Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

woodforthetrees

StepChange_James wrote: »

Hello,

At the moment it sounds like your income from your business is consistent with the figures the Official Receiver (OR) used to decide that you shouldn't go on an Income Payment Arrangement(IPA). So it sounds like there's no issue as things stand.

If your income was to be consistently higher than the amount you agreed with the OR then it would be worth calling your OR to explain that your income is now higher. This might not automatically lead to an IPA as your outgoings may well have gone up too and it might still be the case that you've not got any spare income to pay towards debts.

My understanding of these things are that they'll base the IPA on your income rather than what your income might be. Obviously these things are easier to work out for people with a fixed income but the OR should be able to guide you on this.

If you've any concerns it is probably best to call your OR's office to clarify things with then, then you can be happy that you've given them all the information they need to make a decision on this sort of thing.

Kind regards

James

Thank you - my case has recently been handed over from the OR to the IP and I've been told I need to deal with them now, but I am a little less trusting of them.
I'll definitely contact them should my earnings go up again. If they don't, until after the first year end, then does that suggest that I won't get an IPA in year 2?

StepChange_James

woodforthetrees wrote: »

Thank you - my case has recently been handed over from the OR to the IP and I've been told I need to deal with them now, but I am a little less trusting of them.
I'll definitely contact them should my earnings go up again. If they don't, until after the first year end, then does that suggest that I won't get an IPA in year 2?

Hello,

The important event is the point you get discharged from bankruptcy. If you've not got an IPA in place at the point you've been discharged then you shouldn't get one afterwards.

Discharge usually happens after a year, providing all the bits and pieces that the OR/IP have to do have been completed and the case can be put to bed.

Kind regards.

James

rcuj

Hi

I just started a thread about this then saw this thread, apologies for the cross posting but thought I might get an answer here faster.

Am considering going br soon. Would like to know just how much cash (if any) the OR will let me keep for emergencies. Have tried to find the answer by looking on here and Google but can't find it.

Specifically, I rent, and need to keep c£1500 put aside just in case I need to move due to unforseen circumstances.

Would the OR allow me to keep that?

Thanks

sparkiedave

Hi Folks,
I've been considering Bankruptcy for a while now, after a relationship breakdown where my ex managed to consistently spend more than I could earn, one of my creditors is the Inland Revenue, I am hoping that they might make me bankrupt as I can't seem to raise the funds to do it myself.
One of the things I have read is that they do not take the items essential to your business unless there is nothing else of value,
I have my van, tools and pretty much nothing else of any value (even my van is worth about £1500 on a good day), where do they draw the line on what is worth taking??

StepChange_James

rcuj wrote: »

Hi

I just started a thread about this then saw this thread, apologies for the cross posting but thought I might get an answer here faster.

Am considering going br soon. Would like to know just how much cash (if any) the OR will let me keep for emergencies. Have tried to find the answer by looking on here and Google but can't find it.

Specifically, I rent, and need to keep c£1500 put aside just in case I need to move due to unforseen circumstances.

Would the OR allow me to keep that?

Thanks

Hello,

Thanks for posting.

These decisions are usually made by the Official Receiver (OR) appointed to deal with your bankruptcy. While they do have a degree of flexibility and will consider circumstances, I think it's going to be unlikely that they'd allow you to keep £1500 in case of emergencies.

It's more likely that they would see this as an asset and distribute it between your creditors.

It sounds like the money would be kept for a just in case, but if you're expecting to need to move soon it may be better to go bankrupt after you've moved.

Kind regards

James

StepChange_James

sparkiedave wrote: »

Hi Folks,
I've been considering Bankruptcy for a while now, after a relationship breakdown where my ex managed to consistently spend more than I could earn, one of my creditors is the Inland Revenue, I am hoping that they might make me bankrupt as I can't seem to raise the funds to do it myself.
One of the things I have read is that they do not take the items essential to your business unless there is nothing else of value,
I have my van, tools and pretty much nothing else of any value (even my van is worth about £1500 on a good day), where do they draw the line on what is worth taking??

Hi SparkieDave,

The guidance I've got on this says that they wouldn't usually take:

'such tools, books, vehicles and other items of equipment as are necessary to the bankrupt for use personally by him in his employment, business or vocation’

The other side of this is that they'll use their judgement to make decisions on whether an asset should be sold. As an extreme example, they'd probably not be happy if you said you needed your antique Chippendale chair for business because you sat on it to fill out your tax return.

The short answer to your question about the line drawn is that it's quite blurry and depends a lot on your circumstances. Generally the Official Receiver (OR) will consider whether it's worth selling an item, will it be impractical to sell and is it fair to let you keep it.

Kind regards

James

mageis59

Hi, there are companies out there that will help with the cost of bankruptcy - I applied to EDF when it happened to me and they gave me a big chunk towards it - not really sure who else can help but I spoke to CCC who gave me the names of who to appy to. Good luck.

Hello,

Thanks for posting.

PPI refunds often are often paid towards the debt they were taken out with. Here's a link to an article about setting off, which refers to all debts, not just PPI refunds but still applies to them: .

It would probably be best to put together a brief letter of your own just to explain that not giving you the PPI refund would cause you hardship.

Using this money to fund the bankruptcy fee sounds like a reasonable idea to me, I can't really see how it would be fraud.

Hope this helps.

James[/QUOTE]

mageis59

Hi, there are companies out there that will help with the cost of bankruptcy - I applied to EDF when it happened to me and they gave me a big chunk towards it - not really sure who else can help but I spoke to CCC who gave me the names of who to appy to. Good luck.

StepChange_James

mageis59 wrote: »

Hi, there are companies out there that will help with the cost of bankruptcy - I applied to EDF when it happened to me and they gave me a big chunk towards it - not really sure who else can help but I spoke to CCC who gave me the names of who to appy to. Good luck.

Hello,

There's a thread on this board with a useful list of organisations that can help with bankruptcy fee funding: https://forums.moneysavingexpert.com/discussion/4279781

Thanks

James

thisthingsdraggingmedown

I don't know if this is the right place to put this, I have just had a knock on my front door, and a lady asked for me by my full name and then gave me a statutory demand for outstanding vat and fines etc total approx. 18k. I still do bits of work as self employed but there is no way I can pay this off. I don't even own my own home and live with my partner and children. I don't know what to do even though I have been expecting this day to come for such a long time. at this precise moment I feel like im going to throw up.