Some questions that I am struggling to find answers to

thegrape

Hi

Unfortunately it looks like I have no option but for me and possibly my wife to go bankrupt. I have been taking advice and the date has been set to go to court with the petition on Friday but, as you can imagine I am really concerned about a few things.

1: I understand this concept of someone buying the OR's interest in our home.

http://www.bis.gov.uk/insolvency/personal-insolvency/bankrupts-home#stop-selling-home

My question is, is it a 'given' that this will be a possibility(if I can find someone) or do I not even get a choice? The impression I get from the article is that this IS an option, but it is so major that I need to know the correct position.

Related to this, can this only be done if only I go BR and not my wife?(we are joint owners)

If we both go BR at the same times, what options are there?

2: I have been told that you get searched when you go to the court and that they will take any bank cards etc.

Will they allow us to keep the two that we use for every day living(a cash card, metro, for our day to day expenses, and a basic card, metro, that we use to manage all direct debits etc?

I will be driving there when we go, will they also then take my car keys?? It's ally worrying.

3: I am pretty sure I have put ALL creditors on the statement of affairs. If after going BR something crawls out the woodwork that I Was unaware of, will this then be wrapped up?

4: We have a deficit with child tax credits which we currently pay back monthly, there was no where to put this in the statement of affairs, are these wrapped into the BR, or are they outside of it?

5: I need to put aside money for SE tax etc as well as saving for birthdays/holiday etc. am I allowed to save money when BR?

Thank you so much- this is extremely stressful

philnicandevan

thegrape wrote: »

Hi

Unfortunately it looks like I have no option but for me and possibly my wife to go bankrupt. I have been taking advice and the date has been set to go to court with the petition on Friday but, as you can imagine I am really concerned about a few things.

1: I understand this concept of someone buying the OR's interest in our home.



My question is, is it a 'given' that this will be a possibility(if I can find someone) or do I not even get a choice? The impression I get from the article is that this IS an option, but it is so major that I need to know the correct position.

Related to this, can this only be done if only I go BR and not my wife?(we are joint owners)

If we both go BR at the same times, what options are there?

2: I have been told that you get searched when you go to the court and that they will take any bank cards etc. nope that dont...usually the receiver will ask for cards when they send a pack of info to you before your appointment to see them

Will they allow us to keep the two that we use for every day living(a cash card, metro, for our day to day expenses, and a basic card, metro, that we use to manage all direct debits etc? possible BUT only a couple of banks will allow a bankrupt basic account so depends really who you bank with

I will be driving there when we go, will they also then take my car keys?? It's ally worrying. they wont dont worry..

3: I am pretty sure I have put ALL creditors on the statement of affairs. If after going BR something crawls out the woodwork that I Was unaware of, will this then be wrapped up? any debt BEFORE bankruptcy you should be ok, one of the reasons the official receiver prints notice in the london gazette then that way anything you forget they can see & contact the OR

4: We have a deficit with child tax credits which we currently pay back monthly, there was no where to put this in the statement of affairs, are these wrapped into the BR, or are they outside of it?

5: I need to put aside money for SE tax etc as well as saving for birthdays/holiday etc. am I allowed to save money when BR? its difficult you are allowed a modest holiday BUT birthdays entertainment etc usually not allowed

Thank you so much- this is extremely stressful

Hiya grape & welcome answered a few questions above I hope that helps...try not to panic it's a pretty straightforward process...have you spoke to a debt charity yet? stepchange national debtline CAB etc? its a question the courts will usually ask


have you done an SOA (statement of affairs) yet ? try filling this in and we can have a look advise you on figures etc
stoozing.com have an SOA calc you can use wont allow me to post links yet otherwise I would

arcon5

1: I understand this concept of someone buying the OR's interest in our home.

My question is, is it a 'given' that this will be a possibility(if I can find someone) or do I not even get a choice? The impression I get from the article is that this IS an option, but it is so major that I need to know the correct position.

I'm sure the receiver would rather you buy the interest rather than have the hassle of selling your house.

Related to this, can this only be done if only I go BR and not my wife?(we are joint owners)

If only you go BR then it would simply be YOUR interest in the property the receiver will seek to capitalise on. This could be by selling your interest to your wife.

2: I have been told that you get searched when you go to the court and that they will take any bank cards etc.

Will they allow us to keep the two that we use for every day living(a cash card, metro, for our day to day expenses, and a basic card, metro, that we use to manage all direct debits etc?

I will be driving there when we go, will they also then take my car keys?? It's ally worrying.

If you get searched it won't be in order to confiscate cards & assets!

The court will either approve or deny your application (rarely the latter). They will take the money. They will then pass your details to the receivers office who will introduce themselves within 48 hours and require an interview (usually by phone) within 2 weeks usually. You will leave the court officially a 'bankrupt'.

You may also get to keep your car, depending on the value. Usually £1k but not set in stone.

But they certainly will not confiscate the car at the court house!!!

