Considering BR

hanes

Hi

I have read through the forum stickies and there is some advice which is good there but im a bit lost of the process of BR

have looked online for the forms to fill in however they are In doc. format and my printer wont print them correctly. Is there anywhere I can send to receive them via post?

My story is I have 22k of unsecured debt and since having a little one the cost of living etc along with nursery fees has meant we created a loop of endless borrowing (naive is a word well used)

Basically now I want to consider BR as we are living on around £40 per week after all expenditures are taken out.

We rent a house

Both work full time.

Please don't judge my situation, I just need advice at this point.

Where do I go next in order to get the process started? I know what fees I have to pay etc but I don't know where to go for contacting the right channels

I have searched for my local insolvency office and found one but I am not sure if it is right.

Im a bit apprehensive about this as I have heard that I may be forced to pay my income back into the BR for 3 years?

I will be left with £300 per month if bankruptcy goes through would this be allowed to be kept?

As you can see im confused about the whole thing but I know that I need a fresh start away from all of this as its beginning to take its toll on me and my partner thus spilling over into work and relationships at home and I really don't want to be doing it anymore.

many thanks

OutofDebt-NOT-OutofDanger

hanes wrote: »

Hi

I have read through the forum stickies and there is some advice which is good there but im a bit lost of the process of BR

have looked online for the forms to fill in however they are In doc. format and my printer wont print them correctly. Is there anywhere I can send to receive them via post? Your local court should be able to send them to you.

My story is I have 22k of unsecured debt and since having a little one the cost of living etc along with nursery fees has meant we created a loop of endless borrowing (naive is a word well used)

Basically now I want to consider BR as we are living on around £40 per week after all expenditures are taken out.

We rent a house

Both work full time.

Please don't judge my situation, I just need advice at this point.

Where do I go next in order to get the process started? I know what fees I have to pay etc but I don't know where to go for contacting the right channels You need to have taken advice from one of the debt charities or CAB before applying for BR. They may also be able to sort out the forms for you.

I have searched for my local insolvency office and found one but I am not sure if it is right.Don't worry about this, the court will appoint the relevant office.

Im a bit apprehensive about this as I have heard that I may be forced to pay my income back into the BR for 3 years?

I will be left with £300 per month if bankruptcy goes through would this be allowed to be kept? Any surplus income will be paid into an IPA for 36 months once set up but this can be changed if your circumstances change. If you post up your SoA there are plenty of people here who can advise if you've covered everything.

As you can see im confused about the whole thing but I know that I need a fresh start away from all of this as its beginning to take its toll on me and my partner thus spilling over into work and relationships at home and I really don't want to be doing it anymore.

many thanks

Hope this helps.

tigerfeet2006

If you pop up your SoA we can show you how an OR may look it for you. You may be surprised at what you have a surplus.

Also as already said please get in touch with someone like National Debtline to go over your circumstances. Your BR may be refused if you don't.

hanes

Ok well thanks for the advice at this point. You see im confused as to why they make you pay surplus income into BR if you have applied for insolvency its because you cannot make the payments against your debt any longer?

My sister was in the same position but only with 7k of debt, she didn't go down the route of CAB just straight into filling in the forms off the internet and done.

Have had a chat with her but a little confused still.


I'll keep posting as I go through the stages. Just hope I can get it done as really there is no alternative, just want a clean break

michael1983l

I thought standard bankrupsy was 12 months of payments and only became 36 months should there have been gambling involved or evidence of extreme irresponsibility?

fermi

michael1983l wrote: »

I thought standard bankrupsy was 12 months of payments and only became 36 months should there have been gambling involved or evidence of extreme irresponsibility?

http://www.bis.gov.uk/insolvency/personal-insolvency/income-payments-orders-and-agreements

michael1983l

fermi wrote: »

http://www.bis.gov.uk/insolvency/personal-insolvency/income-payments-orders-and-agreements

Interesting, that must be a recent ammendment, when I took advice off national debtline about 2 - 3 years ago they told me 12 months is usual and it only extends to 36 months in specific circumstances.

There has also been evidence of people being discharged from bankrupsy within 3 months on here because they had no available income to pay.

fermi

No. Not recent. IPOs were in the Insolvency Act 1986, and IPAs in the Enterprise Act 2004.

I think NDL must have given you the wrong impression, or you got the wrong end of the stick as it were.

Bankruptcy is still 12 months max in most circumstances. IPA/Os run for 3 years however. They are not the same thing.

michael1983l

fermi wrote: »

No. Not recent. IPOs were in the Insolvency Act 1986, and IPAs in the Enterprise Act 2004.

I think NDL must have given you the wrong impression, or you got the wrong end of the stick as it were.

Bankruptcy is still 12 months max in most circumstances. IPA/Os run for 3 years however. They are not the same thing.

So basically in all cases where there is surplus income then you pay for 3 years?

If you have no surplus income at the time or BR, does this get re-evaluated given changes to circumstances at any time during the 3 years from BR or just during the 12 months of BR or is it never visited again?

alastairq

during the 12 months...whilst undischarged. {unless discharge is delayed for some reason?]

alastairq

Ok well thanks for the advice at this point. You see im confused as to why they make you pay surplus income into BR if you have applied for insolvency its because you cannot make the payments against your debt any longer?

My sister was in the same position but only with 7k of debt, she didn't go down the route of CAB just straight into filling in the forms off the internet and done.

The surplus based IPA is only an agreement, and can be varied throughout to suit the BR's circumstances.

It is not a 'debt' repayment...the money goes into the BR estate, to pay for its administration, and eventually, equitable division amongst creditors.


Insolvency is a state where an individual cannot meet all their debts as they fall due.


Which does not mean there isn't a surplus of income.....just not enough to meet the above.