Being forced into bankruptcy, and have no clue, need advice

deepindebtor

I have a debt to a past council, cut a long story short I am due around £2,000. Even though I have offered to pay what I can afford (around £50 a month out of a £200-300 income) they have chosen to no longer reply to me and I must therefore assume are proceeding to make me bankrupt. I know its a low figure but I have NO way to get that money in one lump sum in a quick way, so please don't ask or suggest, I have tried all routes, trust me!

I have some questions, some serious, some silly but all have passed through my mind tonight and maybe someone, who knows more than me (which is zero) can help me out with an explanation.

1) I take it I will have all my bank accounts frozen.

2) I currently am self employed, with very little income per month, so much so that I get working tax credits. Its poorly paid but better than being out of work and doing nothing. I was at least trying to better myself. I work in computers and if I loose my bank accounts I loose all the services, etc that allow me to do my job every day, so that will cease and I will have to sign on as unemployed. With no bank account how will I get any money to live?

3) If I am bankrupt will I loose my phone and internet, I assume I will and my contract mobile. My phone and internet are with Sky, is that a credit account, how do I get a phone? Obviously I can get a PAYG mobile but I live some distance from friends and family so I will loose that vital communication link....I will in effect be cut off and imprisoned.

4) I live in a housing association property and my rent and council tax are currently paid by benefits as I am on a low income, I am not a home owner. What happens to possesions? Does someone come and take everything away? TV, Computer? I don't have a lot more just bed, cooker, no fancy pad with things of high value that could be sold. Where do I stand?

5) What happens to the debts I have, I assume anything I owe to anyone can be taken into consideration. So that will come to some grand total, but what happens then....does that debt vanish, does it just get put to one side and a plan get worked out for re-payment, what?

6) Once someone is made bankrupt, what happens next? When does it end? Or does it never end if you don't repay that grand total?

I know I need to visit a CAB or somewhere, but just some brief replies to my worries would really set my mind at ease, just knowing WHAT happens, even if I don't like the resulting mess, would be at least one step forward.

mazman83

deepindebtor wrote: »

I have a debt to a past council, cut a long story short I am due around £2,000. Even though I have offered to pay what I can afford (around £50 a month out of a £200-300 income) they have chosen to no longer reply to me and I must therefore assume are proceeding to make me bankrupt. I know its a low figure but I have NO way to get that money in one lump sum in a quick way, so please don't ask or suggest, I have tried all routes, trust me!

I have some questions, some serious, some silly but all have passed through my mind tonight and maybe someone, who knows more than me (which is zero) can help me out with an explanation.

1) I take it I will have all my bank accounts frozen.Most likely, the OR will have control

2) I currently am self employed, with very little income per month, so much so that I get working tax credits. Its poorly paid but better than being out of work and doing nothing. I was at least trying to better myself. I work in computers and if I loose my bank accounts I loose all the services, etc that allow me to do my job every day, so that will cease and I will have to sign on as unemployed. With no bank account how will I get any money to live?
You can open a bankrupt friendly basic account with the Coop or Barclays
3) If I am bankrupt will I loose my phone and internet, I assume I will and my contract mobile. My phone and internet are with Sky, is that a credit account, how do I get a phone? Obviously I can get a PAYG mobile but I live some distance from friends and family so I will loose that vital communication link....I will in effect be cut off and imprisoned.

4) I live in a housing association property and my rent and council tax are currently paid by benefits as I am on a low income, I am not a home owner. What happens to possesions? Does someone come and take everything away? TV, Computer? I don't have a lot more just bed, cooker, no fancy pad with things of high value that could be sold. Where do I stand?
Generally the OR will only be interested in things of high value above £1000...I think
5) What happens to the debts I have, I assume anything I owe to anyone can be taken into consideration. So that will come to some grand total, but what happens then....does that debt vanish, does it just get put to one side and a plan get worked out for re-payment, what?
All unsecured debt will fall into the BR
6) Once someone is made bankrupt, what happens next? When does it end? Or does it never end if you don't repay that grand total?BR lasts for a year, unless early discharge is given. The BR will remain on your credit file for 6 years.

I know I need to visit a CAB or somewhere, but just some brief replies to my worries would really set my mind at ease, just knowing WHAT happens, even if I don't like the resulting mess, would be at least one step forward.

If I am not mistaken you will need to be served with a Statutory Demand before BR proceedings take place.

Have a read through this first as it will answer most of the questions
Look here first - Bankruptcy Help: Important topics, factsheets and links

IF

Hi deepindebtor, mazman83 has answered most your questions please do contact one of the debt charities for further advise too. Here are some links that may help too.

* Blue text on this forum usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111

Others:

• Business Debtline
  - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

BR friendly home insurance thread.

BR Friendly bank accounts sticky.

BR Abbreviations

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB

If you are new/old to this board and receive/see a comment that is not helpful or insensitive please don’t let it put you off posting, often these comments are made by people who don’t normally contribute to this board and don’t speak for us.

What to do if you get an insensitive or hurtful comment.


And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.


Best wishes
If...x

Depth_Charge

deepindebtor

What is the debt for?

Why do you assume the council is going to proceed to make you bankrupt?

It will cost the council around £1300 to make you bankrupt plus possible solicitors costs / fees etc if there is an adjourned hearing or two along the way. If you have no assets then it seems odd that they will (not saying they won't though)

Can you give us a bit of background to the debt?

If the debt is old council tax arrears the LGO link below might also be a useful read along with what other posters have put.

http://www.lgo.org.uk/publications/fact-sheets/complaints-about-bankruptcy/

endora

deepindebtor wrote: »

I have a debt to a past council, cut a long story short I am due around £2,000. Even though I have offered to pay what I can afford (around £50 a month out of a £200-300 income) they have chosen to no longer reply to me and I must therefore assume are proceeding to make me bankrupt. I know its a low figure but I have NO way to get that money in one lump sum in a quick way, so please don't ask or suggest, I have tried all routes, trust me!

What makes you think they intend to make you bankrupt? It would cost them most of the two grand you owe them to make you BR and there's no guarantee they would recover anything if you don't have enough assets.

Before anyone can petition your BR they'll need to serve you with a Statutory Demand. They can't petition without taking this step. One thing councils may do is send bailiffs round.