Facing bankruptcy, need some advice

sunnymamma

My husband and I are both needing to file for bankruptcy. We were using a debt management company but when our circumstances changed we could no longer afford to pay and they said we don't qualify for a DRO, can't afford £200 per month for an IVA so only had bankruptcy as an option.

I have taken advice from national debt line who have also said the same.

The problem is we just don't know where to start, we were told to print off the forms to complete and take to court which we have printed.

I just don't know what will happen when we go to the court, what happens with our bank account and wages? As our rent is upto date and I'm scared that they will freeze our account so we are unable to pay our rent.

We have a small baby and we don't have anyone to help so will have to take baby with us, does anyone know if this is allowed? Would we just have to take turns to go?

I have a car, worth about £400 which I use as we have a lot of hospital appointments for me and baby, but my husband is going to learn to drive so he can get another job, most jobs he apply for require someone who can drive and where he works his wage is very low so we are in a catch 22. Will the OR take our car?

We need to go this week really and get it started, but our next rent is due 1st Feb and I don't want to not pay it.

If anyone has gone through this who rents privately and could explain what will happen that would be great.

sammie28

Hi Sunnymama, have you had a look at Fermi's sticky. There is alot of useful advice and explanations of what happens. I'm filing for BR on Friday, we rent too. The first thing i would say is open a basic account with no overdraft or cheque book. I have just opened a Barclays account and explained about the BR, they said the account will not get frozen or closed. I have set up the direct debits and had all income sent to that account. The card and pin came within a week. I'm new to all this but i'm sure these lovely people on here will be along soon to offer you advice. (They know what they are talking about)
I just didn't want to read and run. Hope it all goes ok for you x

alastairq

Hi..as sammie says above, also try Co-op bank...open a Cashminder account [better to open two, or three.... in fact....one each....I'll explain later] Co-op Cashminders have full internet access, which is useful.
As these accounts will be used for day-to-day living expenditure, the OR will have no 'interest' in them. The Bank will not freeze them as a result of the BR either,.

There is no real rush to petition for BR.

The day at Court is the final thing to do, not the first.




Make sure you have enough to pay all essential bills, like rent, CT, leccy, etc.

Check your rent agreement for any reference to bankruptcy.....if in doubt, talk to your landlord, tell them what you intend...most are fine with BR...as being BR doesn't mean you have no money to pay....in fact, it means exactly the opposite.
The OR may contact your LL to enquire of any rent arrears owing.

This action might be avoided if you can show the OR you have been paying the rent on time, each month.
[bank statements might show this?]

Regarding the car?

Since your OH is working, it would have been better if he 'owned' the car...however, to get your car exempted as an asset, you need to demonstrate to the OR you 'have a need'. [See the stickies for criteria?}

If you can do the above, then your car [given its value] would be exempt as an asset.

If not, then the OR would look to either take the car.....or perhaps offer to you the opportunity to purchase the OR's interest in the car.

The value of the interest is bottom-line market value...in your case, scrap value. Make an offer to buy the interest, starting at just below scrap value.....see if the OR agrees? [It will cost the OR to engage a contractor to remove the car, sell it or scrap it... with what's left going into the BR estate...the OR might get a bit more if you purchase the interest?]

Whilst direct running costs may not necessarily be claimable on the two SOA's...transport costs [OH getting to work, etc etc] are claimable.

The Court is a family Court......by all means take the baby! Often it is simply a case of turning up [optional]..paying the fees [double lot for you, I'm afraid]....having the forms checked [as individuals].....and sitting around waiting for a short time.

Then, once it's all stamped-up....a quick chat with the local OR [who will ask about the bank accounts, etc]....followed by a trip to a really nice Macdonalds, or coffee shop, to give yourselves a nice treat [cream cake, perhaps?}?


To explain having two or more bank accounts?

This is to enable you to budget/control your finances better.

Simply, one bank account receives income.

Another bank account is for payments, rent,CT, all fixed essential payments, insurance, etc....DD's and stuff.

This account isn't touched at all otherwise.

Simply pay necessary amounts into the second account from the first [each month, perhaps?]..or whenever cashflow allows.

Then, any that is left in the first account goes towards day-to-day purchases, etc.

There are no limits to the number of bank accounts or savings accounts a BR can have.

alastairq

oh, I forgot to ask....



Do both of you really need to petition BR?

In whose name are the debts?

luvchocolate

great advise above as usual, all I would add is to call your court first as the busy ones will need you to make an appointment.

sunnymamma

Yes sadly we both do. My husband had a large loan before we were together and was paying £400 per month. I was married before, very foolishly put money into a house with my ex that didn't have my name on. He was abusive and when I finally left he went AWOL he changed to locks, ran off and stopped paying his mortgage so I couldn't get what was owed to me. Basically I had documents to prove what money I had put in so he had to pay me. Anyway the house was reposessed and I cut my losses just thankful to get away from him. A year later I had a debt collector at my door, which shook me to the core, I've never had any type of debt before. To cut a long story short hes somehow deceived me into signing something that puts me jointly liable to a secured Loan he took out on the property. I fought through the financial ombudsman for 18 months with the bank in question and got no where. I was taken ill early in my pregnancy shortly after so signed upto a debt management company to speak to them on my behalf, because I was in hospital 8 months and unable to work I could no longer pay anything and neither could my husband so were now at the point where only my husband works, I was an accountant but it's hard to find work when you're looking at bankruptcy and the wages I'm being offered are less than the nursery fees. So in answer we both have to go bankrupt, it would be so much easier if it was only one of us.

whichwhydoIturn

Sunny I didn't want to read n run
I just wanted you to know that there will be someone along who will be able to give you answers
I'm facing the same this year
With the exception of the beautiful baby our stories are almost identical :eek:

tigerfeet2006

Here's the first thing to read and it has the downloads you need.
https://forums.moneysavingexpert.com/discussion/1056083

The car you will need to show the OR how it is an essential and not a luxury. So how are the buses and how much do they cost? Do they run when you need them? How much will taxies be? Get all your ducks in a row.

Ask as many questions as you need and read all you can on the board, read, read and read some more, even if you don't think it applies to you. Ask questions and read.

Teen_the_Drama_Queen

Blimey sunnymamma, looks like you've had a tough few years Hopefully, now you've decided to both go BR, things will get easier. Keep posting on here with any queries, there are some lovely people on here and you get great advice. Going BR is a tough decision to make, but once you start the process, things do get a lot better and you can start to look forward to your future together. Try not to stress over things (easier said than done, I know), but if you have any questions, just ask on here, someone somewhere knows the answer and has probably been through your exact situation. It's good to know you're not alone :beer:

Mazza176

My husband and I are going through the same process as you!! We contacted Step Change (formerly CCCS) and they have been extremely helpful.

My Daughter rang them for us as I couldn't face speaking to them myself and they answered any questions we asked them. We are now at the stage of completing the forms - it has taken us since October to save up the funds but I did write to all of our creditors to advise them of our financial situation and what was happening.

Some of the Creditors have been OK, but others seem to have ignored the letters sent to them and have constantly sent out Default Notices etc. Step Change advise to ignore all of these but it is very difficult to do so!

We did open a cash card account with Barclays and stopped all monies going into our other bank account (as advised by Step Change). However, we had to be careful not to mention "Bankruptcy" at the time of opening, as the staff at one of their branches flatly refused to entertain us. Also, if you have any debts with Barclaycard, they have the right to take money from any current account and use this to repay any arrears, so I am careful to keep very little in the account at any time.

Just waiting to finalise things now and then try to present our petition at the end of the month and then hopefully have this weight lifted off our shoulders, so hope things go OK for you too!