A few BR questions we need help with!!

sammie28

Hi, we are hoping someone can clarify a few things for us.
After a long struggle with debt, we have decided it's time to petition for bankruptcy. We have been to see the CAB.
What is confusing us is - After filling in the forms and raking together the fees, what do we do? Do you send the forms to the court by post and wait for them to send a letter with a date for the hearing, or do we just take them in and wait to be seen on the day?

Also as we are both not working and only income is benefits, how likely is it that they will make us pay a monthly amount to the debts.

I have read that Budgeting loans have to be paid back as they are non provable debt. But what about tax credit / housing/council tax overpayments? I know they continue to take the money from the benefits you are receiving but is that until it's paid off or just until you are discharged?

Sorry for all the questions just trying to get our heads around it.
Thanks in advance
After thought - When filling in the SOA, do we put all monthly debt payments down that we have been struggling to pay, Or just what we will be paying from the date of BR?
Another after thought - My car is on Hp. Probably worth £5500, but i owe 12,000! How do i deal with this? CAB, said stop paying, so i will of missed a payment this month. I know it's a secured debt, so it shouldn't be included in BR, and that the OR probably won't deal with it cause of neg equity, but what happens if we get the court date before the Hp company reposess. Would the shortfall balance still be included in the BR?

System

Phone court, make an appointment. Turn up a bit early. Hand forms over. Wait for forms to be checked. Hand over £700 (ouch). Wait for court time. See judge (you may not do this bit, depends on the court, but it's nothing to worry about anyway). Answer all questions honestly. Walk away feeling relieved. Wait for Official Receiver to call to sort out interview.

The monthly repayment you refer to is called an IPA (Income Payments Agreement). You will only be given one if the Offical Receiver feels you can afford it. I think if you're only on benefits it's pretty much automatic that you wont get one unless your circumstances change before you're discharged from bankruptcy. Others here will clarify for sure though.

I'll leave the other questions for those who know for certain.

sammie28

Thanks for your help Rang court, they are free all next week!! Just need to sort money for us both! Then ring up and possibly be in the next day. (Scared doesn't even cover it)

tigerfeet2006

sammie28 wrote: »

Hi, we are hoping someone can clarify a few things for us.
After a long struggle with debt, we have decided it's time to petition for bankruptcy. We have been to see the CAB.
What is confusing us is - After filling in the forms and raking together the fees, what do we do? Do you send the forms to the court by post and wait for them to send a letter with a date for the hearing, or do we just take them in and wait to be seen on the day? Already been answered.

Also as we are both not working and only income is benefits, how likely is it that they will make us pay a monthly amount to the debts. As said you will not get an IPA as you are both on benefits. If you start work then let your OR know and they will recalculate. This does not mean you automatically get an IPA as your expenses will most likely go up if working.

I have read that Budgeting loans have to be paid back as they are non provable debt. But what about tax credit / housing/council tax overpayments? I know they continue to take the money from the benefits you are receiving but is that until it's paid off or just until you are discharged? Just until you are discharged. Then the rest is not payable. Though I have a feeling there was something that meant you didn't have to pay anything during BR. Will PM debt doctor for you to clarify.

Sorry for all the questions just trying to get our heads around it.
Thanks in advance
After thought - When filling in the SOA, do we put all monthly debt payments down that we have been struggling to pay, Or just what we will be paying from the date of BR? You put the situation as it would be going forward from your BR ie no debts.
Another after thought - My car is on Hp. Probably worth £5500, but i owe 12,000! How do i deal with this? CAB, said stop paying, so i will of missed a payment this month. I know it's a secured debt, so it shouldn't be included in BR, and that the OR probably won't deal with it cause of neg equity, but what happens if we get the court date before the Hp company reposess. Would the shortfall balance still be included in the BR? Yes it will as it is a debt incurred from before your BR. When you go BR ring them up and inform them and ask them to come and collect the car.

As you are on benefits you can get a rebate on the court fees. You will need letters showing your benefits not dated later than 1 month before your BR date. I'll find a link for you.

tigerfeet2006

Here we go

Court fee remission and forms.

• HMCS - Court fees do you have to pay them? (The form and guidance on completing the fee remission form included). (pdf)
• Example application for a fee remission based on gross annual income - EX160 (Thanks to NE Derbyshire CAB)
• Example application for a fee remission based on permitted benefits - EX160 (Thanks to NE Derbyshire CAB)
• Possible assistance with Bankruptcy costs / fees (Thanks to NE Derbyshire CAB)

This is from the Look Here First sticky. If you haven't read it yet then I would sugest at least reading the first couple of posts.

Have you got your bank account sorted?

sammie28

Thanks Tigerfeet, that helps alot. I'm in the process of opening a basic account just to get income paid into, as i have debts with my current bank. Probably ring benefits and try to get giro payments for a while.
Only thing still confusing me is that when i spoke to the court today, they said to put all monthly payments as they are now on SOA, ie all monthly debt payments should go on.

The SOA (Debtors Petition) i have printed off says "Show your current financial position and supply the required information by completing all the pages of this form, which will then be your Statement of Affairs"

Sorry if i sound thick, just the forms are quite confusing. Luckily i have saved the 'Example' forms to compare.

tigerfeet2006

Sorry got to dash as I have a hungry tribe who want feeding, hopefully someone will reply before I come back after bedtime.

Just out of interest, which bank?

sammie28

Natwest .......

parish1234

Get the bank account sorted pre bankruptcy as a priority, co op are also good and can soemtimes be agreed on the phone.

debt_doctor

Thanks for the PM Tigerfeet,

Your memory is correct, the right to deduct from benefit during BR was lost to the DWP / IR and I think it was the 'Balding case' that brought this about.
So the tax credit / Housing ben / Council tax ben overpayments cannot be collected during BR and will be written off upon discharge.

DD

sammie28

Can anyone advise me on this - Worried about wether we will lose our rented property when we go BR. The tenancy agreement states -
Forfeiture

In the event of any of the occurances listed below the Landlords may re-enter the premises or any part therof in the name of the whole and immediately there upon the tenancy will absolutely determine without prejudice to the other rights and remedies of the Landlords.
(d) If the tenants shall become bankrupt or enter an agreement with his creditors or suffer distress on his goods.

What does that mean?? I'm guessing it means we will get kicked out!
Don't know if it matters but we have never missed a rent payment since taking on the tenancy which is nearly 2 years.