs every couple of months. So, yes, a lot is based on trust, however, the penalties are there for anyone who abuses that trust and people DO get found out.

You will probably receive an IPOQ to complete shortly before AD, just to see if there's a chance of setting up an IPA before you're discharged. It's fairly standard practice.

andyf1980

Good point INAN. I was looking through my BR paperwork the other night and came across the consent form for HMRC to provide details to the OR. I think they'd cotton on pretty quickly if you started working and didn't declare it.

philnicandamy

Ineedaname wrote: »

I believe a BRO is different from suspension of discharge. A BRO extends the restrictions of the BR but discharge itself can still go ahead. So you could be a discharged BR and start to rebuild your life but still have certain restrictions place on you as to how you conduct yourself in your financial affairs - something like that.

A suspension of discharge means you would continue to be BR for a longer period and unable to start rebuilding your credit records.

I'm sure someone will be along soon who can explain it properly.

As far as the OR 'checking up on you' is concerned, they are short staffed and have plenty of admin to do without checking up on BRs every couple of months. So, yes, a lot is based on trust, however, the penalties are there for anyone who abuses that trust and people DO get found out.

You will probably receive an IPOQ to complete shortly before AD, just to see if there's a chance of setting up an IPA before you're discharged. It's fairly standard practice.

INAN you are indeed correct..BRO/BRU just extends the limitations of bankruptcy the usual telling creditors your bankrupt if borrowing more than £500 etc etc

A suspension of discharge is simply that...this usually happens for NON compliance with the OR meaning your bankrupt till they say so..plain and simple

you probably will receive something before discharge to see if your finances have changed

debtinfo

just to add to what has been said, there are 3 things that can happen

Suspension of discharge - This is where you stay bankrupt until it is lifted, it is usually for non-cooperation and is usually lifted once you start to co-operate again even if you have previously done something wrong, it an administrative work to allow the trustee to complete their work rather than a punishment.

BRO - As said above extends the restrictions post discharge, it is usually but not exclusively for wrongdoing before the bankruptcy, unwise use of credit for instance.

Prosecution - This is usually, but again not exclusively, for wrongdoing during the bankruptcy, for instance not disclosing income or assets, the penalties include, prison, fines, comunity service etc

tigerfeet2006

And as Andy has pointed out Her Maj's Tax Bods and the IS do talk to each other and they will say if you start earning again. You signed a legal undertaking to inform the OR of any changes with in 21 days and are bound by that.

As for the secured loan, if you get a job and have the money to pay it then as has been pointed out you will most likely get an IPA for 36 months and that money will go to the OR.

GOODLIFE_NOW

andyf1980 wrote: »

Good point INAN. I was looking through my BR paperwork the other night and came across the consent form for HMRC to provide details to the OR. I think they'd cotton on pretty quickly if you started working and didn't declare it.

HOW? Your nino contributions dont register for at least two years and tax is approx 3 years.