PLEASE help me.

Gaster

This is one of the most compassionate places on the internet, thank you everyone. If anyone can help with any of the following questions I would be sooo grateful. I am at my absolute wits end, sitting here typing this with my gorgeous daughter playing in front of me - oblivious to the way her world will be rocked:

Debts - approx £24k to creditors

a further £24k at least owed to parents in law who we live with, but will owe as a result of additional borrowing on mortgage. Their share is protected by a declaration of trust and they will pursue it... because they have to. No grudge at all on my part. We have let them down. They are named on the mortgage which I think will still mean the bank can take the house.

In bankruptcy how are the following things conducted, arranged etc:

Will my salary be paid to somebody else? will my payroll be informed?

Does the OR consider any kind of alloawnce for leisure? Not extravagance but feeling as low as I do, to not be able to buy my kids an ice cream, have a pint or maybe get to the cinema once a month will be very hard?

Will I be able to get accomodation, as renting will be tough. Will the OR allow me money for rent on a home in which my children can stay? i.e. not a one room bedsit.

I have worked so hard to get to this point in my life, salary is good enough at £40k but with the wife having an affair and leaving me - the debts are impossible and I will have less money coming in than going out, and that is based on making minimum credit card payments.

Life feels like its over.

alastairq

Hi, and welcome. to answer some of your questions....

In bankruptcy how are the following things conducted, arranged etc:

Will my salary be paid to somebody else? will my payroll be informed?

NO, not unless you want it to be. You will need to open one [or two, for budgeting purposes] BASIC bank accounts. Co-op's Cashminder account is one, Barclays basic another.....[co-op allow internet access whilst undischarged BR, Barclays currently do not....Co-op will not open a Cashminder to an undischarged BR, Barclays will]

Your Payroll dept will know nothing..it is not their business. If on PAYE, at some point your tax code will be changed to NT code [Nil Tax]...so you receive gross pay.

Does the OR consider any kind of alloawnce for leisure? Not extravagance but feeling as low as I do, to not be able to buy my kids an ice cream, have a pint or maybe get to the cinema once a month will be very hard?

Not specifically allowed, but can be found from within your SOA form other items.

Will I be able to get accomodation, as renting will be tough. Will the OR allow me money for rent on a home in which my children can stay? i.e. not a one room bedsit.

If mortgage payments are to cease it might be advisable to move out into a rented house.

The house itself, and loans secured on it, don't fall into a BR....

I suggest moving to rented house before BR, for credit check purposes.

I have worked so hard to get to this point in my life, salary is good enough at £40k but with the wife having an affair and leaving me - the debts are impossible and I will have less money coming in than going out, and that is based on making minimum credit card payments.

You need to speak soonest to one of the Debt advice charities...CAB or Stepchange, for example...they are listed in the stickies above.

This is an essential task pre-BR, as , on petition, one is asked if one has sought proper advice beforehand.


From experience, what you are undergoing at present seems the end-of-the-world, but you have to start being realistic, and a little selfish, for you and the kids.


BTW...BR can affect certain types of job......is yours one of those?

Gaster

I am a manager in a college. Do you know if this is one of those jobs?

Gaster

Can I ask what the soa is and what you mean by can be found within other items?

alastairq

I am a manager in a college. Do you know if this is one of those jobs?

Much depends on your job T&C's.

Especially if responsible for budgets, etc?

if your job T&Cs don't mention BR, it might be worth having a chat with HR, test the water?

alastairq

Gaster wrote: »

Can I ask what the soa is and what you mean by can be found within other items?

Statement of Affairs.

it is the list of income/expenditure/debt that is required for BR petition.

Have you checked out the BR stickies at the top of this forum?

Form the SOA [which is totally negotiable, BTW]....the OR can determine if you have a surplus of income with which to pay into the BR {IPA/IPO]


The Official Receiver is required to allow a BR to have reasonable domestic expenses.


Thus, things like groceries, TV, phone, etc are allowable. As are many other individual items [including a holiday fund, and haircuts].

For specific social expenditure, whilst this in itself isn't one of the allowances, it can be funded from within other allowances.

Whilst the BR claims under the various categories of expenditure, the OR has no concern over how that expenditure is expended.....

[Deleted User]

SOA is Statement of Affairs, such as this one. http://www.makesenseofcards.com/soacalchelp.html

And I think what Alastraig (above) meant is that while bankrupt you are likely to be allowed to have a specific budget for treats and luxuries, but you will be permitted certain budgets for areas that you are allowed, when in fact actual spend may be a little lower (if that makes sense) - so there is a little wriggle room.

HTH

D9

alastairq

https://forums.moneysavingexpert.com/discussion/comment/51390081#Comment_51390081

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https://forums.moneysavingexpert.com/discussion/4160099

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