Is it worse if a company applies for you to go Bankrupt?

nknash

Hi,

I have been trying to get some advice re my brother and his outstanding debts and have many helpful replies so hoped you could all help me with this also.

My brother has an IVA if he was to not make the payments on this I am led to believe that the company my file for him to be made bankrupt. If this happened is this any worse/different than if he were to apply for this himself?

Thanks!

Bakeybadoo

It is viewed differently, it still has a certain stigma attatched to it, compared to self-petitioning for BR, for some strange reason.

Of course if a company makes him BR, he doesn't have to pay the £485 fees.

It would show on his credit file as BR either way so how it's done, regarding that, would make no odds.

Jonto_3

Bakeybadoo wrote: »

It is viewed differently, it still has a certain stigma attatched to it, compared to self-petitioning for BR, for some strange reason.

Of course if a company makes him BR, he doesn't have to pay the £485 fees.

It would show on his credit file as BR either way so how it's done, regarding that, would make no odds.

I don;t think it would be viewed differently. The only people who would know the difference is you, the creditor, the judge who makes the order, the OR and the Trustee.

The last two see it all the time and wouldn't be bothered and judges are idiots and don't know what day of the week it is.

rog2

I definitely think that you are treated differently if you are petitioned for bankruptcy by a creditor. My OR asked me why I did not 'self-petition' and whilst she appeared to accept my answer - that I would have self-petitioned but could not afford it - she did not give me a direct answer when I asked her if I would be treated any differently.
Other threads on this forum would appear to concur with my opinion - however, that does not mean that I feel that self-declaration is, in any way, a ticket to an 'easy' bankruptcy. It is just the way things happen.

Bakeybadoo

Jonto wrote: »

I don;t think it would be viewed differently. The only people who would know the difference is you, the creditor, the judge who makes the order, the OR and the Trustee.

The last two see it all the time and wouldn't be bothered and judges are idiots and don't know what day of the week it is.

I think you have to be in that position to be able to accurately comment. As rog did above.

I know people on both sides (including my OH) and there is a difference sadly.

wherediditallgo

I agree with Rog & Bakey. Technically, there's no difference, & financially it saves the debtor paying the fees. However, it costs creditors a lot more money to make someone BR, & I don't think they take that lightly. One of my friends was made BR by a group of creditors. At least one of them talked about it afterwards, with the result that he couldn't continue as self-employed. He firmly believes that people think it's one thing to go BR, but to leave your creditors to pay for your court action is unforgivable. I suspect the OR has that view too. I know that isn't what happens, but most people don't.

I'd say to anyone that they should petition themselves. That way you stay more in control of court dates, movement of direct debits etc.

Jonto_3

Bakeybadoo wrote: »

I think you have to be in that position to be able to accurately comment. As rog did above.

I know people on both sides (including my OH) and there is a difference sadly.

I disagree. In my experience they are not viewed any differently. In fact, in this day and age i would say debtors petitions are frowned upon my that creds petitions as there seems to be alot of people who jump on the bankruptcy band wagon.

Richard_S

Jonto wrote: »

I disagree. In my experience they are not viewed any differently. In fact, in this day and age i would say debtors petitions are frowned upon my that creds petitions as there seems to be alot of people who jump on the bankruptcy band wagon.

Jonto,

If Judges are idiots, what experience and qualifications do you have to compare with the average judge?

You've evaded a couple of subtle questions, so please answer a couple of direct ones:

Have you ever been declared bankrupt?

What EXACTLY do you do (sell) for a living?

rog2

Jonto wrote: »

I disagree. In my experience they are not viewed any differently. In fact, in this day and age i would say debtors petitions are frowned upon my that creds petitions as there seems to be alot of people who jump on the bankruptcy band wagon.

Please tell us exactly WHAT experience that is.

AlanD_3

Ok... Ok... I'm nieve. I was just assuming that Jonto has been trying to help but that being new he/she wasn't getting the tone quite right.

Perhaps I'm missing something here but is there really a need for the Spainish Inquisition?

Sorry if I've missed something obvious here.

Bakeybadoo

I think if someone keeps saying that in their experience, they know different, people are going to basically ask them to explain how. Especially if they are saying the majority of people who hold the opposing opinion, who've been there and done that, are wrong.

I see nothing wrong with that.