As for your bank accounts - with draw any cash needed for day to day living. Once the banks are notified of the BR the accounts will likely be frozen! In fact once you declare BR the accounts belong the the receiver and withdrawing money can land you in deep trouble.

3: I am pretty sure I have put ALL creditors on the statement of affairs. If after going BR something crawls out the woodwork that I Was unaware of, will this then be wrapped up?

Yes

4: We have a deficit with child tax credits which we currently pay back monthly, there was no where to put this in the statement of affairs, are these wrapped into the BR, or are they outside of it?

Put under 'other'.

Or declare the household income to be lower and explain to the receiver you receive less in CTC due to repayments being deducted.

5: I need to put aside money for SE tax etc as well as saving for birthdays/holiday etc. am I allowed to save money when BR?

Holidays are allowed.

Self employed taxes will also see your net income reduced so let them know when declaring your income.

thegrape

That is really useful thank you very much!

mattannar

Who have you taken advise from?

thegrape

I have spoken to the debt charity - but also a chap that is helping us with the process

luvchocolate

read everything all the stickys on here the I.S website read it all and then again. the more knowledge you have the better. I do hope you are not paying someone to help you?

thegrape

I was going to, as he has helped us with the forms etc and will come with us to the court.

dextersmum_2

You need to understand the process and implications of bankruptcy and IMO you dont.
there are questions that have been raised by others , that you need to consider, b ut i will answer each point and a bit more in turn to the original question.

1. Beneficial intrest is about the equity- i think its still 1k and above, if there is equity you or someone else will need to buy that back off the OR, it will be determined at half so if you have 40k , you and your wife will need to raise 20k each to the OR.
if you have equity and cannot pay the amount back to the official receiver you will be given an amount of time to vacate, normally up to 12 months. If you dont pay the mortage in that time it will still be viable for repossession and what ever comes first would be when you left. ie repossessi0on or the order to v acate from the official receiver.
2. all courts have general security in the uk ie a bit like at the airport , you may get asked to empty your pockets , look in a hangbag, , t hey will not know what you are there for.
3. When you arrive, you pay the fee which is around 722 pound in cash to the court desk, and hand in your BR petition, they will check all the details including level of debts and your income and expediture , assets etc, you will be told to wait and then called.
4. The judge will see you individually in closed chambers - so you wont be able to accompany each other for moral support, you could have a advocate ie from the CAB or recognsied debt charity who would be there in a lay advoocacy postion.
5. the judge will not question you about why, but WILL want to know if YOU HAVE TAKEN ADVICE and that you understand all the implications of being a BR. If you say she will then make you BR, that is it there is NO TURNING BACK.
6. You will be told to take a seat prob and your BR notification will be issued giving you details of the official receiver, the court calls them, you will told to then go and await a call from the Official Receiver, sometimes that first call is made to you in the court.
7. you must them notify the bank and seek their permission to continue using their facility, any money then DOES not belong to you or your wife until the official receiver agrees that. Most banks will not allow you the use any longer and will clsoe the account down and send out any monies by cheque .
I would suggest having a nil balance in your account on that day and cancell all direct debits and assume you will have to make new arrangments . You might find that as a newly opened account , those that normally allow the customers to b ank with them wont. You must remember hardly any bank will allow you to open a new account as a bankrupt.

Get a credit union budgeting account opened up as backup

8. They wont take the car, b ut will certainely express a intrest in it if its over 1k in value, if it is prepared to lose it within a few weeks of BR, you will be given back up to 1k, and its the OR decision to decide if you can have any allowance each for a car.
9.Someone mentioned who had been dealing with the tax that you owe, the OR will pay close attention to that and will be looking /investigating why you didnt pay the tax. if they think your debts are due to culpable behaviour they can impose further restrictions on you
10. They will do DVLA and land reg checks
11. they dont as norm credit check you if some thing is missed then it c an be added to it later.
12. The OR will do a income and exp and if you have surplus of 20 pound they will take that into a income payment award over 36 months, it is the OR decision as what they will allow, for priority, priority is

Rent /Mortage- must be reasonable
ctax
elec
gas
tv licence
optical
dental
prescription
basic phone package
food

car/holiday etc is at there discretion they dont allow for eg birthdays , you could be left with hardly anything if you have a good income now, as from what you have said you would prob mostly repay a huge chunk of the debt back over those 36 years, most of the money wont go to the debt b ut the official receiver costs.
you def will not keep your earnings a nd id suggest unless you intend to work for free for the next 3 years and have a limited expediture then consider to not operate as you have .

You must seek proper advise as you can not turn the clock back , once the deed has been done.

dextersmum_2

you def dont pay anyone, see CAB or ring Step change or National Debt line they will guide you, the bloke wont be allowed in with you anyway.

dextersmum_2

Tax credit overpayments i think are contiuned to be paid for until the end of your 12 months ie when you are discharged but i might be wrong , some funny rules with those sort of overpayments, you need to check that, you can also ring the OR helpline.