Bankruptcy help please

tomterm8

SimoneT wrote: »

IPO? Sorry, as I said never had to deal with this sort of thing before

A payment order that requires them to repay part of their disposable income (normally) up to three years after bankruptcy.

No one can say how much money the OR would reclaim; what you would recieve would be a pro rata proportion of the money the OR recieves after any fees the OR levies. The phrase "not much" would come to mind. Bankruptcy normally comes into play when the debtor simply can't repay more than a very small percentage of the loan.

If your friend DOESN'T report the loan, any proceeds from the sale of the car your friend repays you would look like a gift to the OR and might trigger some nasty court orders.

It might be a good idea to go to the CAB and discuss it with them in person.

gettingitsorted

SimoneT wrote: »

Thanks wherediditallgo.

To say that I am more disheartened than ever would be an understatement. I am currently unsure when our friends are planning to declare themselves BR, this might still be some way off. Perhaps there is time yet for them to sell the car and give us the money if they are not going BR for some time? Anyway, as you say, we probably won't be getting any of this back.

Now you have all this information to hand Simone maybe you should be very frank with your friends and explain exactly what position you would be in .

SimoneT

Thanks All. Very useful advise and insights. I will take some time tonight to write all these points down (so as not to forget anything) and then go through them one by one with our friends. It's a great shame that we have to do this to them, but then they have put us in a very awful position. Thanks again to you both for your advice.

wherediditallgo

SimoneT wrote: »

Thanks wherediditallgo.

To say that I am more disheartened than ever would be an understatement. I am currently unsure when our friends are planning to declare themselves BR, this might still be some way off. Perhaps there is time yet for them to sell the car and give us the money if they are not going BR for some time? Anyway, as you say, we probably won't be getting any of this back.

If it's not going to happen for ages yet (if at all), then they should sell the car now. You've got more chance of getting the money & keeping it now in those circumstances than you will have after they've been declared. Some courts allow people to present their petition & get seen the same day, so you don't want to find yourself in a situation where they suddenly decide to do that leaving you with no options.

This friend has said they'll sell a car then give you child benefit/tax credits etc to pay the rest. No matter how much you're owed the money, you'd feel bad about taking their child benefit in particular as payment towards the debt & if they said they couldn't give it one week because the children needed shoes etc, you'd find it awkward to argue about it. If they sell the car now & repay you before going BR, especially if it's going to be several months before they go BR, they should leave you off the creditor list so that the OR can't ask you for the money back. At least there's then a chance of you getting to keep whatever money they've given you. You will unfortunately probably have to depend on them to do the right thing for you to get the balance at a later date.