Considering BR

hanes

Yes we will both be applying for BR

My partners is the bulk of debt and mine is a car on a ridiculous apr I took out.

Fed up of it now, just want it done and dusted so we can get on with life as at the minute it feels like we are not living. And I feel its impacting on my daughters life not in the material sense but the fact we are often distant worrying about how little we have to eat for the month ahead.

Also does anyone know even if you work, would you be able to get help towards the fees of bankruptcy? I could not pay debts for another month in order to fund it but would the OR look down upon this?

Plus I don't want them to take the car just yet as we have nothing to replace it with and public transport isn't an option for me as I have a 50 mile round trip.

thanks

alastairq

I could not pay debts for another month in order to fund it but would the OR look down upon this?

Ceasing payment of non-essential debts is normal practice..often many many months before an actual BR petition.

Don't be tempted to pay one debt, and not another, as this is the sticky point an OR won't like.......it's called 'favouring' a creditor.

What you should do, is to pay each creditor [non-essential debts, that is].....a token amount each month.

usually nothing more than one pound each creditor.

Pay each one religiously....no more, no less, and don't miss a month.

The purpose of this is to demonstrate to a Court [should one or more seek a CCJ against you]....that you intend to pay....demonstrates 'intention'.

Do this, and it really doesn't matter how agitated the creditors get.

Don't, whatever you do, mention anything about a bankruptcy petition..you don't have to state future intentions to anybody.

Regarding the car?

Much will depend on what sort of finance agreement you have[I haven't looked back in your posts, BTW]


But something suitable can be had for a few hundred pounds if needs be....?

hanes

Yes the outlook is that they can have the car back as its worth pennies on what I have paid against it already, I wont go into detail but I paid an outrageous apr so car was worth 4k priced at 7k and cost me 15k in the outcome.

I cannot do a VT on it due to it being a personal loan, they wound me up pretty much and reeled me in.

But for now its all we have to get to and from work, hopefully we can borrow a family members car in the meantime for a few weeks when they do come for it.

We have the forms now and will be filling them into tonight, quick question. Do I take the forms along with the £125 to the court or just hand in the forms first then pay the fee?

If the courts will not give me BR will I lose the £125?

I am trying to get an appointment with the CAB regarding advice on the matter but with our working hours and childcare it is extremely difficult and getting time off work is another matter altogether!

thanks for the advice thus far, im hoping by the end of the month at payday this will all be going through and done.


Is it correct that the OR will take control of our income and pay it onwards into the BR? for this to happen do they take it direct from our salaries by means of a payment order via my employer?

thanks

alastairq

We have the forms now and will be filling them into tonight, quick question. Do I take the forms along with the £125 to the court or just hand in the forms first then pay the fee?

If the courts will not give me BR will I lose the £125?

£125 ??

More like £700..[unless I have missed some hardship information here?}

Providing you have sought impartial advice [from a debt charity, as mentioned on here]....and you show you are insolvent, the Judge will grant the petition.

However, if the Judge, for some reason, thinks you do not understand properly, the implications of BR, then the Judge will not grant the petition.

This is so rare as to be notable.

{ the last thing the Judge wants is to find someone coming before them again to reverse aBR petition 'because they didn't understand the implications'.}

thanks for the advice thus far, im hoping by the end of the month at payday this will all be going through and done.

Why the rush?

Is it correct that the OR will take control of our income and pay it onwards into the BR? for this to happen do they take it direct from our salaries by means of a payment order via my employer?

Yes, and no.

What BR means is, the Official Receiver takes control of all the BR's assets and finances.


They then realise the assets, and distribute same to known creditors equitably.

In return, creditors are forbidden by Law to pursue the former debtor.

When looking at a BR's income, the OR is required to allow the BR reasonable living expenses.

In PRACTICE.......

....you retain 'control' over your income, and outgoings, in accordance with the agreed SOA.

If it is agreed between yourselves and your OR that a surplus of income exists [after the reasonable living expenses are deducted].....then the OR seeks an IPA.

This, you pay.

Your employer will have zero knowledge of the whole affair.

Sometimes, if PAYE, one receives a NT tax code.

The effect of this is, one receives almost gross pay, instead of nett pay.

The extra amount received [usually corresponding to what one would have paid in income tax]....is paid to the OR's representatives, for as long as the NT code remains in place.

This is referred to [on here] as the NT IPA.....which is a different animal to the surplus-based IPA.

arcon5

Don't worry about stopping paying the debts if you decide to go bankrupt.... so long as you don't use any further credit between stopping and actually petitioning... otherwise the receiver will not like it.

I bet many people bury head in the sand and ignore many debts for a long time before petitioning.

tigerfeet2006

And as have shown you, you will not get an IPA.

hanes

alastair that is very helpful thank you.

The reason I want it done by the end of the month is I don't want creditors chasing me anymore than they are now.

at present we have a personal loan with HSBC who my partner banks with. Am I allowed to open a basic account now and have wages paid there instead of with HSBC in order to stop them gaining control over my income in order to pay the loan. there is a term for this I know but I cant think of it right now.

Lets say that after we are declared BR, obviously no debtors will be chasing us however what I don't fully understand is what happens to our income. as stated in my soa we earn 2.5k income and expenditure is £295 over that.

I don't get how much of our income will be given to the OR and where it will go?

so from 2.5k we will be paying for the cost of living and that is it? the rest goes to the OR

sorry if I am being thick here Im just trying to understand it.

thank you

arcon5

If you are definately petitioning at some point, then yes open the basic bank account before you go BR, sooner the better. Barclays cash card are good in my opinion, and it will prevent HSBC being able to offset your balance with their loan.


Some of your income will go to the income if you are entered in to a IPO/IPA. This is usually where you have surplus income only. They would notify you if they wanted to set one up and I *think* you'd simply be responsible for payin them each month yourself, via standing order perhaps.

arcon5

alastairq wrote: »

£125 ??

More like £700..[unless I have missed some hardship information here?}

The £700 is made up of £125 court fee + £575 fee to receivers office so I think ops referring to the court fee.

When I declared BR op they went through the petition and approved it BEFORE taking any money from me. Paying the cashier was to last thing to do before leaving the court.

Attending court was the easy bit in my experience, in and out in 30 minutes. Then starts the stress, worry and anticipation of the official interview with the examiner!

arcon5

Op go through #26 again and review your SOA accordingly. There's no reason you should be showing a large surplus.